ABSTRACT
Growth with equity strategy is directed at generating sustained economic growth along with a more egalitarian income distribution. In particular, we believe that the semi-industrial Latin American economies have attained high enough levels of industrial sophistication in some of their production lines for integrating regional markets through preferential arrangements to be feasible and mutually beneficial. However, we assume that although the feasible space has been reduced by the prolonged crisis, cooperative approaches to growth financing are possible. The current strategy for coping with the debt crisis, urged on the debtors by the International Monetary Fund and its creditor country sponsors, might accurately be called contractive adjustment. Moreover, banks of countries running large current account surpluses in the 1980s have been more aggressively expanding their international lending and have, therefore, become less resistant to proposals for multi-year conditional lending to highly indebted LDCs.
