This research considers the policy position adoption process in the United States federal government's executive branch in the case of the external debt repayment policy of South Answana (an hypothetical country). The findings of the research are presented in three parts, as follows: (1) an explanation of the nature of the policy problem; (2) a delineation of the policy position preferred by the National Security Council; and (3) an assessment of the decision making style employed in the adoption process.
South Answana is a Third World country with one of the world's largest external debts. The government of that country, through a combination of external economic factors, internal economic mismanagement, and apparent fraud by high government officials has consistently been unable to meet both principal and interest payments on a substantial portion of the country's external debt.
The leader of South Answana, a virtual dictator who serves with the blessing of that country's military, is strongly considering the adoption of a policy which would suspend payment of principal and interest on major portions of the country's external debt. The importance of such an action is greater than the direct effects of a South Answanian default, because of the stature among other Third World countries of South Answana's political leader. The fear in western countries, particularly the United States, that such an action
by South Answana would establish a precedent, which would then be emulated by other debtor countries.
For the United States, the adoption of a policy position on the South Answanian debt issue is both complex and interdependent in character. First, the country is the only one in the central region of Sub Saharan Africa which is sympathetic to American political objectives in the region. The imposition by the United States of a harsh policy with respect to debt repayment and economic reform by South Answana might well ...