1. Chapter 14 Slide 1 Copyright © 2003 Pearson Education, Inc.

2. Chapter 14 Slide 2 Copyright © 2003 Pearson Education, Inc.

3. Chapter 14 Slide 3 Copyright © 2003 Pearson Education, Inc.

4. Chapter 14 Slide 4 Copyright © 2003 Pearson Education, Inc.

5. Chapter 14 Slide 5 Copyright © 2003 Pearson Education, Inc.

6. Chapter 14 Slide 6 Copyright © 2003 Pearson Education, Inc. The Mechanics of Petrodollar recycling

7. Chapter 14 Slide 7 Copyright © 2003 Pearson Education, Inc. Net Financial Transfers from Developed Countries, 1972-1992

8. Chapter 14 Slide 8 Copyright © 2003 Pearson Education, Inc. Attempts at Alleviation: Macroeconomic Instability, IMF Stabilization Policies, and Their Critics n The IMF stabilization program: conditionality n Global dimensions of the LDC debt problem n Has the debt problem disappeared? Winners and losers

9. Chapter 14 Slide 9 Copyright © 2003 Pearson Education, Inc. Concepts for Review n Amortization n Balance of payments n Basic transfer n Brady plan n Capital account n Capital flight n Cash account n Conditionality n Current account n Debt-for-equity swaps n Debt-for-nature swaps n Debtors’ cartel n Debt repudiation n Debt service n Deficit

10. Chapter 14 Slide 10 Copyright © 2003 Pearson Education, Inc. Concepts for Review n Euro n External debt n Hard currency n International reserve account n International reserves n Macroeconomic instability n Restructuring n Special drawing rights (SDRs) n Stabilization policies n Structural adjustment loans n Surplus