— Malcolm HarrisThis cycle sucked borrowing countries dry. Once on the hook, countries had only one thing to offer their creditor nations and institutions: sovereignty. Taxes went to servicing debt instead of social spending; leaders sold off state assets; and national economies switched to low-wage export models of development in order to keep needed loans and investment coming in.
Replicated under Fair Use from Palo Alto: A History of California, Capitalism, and the World by Malcolm Harris.