Monday, August 12, 2002

Wondering about that IMF loan to Brazil? [NYT]
$24 billion of the loan would be delivered next year only if the new government met certain budgetary targets.

"This agreement is an extremely shrewd and subtle piece of political engineering," said Gilberto Dupas, director of the international studies program at the University of S�o Paulo....

After eight years of free-market orthodoxy that has produced only modest growth, Brazil has a strong chance of turning in another direction....

From 1980 to 2000, per capita incomes in Latin America grew at only one-tenth the rate of the previous two decades, when governments followed more interventionist and protectionist policies.

Asked during a news conference in Argentina this week why Latin Americans were increasingly rejecting the magic recipe of privatization, lower tariffs and increased foreign investment, Treasury Secretary Paul H. O'Neill replied, "I have no idea." When it was suggested to him that such policies were not yielding the expected results, he said, "I don't know of another."

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