Latin America is in the throes of a structural crisis without precedent. Argentina, once a model of IMF policies, has faced a critical economic crisis since last December. Argentine people have mobilized to organize municipal assemblies, blockade routes, and gather in mass demonstrations.

LATIN AMERICA: IMF CONTAGION

Aug 3 2002

Efecto domino - la crisis argentina se expande

[English translation below]

America Latina se encuentra convulsionada por una crisis estructural sin antecedentes. Desde diciembre, el supuesto pais modelo del FMI, Argentina, enfrienta una crisis politica y economica que mobiliza la populacion en assebleas, cortes de ruta y protestas. Mirando la fallencia de aquel que una vez fue un de los paises mas ricos del mundo, Peru y Paraguay dicen no a la privatizacion de las empresas estatales en manifestaciones populares fuertemente reprimidas con violencia y suspension de los derechos civiles. En Uruguay el confisco de los ahorros de las bancas Estatales fueron seguidos por saqueos a supermercados y prisiones. La tasa de desempleo llega al 18%, y el presidente Balle busca 1,5 billiones de dollares en un acuerdo de credito con el FMI

Brasil (portugues) mira horrorizado la suba de 50% del dolar en los ultimos seis meses y negocia con el FMI un plan economico para los proximos dos anos aunque haya elleciones presidenciales en octubre. Se intenta acalmar la tension divulgando la llegada de Paul O'Neill secretario del tesoro nortemaricano el domingo a Rio de Janeiro. Despues de la visita al gobierno brasileno, O'Neill sigue para Argentina y Uruguay, pressurando la adaptacion de los paises a los articulos de ALCA. Mientrazs eso desde Ecuador movimientos sociales envian la carta de critica a la globalizacion neoliberal para el 2nd Summit of the Presidents of South America, y en Bolivia Evo Morales surprende la oligarchia del MNR. En Venezuela, Chavez, recuperase del Golpe de Estado de abril con constantes enfrentamientos entre manifestantes y policias.

Latin America is in the throes of a structural crisis without precedent. Argentina, once a model of IMF policies, has faced a critical economic crisis since last December. Argentine people have mobilized to organize municipal assemblies, blockade routes, and gather in mass demonstrations. Watching the bankruptcy of this once rich nation, Peruvians and Paraguayans are objecting to the privatization of state companies with popular uprisings. These protests have been repressed with suspensions of civil rights and state violence.

Now in Uruguay, the government has frozen savings deposits in fear of bank runs amid a freefall in the value of the Uruguayan peso [ audio ]. Following this, supermarkets have been looted amid growing protests against structural adjustment [ 1 ], and hundreds of people have been arrested. The rate of unemployment is close to 18%, and President Batlle has asked for US$1.5 billion in loans from the IMF.

Observers in Brazil watch in horror as the value of the real has dropped 50% to the U.S. dollar in the last six months. The government is continuing to negotiate an imposed two-year economic plan with the IMF, even though presidential candidates in the upcoming October elections have spoken against it. Meanwhile, foreign investors and the U.S. government are threatening to agitate economic instability, as Luiz Inacio Lula da Silva of the Labor Party leads the race. U.S. Treasury Secretary Paul O'Neill arrives in Rio de Janeiro on Sunday afternoon in an effort to calm tensions. He will also be visiting Argentina and Uruguay to pressure for their support in ongoing FTAA negotiations.

Further to the north, Ecuadorian social movements delivered a letter criticizing neoliberal globalization during the second Summit of the Presidents of South America last week amid protests. In Bolivia, the farmer Evo Morales [ audio ] surprised the ruling oligarchy, U.S. government, and international investors by winning more than 20% of the vote in presidential elections. Venezuela, recuperating from the attempted coup d'etat against Hugo Chavez in April, is threatened by constant confrontations between opposing groups of demonstrators and police. Consult the features archives for more coverage on the rebellions of 2002 in Latin America.