Baker Initiative

E400620

The Baker Initiative was a mid-1980s U.S.-led strategy, associated with Treasury Secretary James Baker, aimed at resolving the developing world debt crisis through new lending and economic reforms rather than outright debt forgiveness.

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Label Occurrences
Baker Initiative canonical 1

Statements (45)

Predicate Object
instanceOf economic policy initiative
international debt strategy
aimedAt restoring voluntary lending by commercial banks
announcedInYear 1985
appliesTo developing countries
heavily indebted countries
approach market-oriented economic reforms
new lending rather than debt forgiveness
structural adjustment policies
associatedWithOffice Secretary of the Treasury
surface form: United States Secretary of the Treasury
characterizedAs orthodox, market-oriented response to debt crisis
countryOfOrigin United States of America
surface form: United States
criticizedFor insufficient debt relief
limited success in restoring growth
placing adjustment burden on debtor countries
designedBy United States Department of the Treasury
surface form: U.S. Treasury Department
focusesOn debt rescheduling
fiscal discipline
macroeconomic stabilization
policy conditionality
privatization of state enterprises
trade liberalization
hasKeyProponent James Baker
surface form: James A. Baker III
historicalContext 1980s Third World debt crisis
post-1982 Latin American debt crisis
influencedBy concerns about global banking system stability
involves International Monetary Fund
World Bank
commercial bank lending
multilateral development banks
policyGoal resolve developing world debt crisis
restore growth in debtor countries
stabilize international financial system
policyInstrument conditional financial support
debt rescheduling agreements
multilateral lending packages
rejectedPolicy large-scale debt write-offs
outright debt forgiveness as primary tool
requires IMF-supported adjustment programs
debtor country economic reform programs
succeededBy Brady Plan
supportedBy G7
surface form: Group of Seven industrialized countries
targetRegion Latin America
other heavily indebted middle-income countries
timePeriod mid-1980s

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