International Organization

Table of Contents - June 1985 - Volume 39, Issue 03  

The Political Economy of Debt

International debt: the behavior of banks in a politicized environment

Philip A. Wellons

The debt crisis riveted attention on political issues at the international level. Groups of states clash, and the North-South divisions are very noticeable. As conflict and cooperation among governments, banks, and multilateral agencies make headlines, three blocs appear to contend: the banks, the debtor governments, and the creditor governments. These are the obvious players in the workouts, and it is important to understand the conventions that bind them.