Some countries, however, remain hopelessly mired in external debt and domestic stagnation. Michel, Chair of OECD's Development Assistance Committee (DAC), which channels a large share of the developed countries' public foreign aid to the Third World, reported that as of 1994 three Latin American countries were among the world's most indebted countries:
Debt Service (%/Exports) Debt %/GNP External Debt
Bolivia 26 86 $4.5 billion
Honduras 32 153 4.4 billion
Nicaragua 43 664* 9.3 billion
Progress elsewhere has been uneven but nonetheless in some nations impressive. For example, in the years 1991 and 1992, world exports of merchandise increased by 1.5 and 6.2 percent, respectively, and then declined 0.4 percent in 1993. Latin
American exports increased in those years by 5.3, 6.1 and 4.6 percent, respectively. World merchandise imports in those years increased by 1.7 and 6.2 percent, respectively, and then declined by 1.2 percent in 1993. Latin American imports declined 1.1 percent in 1991 and then rose by 7.9 and 8.6 percent, respectively, in 1992 and 1993. The above-cited GATT report says that "the most dynamic element in world merchandise trade developments in 1993 was the trade expansion of North America, Asia and Latin America." Some Latin American countries, including Mexico, Chile and Argentina, have experienced dramatic annual increases of 8-10 percent or more in their exports. American exports to selected Latin American countries have also expanded by the following multiples between 1986 and 1996: to Mexico four; to Argentina five; to Chile three plus; and to Brazil two plus.
Latin America trade in recent years has been buoyed by the general expansion in world trade for goods and services, which increased by six and half percent per annum in real terms between 1958 and 1993. Improvement in th...
Traditional International Trade Environment. (1969, December 31). In LotsofEssays.com. Retrieved 03:40, May 27, 2015, from http://www.collegetermpapers.com/viewpaper/1303894375.html