>I believe that U.S. and UK financial institutions recycled many petro
>dollars to the South -- more than "very little." How else could so many
>Third World countries borrow so much in 1970s-early 1980s, and get so deep
Spiro argues that only a few large Third World/developing/Southern/soon-to-be-emerging-market countries got a piece of the action, like the big Latin American countries that became the most notorious debtors. Some of the biggest borrowers were oil producers, like Mexico. But most of the money went into U.S. and other First World financial markets.