The Latin American debt crisis was a financial crisis that originated in the early 1980s (and for some countries starting in the 1970s), often known as the "lost decade", when Latin American countries reached a point where their foreign debt exceeded their earning power and they were not able to repay it.
Origins
In the 1960s and 1970s many Latin American countries, notably Brazil, Argentina, and Mexico, borrowed huge sums of money from international creditors for industrialization; especially infrastructure programs. These countries had soaring economies at the time so the creditors were happy to continue to provide loans. Initially, developing countries typically garnered loans through public routes like the World Bank. After 1973, private banks had an influx of funds from oil-rich countries and believed that sovereign debt was a safe investment.
Between 1975 and 1982, Latin American debt to commercial banks increased at a cumulative annual rate of 20.4 percent. This heightened borrowing led Latin America to quadruple its external debt from $75 billion in 1975 to more than $315 billion in 1983, or 50 percent of the region's gross domestic product (GDP). Debt service (interest payments and the repayment of principal) grew even faster, reaching $66 billion in 1982, up from $12 billion in 1975.
Debt crisis is the general term for a proliferation of massive public debt relative to taxrevenues, especially in reference to Latin American countries during the 1980s, and the United States and the European Union since the mid-2000s. As well as the Chinese debt crises of 2015.
Current and recent debt crises
Europe
European debt crisis
The European debt crisis is a crisis affecting several eurozone countries since the end of 2009. Member states affected by this crisis were unable to repay their government debt or to bailout indebted financial institutions without the assistance of third-parties (namely the International Monetary Fund, European Commission, and the European Central Bank). The causes of the crisis included high-risk lending and borrowing practices, burst real estate bubbles, and hefty deficit spending. As a result, investors have reduced their exposure to European investment products, and the value of the Euro has decreased.
Latin America is the group of territories and countries in the Americas where Romance languages are spoken. The term originated in 19th century France to include French-speaking territories in the Americas within the larger group of countries that speak Spanish and Portuguese. It is therefore marginally broader than the term Iberian America or Spanish America, though it excludes French-speaking Quebec. Latin America consists of twenty sovereign states and several territories and dependencies which cover an area that stretches from the southern border of the United States to the southern tip of South America, including the Caribbean. It has an area of approximately 19,197,000km2 (7,412,000sq mi), almost 13% of the earth's land surface area.
As of 2015, its population was estimated at more than 626 million and in 2014, Latin America had a combined nominal GDP of 5,573,397 million USD and a GDP PPP of 7,531,585 million USD. The term "Latin America" was first used in 1861 in La revue des races Latines, a magazine "dedicated to the cause of Pan-Latinism".
Hispanic Americans and Latino Americans (Spanish:hispanos[isˈpanos], latinos) are United States citizens, descending from the peoples of the countries of Latin America and Iberia. More generally, it includes all persons in the United States who self-identify as Hispanic or Latino, whether of full or partial ancestry. For the US census in 2010, American Community Survey, people counted as "Hispanic" or "Latino" are those who identify as one of the specific Hispanic or Latino categories listed on the census or ACS questionnaire ("Mexican," "Puerto Rican," or "Cuban") as well as those who indicate that they are "other Spanish, Hispanic, or Latino." The countries or people who are in the Hispanic or Latino American groups as classified by the Census Bureau are the following: Spain, Mexico, Puerto Rico, Cuba, Dominican Republic, Costa Rica, Guatemala, Honduras, Nicaragua, Panama, El Salvador, Argentina, Bolivia, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela. It is important to note that the Census office of the U.S. excludes Brazilian Americans from the Hispanic and Latino American population (Brazil is part of Latin America, but has a Portuguese language culture rather than a Spanish language culture).
Shearman & Sterling's important work during the Latin American debt crisis helped avert a global financial crisis, enabled the region to recover from the so-called "lost decade" and guided subsequent high-profile restructurings around the world.
published: 20 Jun 2014
The International Debt Crisis of 1982: Causes, Consequences, and Lessons Learned
In this video, we delve into the international debt crisis of 1982, which had a profound impact on the global economy. We examine the economic conditions that led to the crisis, the consequences for developing countries and financial institutions, and the policy responses implemented to manage the fallout. By exploring the lessons learned from this pivotal moment in global economic history, we gain a deeper understanding of the risks of excessive borrowing and the importance of responsible lending practices. Join us as we journey into the world of international finance and economics, and learn how the international debt crisis of 1982 continues to shape the global economic landscape today.
Disclosure: Please note that none of the information in this video should be taken as financial advi...
published: 13 Mar 2023
Debt Crisis and Economic Collapse: Unveiling the Latin American Debt Crisis
Link to Video Transcript: https://pytc-history-en.blogspot.com/2023/05/3-debt-crisis-and-economic-collapse.html
published: 01 Jun 2023
Latin American Debt Crisis of the 1980s (Jeffry Frieden, Harvard University)
published: 28 Mar 2015
Latin American Debt Crisis of the 1980s
The Latin American debt crisis of the early 1980s was a severe financial turmoil triggered by rising global interest rates, falling commodity prices, and economic mismanagement. This crisis led to defaults by several countries, causing deep recessions, high inflation, and social unrest. International financial institutions intervened with emergency loans and imposed austerity measures, highlighting the vulnerabilities of developing economies to global financial fluctuations.
#latinamerica #debtcrisis #economicimpact #imf #globalfinance
published: 05 Aug 2024
Latin American Debt crisis
published: 22 Apr 2016
Debt Crisis in Latin America
this is my final project for the subject risk analysis
published: 25 Jul 2020
Latin American Debt Crisis
published: 22 Apr 2016
Why Is Latin America still Poor
Why is Latin America poorer than North America? The massive differences in wealth between a rich United States and a relatively poor central and south America is startling and hard to explain at first. In the video we delve into the key historical, political and economic factors that have led to this inequality, finding that the answer is more startling and interesting than initially expected.
Please Subscribe! https://www.youtube.com/c/CasualScholar?sub_confirmation=1
--Contents of this video--------------------------------
00:00 - A Tale of Two Cities
01:29 - A Tale of Two Continents
04:03 - Spanish Colonization
07:09 - Enslaving Empire's
09:18 - The Mountain of Silver (Cerro Rico)
12:00 - English Colonization
13:30 - Why The United States is So Rich
15:38 - Why Latin America is Sti...
Shearman & Sterling's important work during the Latin American debt crisis helped avert a global financial crisis, enabled the region to recover from the so-cal...
Shearman & Sterling's important work during the Latin American debt crisis helped avert a global financial crisis, enabled the region to recover from the so-called "lost decade" and guided subsequent high-profile restructurings around the world.
Shearman & Sterling's important work during the Latin American debt crisis helped avert a global financial crisis, enabled the region to recover from the so-called "lost decade" and guided subsequent high-profile restructurings around the world.
In this video, we delve into the international debt crisis of 1982, which had a profound impact on the global economy. We examine the economic conditions that l...
In this video, we delve into the international debt crisis of 1982, which had a profound impact on the global economy. We examine the economic conditions that led to the crisis, the consequences for developing countries and financial institutions, and the policy responses implemented to manage the fallout. By exploring the lessons learned from this pivotal moment in global economic history, we gain a deeper understanding of the risks of excessive borrowing and the importance of responsible lending practices. Join us as we journey into the world of international finance and economics, and learn how the international debt crisis of 1982 continues to shape the global economic landscape today.
Disclosure: Please note that none of the information in this video should be taken as financial advice. The purpose of this video is for education and entertainment only. Please do your own research and due diligence before making any financial decisions. The content of this video is solely the opinion of the speaker and is not intended to be a substitute for professional financial advice. Always seek the advice of a qualified financial professional with any questions you may have regarding your financial situation.
In this video, we delve into the international debt crisis of 1982, which had a profound impact on the global economy. We examine the economic conditions that led to the crisis, the consequences for developing countries and financial institutions, and the policy responses implemented to manage the fallout. By exploring the lessons learned from this pivotal moment in global economic history, we gain a deeper understanding of the risks of excessive borrowing and the importance of responsible lending practices. Join us as we journey into the world of international finance and economics, and learn how the international debt crisis of 1982 continues to shape the global economic landscape today.
Disclosure: Please note that none of the information in this video should be taken as financial advice. The purpose of this video is for education and entertainment only. Please do your own research and due diligence before making any financial decisions. The content of this video is solely the opinion of the speaker and is not intended to be a substitute for professional financial advice. Always seek the advice of a qualified financial professional with any questions you may have regarding your financial situation.
The Latin American debt crisis of the early 1980s was a severe financial turmoil triggered by rising global interest rates, falling commodity prices, and econom...
The Latin American debt crisis of the early 1980s was a severe financial turmoil triggered by rising global interest rates, falling commodity prices, and economic mismanagement. This crisis led to defaults by several countries, causing deep recessions, high inflation, and social unrest. International financial institutions intervened with emergency loans and imposed austerity measures, highlighting the vulnerabilities of developing economies to global financial fluctuations.
#latinamerica #debtcrisis #economicimpact #imf #globalfinance
The Latin American debt crisis of the early 1980s was a severe financial turmoil triggered by rising global interest rates, falling commodity prices, and economic mismanagement. This crisis led to defaults by several countries, causing deep recessions, high inflation, and social unrest. International financial institutions intervened with emergency loans and imposed austerity measures, highlighting the vulnerabilities of developing economies to global financial fluctuations.
#latinamerica #debtcrisis #economicimpact #imf #globalfinance
Why is Latin America poorer than North America? The massive differences in wealth between a rich United States and a relatively poor central and south America i...
Why is Latin America poorer than North America? The massive differences in wealth between a rich United States and a relatively poor central and south America is startling and hard to explain at first. In the video we delve into the key historical, political and economic factors that have led to this inequality, finding that the answer is more startling and interesting than initially expected.
Please Subscribe! https://www.youtube.com/c/CasualScholar?sub_confirmation=1
--Contents of this video--------------------------------
00:00 - A Tale of Two Cities
01:29 - A Tale of Two Continents
04:03 - Spanish Colonization
07:09 - Enslaving Empire's
09:18 - The Mountain of Silver (Cerro Rico)
12:00 - English Colonization
13:30 - Why The United States is So Rich
15:38 - Why Latin America is Still Poor
20:33 - Why is Latin America Poorer than North America
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CASUAL SCHOLAR IS MADE POSSIBLE BY OUR PATREON COMMUNITY!
Support the channel by becoming a Patron today! 👉 https://www.patreon.com/CasualScholar
The video you’re watching right now would not exist without the monthly support provided by our generous Patrons:
Talon Hickey, Hayden Haun, Emmanuel Fredenrich, Pulaski, Adrian Willenbücher
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
--Sources used---------------------------------------------
Books:
- Why Nations Fail: The Origins of Power, Prosperity, and Poverty
- Bulmer-Thomas, V. (2003). The Economic History of Latin America since Independence (2nd ed., Cambridge Latin American Studies). Cambridge: Cambridge University Press. doi:10.1017/CBO9780511817397
Scholarly Articles:
- https://projects.iq.harvard.edu/files/history-culture-society-workshop/files/acemoglu_2.pdf
- Coatsworth, John H. “Inequality, Institutions and Economic Growth in Latin America.” Journal of Latin American Studies, vol. 40, no. 3, Cambridge University Press, 2008, pp. 545–69, http://www.jstor.org/stable/40056706.
- https://www.nber.org/system/files/chapters/c10652/c10652.pdf
#WhyisLatinAmericaPoorerthanNorthAmerica #LatinAmerica #Venezuela #Mexico #Economics #WhyisTheUnitedStatesSoRich
Why is Latin America poorer than North America? The massive differences in wealth between a rich United States and a relatively poor central and south America is startling and hard to explain at first. In the video we delve into the key historical, political and economic factors that have led to this inequality, finding that the answer is more startling and interesting than initially expected.
Please Subscribe! https://www.youtube.com/c/CasualScholar?sub_confirmation=1
--Contents of this video--------------------------------
00:00 - A Tale of Two Cities
01:29 - A Tale of Two Continents
04:03 - Spanish Colonization
07:09 - Enslaving Empire's
09:18 - The Mountain of Silver (Cerro Rico)
12:00 - English Colonization
13:30 - Why The United States is So Rich
15:38 - Why Latin America is Still Poor
20:33 - Why is Latin America Poorer than North America
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CASUAL SCHOLAR IS MADE POSSIBLE BY OUR PATREON COMMUNITY!
Support the channel by becoming a Patron today! 👉 https://www.patreon.com/CasualScholar
The video you’re watching right now would not exist without the monthly support provided by our generous Patrons:
Talon Hickey, Hayden Haun, Emmanuel Fredenrich, Pulaski, Adrian Willenbücher
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
--Sources used---------------------------------------------
Books:
- Why Nations Fail: The Origins of Power, Prosperity, and Poverty
- Bulmer-Thomas, V. (2003). The Economic History of Latin America since Independence (2nd ed., Cambridge Latin American Studies). Cambridge: Cambridge University Press. doi:10.1017/CBO9780511817397
Scholarly Articles:
- https://projects.iq.harvard.edu/files/history-culture-society-workshop/files/acemoglu_2.pdf
- Coatsworth, John H. “Inequality, Institutions and Economic Growth in Latin America.” Journal of Latin American Studies, vol. 40, no. 3, Cambridge University Press, 2008, pp. 545–69, http://www.jstor.org/stable/40056706.
- https://www.nber.org/system/files/chapters/c10652/c10652.pdf
#WhyisLatinAmericaPoorerthanNorthAmerica #LatinAmerica #Venezuela #Mexico #Economics #WhyisTheUnitedStatesSoRich
Shearman & Sterling's important work during the Latin American debt crisis helped avert a global financial crisis, enabled the region to recover from the so-called "lost decade" and guided subsequent high-profile restructurings around the world.
In this video, we delve into the international debt crisis of 1982, which had a profound impact on the global economy. We examine the economic conditions that led to the crisis, the consequences for developing countries and financial institutions, and the policy responses implemented to manage the fallout. By exploring the lessons learned from this pivotal moment in global economic history, we gain a deeper understanding of the risks of excessive borrowing and the importance of responsible lending practices. Join us as we journey into the world of international finance and economics, and learn how the international debt crisis of 1982 continues to shape the global economic landscape today.
Disclosure: Please note that none of the information in this video should be taken as financial advice. The purpose of this video is for education and entertainment only. Please do your own research and due diligence before making any financial decisions. The content of this video is solely the opinion of the speaker and is not intended to be a substitute for professional financial advice. Always seek the advice of a qualified financial professional with any questions you may have regarding your financial situation.
The Latin American debt crisis of the early 1980s was a severe financial turmoil triggered by rising global interest rates, falling commodity prices, and economic mismanagement. This crisis led to defaults by several countries, causing deep recessions, high inflation, and social unrest. International financial institutions intervened with emergency loans and imposed austerity measures, highlighting the vulnerabilities of developing economies to global financial fluctuations.
#latinamerica #debtcrisis #economicimpact #imf #globalfinance
Why is Latin America poorer than North America? The massive differences in wealth between a rich United States and a relatively poor central and south America is startling and hard to explain at first. In the video we delve into the key historical, political and economic factors that have led to this inequality, finding that the answer is more startling and interesting than initially expected.
Please Subscribe! https://www.youtube.com/c/CasualScholar?sub_confirmation=1
--Contents of this video--------------------------------
00:00 - A Tale of Two Cities
01:29 - A Tale of Two Continents
04:03 - Spanish Colonization
07:09 - Enslaving Empire's
09:18 - The Mountain of Silver (Cerro Rico)
12:00 - English Colonization
13:30 - Why The United States is So Rich
15:38 - Why Latin America is Still Poor
20:33 - Why is Latin America Poorer than North America
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CASUAL SCHOLAR IS MADE POSSIBLE BY OUR PATREON COMMUNITY!
Support the channel by becoming a Patron today! 👉 https://www.patreon.com/CasualScholar
The video you’re watching right now would not exist without the monthly support provided by our generous Patrons:
Talon Hickey, Hayden Haun, Emmanuel Fredenrich, Pulaski, Adrian Willenbücher
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
--Sources used---------------------------------------------
Books:
- Why Nations Fail: The Origins of Power, Prosperity, and Poverty
- Bulmer-Thomas, V. (2003). The Economic History of Latin America since Independence (2nd ed., Cambridge Latin American Studies). Cambridge: Cambridge University Press. doi:10.1017/CBO9780511817397
Scholarly Articles:
- https://projects.iq.harvard.edu/files/history-culture-society-workshop/files/acemoglu_2.pdf
- Coatsworth, John H. “Inequality, Institutions and Economic Growth in Latin America.” Journal of Latin American Studies, vol. 40, no. 3, Cambridge University Press, 2008, pp. 545–69, http://www.jstor.org/stable/40056706.
- https://www.nber.org/system/files/chapters/c10652/c10652.pdf
#WhyisLatinAmericaPoorerthanNorthAmerica #LatinAmerica #Venezuela #Mexico #Economics #WhyisTheUnitedStatesSoRich
The Latin American debt crisis was a financial crisis that originated in the early 1980s (and for some countries starting in the 1970s), often known as the "lost decade", when Latin American countries reached a point where their foreign debt exceeded their earning power and they were not able to repay it.
Origins
In the 1960s and 1970s many Latin American countries, notably Brazil, Argentina, and Mexico, borrowed huge sums of money from international creditors for industrialization; especially infrastructure programs. These countries had soaring economies at the time so the creditors were happy to continue to provide loans. Initially, developing countries typically garnered loans through public routes like the World Bank. After 1973, private banks had an influx of funds from oil-rich countries and believed that sovereign debt was a safe investment.
Between 1975 and 1982, Latin American debt to commercial banks increased at a cumulative annual rate of 20.4 percent. This heightened borrowing led Latin America to quadruple its external debt from $75 billion in 1975 to more than $315 billion in 1983, or 50 percent of the region's gross domestic product (GDP). Debt service (interest payments and the repayment of principal) grew even faster, reaching $66 billion in 1982, up from $12 billion in 1975.
The LatinAmerican debt crisis in the 1980s, the Asian financial crisis in 1997-98 and the global financial crisis in 2008 affected major global economic powers ...China acknowledges and values the role of South-South cooperation ... . . .
The second global oil crisis broke out roughly the same time, and in 1982, Mexico and several other LatinAmerican countries defaulted on their loans, creating the global debt crisis ...Global debt ...
It warned that without urgent action problems would persist into the 2030s, and said pressures were greater than during the LatinAmerican debt crisis of 1982 and the debt crisis of the 1990s.
The 1980sLatinAmerican debt crisis is sometimes referred to as “the lost decade.” It rippled across the entire region, rocking heavy hitters like Mexico, Brazil, and Argentina, but also tiny Costa Rica and its 2.4 million people.
... dollar-denominated debt and increasing investor anxiety ... The LatinAmerican debt crisis of the 1980s, catalysed by Paul Volcker’s aggressive interest rate hikes, sent shock waves through the region.
Almost documentary portrayal of the Deutsche Bank high official who created a sensation in the financial world by in 1987, at the height of the global and particularly LatinAmerican debt crisis, ...
For example, the United States-backed Brady Plan, implemented after the LatinAmerican crisis of the 1980s, helped reduce some countries’ debts and catalyzed the development of a sovereign-bond market for developing countries.
Further, De Gregorio (1992) revealed aggravated inflation challenges arising from factors including macroeconomic imbalances for several years and debt crisis which the sampled and several other LatinAmerican economies were grappling with.
... be a crisis ... And I gave my paper there explaining that there was going to be a debt crisis. This was in, I think, 79, three years before the Mexican default triggered the whole LatinAmerican debt bomb.
But the collapse of oil prices six years later because of the Volcker Fed’s stratospheric interest rate regime and the onset of global recession amid a LatinAmerican sovereign debt crisis ...
Debt swaps have been part of the debt restructuring process since the LatinAmerican debt crisis ... Among them, the United States and Latin American debtor countries implemented the 1990Enterprise of ...
Debt-for-development swaps have emerged as a vital debt management strategy since their inception during the LatinAmerican debt crisis of the 1980s... groups to scale up the "debt-for-nature" mechanism.
The US government debt, for example, exceeds $33 trillion, with the government debt ratio exceeding 120 percent ... In fact, as early as the 1980s, the Fed's rapid increase in interest rates caused 27 LatinAmerican countries to suffer a debt crisis.
