External debt: market and conflict

Vol. 8 No. 4 (1988)

Oct-Dec / 1988
Published October 1, 1988
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Bendesky, León. 1998. “External Debt: Market and Conflict”. Brazilian Journal of Political Economy 8 (4):526-34. https://doi.org/10.1590/0101-31571988-4039.

External debt: market and conflict

León Bendesky
Economista, México.
Brazilian Journal of Political Economy, Vol. 8 No. 4 (1988), Oct-Dec / 1988, Pages 526-534


This essay suggests that the external debt of the Latin-American countries should
be considered as a form of conflict. This means that the confrontation of relative powers
has to be acknowledged. As a conflict, it turns into a process in which the relations of creditors
and debtors develop through the establishment of different strategies. Conventional
treatment · of external indebtedness takes it as a problem and searches for its solution. As
such, its nature tends ultimately to be considered as a market phenomenon. Technical and
administrative measures are then proposed to cope with the “debt crisis •. But in fact, negotiation
becomes the main characteristic of the conflict. A situation of financial deterrence is
then created to prevent a rupture in international financial flows. The unequal power of the
participants fixes the limits of the confrontation as well as the incentives for cooperation.

JEL Classification: H63; F34.

Keywords: External debt debt crisis