Descripción

The region’s exposure to credit flows has not resulted in a net contribution to development; on the contrary, it has facilitated the transfer of resources to creditors, enhancing their capacity to influence economic policies. Without an integrated conflict resolution system, states avoid actions that could limit their access to the capital market, even if this compromises their ability to meet human rights obligations. This intensifies the pressure for structural reforms and the implementation of fiscal austerity measures.

This paper examines the tension in the region and identifies the human rights impacts of debt. The first section outlines the main elements of rights trade-offs in debt management. The second discusses the critical experiences of the 1980s and how a creditor-friendly solution was imposed. The third focuses on the 2020 pandemic crisis concerning debt, while the fourth section addresses the subsequent recovery constrained by debt traction. The fifth section evaluates the recent experiences of several countries in the region, and the sixth section proposes a series of recommendations.