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Life Onboard |
LAST UPDATE
March 24, 2006
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| February 16, 2006 |
Argentina: the Failure of Capitalism – Carina Balladares |
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| Buenos Aires University professor and social activist Carina Balladares. |
During the 1990’s, Argentina was considered an exemplary case within the market economy system. By meticulously following neo-liberal financial policies recommended by the World Trade Organization (WTO), World Bank, International Monetary Fund (IMF), and United States government, its economic growth indexes seemed healthy. But, on December 19th of 2001, the Argentinean economy crashed in a devastating manner, giving way to what Buenos Aires University professor Carina Balladares refers to as “a prime example of the failure of capitalism.” Onboard from Rio de Janeiro until Ushuaia, Carina presented a series of lectures explaining the roots of the financial crisis of 2001, as well as some of the remarkable responses by Argentinean society. |
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| Argentinean society reacted immediately during the financial crisis of December 2001 (Photo courtesy of Carina Balladares). |
Carina argued “the market was bound to crash, as economic policies in Argentina continued to favor certain dominant sectors inside and outside the country.” During the 1990’s, similar neo-liberal policies had taken their toll on Latin America’s other two largest economies. The financial crisis in Mexico in 1995 and Brazil in 1997 should have been clear warning to Argentina, in addition to demonstrating intrinsic flaws within the neo-liberal system. Argentina’s case, however, stands out because it forced a president out of office and bred an inspirational response by a fragile society still reeling from a harsh dictatorial era. |
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| Carina firmly believes the financial crises of Latin America in recent years prove the failure of capitalism. |
With bank accounts frozen and the local peso devalued by two-thirds, Argentinean society unified in a dazzling matter by marching in the streets, banging on pots and pans and demanding explanations and solutions. Hence, despite the state of siege declared by the government, Carina describes this initial response as a pivotal one, since it established the power behind civil solidarity. Violence undoubtedly ensued, but afterwards, a number of post-crisis responses are well worth sharing.
The concept of regaining public spaces sprang up with the mass demonstrations from the 19th and 20th of December. And it continued to gain speed, as each day neighborhood assemblies flourished on street corners and parks throughout the country. Such groups intended to take control of their own communities and find solutions for immediate problems such as massive job losses, frozen bank accounts and lack of access to provisions. |
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| Textile workers at this retaken factory created their own logo in order to promote their products (Photo courtesy of Carina Balladares). |
Meanwhile, the first couple of months of 2002 witnessed the reopening of shut-down factories and businesses as those who lost their jobs in the wake of the crisis retook their former work places forcibly yet peacefully. By knocking down doors and installing makeshift management structures, recently shut-down factories once more produced textiles and finished goods. The service industry sector also reasserted itself with such reopenings. The Bauen Hotel of Buenos Aires became a symbol of this movement for empowerment and rebuilding within the service sector. Despite being abandoned by the employers who fled the financially broken country, dozens of workers reopened the hotel to once again take reservations and host guests.
With the local and informal alternative economy growing rapidly, so-called solidarity market spaces gained strength and numbers as they represented a positive alternative to mainstream marketplaces. Activities within these included the promotion of fair commerce and even bartering to facilitate access to basic products. “For us involved in social progressive movements” Carina explains, “the crisis was a wake up call to search for alternatives.” |
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