[stop-imf] Lessons of Argentina's economic experience ignored by U.S. media

[Robert Weissman]

         Geov Parrish
         WorkingForChange.com
         08.27.01
         http://www.workingforchange.com/article.cfm?ItemID=11812


Don't cry for them
Lessons of Argentina's economic experience ignored by U.S. media


Mostly, what the American public knows about protests
against the global economic regime, it has learned from the
sneering news reports of "violent protesters" in places like
Seattle, Quebec, Genoa, and -- coming again in four weeks
-- Washington, D.C. The focus on these demonstrations
comes for two reasons. First, media follow elected big-shots,
who often have been convening at the same summits as
protesters.

But second, and more disturbingly, the allegedly objective
U.S. media seems to find something comforting in the notion
of wacky, spoiled Euro-American protesters, sputtering
allegedly incoherent rage while their countries enjoy (the
story goes) unprecedented prosperity. Non-white protesters,
much closer to the business end of the discontent and
repression that fuel the global justice movement, are usually
ignored.

For these two reasons, we heard a lot about Carlo Giuliani's
death at the hands of Italian police in Genoa, but nothing,
the previous month, of the deaths of four anti-globalization
protesters in Papau New Guinea.

And last week, when crisis-stricken Argentina agreed to
accept an $8 billion International Monetary Fund (IMF) loan,
the terms of the loan were widespread news. But the daily
anti-IMF demonstrations before and after the loan
agreement, by tens of thousands filling the streets of Buenos
Aires, effectively did not exist.

The New York Times coverage was unrepresentative only in
the sense that it paid more attention to the agreement than
most U.S. dailies, which usually bury or ignore all things
foreign. Last Wednesday, it featured two stories on the pact.
One of the protests was mentioned in one of the stories -- in
passing, in the 13th paragraph -- as follows:

"In another sign of the difficulties the [Argentinean] government
must confront, thousands of teachers and doctors protesting the
planned budget and salary cuts marched on the presidential
palace today, carrying banners denouncing the government's
'submission' to the IMF and the United States."

No quote from loan opponents; certainly, no explanation of
why well-respected professionals were angered by the IMF, or
the U.S., or why the two are linked, or why they think the loan
a "submission." (Note the quotes, rather than simply
explaining the viewpoint.)

An attentive reader might have gotten a bit more from the
accompanying "news analysis," where, in paragraphs 12-14,
without mentioning any street protests, the Times concedes:


"...Argentina's problems have become severe enough that new
loans are seen as having no more chance of success -- and
maybe less chance -- than the last round [$13.8 billion] agreed
to during the final months of the Clinton administration.
Argentina's economy has been shrinking for three years. Falling
exports and capital flight has threatened its ability to repay some
$128 billion in dollar-denominated foreign loans.

"But while it is hardly a model for economic development among
emerging markets, Argentina has often followed the advice of the
IMF. In the early 1990's it committed itself to keeping its peso
equal to a dollar in an effort to tame inflation, and overhauled its
banking system, which was mired in mismanagement.

"Moreover, political support for fiscal austerity and open markets
is shaky, both in Argentina and neighboring Brazil. Some fear a
popular backlash if the experiments fails [sic]."

Left unsaid, of course, is that Argentina -- by faithfully
following IMF loan conditions that crippled its economy and
public well-being, but left banks in the North (especially the
U.S., which dominates the IMF) considerably richer -- is, in
fact, a fairly accurate model for economic anti-development
among euphemistically titled "emerging markets."

The current Argentinean experience -- "unemployment
surging, currency reserves dropping, tax revenues
plummeting and credit virtually impossible to obtain," coos
the Times -- has happened all over the world. Inflicting it
continues to be a high bipartisan U.S. priority. Hence, "free
trade" agreements that require IMF-style "austerity" remain
the norm after 30 years of such policies' consistently not only
ensuring public misery, but increasing the massive interest
levels on Northern debts (a staggering $128 billion, for
Argentina) often stretching back decades.

Argentina's current president, Fernando de la Rua,
campaigned by promising to oppose the IMF (a detail
omitted by the Times). Little wonder people are in the
streets in Buenos Aires, calling enslavement to banks in New
York and London a "submission." Little wonder "some fear" a
"popular backlash" (but not, please note, an elite backlash)
in other countries as well. The same scene is being played
out all over the world. As only one byproduct, America is
almost universally despised by the people thus victimized. As
another, millions may die.

But next month, when the IMF and World Bank meet in
Washington and protesters converge, you won't hear about
all that. Our nation's liberty has to be protected against that
wacky Black Bloc, you know.