Cross-conditionality: The Case of Mexico and the World Bank
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.
KeywordsGross Domestic Product International Monetary Fund Real Exchange Rate Commercial Bank Trade Liberalisation
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