The Latin American Debt Crisis

The region where Romance is spoken in the country of the United States is an area considered Latin America. People are involved in this area, but it also includes the geography and natural resources of that country. Today 's GDP has reached nearly 5 trillion dollars since people and resources in this area were discovered in the late 15th century. But the history of Latin America is not fun. There are many adversities in the area, but we know that some of the positive cultures of the area are penetrating the area, but some of them are negative ideals as well .

The debt crisis in Latin America does not occur overnight, the crisis has been going on for many years, and the signs of its arrival are particularly prominent in Latin America society. There are many reasons for this; there may be some mistakes in countries other than Latin America. The growth rate of real domestic products in many Latin American countries grew at a constant rate over the decade before the crisis of the 1980s, which led to an increase in foreign investment.

In 1982, debt "situation" in Latin America took place in Latin America "crisis". (Heller Peter and Jack Diamond, 1990) Dual oil shocks in 1973 and 1979, demand for many Latin American products declined, interest rates rose, lenders were too many, borrowers did not discriminate against lenders And sometimes suspiciously, the US government's willingness to allow private aid to replace public aid reduction is only part of the many factors that contribute to today's international debt crisis It is not.

On the economic side, it was rarely influenced by the oil crisis of 1973, and Mexico 's repayment of debt was refused in 1983, leading to a debt crisis in Latin America. Industrialization that is encouraged by the World Trade Organization (WTO). Globalization has an impact all over the world, but it was dominated by the Washington agreement in the 1990s and the Washington agreement implemented a series of neoliberal economic reforms in Latin America. At the first American Summit held in Miami in 1994, the establishment of the American Free Trade Area (ALCA) was decided by 2005. ALCA is a free abstract of trade agreements between Canada and the USA in 1994. Effectiveness