LATIN AMERICA
Movements defy privatization policies
By Alicia Jrapko
Despite all of the U.S. corporate media's efforts to conceal
the deepening economic and social crisis in Latin America, they
can no longer hide it. Articles in major newspapers now cry out
for a "clearer" U.S. policy toward the region, reflecting a
split in the ruling class here over how to respond to the
crisis engulfing the entire continent.
Although some economists still claim the region needs more
"free-market" economic policies, others now admit that U.S.
neoliberal policies--privatization, cutbacks, throwing open the
market for U.S. products, prioritizing debt service to the
banks--have worsened Latin America's huge gap between rich and
poor.
After almost 30 years of neoliberal policies in the region,
a small elite enjoys enormous wealth, while poverty across
Latin America stands at over 40 percent.
The crisis that first erupted in Argentina has spread
throughout the region, particularly in the Southern Cone. But
the U.S. government and big business's main concern is to stem
the growing tide of popular resistance and uprisings.
That's why Washington abruptly changed its "no loans" policy
for struggling economies in the region and says it is now
willing to permit some International Monetary Fund loans.
On Aug. 7, U.S. Treasury Secretary Paul O'Neill urged a
speedy IMF pact for aid to Argentina. Just 10 days earlier,
O'Neill had publicly suggested that aid to the region could
"end up in Swiss bank accounts."
The same day O'Neill made his about-face, the IMF announced
a $30 billion loan to Brazil. Before that, Washington granted
Uruguay a $1.5 billion emergency loan to keep its banks
afloat.
Resistance to privatization
U.S.-backed privatization policies face enormous challenges
from peoples' movements throughout the region.
After five days of rebellion against plans to privatize two
power plants in Arequipa, Peruvian President Alejandro Toledo
was forced to declare a state of emergency and agree to suspend
the sell-off.
In Paraguay, rebellions opposed to free-market policies
forced President Luis Macchi to declare a state of
emergency.
In Mexico, poor peasants mobilized and stopped President
Vicente Fox's plan to build a new airport on their lands
outside Mexico City.
In Uruguay, people responded to the banking crisis by
expropriating goods from supermarkets. Unions protested the
government's decision to close the banks for a week.
Meanwhile in Brazil, the region's largest economy, the
currency's value continues to drop. Will rebellion spread there
next?
For the most vulnerable people of Latin America, the
gigantic amount of foreign debt in the region amounts to
super-exploitation. The austerity plans imposed on local
governments by the IMF and World Bank in exchange for more
loans means cutting jobs and basic benefits like health care,
education, retirement and social security.
More loans are not the answer for economic recovery in these
countries. It's a Band-Aid solution that will only put them
further in debt and produce more austerity for the great
majority of people.
There is a growing movement in Latin America to cancel the
entire foreign debt. After all, the Latin American countries
really owe nothing to foreign banks, which have profited from
centuries of imperialist plunder of the region.
Just as U.S. big business and the government should pay
reparations to the families of former slaves, imperialism
should also be held responsible for paying reparations to the
Latin American working people for all the stolen natural
resources and labor.
Reprinted from the Aug. 22, 2002, issue of
Workers World newspaper
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