Grand Theft Argentina
Archie Kennedy | 05.11.2005 01:17 | Globalisation | Sheffield
The neo-liberal economy effectively moves wealth from the bottom strata of society to the top. They use public money to pay off debts and then sell the entity to the highest bidder. The investors walk off with a money tree and have no loyalty whatsoever to those they steal from.
The people of Argentina perhaps feel a little shocked and maybe even a bit awed at the sight of the President of the United States proclaiming another bout of grand theft after such a short time following the criminal plunder of their country by his clients, bosses, and bretheren. The President of the United States, the spokesman for the very same theives that looted the country the last time is back around, salivating over the prospect of stealing billions more.
Neo-liberal policies have been the ruin of Argentina. Argentina has actually been under the neo-liberal gun since a military coup occurred in 1976. The militarys economic policies reversed decades of protectionist policies aimed at encouraging industrial development and internal development. International money speculators were invited in at that time.
In 1989 Carlos Menem was elected on socialistic principles and once in power, he turned 180 degrees and implemented neo-liberal economic polices. Domingo Cavallo, (Harvard educated) became the finance minister. They operated under the guidance of the IMF and opened the Argentinaian goods market to trade. They opened the capital markets to unrestricted foriegn capital inflows. They privatized all state enterprises. They pegged the peso to the dollar to curb inflation. This screwed Argentina's potential for export. They privatized the mail, the airports, the banks, the rail system, social security, the national oil company, the phone companies, gas, water, electricity (all public utilities) and subways. They were sold to the rich at rock bottom prices. This all placed Argentina in a very precarious position. At the first sign of trouble, the parasites could easily run off with all the wealth. And they did.
The IMF run the Hayak, Mises, Freidman doctrine to the letter. They force developing nations to open their economy to foriegn investment and allow publicly owned utilities to be sold to the highest bidder. They are to balance budgets even at the expense of sick, the elderly and those down on their luck. They restrict the role of government as much as possible. They cut wages and social programs.
The IMF would have blacklited the USA in the era of the New Deal.
The neo-liberal economy effectively moves wealth from the bottom strata of society to the top. This is really what it is all about. It is an expensive large scale scam. They use public money to pay off debts and then sell the entity to the highest bidder. The investors walk off with a money tree and have no loyalty whatsoever to those they steal from. When times get tough, they simply walk away with the billions of dollars. Under neo-liberalism, if you are in the top 20% income, you win. If you are in the bottom 80% you lose.
There are essentially four steps that the IMF encourage or force countires to take. They are: First, privatization. This is blatant theft.
(2) Capital market liberalization; allowing the capitalists to run away with the bank when things get hot. They also want to seduce speculators and will force high interest rates to do it. The clear winners here are the international banks and the US treasury (which controls the World Bank) .
(3) Market based pricing mechanisms and cutting subsidies to food, water, gas, etc..
(4) Free Trade. Well of course.
The 1990's were a period of privatization of state run enterprises and de-regulation in Argentina. The nation has been at the mercy of the global capitalist casino and has payed a hefty price. Following the lead of the likes of Milton Freedman and Augusto Pinochet, the Argentina government adopted a private pension fund and this has been a contributing factor in their recent economic crisis. The Insurers of Retirement and Pension Funds (AFJP) has bled 300 million of workers pension dollars a month into the hands of international capitalists. They have also introduced zero deficit economic policies which includes slashing the 2002 budget by 7 billion dollars as dictated by the IMF.
Throwing pension funds to the so-called free market has allowed foreign investors steal workers pension funds. They pitched the idea of privatizing pension funds as a method to "generate domestic savings" and to enhance economic growth and job creation. What it did do is create an opportunity for vultures from Wall St. to make a quick profit and leave.
The economic crisis had been brewing for some time and it devestated that nations economy when those neo liberal chickens came home to roost.
The workers of Latin American countries have been plundered and impoverished under the greed and ideological nonesense of modern capitalism, or neo liberalism. But the very same thing is happening to America, Canada, Europe and all industrialized countries. Evidence of that is evident in the urge we all feel to qualify that word, "industrialized". It should be post-industrialized. We too will be sacrificial lambs to be slaughtered at the alter of capitalism. What happenes tonight in Argentina wil happen tomorrow in New York, Paris, and London
Archie Kennedy
e-mail:
akenn100@hotmail.com
Homepage:
http://www.leftlite.blogspot.com
Comments
Hide the following 14 comments
Plunder
05.11.2005 03:43
Resist these blood sucking, selfish, evil, heartless, capitalist and imperialsistic scum at every turn. Any which way...........every day.
RESISTANCE is fertile.
Viva!
pathetic proleteriat
Free trade
05.11.2005 03:56
sceptic
protectionism
05.11.2005 08:13
Ricardo set out 4 conditions that must be met for free trade to be *mutually* beneficial, not exploitative and wealth concentrating, none of which are met in today's world economy. Its therefore pretty obvious that these policies, whatever the egalitarian rhetoric about 'convergence' etc are design to subjugate and expolit. In fact the whole application of 'comparitave advantage' theory today is to force some economies to be low-added value raw materials producers, some to be cheap manufactured goods producers, some ('the west') to be capital investment/banking/hyperreal economies. From the theory of mutual benefits to the practice of 'know your place'...
Ricardo
Ignoring the loaded adjectives
05.11.2005 12:20
sceptic
dear sceptic
05.11.2005 13:58
Emerging markets and trading nation states have no chance in a free market against the western multi-nationals who can offer huge bribes to their elites and desimate the local competion through sheer scale of operations and powerful friends. Of the few non-western countries who have become reasonably prosperous (bearing in mind that all the wealth is still usually captured by the top tiny minority) they have done so by ignoring the dictates of free marketeer pro western business institutions of the IMF, World Bank et al and have protected their flegling indutries, these include the so called 'tiger economies'. Just look at the countries who did follow the orders of the WB IMF etc they have been trashed by capital flight and the destruction of any of any 'value added' industries that actually create some wealth. Look at Latin America most countries there were forced to open up markets and they are in a mess, why do think so many left leaning govts are coming to power, it's because they've been shafted. All that comes out of these countries is 'non value added' stuff like very very cheap commodities like coffee, the farmers and local economies get very little whilst the multi nationals who buy the cheap commodities make a fortune roasting, packaging and selling them on in western markets. (Buy Fair Trade by the way, it does make a difference to the local communities).
Anyway, here endesh the lesson. But for more info check out things like the Trade Justice Network and the World Development Movement and War on Want are pretty informed as well. I suggest you do the same.
read chomsky, pilger, monbiot, etc
Protectionism
05.11.2005 14:29
But you're tangling up free trade with other issues: the corruption in many of these countries that means that people are poor not because of free trade but bad governance.
Free trade meant South Korea can make ships cheaper than in Britain, and Malayasia can make cheaper cars. We tried for years to protect shipbuilding in the UK and it failed. The same with cars. And it was not the West that killed the industries, but what we would have called Third World countries not long ago.
There are some markets no one's really going to break into, such as large passenger aircraft.
But you're looking at it from the the producer end, not the consumer. India had trade barriers against cars for years: you could buy an Ambassador, or an Ambassador, or ...
The lack of choice meant tht the producers had a captive market: they could provide any trash, and you bought it or did without. That's why in the end trade barriers fail: better goods start leaking in round the edges.
You do not become successful by locking yourself away aganst the world.
sceptic
Fair Trade not Free Trade
05.11.2005 15:40
Unfortunately global trade, free trade, multinationals and corruption all go hand in hand.
South Korea and Malaysia would never have advanced to the point where they could even contemplate competing on a global scale in heavy manufacturiung industries like ship building and car making without protecting and subsidising those industries when they were at a fledgling level. It's also worth pointing out that industries like ship building moved to the third world because of next to no legislation protecting the environment or the wellfare of its workers. The western ship buyers will get cheaper ships but who else benefits in this 'race to the bottom'.
Finally of course I am focusing on the producer, most people in the world are not consumers as you and I are. Most people in India couldn't dream of buying a car, no matter what make it is. The producers of the world need a fair deal for their labour and commodities, an opportunity to develop 'value added' goods to trade and a level playing field in which to trade. This means Fair Trade not Free Trade!!!!
Read Chomsky etc
Workers' wages
05.11.2005 17:40
And I'm sorry, we're all consumers, every one of us - whether it's of cars or of bicycles or of shoes. Some of us are also producers.
Don't keep telling me to read Chomsky et al - been there, done that. The thing that I notice most is the use of abstract nouns and adjectives. As a humble scientist, I like empirical evidence.
Now, it is taken as read in these circles that privatisation is a bad thing. SO let's look at the British experience - not as a theoretical exercise, but empirically.
BT - you're probably too young to remember how in the days of the GPO when a wait of a month for a phone line was not atypical. Can you imagine the Post Office supporting mobile phones? Far too imginative a concept. Do we have an efficient telecomms now? Hm, surprise - we do.
British Gas: there's a Monty Python sketch which is fairly meaningless today, about someone trying to get a part for their gas cooker, and the line of engineers and sundries stretching down the street. They were overmanned and bureaucratic. So - fewer workers, more efficient. Horror! Job losses! Now, can you tell me the point of employing people who in effect had no function? How productive is that? Like digging holes and filling them in again. Yes, provides jobs - but to what purpose? And has gas provision suffered?
Electricity: are things worse or better?
Airlines: there used to be 2 airlines in the UK: BOAC and BEA. Now anyone who wants to can start an airline. Oh, look, cheap fares. What a surprise.
Steel, coal, shipbuilding, aircraft industry - all state owned. Why? What does Whitehall know about steel production? Sod all.
sceptic
You like empirical science?
05.11.2005 19:44
For empirical evidence re:the wizardry of capitalism, look at Argentina (above).
Capitalism has survived as long as it did as a result of the props and and mirrors of John Maynard Keynes. As a result of his policies and strong trade union movements, wealth was distributed resulting in demand for goods and services. This hybred of capitalism and socialistic wealth distribution worked relatively well until a few decades ago. Notice the direction we have been going in the past number of decades. Prior to that, there was optimism - new plants and infrastructure were going up. Now they are coming down.
As far as the zero sum game goes - for workers in *post* industrial countries it's worse than a zero sum game where workers are forced into a race to the bottom. Capitalists are manufacturing where it is cheapest to do so. THAT is the nature of capitalism - maximization of profits above all else.
The new terrorist laws are not there to stop more buildings from being bombed. They are there to enforce the new world order. Worker are facing increasing austerity and poverty. The social safety nets are being torn to shreds at the altar of pyschopathic profit hunger. The Keynes carrot is dead. The facist stick has made its appearance.
Archie Kennedy
e-mail: akenn100@hotmail.com
Homepage: http://www.leftlite.blogspot.com
empirical evidence, Mr Kennedy
05.11.2005 21:27
If you're going to maintian that workers are facing economic austerity and poverty, give us some figures.
Try
http://news.bbc.co.uk/2/hi/uk_news/politics/vote_2005/issues/4469615.stm
sceptic
Labour has done a relatively good job...
06.11.2005 00:26
The mines and closed here and programs were put in place to curb the effects of the de industrialization of the country, thanks to govt spending and assistance from Europe. No such luck for the Canadians and Yanks.
There is a choice perhaps. Keep Keynes alive or brace for revolution.
A Kennedy
Canada and the US
06.11.2005 04:57
Anyway, I thought globalisation was an American device to make themselves richer.
Also odd that US figures have shown family income increasing. They're becoming richer and more desperate? This does seem to be something of a paradox.
sceptic
No...workers and poor people are not doing okay in America
06.11.2005 09:37
Persue this link a bit:
http://news.independent.co.uk/world/politics/article311066.ece
Substantial industries are moving to where goods can be produced by desperately poor people. Children in some cases.
A proper apologist for capitalism will argue, 'isn't tht a good thing - at least they're better off than they were before'.
Am I right?
And the jobs being created in post industrial countries are service jobs and McJobs. There is nothing like working for a tyrannical employer that may fire you on a whim to make you shut your mouth about unions.
Also, you mentioned Korea - (speaking of bosses arbitrary power). I've lived there. I've seen what workers there are facing with capitalism in the raw. It ain't pretty.
A Kennedy
e-mail: akenn100@hotmail.com
Mar del Plata Spin Cycle
08.11.2005 14:34
Mar del Plata Spin Cycle
Monday, Nov 07, 2005
By: Joaquín Bustelo - Marxmail
That whirring sound you hear are the spinmeisters of the Bush administration trying to prettify the outcome of the Mar del Plata Summit of the Americas into something suitable for U.S. public consumption.
To briefly recap: Argentina, which was hosting the summit, set (as Lula put it) a 3-point agenda: "jobs, jobs and more jobs." Or as the official conference slogan had it: "Creating Jobs to Fight Poverty and Strengthen Democratic Governance"
Bush went to Argentina empty-handed on this score and nevertheless wanted to get the Free Trade Area of the Americas negotiations, which had basically crashed and burned at a Miami ministerial level meeting two years ago, restarted.
Bush was met with a week-long alternate summit, a mass march and rally of tens of thousands on Friday morning and violent street protests in the afternoon while President Nestor Kirchner welcomed the summiteers with a brief speech where he said Argentina wasn't about to go down the road of "economic growth" without job growth. Been there, done that, and at the end people didn't even have enough money to buy the T-shirt. It's time to find another road.
The event was marked by an unusual amount of tension, reflected in the cancellation of multiple press briefings and even a banquet. Argentina, Brazil, Paraguay, Uruguay and Venezuela took a firm position that the conditions did not exist that would make it possible to have a fair FTAA. And thus no matter how many ways the Bushites and their Latin American acolytes tried to square that circle, and get the five to accept at least some nice-sounding noises about the FTAA in the final communiqué, the five wouldn't budge.
But it also pissed them and lots of other folks off that Bush basically hijacked the meeting away from a discussion of job creation to a fruitless two-day wrangle over setting the date to negotiate over the FTAA, which was basically the U.S. demand.
That's because Brazil has been very clear. It's not going to let the Americans do to its agricultural sector what was done to Mexico, where Mexico dropped its tariffs and was invaded by an ocean of ultra-subsidized U.S. agricultural products. The U.S. said to Brazil and others in the FTAA, so sorry, we're going to talk about subsidies in the Doha round of the WTO negotiations. Not here. So Brazil said, well, then there's really no point in talking about an FTAA right now until we see what happens in the WTO with these subsidies. That's basically Argentina's position, too.
In the end, a "compromise" was reached -- the position of both the pro and anti FTAA camps would be in the final statement. In other words, the United States was forced to accept having the final communiqué record the position of the five that until and unless the imperialist countries do something about their agricultural subsidies and other trade-distorting swindles, not only wasn't there going to be a deal, they weren't even going to waste their time talking about it.
This position is entirely reasonable. The United States has refused to engage on its monstrous subsidies to agribusinesses in the framework of FTAA talks. It claims it can't on account of it is already negotiating about the same thing in the Doha round of world trade talks.
But the U.S. still wants countries like Brazil and Argentina to eliminate their tariffs so that the ultra-subsidized U.S. corn, wheat, soybeans, etc., can nuke their rural economies, just as they have already done to Mexico and are now doing to Central America. In other words, areas in which the U.S. wants concessions from Latin America are on the table; but even in the same sectors of the economy and even the same specific commodities, the U.S. isn't even willing to talk about what it might give.
In Latin America there is a rather vulgar description of such a deal which involves bending over and the lack of a use of Vaseline. And, not unreasonably, these five Latin American countries, with the clear sympathy of the majority of people in the region, invited the United States to apply that procedure to itself.
Comes now the Washington Post, to describe how well Bush did in Mar del Plata.
"In Venezuelan President Hugo Chavez's version of Latin America, the leaders who concluded a two-day summit Saturday are poised to ignite a unified, region-wide socialist revolution that rejects U.S.-style capitalism outright.
"But if the summit proved anything, it was that there is more to Latin America than Chavez."
That's the LEAD of the article -- I kid you not. That dastardly dude Hugo Chávez, was on the verge of having folks like Vicente Fox join him on the barricades in a revolutionary overturn more earth-shaking than any since the October Revolution. But St. George the Bush slew that dragon.
"Instead of backing their Venezuelan counterpart's rallying cry to bury a U.S.-backed proposal that would link markets throughout the Western Hemisphere, the leaders reluctantly agreed to discuss the proposal again during future talks. Cautious skepticism -- not Chavez's tone of enraged dismissal -- emerged as the strongest unifying force in a region exploring the possibility of greater independence from U.S. influence."
One of the curious things about this "agreement" that the Washington Post talks about is that they don't quote it. There is literally no reference anywhere in the story to the official document that issued from the event. Instead there is a recapitulation of some of the reasons why Latin Americans hate U.S. imperialism in general and George W. Bush in particular, all as a way of saying that given this, Bush did OK.
The Miami Herald takes a similar tack: "Bush is bruised but not beaten in talks. President Bush faced harsh criticism from Latin American presidents over a free-trade proposal, but no clear winners and losers emerged."
Remember, these are the imperialist-inspired "hemispheric summits" that Clinton launched under the aegis of "the Washington Consensus" for neoliberal globalization a decade ago in Miami. "The Spirit of Miami" would lead by 2005 to the biggest and most powerful trade block the world had ever seen.
And here we are, in 2005, and not only is there no free trade area of the Americas, but the "Spirit of Mar del Plata" has replaced the spirit of Miami. That spirit was expressed in the alternative summit and the big demonstration of tens of thousands of people repudiating Bush's visit. But it was also clearly echoed in the official summit itself -- and not just by Hugo Chávez.
"U.S. policy not only generated misery and poverty but also a great social tragedy that added to institutional instability in the region, provoking the fall of democratically elected governments," Kirchner said at the summit Friday. "We must create a kind of globalization that works for everyone, and not just for a few."
Compare that to the halcyon days of the mid-1990's when TINA --There Is No Alterative-- was the watchword. Faith in the "free market" religion has collapsed throughout Latin America as working people have seen what it means in practice. And even bourgeois politicians (well, at least some of them) are smart enough not to parade before the people mounted on a horse that's dead.
The Herald quoted with a straight face this official U.S. assessment: "It turned out well," said U.S. assistant of state for Latin American affairs Tom Shannon. "Chávez came to Mar del Plata to bury FTAA. Instead he resurrected it. He provoked a very deep debate among the leaders about FTAA," he told The Herald.
Sure. I believe it. The U.S. *really* wants a big debate about the FTAA. That's why they're always inviting Fidel to these summits. NOT.
All of the bourgeois press emphasized that the division was between the big majority (29 countries) and a small minority (5). None even mention that the five are really six, because Cuba is excluded from the talks but it is part of the hemisphere and there ain't no way it's going to join the FTAA. Nor that together the six represent 275 million of the 580 million Latin Americans (excluding colonial subjects) which is 47% of the region's population and in reality the bulk of its economic muscle.
You can contrast the U.S. press coverage to the way it was covered elsewhere. "Bush faces Latin fury as popularity sinks at home." is the headline in the Independent. The FT says, "Bush is single target of multiple complaints." The BBC reports flatly, "No trade deal at Americas summit."
The BBC quotes the typical U.S. spin (basically, that it was really good because no one torched copies of previous pro-FTAA summit declarations, at least not during the official sessions):
"The US National Security Adviser, Steven Hadley, spoke of 'real progress'.
"'We went from a summit which was supposed to bury FTAA to a summit in which all 34 countries actually talk in terms of enhanced trade ... recognizing there are challenges,' he said."
The Spanish news agency EFE, however, had a very different take:
"The 'Spirit of Miami' failed in Mar del Plata"
"Eleven years and successive fruitless meetings had to pass before the so-called 'Spirit of Miami,' which promised an Americas united by free trade, would fail in Mar del Plata, 11,500 kilometers to the south of the place where the 'integrationist dream' was born.
"Miami and Mar del Plata, hosts of the First and Fourth Summit of the Americas, close the circle of a process that was initiated in 1994 when the political stage of the hemisphere looked very different from what it does today."
We'll see now what happens today in Brazil where Bush will attend a barbecue thrown by Lula.
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