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

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


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.


Gross Domestic Product International Monetary Fund Real Exchange Rate Commercial Bank Trade Liberalisation 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Commonwealth Secretariat (1986) Co-operation Without Cross-conditionality: An Issue in International Lending, September.Google Scholar
  2. Inter-American Development Bank (1986) Beyond the Debt Crisis: Latin America, the Next Ten Years, papers from the London Conference, January.Google Scholar
  3. Reisen, Helmut (1985) ‘Desequilibrium Prices and External Debt: An Empirical Analysis for 1978–1984’, in Colin Bradford Jr. (ed.) Europe and Latin America in the World Economy (New Haven, CT: Yale Centre for International and Area Studies) pp. 88–120.Google Scholar
  4. Sebastian, Luis de (1987) La Deuda Externa de América Latina y la Banca Internacional (San Salvador, Universidad de Centroamerica UCA Editores).Google Scholar
  5. Villarreal, René (1988) México2010 (Mexico Edit. Diana).Google Scholar
  6. World Bank (1985) World Development Report. Google Scholar
  7. World Bank (1987) Mexico, After the Oil Boom: Refashioning a Development Strategy, June.Google Scholar

Copyright information

© Ennio Rodríguez 1992

Authors and Affiliations

  • René Villarreal

There are no affiliations available

Personalised recommendations