Hostname: page-component-78c5997874-m6dg7 Total loading time: 0 Render date: 2024-11-06T04:12:44.830Z Has data issue: false hasContentIssue false
  • English
  • Français

Brazilian External Debt: A Study in Capital Flows and Transfer of Resources

Published online by Cambridge University Press:  02 January 2018

Ramesh C. Garg
Ramesh C. Garg*
Affiliation:
School of Business Administration, Philadelphia College of Textiles and Science, Philadelphia, Pennsylvania 19144
Get access Rights & Permissions [Opens in a new window]

Extract

In recent years the problem of the external indebtedness of non-oil-exporting countries has gained significant weight in public discussion. With the quadrupling of oil prices since the end of 1973, a rapid increase in the borrowing of LDCs has occurred. The standard of living in these countries is extremely low to begin with; any further room for downward adjustment to offset higher cost of oil imports through a slowing down of economy is simply an unacceptable possibility. Moreover, any further economic restraint on the already slower pace of development would be politically unpopular for the leaders in developing countries. Consequently, many LDCs have resorted to increasing external borrowings to pay for the oil bill, as well as to maintain a minimum rate of economic growth. The total external public debt of these countries is now estimated at around $200 billion (U.S. Senate, 1977: 51). This paper examines the debt servicing experience of Brazil. Lately, Brazil has been the center of attention because it owes some $25-$30 billion to foreign creditors. Its debt servicing burden for 1977 would be approximately $5.3 billion, or 40% of an estimated $12 billion in export earnings.

Type
Research Article
Information
Journal of Interamerican Studies and World Affairs , Volume 20 , Issue 3 , August 1978 , pp. 341 - 351
Copyright
Copyright © University of Miami 1978

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Avramovic, D. (1970) “Latin American external debt.” J. of World Trade Law (March-April): 121–154.Google Scholar
Economic Commission for Latin America [ECLA] (1976) Economic Survey of Latin America, 1974. New York: United Nations.Google Scholar
GARG, R. C. (1977) “Debt problems of developing countries.” Intereconomics, Rev. of Int. Trade and Development (March-April): 93–96.CrossRefGoogle Scholar
IBRD (1977) World Debt Tables, Vols. I and II (September 2). Washington, DC: World Bank.Google Scholar
IBRD (1976a) Summary Proceedings: 1976 Annual Meetings World Bank 1FC/IDA. Washington, DC: World Bank.Google Scholar
IBRD (1976b) World Debt Tables, Vols. I and II (October 31). Washington, DC: World Bank.Google Scholar
International Monetary Fund (1977) IMF Survey (June 6). Washington, DC: IMF.Google Scholar
Morgan Guaranty Trust Company (1977) World Financial Markets (June). New York: Morgan Guaranty Trust Co.Google Scholar
New York Times (1977) “Mountain of debt pile up as banks push foreign loans.” May 15, Sec. 3.Google Scholar
OECD (1973) Flow of Resources to Developing Countries. Pairs: OECD.Google Scholar
U.S. Senate (1977) “International debt, the banks, and U.S. foreign policy.” Staff report prepared for the use of the Subcommittee on Foreign Economic Policy of the Committee on Foreign Relations (August).Washington, DC: Government Printing Office.Google Scholar
Wall Street Journal (1977) “Developing debts: poor countries face test of their ability to repay bank loans.” April 14.Google Scholar