Debt crises, political change and the state in the developing world

In: https://eprints.ucm.es/id/eprint/12936/1/WP01-06.pdf

Abstract

Dealing with increasing foreign debt has become a key part of government strategy across the developing world, particularly in wake of the payment crises that have shaken south-east Asia, Latin America, Turkey and Russia over the past decade. This working paper seeks to analyze how the political systems in these countries have adapted to the grave problems created by unpayable debt, examining in the process the structure of modern global finance, the history of the state in the developing world, and the demands placed upon governments by sudden rises in poverty and general economic turmoil. Focusing on case-studies of Argentina, Indonesia and Zambia, the paper unpicks the dynamics of these crises, suggesting that certain states have managed to strengthen their freedom of action and authority by recasting their relations with the public at home and with foreign lenders.