Cross-conditionality: The Case of Mexico and the World Bank

  • René Villarreal
Part of the Macmillan International Political Economy Series book series (IPES)

Abstract

The following three conditions were mainly responsible for the constraints in the Mexican economy in the 1980s, determining its behavior after 1982:
  • First of all the foreign debt, which called for service payments of US $19.4 billion in 1982 and US $13.7 billion in 1987. Interest and debt amortisation payments accounted for an average capital outflow of between 5 and 6 per cent of gross domestic product (GDP) in that period.

  • Second, a severe drop in trade due to the low prices of oil during that period. According to Ministry of Treasury (Secretaría de Hacienda) estimates, this meant a loss of income amounting to US $40 billion in the last six years.

  • Finally, because of the debt, adjustment policies that were geared to increase export income and decrease demand and public deficit.

Keywords

Urea Europe Transportation Income Marketing 

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Bibliography

  1. Commonwealth Secretariat (1986) Co-operation Without Cross-conditionality: An Issue in International Lending, September.Google Scholar
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Copyright information

© Ennio Rodríguez 1992

Authors and Affiliations

  • René Villarreal

There are no affiliations available

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