The difference between the Brady Plan put forward by the Bush administration and the Baker Plan put forward by the Reagan administration is that the Baker Plan only provides new loans to promote the economic development and debt repayment of developing countries such as Latin America, while the Brady Plan has incorporated debt relief into American policy for the first time. In fact, the United States has acknowledged the objective fact that debtor countries can't fully pay off their debts, and put forward a new debt strategy with the main content of reducing the original debts of developing countries such as Latin America by commercial banks and increasing the support loans to debtor countries by international financial institutions.