The Impact of Political Change, Debt Servicing and Fiscal Deficits on Argentinian Budgetary Priorities

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Authors
Looney, Robert E.
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1986
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Monterey, California: Naval Postgraduate School.
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Abstract
The turbulent world economic conditions of the 1970s and 1980s have required major adjustments within individual Third World countries. Two distinct responses were made by various governments: some reacted rather quickly with internal adjustment policies, while others borrowed heavily in order to finance high growth rates or at least to postpone economic contraction. Argentina is one of many countries that fall into the latter category. As the resulting debt service costs have risen and revenues levelled off or declined, the Argentine government has been forced to re-evaluate programmes in an effort to curtail government spending. This article examines the character of the sectoral adjustment that has taken place in the main functional areas of government expenditures.
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An earlier version of this paper was presented at the Western Economic Association's 61st Annual Conference, 1-5 July, 1986 in San Francisco, California. The author wishes to thank two anonymous reviewers for many extremely valuable comments on the earlier draft of the paper.
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National Security Affairs
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