In The News

Lula: The End of Latin American Populism?

Ernesto Zedillo December 13, 2002
For nearly a century, populism has been the most pervasive and successful campaign strategy in Latin America; however, as a political and economic tactic once in office, it has consistently betrayed its followers. Quite frequently, populist regimes – democratic or authoritarian – deliver short-term prosperity followed by “painful financial collapse.” And with the Brazilian financial situation...

The Next Africa?

Nicholas D. Kristof December 10, 2002
Argentina has preceded its South American neighbors in one of the worst financial crises the continent has ever seen. Its once-prosperous inhabitants are scrounging for food and collecting recyclables to make a living, and Argentina is poised to become the next Africa, Nicholas Kristof writes. Tumultuous political situations and falling per capita income are leaving the people Venezuela, Brazil...

RI No Longer Needs IMF Loans, Development Planning Minister Says

October 10, 2002
Indonesian State Minister of National Development Planning, Kwik Kian Gie, says that loans from the International Monetary Fund have helped little in his country's efforts to rebuild its economy. Out of the $43 billion promised to Indonesia, only $9 billion has arrived. And, according to the terms of the loan agreements, that money cannot be touched until the country has exhausted its own...

A Valuable Stick

October 1, 2002
Private creditors who hold the sovereign debt of nations argue that collective action clauses are the best way to deal with countries on the brink of loan default. Collective action clauses entail a majority decision among creditors that will prevent individual creditors from blocking debt restructuring. When a country faces a cash-flow problem, creditors tend to withdraw funds or block debt...