Fw: After the Fall: Argentine Crisis and Possible Repercussions

["michael pugliese" <debsian@xxxxxxxxxxx>]

FOREIGN POLICY IN FOCUS
http://www.fpif.org/

What's in the News at FPIF?
December 26, 2001


* After the Fall: Argentine Crisis and Possible Repercussions

By David Felix

The currency, debt, and political crisis in Argentina presents
the Bush II
administration with a Hobson's choice. It could hang tough on
no emergency
loans to Argentina, re-enforced perhaps by a hard line in the
forthcoming
debt renegotiations, in order to raise the probability of failure
for
Argentina's breakaway from neoliberalism. That would also increase
the risk
that the resulting economic chaos could produce political chaos
and a
return of the jackboots. It would also increase opposition within
the IMF
directorate to U.S. dominance of IMF policy toward the developing

countries, which could further erode the institution's usefulness
to the
U.S. as a key instrument for globalizing neoliberalism. Economist
David
Felix examines the policy options facing the new Peronist government
in
Argentina, while also reviewing the possible repercussions inside
the IMF
and to the global economy.

(David Felix <felix@xxxxxxxxxxxxxxxxx> is professor emeritus
at Washington
University.)

See this new FPIF Global Affairs Commentary at:
http://www.fpif.org/commentary/0112argentine.html