Third World Debt and Macroeconomic Interactions between the North and South.

In this article the authors examine three issues: the causes of the South's debt crisis, the nature of the macroeconomic linkages between the North and South, and some of the debt rescheduling programs. The crisis was due not only to domestic policies in the South but also to the macroeconomic linkages between the South and the OECD economies. These linkages may also play an important part in its cure. Debt adjustment with growth for the South needs a package of measures including greater cooperation on macroeconomic policies and trade issues between North and South and a commonly agreed position on outstanding debt