In the 1980s, Africa together with Latin America took out big loans from euro-dollar lending banks which mostly went to buttress their military regime struggles, leading to what came to be known as the “Global South debt crisis.”
This Global South debt crisis consequently led to a “lost decade” of crisis and painful recovery during which large amounts of capital continued to be transferred out in form of debt payments and little came in for investments in industrial, infrastructural or educational development.
