BY LUISA ARA
The intense mobilisations in Argentina in December have placed Latin America in the spotlight. Despite rigorous application of neo-liberal economic policies and tax adjustments demanded by the International Monetary Fund, no Latin American country has solved its economic crisis, reduced the level of dire poverty or been able to defeat evil epidemics of capitalism: unemployment, social misery and moral disintegration.
In 1990, the number of people in living in poverty in Latin America was of 160 million. Today, after the IMF recipes that were supposed to cure the continent's woes, the number stands at 240 million. If we project 10 years ahead, the total is likely to be 320 million. The misery is increasing, as does unemployment, diseases and violence.
In December, the Latin America regional office of the International Labour Organisation warned of the effect on Latin America of the deteriorating international economy, aggravated by the fall-out from the September 11 attacks.
According to the ILO, unemployment and under-employment is set to rise in many countries because of the reduction in Latin America's rate of economic growth, which dropped from 4.1% in 2000 to 0.9% in 2001.
In Argentina, the urban unemployment was of 7.5% in 1990; in 2000 it rose to 15.1% and hit 16% at the beginning of 2001. In Brazil, in the last decade unemployment increased from 4.3% to 7.1%. In Colombia, it increased from 10.5% to 17.2%, while Ecuador experienced an increase from 6.1% to 14.1%.
The continent's average unemployment rate was 8.2% at the beginning of the 1990s, jumping to 11.4% at the end of 2001.
The crisis is worsened by the great external debts that decapitalise every country of the region (except Cuba). Latin America's total external debt doubled in the last decade, while in the same period twice the total owed was repaid.
South America's economic prospects can only worsen as the North American economy slides into recession, compounding the negative effects of the Japanese economic crisis. Latin America cannot avoid the mass sacking of workers, the closing of industries and the shaky situation of the banks. This is called globalisation.
While Latin America's is suffering in greater proportions, there is potential for change. The workers' struggle in many countries is entering a period of recuperation. There is a rebirth of a vigorous fighting sentiment. This explains the mass mobilisations in Argentina and the growth of a vanguard that condemns the political parties of the dominant class for their responsibility for the country's crisis.
It also explains the political crises and mass resistance in Venezuela, Peru, Colombia, Chile, Uruguay, Ecuador and Bolivia.
Latin America is beginning a new year of political and economic crises but also a year of courageous struggles, unavoidable confrontations and working-class action for social justice.
From Green Left Weekly, January 23, 2002.
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