Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/252/24763

From The Socialist newspaper, 3 May 2002

Argentine crisis: Taking To The Streets Against The IMF

WHEN IT seemed to most Argentinians that conditions in their bankrupt country couldn't get any worse, then they did. The five-month long financial crisis and 46-month long recession that has devastated the lives of Argentina's working class and once-prosperous middle class, has deepened in the last week.

According to the Buenos Aires Herald: "With the peso sharply devalued and joblessness hovering near 24%, the country is undergoing its worst economic crisis in history. Over 40% of its 36 million residents now live under the poverty line and massive protests have become a daily feature of the country's life." The economy is expected to contract by 15% this year!

Fear of financial meltdown and a banking collapse led to panicked savers withdrawing huge quantities of cash from banks (over $100 million a day) forcing Argentina's Peronist president Edwardo Duhalde to order a nationwide bank holiday.

Meanwhile the economy minister, Remes Lenicov, returned empty handed from a meeting of International Monetary Fund (IMF) delegates in Washington. His pleas for a resumption of loans to Argentina's $141 billion debt-ridden economy was rebuffed. The IMF want further cuts in public spending by the country's regional governments. More cuts will increase unemployment, worsen health and education and cut pensions.

Lenicov proposed converting billions of frozen savings into government bonds in order to stop a drain on bank ie to force savers to take on government debt.

This provoked more street protests, strikes and occupations. "Thousands of deposit-holders banging pots and pans gathered outside a heavily guarded Congress for a second day to protest against any attempt by widely despised legislators to approve the savings-for-bonds plan. On Monday night, frightened senators had to be escorted under guard from the building." (Buenos Aires Herald, 25 April)

Needless to say, Congress kicked out Lenicov's plan and he then resigned. Another crisis of Duhalde's administration resulted in the appointment of Roberto Lavagna as the new economy minister.

To buy time in order to "mollify impatient international money lenders", as the BBC put it, the parliament passed a law denying most savers access to their bank deposits. Under the measure, only savers who mount successful challenges against existing restrictions on withdrawals will get access to their money, though the government will be able to appeal against court decisions.

However, the last time parliament passed the 'hot potato' to the Supreme Court mass protests forced the judges to throw it back to Congress in a hurry!

Months of emergency measures have failed to stem the crisis, which isn't simply the result of incompetent and corrupt politicians, but is a root and branch capitalist crisis that can only be ended when the country's working class, pulling behind it the disaffected middle classes, take control.

Only a workers' government which nationalises industry and the banks and implements an emergency plan of production to re-employ people and restore functioning services can resolve the crisis.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 3 May 2002:

Health, education, transport: Five years of failure

Support The Postal Workers

Mass protests in France: Neither the 'Fascist' nor the 'Crook'

Falklands/Malvinas 1982: Thatcher's War Of Saving Face

A Shift To The Far Right In Europe?

Mass Action And Socialism To Fight The Fascist Threat

Israel/Palestine: The War Of Occupation Continues

Socialist Challenge in Irish Election

Argentine crisis: Taking To The Streets Against The IMF


 

Home   |   The Socialist 3 May 2002   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Argentina:

triangle110 years ago: massacre at Santa Maria school in Chile - commemorate 21 December 1907

IMF:

triangleZimbabwe: Mugabe gone - but his regime remains in power

triangleIMF helps cause inequality it slams

triangleCapitalism and human progress

triangleCourageous Ebola nurse Salomé Karwah dies

Government:

triangleTrump's incendiary Jerusalem statement reignites Israeli-Palestinian conflict

triangleMovement growing against fracking giant Ineos

triangleA world in crisis, ripe for revolution

Economy:

triangleAmber warning lights flash on British economy

trianglePowerful picture of the Port Talbot steel workers' struggle

International

International

13/12/17

Israel

Trump's incendiary Jerusalem statement reignites Israeli-Palestinian conflict

13/12/17

CWI

A world in crisis, ripe for revolution

6/12/17

US

Trump's tax plan: Robin Hood in reverse

6/12/17

Ireland

Irish capitalist state: rotten to the core

6/12/17

Women

Fighting sexism, violence and capitalism - an international struggle

22/11/17

US

Trump's tax attacks

22/11/17

Australia

Australia: massive yes vote for marriage equality

21/11/17

Zimbabwe

Zimbabwe: Mugabe gone - but his regime remains in power

15/11/17

Minneapolis

USA: Historic vote for Ginger Jentzen campaign in Minneapolis

10/11/17

Minneapolis

US: Historic vote for Ginger Jentzen campaign in Minneapolis

8/11/17

Sweden

Sweden: 'Revolution2017' success

8/11/17

Spain

Spain: Madrid rally celebrates October revolution

8/11/17

Minneapolis

US: Minneapolis Socialist chimes with voters

8/11/17

Ireland

Ireland: rail workers demand share of 'recovery'

8/11/17

Ireland

Ireland: dangerous ideas for the ruling class

triangleMore International articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle16 Dec Blairite council 'all ears' to rich property developers

triangle16 Dec Arriva bus drivers' action wins pay rise

triangle14 Dec Stop the rotten redevelopment plan, demand residents

triangle13 Dec Six months on - still no justice for Grenfell

triangle13 Dec Movement growing against fracking giant Ineos

triangle13 Dec Totnes MP uses coffin controversy to distract from brutal NHS cuts

triangle13 Dec Trump's incendiary Jerusalem statement reignites Israeli-Palestinian...

More ...

triangle18 Dec Leeds Socialist Party: Religion and Socialism

triangle19 Dec Bristol North Socialist Party: Christmas social

triangle21 Dec Wakefield Socialist Party: Socialists and the National Question

triangle6 Jan Socialist Party national women's meeting

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

December 2017

November 2017

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2