The transfer of resources and inflation

The reversal of the direction of resource transfers and the strong impact this had on both internal and external adjustment processes were the main —although certainly not the only— reasons for the unfavourable economic trends seen in Latin America during the period 1982-1988. With the outbreak of the crisis, the region ceased to be a net importer of resources as befits a region of developing countries, and instead became a net exporter. Moreover, the magnitude of this turnaround was striking: whereas the inflow of resources to the region prior to the crisis had amounted to around 2% of its gross product, between 1982 and 1988 the outflow of resources from the region was equivalent to about 4% of the product.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions