The Cartagena Consensus: Redefining Repayment Capacity as a Political Economy Issue, Not a Technocratic One

Abstract

This article uses a historical case study ? the so-called Cartagena Consensus during the eighties in Latin America and the Caribbean ? to document the historical experience of coordination among debtor countries. Using primary and secondary sources, this piece shows how historical attempts to fight the creditors have also focused on re-defining debt repayment capacity. In doing so, the article shows how much of a political project the definition of repayment capacity is, rather than a technical one. This bears relevance for the urgent need to redefine current practice of and consensus building strategies around debt sustainability analysis.