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International Capital Markets, the Debt Crisis and Development

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Global Development Fifty Years after Bretton Woods

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Abstract

This paper examines the workings of the international private capital market in recent years from the perspective of the 15 highly indebted countries in the Third World, evaluating the role played by market forces and market imperfections in the emergence of the debt crisis of the 1980s and its management. The paper considers market re-entry and examines the recent capital inflows to major debtor countries and their sustainability. Finally, the role of the international financial institutions in managing the debt crisis is discussed, and proposals made for reforming, or in the case of the Bank, transforming, their functions.

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Authors
  1. John Loxley
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Editor information

Editors and Affiliations

  1. Ottawa, Canada

    Roy Culpeper (President of the North-South Institute) (President of the North-South Institute)

  2. Department of Economics, University of Toronto, Canada

    Albert Berry (Professor) (Professor)

  3. International Development Centre, Queen Elizabeth House, UK

    Frances Stewart (Director, Fellow of Somerville College) (Director, Fellow of Somerville College)

  4. University of Oxford, UK

    Frances Stewart (Director, Fellow of Somerville College) (Director, Fellow of Somerville College)

Copyright information

© 1997 The North-South Institute

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Loxley, J. (1997). International Capital Markets, the Debt Crisis and Development. In: Culpeper, R., Berry, A., Stewart, F. (eds) Global Development Fifty Years after Bretton Woods. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-25570-2_8

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