increase inthemassiveavailability ofinternational capital, opening uptoour countries theroadtoindebtedness, whichweembarked uponinthehopeof recovering ourrateofeconomic andsocialdevelopment aftertherecession of1974 to1976.»l/rd A/40/P'i.10 6 (President ArditoBarletta)" Theresults, hQ'-'i'ever, werenotthoseexpected.LatinAmerica' sdebt- necessary to,certain extgntasasupplement toourownslAvings -grewatan averageof19percentayearbetween 1974and1981,untiltodayithasreached tha enormous levelofapproximately $370billion, dangerously exceeding reasonable limits. Thefinancing period, whichaveraged eightto10years,wasextremely short,sincethosefundswerebeinginvested basically inlong-term economic and socialprojects, whichwereslowtor@cover. Thedisequilibrium inthetermaof tradewassharply accentuated between 1979and1982.Thepriceofimports from industrialized countries -oilforthesecondtime-andinterest ratesrapidly increased, whilethepricesofLatinAmerican products ininternational markets wentdown.ForCentralAmerica andPanamathetermsoftradeworsened by 2Spercentbetween 1979and1982.Morethan$80billionofLatinAmerican's external debt,2Spercentofthetotal,wasduetoappropriate compensation for thesefactors. Themostsignificant problemofa~justment layinthedifference inthe expectations aftheeconomic policy. Thedeveloped countries decided toreduce inflati9n atatimewhenLatin Americ~ wasapplying aneconomic policywhich required thepersistence ofworld-wide inflat~on. Intheend,cheapmoneybecame moreexpensive andtheextentofthepresentcrisisbecameclear. ThiscrisisinLatinAmerica occursinacontext whichmakesitevenmore serious. Atpresent population growthcontinues tobehigh,withanannualaverage rateofgrowthof2.4percentinou~countries. Halfthepopulation isunder20 yearsofageandithasimportant socialneedsinhealth,nutrition andeducation. Thelabour m~rketisinvaded everyyearbymillions ofnewworkers seeking jobs. Becauseoftheruraltourbanmigration thepopulation ofthe80principal Latin American citieshasdoubled inthepast20years. Thesamephenomenon isexpectedAW/rd A/40IW.lO 7 (President ArditoBarletta) inthecomingdecades, ~uscreating extraordinary economic, socialandpolitical pressures. Although thepresentpopulation pressure hasbeguntosubside, whichis good,theimportant needsoftheexisting population willcontinue tobefeltuntil theendofthecentury. Asaresultofitsowndynamics, L~tinAmericaisataturning pointinits history. SomeLatinAmericans haveattained acceptable levelsofdevelopment; othersaremovinginthatdirection amidstmajordifficulties; onethirdarestill livinginextreme poverty andalienatiofi. Buteducation, communications, and transportation systems havecreated expectation ofabetterfutureispoasible and itisforus,theleaders, tochannel thataspiration withrealism, butalsowith faithandhope. Large-scale efforts arenecessary simplytomaintain tbissituation; inorder toimproveitwerequire economic growthof5percentayearintheregionanda considerable changeinLatinAmerican economic relations. Thedebtproblem hasexacerbated thedifference between theworldsof"the NorthandtheSouthandhasmademoredangerous thegapbetween thepoorandthe richcountries. LatinAmerica owes$370billion anddeveloping countries owemore than$850billion. Thismakesnecessary urgentchanges ofafinancial naturewhich placerelations between debtors andcreditors onamorejustandrealistic'level. Wemustrecognize thattheproblemisnotoneofdebtandourregion on11~itisa globalproblem because oftheparticipants -developing countries, developed countries andinternational banking andfinancial institutions -andbecauseit encompasses allareasoftheinternational economy. Therefore, itssolution must beglobal. Recognizing ·thisfact,inthelastthreeyearstheworldhasimplemented some solutions basedonthreefundamental premises: firstofall,that Latin~~erican countries wouldadjusttheireconomies tonewrealities andthatthiswouldleadtoN,f/rd A/40/PV.10 8 (President ArditoBarletta) aperiodofeconomic stagnationi secondly, thatthiseffortatadjustment wouldbe supported bythebanking andfinancial community withadditional resources and through arestructuring oftheexternal debtilastly, that,inaddition to recoverIngtheireconomic growthlevelsfortheirowngoodandinordertoprovide forworld-wide recov~ry, theindustrialized countries wouldkeeptheirmarkets open totheexports ofdeveloping countries toassistintherecovery oftheireconomies andtheirdebtservicing. Thissolution wasenvisaged threeyearsagoin recognition oftheglobalscopeoftheproblem. Theresults~ however, havenot beenenough. LatinAmerica hasdoneitspart,butitcanno~continue tomakeadjustments in themidstofstagnation. Weareallpartoftheproblem andweareallpart.:ofits
**Analysis**
The text discusses the economic situation of Latin America, specifically the debt crisis and its consequences, as well as the region's economic development, growth, and relations with developed countries. It highlights the challenges faced by Latin American countries, such as population growth, urbanization, and poverty, and emphasizes the need for global solutions to address these issues.

**Category**
Economic development, International trade