The developing world experienced the worst financial crises during the 1980s and the 1990s (Herman, Ocampo and Spiegel, 2010). However, the nature of the problems differed between the two periods. During the 1980s the Latin America and other developing countries underwent a serious debt crisis. It all started in mid 1982 when Mexico Publicly declared its inability to repay its international debt, and the problem spread to other countries (Herman, Ocampo and Spiegel, 2010). This debt crisis was attributed to many factors which can be divided to both Internal and external. The internal factors which led to the crisis include ...
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