The Baker plan (1985) stressed _______ and the Brady Plan (1989) emphasized _______ respectively?
Correct answer: B. new loans from multilateral agencies and surplus countries; debt reduction or write-downs
- A. IMF decentralization; World Bank dissolution
- B. new loans from multilateral agencies and surplus countries; debt reduction or write-downs
- C. structural adjustment loans for LDCs experiencing unanticipated external shocks; renewed emphases on macroeconomic stabilization programs
- D. debt relief for at leas three-fourths of the eligible HIPCs; shorter requirements for adjustment programs
Explanation
The Baker Plan sought to address the debt crisis through additional lending from multilateral institutions and surplus countries. The later Brady Plan focused on reducing or writing down existing commercial-bank debt.
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