This paper analyzes the strategic conduct of three classes of actors in the
management of Third World debt problems. It examines the behavior and incentives of
the private banks, their home governments, and their foreign governmental clients in
light of perspectives on collective action, sovereignty en garde, and partisan
mutual adjustment. The statistical patterns of past debt negotiation outcomes show
some shortcomings of these perspectives, while at the same time pointing to other
aspects of reality which can be usefully illuminated by them. Both the theoretical
and empirical analyses suggest international debt management as a mixed-motive game
among purposive egoists. The actors' bargaining leverage, however, differs
considerably with respect to the determination of loan availability as opposed to
the negotiation over the financial terms for the loans.
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