ABSTRACT
The negative net resource transfer between Latin American countries and the multilateral lending agencies puts into question the policy-conditioned lending which these agencies have been promoting. Reverse capital transfer with even the international organizations makes it still more difficult for peoples and governments in Latin America to pursue restructuring programs that mean immediate hardship, whatever their long-run promise. In return, the banks would have come under much greater public scrutiny and control, and would have lost power over the international allocation of capital. Richard Feinberg's paper shows us that some of these difficulties stem from the relationhip between the international financial institutions and the US administration. Financing is necessary to keep the international financial system functioning. On the other hand, debt service reduction seems to be a favored alternative at least rhetorically, and participation by the international financial institutions seems likely, as debtor nations focus their attention on secondary markets and interest rates.
