Was it Argintina that already defaulted? It seems that it is the nature of the beast that the IMF should be the pusher and the Third world govenment should be the Junkie. This story has been played out in so many countries. Fiscal responsibility is only implemented by the IMF & World bank, after the government has squandered any credit it has and is now on IMF/World_Bank life support. The country ends up living it's life out servicing debt. And forign powers only intervien in the event of revolution to ensure who ever takes power pledges to honor and service the dept, that person be deposed by another coup.
I guess the question is, how could defaulting on the debt come back to haunt the DR. One other thought, what about a constitutional ammendment that states, that the govenment may not spend more than it has, and may not use the sale of title to natural resources to service annual buget needs unless by a 3/4s majority? If I remember correctly the DR government sells fishing rights off the coast to Japan or other east asian countries for hard cash.
-Lee
I guess the question is, how could defaulting on the debt come back to haunt the DR. One other thought, what about a constitutional ammendment that states, that the govenment may not spend more than it has, and may not use the sale of title to natural resources to service annual buget needs unless by a 3/4s majority? If I remember correctly the DR government sells fishing rights off the coast to Japan or other east asian countries for hard cash.
-Lee