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.
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.