2. Debt in Latin America Early 1800s, most Latin American countries became independent Produced primary products, made them vulnerable to global economic changes and shifts. In mid 20th century, LA countries took advantage of loans to develop their economies and countries. In 1980s, interest rates soared as did debt payments, and LA governments borrowed more money to make paying. This causied a debt crisis.

3. The poor were particularly hard-hit by these policies, sometimes resulting in unemployment, malnutrition, and destitution. Neoliberalism: an economic doctrine based on a belief in a minimalist role for the state, assuming the desireability of free markets as the ideal condition not only for economic organization but also for social and political life. NAFTA- North American Free Trade Agreement: 1994 agreement among the United States, Canada, and Mexico to reduce barriers between the three countries, through, for example, reducing customs tariffs and quotas. Please know these terms for the film next class and the exam.

4. Eventually, the U.S. government and financial institutions stepped in to stabilize the debt crisis. Their policies included structural adjustment policies: economic policies, mostly associated with the International Monetary Fund (IMF) that required governments to cut budgets, and to liberalize trade in return for debt relief. This meant that Latin American governments cut government spending, government subsidies, privatized formerly government-run services and industries (like telephone and oil companies), and focused on export production.