ABSTRACT
The need for a New International Economic Order - or at least for order where there is disorder - can thus no longer be dismissed as Third World rhetoric, or a contentious North-South issue. It must be seen as a matter of legitimate global concern. In the words of William Cline, a Senior Fellow of the Institute for International Economics: "Recovery of the debt crisis is important not only for the debtor countries but also for the international financial system. The framework for dealing with the debt problem that has evolved since the Mexican crisis of 1982 has three essential features. First, a case-by-case approach is used rather than general rules. Second, the framework involves the intervention of both IMF and central banks. Third, the framework involves extensive negotiations between banks and debtor countries to determine the amount and conditions of rescheduling new financing.
