The Rich Borrow and the Poor Repay

Abstract

ally, however, this happens frequently, with appalling consequences for the poor in developing countries. It happens when nations assume liability for the foreign debt of their corporations, as in International Monetary Fund (IMF) bailouts and other debt workouts, and when portions of national borrowings go directly into the pockets of politicians and senior civil servants. The socialization of private-sector debt will be examined within the context of the three most serious financial crises of the past 30 years: the African and Latin American debt crisis that commenced in 1982, the East Asian economic crisis that began in 1997, and Argentina's current economic crisis.