The Debt Crisis Of The Early 1980s

2199 Words9 Pages
By using the case study of Mexico’s maquiladora industry, this short analytical paper will show how the debt crisis of the early 1980s prompted key governing institutions such as the International Monetary Fund (IMF) and the World Bank to enforce structural adjustment programs on Global South economies. To this end, I will begin with an analysis of the debt crisis and describe how the adjustment programs have encouraged these states to institute export processing zones (EPZs) in an effort to attract foreign investment. Given that these EPZs primarily hire women, it will be shown that gendered labour has ultimately furthered the “globalization project” as states adopt neoliberal policies and begin to participate in the world economy. Prior to analyzing the debt crisis of the early 1980s, it is necessary to delineate the notion of neoliberal globalization. In general, the current state of the political and economic system of capitalism is characterized through globalization, the integration of global economies, and is furthered through neoliberal notions of free markets. When states begin to adhere to neoliberal globalization and liberalize their economies through privatization, decentralization, and policies of free trade, the “globalization project” advances. However, various abrupt predicaments such as debt crises is likely to transpire through the system with a series of negative impacts on national economies. When this occurs, states will utilize explicit strategies to
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