Unhappy times in Argentina

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

August 1, 2001

Austerity Plan in Argentina Provokes Wide Protests

By CLIFFORD KRAUSS

BUENOS AIRES, July 31 — Tens of thousands of unemployed workers, public employees and students blocked scores of major highways and city streets across Argentina today to protest new government spending cuts aimed at averting a default on the foreign debt.

Two weeks after a national strike by several unions, the coordinated protests were another sign that social unrest is growing in response to the country's three-year recession.

Sporadic violence and some arrests were reported as protesters set tires on fire, beat drums and set up tents in the middle of major highways. Traffic was snarled in Buenos Aires and other major cities throughout the day. Two police officers were reported injured in a confrontation with workers protesting the planned privatization of the municipal power company in Córdoba, Argentina's second largest city.

The blockades are being led by small but well organized leftist groups that have replaced unions as the most important vehicles for economic protest by the unemployed. There have been dozens of costly road blockades in recent months as the unemployment rate rose to more than 16 percent, but the blockades today were the first coordinated nationwide action by the groups.

On Monday, the Senate gave final approval to an austerity plan that cuts government salaries and pensions by up to 13 percent and increases several business taxes. The plan was forced on President Fernando de la Rúa three weeks ago as interest rates soared and it became increasingly difficult for the government and provinces to pay the interest on their $130 billion public debt.

The government has promised to erase a projected $1.5 billion deficit for the second half of the year to prevent a default or devaluation. Economists say a devaluation of the peso, whose value is pegged to the dollar, would increase the likelihood that private businesses would default on their own $20 billion foreign debt since most companies owe debts denominated in dollars.

Today, protest leaders threatened to set up weekly road blockades that would become progressively longer until the government reverses the austerity plan and releases more than a dozen protesters arrested in previous road blockades. Meanwhile, hospital workers and other public employees threatened wildcat strikes until the government changes its economic policies.

Juan Carlos Alderete, a leader of the blockades, said the protests were a successful show of peaceful dissent. "This is a slap in the face to all who say we are violent," Mr. Alderete said. "They should see that we are everywhere with our families and children as always."

Among the protests in the capital, several hundred dissidents carried banners of the Communist and other leftist parties while blocking an avenue in front of the Labor Ministry.

"We think the only way to get this country growing again is to stop paying the debt," said Ricardo González, 40, a printer who has been unemployed since his employer went out of business five months ago. "We want the government to fall so a Constituent Assembly can choose a new government."

The economic picture has grown increasingly grim in recent months as consumer spending, industrial production and tax receipts have lagged and bank withdrawals have increased. Wall Street remains skeptical that government policies will lift Argentina out of its economic crisis. "The commitment to keep adding to the austerity to create zero deficit isn't very credible," a Bear Stearns report said today.

http://www.nytimes.com/2001/08/01/international/americas/01ARGE.html?ei=5040&en=db98653344b33b03&ex=997329600&partner=MOREOVER&pagewanted=print

-- Martin Thompson (mthom1927@aol.com), August 01, 2001

Answers

Argentina Thousands of jobless protest government’s austerity plan

ASSOCIATED PRESS BUENOS AIRES, Argentina, July 31 — Thousands of jobless people and state employees blocked highways across recession-stricken Argentina on Tuesday, protesting an unpopular government austerity plan and demanding work. The largely peaceful protests were the latest outburst of anger in Argentina, which is sliding into a fourth straight year of recession with unemployment above 16 percent and a quarter of the population living beneath the poverty line.

MSNBC

-- Martin Thompson (mthom1927@aol.com), August 01, 2001.


Austerity, austerity, austerity. That is the hue and cry of the IMF, whose similar policy Russia followed, into default, in 1998. Looks like Argentina will be next.

-- Billiver (billiver@ao.com), August 01, 2001.

What I don't get is Argentina's connection to Brazil. It's been explained here, but I forgot. Something about the danger that they will hold hands and go down together. Can anyone cast further light?

-- QMan (qman@c-zone.net), August 01, 2001.

see the bottom ofIS Argentina in deep mess?

-- (perry@ofuzzy1.com), August 01, 2001.

Moderation questions? read the FAQ