An Argentinian view of the situation there

[michael perelman <michael@xxxxxxxxxxxxxxxxx>]

Néstor Gorojovsky wrote me

... the IMF has had to accomodate to Argentina's President and
his decissions.  What you have read is simply the usual "leftish"
rant, the "progressive" view of those who would rather have a Menem
in power so they can easily ride to the "bourgeois regime's" left.

In fact, what has happened is this: according to the Dubai
agreements, Argentina was forced to fulfill some conditions in order
that the IMF repay us (to keep the foreign curerency reserves at a
reasonable level) the 3100 mill. dollars of the part of the foreign
debt that we have with the multilateral financial organizations.
Under pressure from the G-7, the IMF wanted to impose further
conditions to those (quite leonine, but less than IMF expected)
imposed on us in Dubai, last September.

Then, K. informed the globe that he would not accept a single
additional condition, and that unless he had a sure sign from IMF
that back payment would be agreed, he would stop payments and the
Hell take them.  At the same time a long negotiation began, where
Argentina profited from the fear of the US (that is, Bush) that the
country might run "Leftist" if the tried IMF to pull too tight a rope
around our neck.

There ensued some weeks of very nervous negotiations.  Yesterday
afternoon, at last, Anne Krüger herself phoned to K., and she seems
to have accepted his conditions (which were, simply put, that the IMF
acted "bona fide" with Argentina, not adding new conditions to the
agreements already reached).  After that call, he ordered our Central
Bank to pay the 3100 mill. doll., in the certainty that the terms of
the agreement of Dubai would not be modified.

Not a great battle, not at all. Not exactly a victory, but not a
defeat, either.  A draw, if you want to put it in football terms.
But in the end, that Argentina can obtain a draw with so bourgeois
(that is, fearful) government is in fact a sign of strength.

K.'s attitude, on the other side, has helped to install the foreign
debt in the political debate the country over.  I believe he did it
intentionally, in fact.  There has been word that when prompted by
some to launch the Parliamentary investigation of the debt according
to the Ballesteros ruling (which shows that Argentina owes nothing,
and that on the contrary the whole thing has been a swindle where we
are creditors, rather than debtors), Kirchner has not said "No",
simply "Not yet", as if he were keeping a secret weapon.

Two or three years ago, we were a very small group of "crazed foreign
debt maniacs".  Now, the whole thing is in everyone's brain.  This, I
have to admit, is to a great extent due to Kirchner and to --Anne
Krüger!!!!!

So that you see: This time, he acted well. In fact, the  "left"
(particularly the port city Buenos Aires "left") requests from K. to
break with the IMF at once, that is, he is requested to do the job of
the "left" itself!

Imperialist owned news agencies -anything but dumb- are already
trying to install this stupid idea as "progressive common sense", in
order to keep the "progressive" petty bourgeoisie pitted against K.
[You don't have an idea of how intense is ideological war in
Argentina, particularly media war, ever since --1860 or at least
1890!]

That is, our left, who have lost all their bearings, are simply
behaving towards the Argentineans like brats behave towards a younger
brother or sister. "So that Daddy wants us to believe that he's
Superman?  OK, you will see that he isn't."  When daddy actually
happens not to be Superman, but an aging Batman with measles,
influenza, a sore foot and reduced eyesight, then they yell: "Ah, you
see, your beloved daddy was Brainiac at last!"

Hope to have explained the situation. It is so absurd that maybe you
can't see it in its full ridiculous extent. As a rule of thumb, when
a Peronist government in Argentina receives attacks both from the
"left" and the right (this is happening with K., already), then one
can begin to guess they are doing something well.



--

Michael Perelman
Economics Department
California State University
michael at ecst.csuchico.edu
Chico, CA 95929
530-898-5321
fax 530-898-5901