This document summarizes various approaches to managing international debt crises, including: 1) The Baker Plan of 1985 which provided loans to debtor countries with conditions like privatization and economic opening in exchange. 2) The Brady Plan of 1989 which encouraged debt reduction by private banks and used new IMF/World Bank funding to collateralize remaining debts into bonds. 3) Debt-equity swaps and debt-for-nature swaps which exchanged debt for assets or environmental protections. 4) The HIPC initiative starting in 1996 to provide debt relief to heavily indebted poor countries and alleviate poverty.

1. Y376 International Political Economy October 8, 2009

2. Petro-Dollar Recycling Oil-importing ICs Oil-exporting Countries International Banks Third World borrowers $ $ $ $

5. Debt Crisis Management

10. Example: Costa Rica Rain Forest

12. HIPC Countries as of 1999

13. Preliminary Results of HIPC

14. Bono and Bill Gates Campaign for Debt Relief

19. Global Inequality Remains a Serious Problem