Background to what happened in Argentina
Harlequin | 19.12.2002 10:15
In two years, the holdings of Argentina's Central Bank dropped from $30 billion to $5 billion, prompting the government to freeze the accounts of Argentine civilians, thus liquidating their life savings. Argentina's unemployed now include lawyers, teachers and doctors.
There has been an increase in fees for Argentine public services, cuts in social programs and reforms that are favorable to foreign
banks. Argentina last month defaulted on its payments to the World Bank.
The World Bank and IMF is implementing similar economic programs in other countries. In Argentina's case, it is particularly
pronounced. The policies are linked to poverty and hunger.
Foreign banks played a major role in the Argentine financial crisis,
they made enormous amounts of money on extremely high interest rates that were charged through most of the last few years. Their lending does not contribute to productive investment or to any economic growth. The country has been in a recession for more than four years. The U.S. government, which runs the IMF, destroyed the Argentine economy. It was once one of the
richest countries in South America. Now more than half the people are living below the poverty line.
This Saturday the 21st there will be a solidarity action in Oxford Circus in London from 12noon.
banks. Argentina last month defaulted on its payments to the World Bank.
The World Bank and IMF is implementing similar economic programs in other countries. In Argentina's case, it is particularly
pronounced. The policies are linked to poverty and hunger.
Foreign banks played a major role in the Argentine financial crisis,
they made enormous amounts of money on extremely high interest rates that were charged through most of the last few years. Their lending does not contribute to productive investment or to any economic growth. The country has been in a recession for more than four years. The U.S. government, which runs the IMF, destroyed the Argentine economy. It was once one of the
richest countries in South America. Now more than half the people are living below the poverty line.
This Saturday the 21st there will be a solidarity action in Oxford Circus in London from 12noon.
Harlequin
