We’ve seen what a debt crisis could give with the debt crisis in the euro area. Imagine what it could give if they were countries with far fewer resources.
You probably think it would be a disaster, well you are right. The list of countries in recession is long, but the most striking example is probably Brazil. This Latin American country gathers several of the characteristics of countries in difficulty: an economy highly reliant upon of a raw material (oil and wood for Brazil), a government and its measures with little credibility, a heavy corruption…
And we do not even talk about Venezuela is on the verge of civil war. How to get out of such a vicious circle? It is a long and laborious process that is not guaranteed to succeed quickly. In other words, once a country ends up in this situation country, it will remain in it for some time.
