Baker Plan for Third World debt

E88971

United States foreign economic policy economic policy program international debt relief initiative

The Baker Plan for Third World debt was a mid-1980s U.S.-led initiative that sought to address the international debt crisis of developing countries by promoting new lending combined with economic reforms rather than outright debt forgiveness.

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Statements (51)

Predicate	Object
instanceOf	United States foreign economic policy ⓘ economic policy program ⓘ international debt relief initiative ⓘ
aimedAtProblem	international financial instability ⓘ sovereign debt overhang ⓘ
announcedAt	International Monetary Fund Annual Meetings ⓘ surface form: IMF–World Bank Annual Meetings in Seoul
announcedBy	James Baker ⓘ surface form: James A. Baker III
announcedIn	October 1985 ⓘ
appliesToJurisdiction	Latin American debtor countries ⓘ developing countries ⓘ highly indebted middle-income countries ⓘ
characterizedBy	emphasis on growth through renewed lending ⓘ reliance on voluntary participation by commercial banks ⓘ
coreElement	implementation of structural reforms in debtor economies ⓘ increased net new lending to debtor countries ⓘ policy conditionality linked to IMF and World Bank programs ⓘ support for export-led growth strategies ⓘ
countryOfOrigin	United States of America ⓘ
criticizedFor	insufficient debt reduction ⓘ overoptimistic growth assumptions ⓘ placing adjustment burden on debtor countries ⓘ
economicPolicyFocus	financial sector reform ⓘ macroeconomic stabilization ⓘ privatization of state-owned enterprises ⓘ trade liberalization ⓘ
followed	initial ad hoc debt reschedulings of early 1980s ⓘ
followedBy	Brady Plan ⓘ
hasAlternativeName	Baker Initiative ⓘ Baker Plan ⓘ
historicalContext	Latin American debt crisis ⓘ post-1982 sovereign debt crisis triggered by Mexico ⓘ
inception	1985 ⓘ
influenced	later sovereign debt restructuring strategies ⓘ
involvedActor	commercial banks ⓘ multilateral development banks ⓘ private international creditors ⓘ sovereign debtor governments ⓘ
mainSubject	Third World debt crisis ⓘ international debt crisis ⓘ
namedAfter	James Baker ⓘ surface form: James A. Baker III
policyApproach	case-by-case debt rescheduling ⓘ market-oriented economic reforms ⓘ new lending rather than debt forgiveness ⓘ structural adjustment policies ⓘ
policyGoal	restore creditworthiness of debtor countries ⓘ stabilize international banking system ⓘ
promotedBy	International Monetary Fund ⓘ World Bank ⓘ
proposedBy	James Baker ⓘ surface form: James A. Baker III United States Department of the Treasury ⓘ
timePeriod	mid-1980s ⓘ

Referenced by (1)

Full triples — surface form annotated when it differs from this entity's canonical label.

James Baker → notableWork → Baker Plan for Third World debt ⓘ