Purcell, Susan Kaufman
March 1983
Foreign Affairs;Spring83, Vol. 61 Issue 3, p660
This article focuses on the war and debt in South America. In the spring war broke out between Argentina and Britain in the South Atlantic, where space-age weapons were used to fight a conflict that seemed a throwback to the nineteenth century. By the end of the year the debt crisis was center stage, with Argentina, Mexico and Brazil struggling to avoid default on a collective foreign debt of $200 billion. Comparing the policies for South America unveiled by the Ronald Reagan Administration in 1981, however, with those actually in place by late 1982, the contrast is striking. Security concerns, formerly paramount, had taken second place to economic ones. Even more impressive was the shift in the Administration's thinking with regard to the IMF and other multilateral lending institutions.


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