Debt and Adjustment Policies in Brazil

Brazil suffered major economic upheaval after the two oil shocks of the 1970s and became the most indebted country of the Third World. In this study, the author analyzes transformations in the Brazilian economy, describing Brazil's handling of external finance, exploring the structural changes that have taken place, and discussing the adjustment policy issues related to Brazil's foreign indebtedness. Brazil's economic strengths and weaknesses are highlighted, and the role of its large foreign debt as a restriction to growth is also analyzed.