The debt and austerity cycle

UK unemployment

Economic growth per person, per year,

Bailouts and austerity External debt in the global South

Impacts: In 1980s Latin America Population living in poverty increased from 144 million to 211 million Africa Population living in extreme poverty increased from 205 million to 330 million

Zambia

“Zambia has implemented government expenditure reduction which as been virtually unmatched in Africa.” IMF and World Bank, 1990s

Zambia In the 1990s, for every £1 spent on healthcare, £2 was spent on paying debts.

Zambia In the 1990s, for every £1 spent on healthcare, £2 was spent on paying debts. In 1980, 8 out of 10 children were enrolled in primary school. By 2000 it was 7 out of 10.

Zambia In the 1990s, for every £1 spent on healthcare, £2 was spent on paying debts. In 1980, 8 out of 10 children were enrolled in primary school. By 2000 it was 7 out of 10. In 1980, 3 out of 10 people did not get enough to eat everyday. By 2000 it was 4 out of 10.

Argentina

First world debt crisis

What caused debt crisis? Crisis countries: Greece, Japan, UK, Germany Safe countries: Iceland, Spain, Ireland

What caused debt crisis? Crisis countries: Iceland, Greece, Spain, Ireland, UK Safe countries: Germany, Japan

Unemployment

Banking crises

Banking crises 0.1 a year2.6 a year

Banking crises 0.1 a year2.6 a year Government defaults

Banking crises 0.1 a year2.6 a year Government defaults 0.2 a year4 a year

Banking crises 0.1 a year2.6 a year Government defaults 0.2 a year4 a year Economic growth per person

Banking crises 0.1 a year2.6 a year Government defaults 0.2 a year4 a year Economic growth per person 2.8 per cent1.8 per cent