ABSTRACT
Financial turmoil in South America in the 1980s has settled into what might be aptly termed "permanent crisis." Repudiation, default, bankruptcy, and systemic collapse are said to hang over the global financial community, South American countries, and the world economy. Even more than the financial system, however, is at stake. The fact that remedies for the enormous South American indebtedness are based on widely differing premises makes assessment of them difficult. Each of the major actors in the debt drama has its perception of and explanation for the causes of the crisis and offers its own justification for resisting accountability. The oil producing countries, either as members of the Oil Producing and Exporting Countries (OPEC) or following OPEC's lead, bear a large share of responsibility. Shifts in supply attest to bank inconsistency toward borrowers; they also prove that bank officials were focused on short-term profitability and burden-shifting.
