This is just one in a series of essays published in conjunction with the Bank's Fiftieth Anniversary. This series of essays is devoted to improving the understanding of the evolving role of the World Bank. Each essay analyzes the Bank's approach to the major development challenges its borrowing countries have faced. This paper examines the Bank's approach to, and effect on the Latin America debt crisis since its eruption in 1982. The initial reaction by creditor countries was that the debt crisis could be solved with a combination of macroeconomic adjustment, debt rescheduling agreements, and structural reforms. When this failed the Brady plan was initiated based on a plan of voluntary debt reduction, proposing that old debt be exchanged for new, longterm debt with a lower face value. The World Bank and the IMF supported the Brady plan by assisting countries to design the steps required prior to reform, and with assistance in adjustment lending. The Bank's analytical work facilitated dialogue and contributed to the design of specific policies, Bank resources helped cushion the severity of the crisis, and Bank conditionality provided discipline and financial credibility to the reform process.