The “Irresponsible Debtors” in the North
Default, insolvency, fiscal irresponsibility, debt crisis and similar terms form part of the vocabulary used to describe countries in the developing South in the 1980s and 1990s. A decade later, the world seems to have turned upside down. The “irresponsible debtors” are now in the industrialized North, and the countries of South America, victims of the “lost decade” of the 1980s and the subsequent financial crises, are now working hard to protect themselves against contagion from the crisis in the United States and Europe. A meeting of economy ministers in Lima (Peru) and another scheduled for Buenos Aires (Argentina), where the ministers will be joined by central bank presidents, are being held to discuss the coordination of policies among the Union of South American Nations (UNASUR) to deal with the knock-on effects of the crisis still lingering in the developed world.
