Verified Document

Developing Countries Responded To Debt Essay

The states which had a diversified palette of export products managed to overcome the crisis in relatively short periods of time due to the advantages of diversification. But the countries which had smaller economies, strictly dependent on one or two export products faced more challenges in defeating the crisis. These countries include Honduras, El Salvador, Nicaragua, Uruguay, Panama and Paraguay (LaRosa, Mejia, 2006). All in all, the approaches implemented by each country in the management of the Great Depression of the 1930s revealed both differences as well as similarities. The differences included diverse policy approaches, monetary decisions and the capitalization on the export advantages. The differences in the approach of the depression were given by a multitude of issues, most of them derived from the country-specific features. For instance, China, due to its currency pegging to the silver rather than the gold, faced little impediments in revival. The countries in Europe renounced their currency pegging to the gold and the countries in Latin America based their revival on export strategies. The actual success in overcoming the crisis was directly linked to the national strengths and weaknesses of each developing state.

As the global leaders met at Bretton Woods and formed the International Monetary Fund and the International Bank of Reconstruction and Development, the management of the debt crises moved on to a new level. The developing countries gained access to more funds and expertise to help them overcome the crises.

While the general approach became more integrated due to...

Parts of this document are hidden

View Full Document
svg-one

In the democartic countries for instance, which had elected leaders, the international funds were used in a more transparent manner, whereas in the cases of states with abusive and self declared leaders, the funds were spent in less sensible manners (Vandaele, 2007).
Also, the institutions created by the Bretton Woods produced a series of complexities in the economic revival of the developing countries. Decisions were mostly influenced by the developed states; the relationship with the Bretton Woods institutions was rigid; the policies implemented worsened poverty in the countries and the rich countries were often the beneficiaries of the policies (Vandaele, 2007).

Sources used in this document:
References:

Bernanke, B.S., Money, gold and the Great Depression, Federal Reserve, http://www.federalreserve.gov/boarddocs/speeches/2004/200403022/default.htm last accessed on November 3, 2011

LaRosa, M.J., Mejia, G.R., 2006, An atlas and survey of Latin American history, M.E. Sharpe

Robinson, J.A., 2009, Good crises? Implications for developing countries Harvard University, http://scholar.harvard.edu/jrobinson/files/jr_wb_goodcrises.pdf last accessed on November 3, 2011

Saint-Etienne, C., 1984, The Great Depression, 19229-1938: Lessons for the 1980s, Hoover Press
Vandaelee, J., 2007, Bretton Woods II: New lifeline for ailing giants, IPS News, http://ipsnews.net/news.asp?idnews=44469 last accessed on November 3, 2011
Cite this Document:
Copy Bibliography Citation

Related Documents

National Debt When Capitalism Strikes
Words: 1163 Length: 4 Document Type: Research Paper

The continued investment of China in U.S. Treasury notes and bonds, as well as the private investment of Chinese wealth in U.S. businesses, helps to fund government and business activities in the U.S., sustaining both social programs and economic growth in the country. This is an incredibly short-term view of the situation, however, and does not take into account the eventuality of China recalling its debt from the United

National Debt and Debt
Words: 2590 Length: 6 Document Type: Research Paper

The 2016 Presidential Campaign and the National Debt The presidential race between Hillary Clinton and Donald Trump has had more than its fair share of scandals -- from Clinton's email server, the "rigged elections" as reported by undercover agents of Project Veritas, and the Clinton Foundation's pay-to-play controversies -- to Trump's lewd comments on women, his own reluctance to publish his taxes, and the nearly $1 billion loss deducted from his

U.S. National Debt United States
Words: 964 Length: 3 Document Type: Term Paper

However these effects have limited implications in the real life, their magnitude will increase exponentially during the next years, provided, of course, that the same trend is preserved in the detriment of reducing the debt. In such case, the now young generation will be faced with the disastrous outcomes of an uncontrolled federal debt. Besides the negative impacts a large debt would have upon the economic and political backgrounds, the

Debt Crisis How the United
Words: 2720 Length: 7 Document Type: Term Paper

When the economy suddenly has more money circulating around there is the threat of inflation. "The Federal Reserve is expected to hold its main short-term interest rate at a 45-year low of 1% at its last meeting of the year in December, as well as into part of 2004, economists predict. Holding short-term rates at such low levels might motivate consumers and businesses to spend and invest more, something that

Debt Versus Equity Financing
Words: 758 Length: 2 Document Type: Essay

Debt vs. equity financing As its name implies, debt financing involves borrowing money from a bank, individual, or company, with a promise to pay back the principle with interest. Any organization can make use of debt financing, spanning from a small single proprietorship to a large multinational. The owner of the business retains control over the organization and the only responsibility he or she has to the lender is to make

National Weather Service Nws Is
Words: 1908 Length: 6 Document Type: Term Paper

Because of this, the Outer Banks - barrier islands off the coast of North Carolina - often did not get timely weather information. The hurricane of 1944, which hit the Eastern coast from Cape Hatteras all the way up to Newfoundland, resulted in a major loss of life and significant damage on the Outer Banks (4). The United States, because of its climate, has experienced numerous devastating tornado outbreaks and

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now