ebts to banks and governments in the developed world which they could not service. In Brazil, for example, "the economic miracle of the 1960s and early 1070s gradually subsided in the 1980s, . . . [and Brazil became] the developing world's largest debtor." External debt servicing by 1989 stood at 40 percent of the value of the region's exports. Mexico and Argentina, as well as others in the region, became international economic basket cases, necessitating very large international debt resettlements, bailouts by private banks in the developed world and emergency assistance from its governments and international lending agencies, such as the International Monetary Fund (IMF) and the World Bank. The flight of indigenous capital from, and the reluctance of foreign investors to invest in, the principal debt defaulting nations, Argentina, Brazil, Mexico and Venezuela, became a major problem.
Re-Orientation of Latin America's International Trade Environment
Under prodding from the IMF and on their own initiative, a number of Latin American countries hav
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