Positives in the crisis decades

Question 1

Increased aid from more developed economies like France and the US to stimulate growth in indebted countries

Answer 1

Debt rescheduling from Paris club and London club commercial bank lenders

1985
Baker Plan
Creditor nations to stimulate debtor economies by opening their markets to the Latter’s exports

1989
Brady Plan
Structural reforms in order to work towards debt reduction

Question 2

Efforts to increase cooperation and ensure liberalised trade through the introduction of new trading mechanisms

Answer 2

1971: WEF
- GATT discussions to negotiate tariff reductions continued → 1974 establishment of the WTO
- 1975: Creation of the G8 by France
- 1979 Exchange Rate Mechanism (ERM) for currency stability within EU