Dramatic Action or Muddling Through Strategy in the Debt Problem

Whether to take dramatic action in the face of well-known channels in handling the external debt problem, or to muddle through those channels without attacking them directly; these were the alternative and opposing strategies presented to the new Peruvian Government in regard to the external debt when it assumed power on last July 28th, 1985. The new president, Dr. Alan Garcia and his Prime Minister, Mr. Alva Castro, came out decidedly in favour of the first choice.