The Multinational Monitor
April 1980 - Volume 1 - Number 3
Special Banking Issue 

About this Issue

Bankers, economists and political leaders are worried about the stability of the international financial system. Reports in trade journals, financial periodicals and banking newsletters are growing increasingly pessimistic about the ability of the giant international banks-Citibank, Chase Manhattan, Bank of America and a handful of others-to continue their dominant role in the world economy.

This month, Multinational Monitor explores the current state of world financial markets. The issues here are complex, the numbers often astronomical. Indeed, many observers disagree over the most accurate measure of Third World indebtedness and commercial bank exposure in developing countries. By and large, the articles in this issue rely on data supplied by the banks themselves, as well as multilateral agencies such as the World Bank.

Our examination of international lending begins with an overview `piece, setting out the range of issues now being discussed in Congress, behind the closed doors of the Federal Reserve, and in the offices of Third World leaders. Y he overview presents bankers' assessments of the current situation, as well as the opinions of a number of critics of commercial lending.

In the rest of the section, we have assembled the views of a collection of specialists on international finance and development. U.S. Congressman Jim Leach has been at the vanguard of government efforts to regulate international lending, while Cheryl Payer's work has initiated a heated debate over the role of the International Monetary Fund in the Third World.

In our interviews, we solicited the thoughts of two leading banking experts with similar backgrounds but sharply distinct opinions. Irving Friedman and Michael Hudson are recognized internationally as insightful, provocative and, above all, controversial observers of and participants in the world of development finance.

We believe the publication of this thematic issue marks a new phase of. the magazine's growth. We urge our readers to offer their criticisms on the issue as well as suggestions for the subjects of future thematic approaches.



Troubled Waters: Multinational Banking and the Third World
- by William Taylor
An overview of the growing tensions plaguing commercial bank - developing country relations, as Third World debt burdens mount and private bankers lose their enthusiasm for development finance.

Commercial Banks and the IMF: An Uneasy Alliance
- by Cheryl Payer
The International Monetary Fund and private banks work closely together in the Third World, but their relationship is not always a harmonious one.

Regulate the Euromarket
- by Rep. Jim Leach
A U.S. Congressman calls for international governmental regulation of the $1 trillion Eurocurrency market.

Iran's Natural Gas Connection
- by James Ridgeway
Analysis of the impact of the Iranian revolution on natural gas supplies to the Soviet Union and Western Europe.

China Sets Its Course
- by Jonathan Ratner
First of a two-part series on the status of China's policies toward foreign investment.


Future Bright for Lending
- an interview with Irving Friedman
A prominent private banker with a quarter-century experience in development finance expresses optimism about the future of commercial lending to the Third World.

Breaking Third World Dependence
- an interview with Michael Hudson
A former commercial banker now working as a researcher for the United Nations explains his proposal for an international moratorium on Third World debt.

Global Sightings

Canada Eyes Tougher Standards

Japanese Push New Canal

Machel's Cautious Bid to Foreign Firms

US-Saudi Solar Plan: Appropriate for Whom?

Companies Reject Code: Nestle Boycott Continues


Letters to the Editor