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uprising in argentina
Argentina: A Case for Hope!
Right now in Argentina, the third wealthiest nation in Central and South America, there exists a pre-revolutionary environment. For the past two months large sections of the working class, unemployed/underempolyed, and young people have been rallying in the streets, organizing mass actions, meeting in neighborhood assemblies. In general, building a social movement that can victoriously challenge the government on every reactionary policy it makes, from privatization of corporations to freezing bank accounts.
Though this radicalization has really taken hold, we hear very little about it in the media (popular and left.) To be sure there are reasons for this, the primary being that this is the largest and most organized mobilization of the working and unemployed class since perhaps the !930’s. With thousands, perhaps millions of Argentineans questioning the validity of capitalism, globalization, and neoliberalism to answer their questions, they inherently offer an example to the poor and suffering citizens of Central and South America, not to mention the whole continent of Africa countries and Asia.
What is happening in Argentina today is something that all of us need to understand and learn from. Here, in our own hemisphere unfolds a real struggle between the workers and the owners, that is a direct collision between two classes whose interests are irreconcilable. To get a better grasp on the situation we should look at Argentina’s recent history, the roll the IMF and World Bank play in Argentina’s economy, and the struggle that is being carried out by the oppressed masses.
The Economic Groundwork for Revolt
Argentina has been battling economic recession for the past 4 years, with no end in site. Official unemployment has risen to nearly 20% and another 15% of workers are “underemployed.” One out of three Argentineans live below the poverty line and 2,000 more are sucked into the pits of poverty every day. In the private sector wages have fallen 20% since 1998 and last July the government cut public sector wages by 13% . Adding to the dire situation Cavallo (minister of economy) and de la Rua (president) withdrew $3.5 billion from state pension funds to make a payment on the external debt, resulting in the delayed benefits for some 1.4 million retirees and their families.
The middle class has also been hit with startling blows from the recessions. Small time shops and stores have seen a drop in sales to the tune of 22%, which is significant when a large portion of Argentina’s income (80%) comes from domestic consumption. In addition, lending to small business has dried up as the interests rates have exploded to 35%, making it difficult, if not impossible, for an owner to pay off his/her loan. This being so, large, international businesses have been able to capture markets previously held by domestic Argentinean companies.
Today Argentina carries $132 billion external debt and $23 million in internal public debt. It has received nine IMF bailouts since 1983. The four year decline in economic activity has finally eliminated the Argentinean government’s ability to make payments on its external debt. We will return to the IMF’s role in a bit.
To understand how the economic situation has come to be this way it is important that we look a bit deeper into the crisis. The recession that hit Argentina in 1998 was at the tail end of a world economic crisis known as the
”Asian flu” where countries like Thailand, Indonesia, and Hong Kong suffered severe blow in their economy. In ’98 Argentina and Brazil both experienced a collapse in foreign trade and following this collapse was a decline in foreign investment. Without money to power the factories millions where left unemployed.
In many countries the crisis of a failing economy was met with the solution of devaluation of the national currency. However, Argentina did not follow this pattern and has subsequently paid a high price for not doing so. The initial thinking behind not devaluing the peso was that it would protect Argentina’s domestic lenders (capitalists that is) from huge losses. This had a large effect on Argentina’s ability to trade in the European market, since it had to compete with products coming from Latin American countries who had devalued their peso and thus displayed their products at a cheaper cost for the European consumers.
So, it runs like this: recession hit Argentina and the capitalists responded in a way that protected their economic interests, even though this, in the long run, or not so long run, would have absolutely negative effects on the economy. Such is the wise and profound logic of the bourgeoisie.
Now we return to the IMF. The typical governmental response to economic recession is an increase in government spending (to stimulate production) and a tax/interest rate cuts (to stimulate spending.) This can be seen in our own country right now with Bush’s mass military spending and a slash in interest rates. The kicker is that throughout Argentina’s recession the IMF (a capitalist lending institution dominated by the U.S.) has not allowed such measures to be taken. In fact, it has imposed policies that are the exact opposite such as tax increases, reductions in government spending, and continued privatizations. ! ; These conditions are required by the IMF in order for Argentina to be eligible for new loans! Meanwhile the people of Argentina are suffering with no money for food and basic necessities.
So, why would the U.S., through its main lending institution, want to put Argentina in such a predicament? There are two reasons. First, because its sends a clear message to developing nations that during a time of world recession the U.S. will not sign off on IMF aid to countries where there are no immediate economic or strategic interests. And secondly, a weak Argentinean economy serves as a brake on Mercosur (the organization that facilitates trade between Latin America and Europe.) If the U.S. corporations are able to beat out Mercosur then they’ll be able to control more of the European market. !
The Political Groundwork for Revolt
There is one more aspect of history that is important to understand before we look at the more exciting aspects of the current Argentinean struggle.
The political arena in Argentina has been dominated for decades by the Peronist party that has been on a successive trail of neoliberalism and globalization. Their policies as well as those of the other dominant political party Alianza have led to the privatization of many key industries including petroleum and more recently the banks.
The economic policies put in place by Menem (Peronist), de la Rua (Alianza), and Cavallo have brought the people of Argentina to their knees. The capitalist ruling class in Argentina have profited from these policies at the plight of the workers and poor. But now they are trembling with fear as their ears ring with the chants of the people, “Que se vayan todo!” “They have all got to go!” By pursuing their own class interests to their logical ends they have successfully radicalized millions of Argentineans who no longer have any respect or sympathy for their now apparent class enemies. At every turn the Ar! gentinean government has made decisions that have served to alienate, exploit, and disenfranchise the masses. This is the current political climate of Argentina.
The Masses Mobilize
The people of Argentina have shown clearly that they do not think much of their government’s policies. Starting in November of 2001 masses workers, unemployed, and students packed the streets calling for the resignation of Cavallo for his vehement economic attacks against workers and the middle class. Cavallo dug his own grave when he took control of the banks and limited withdrawals of no more than $250/wk from their accounts. Of course, this did not apply to Argentina’s rich and wealthy. On December 13th a national general strike was called by the three largest trade unions and demanded an opening of the banks and the resignation of Cav! allo. Drawing thousands into the streets all across the country they achieved a partial victory with the removal of Cavallo from his position.
Just a week later, on December 19-20th an anti-capitalist/anti-globalization protest developed. In large part this was brought on by the rank and file members of the unions, including the unemployed union. The official trade unions refused to carry on the strike for an extended amount of time, which had been their repeated response throughout the recession (holding strikes for show, then rolling back the gains made.) This protest culminated in the Plaza de Mayo in Buenos Aires, across from the presidential palace. An eyewitness reported:
Plaza de Mayo, the heart of Argentina’s political life, turned into a war zone, with police battling protesters in a fruitless effort to impost the state of siege ordered by the cornered de la Rua on Wednesday night. By day’s end, mounting unrest in the capital and across the country had led to the president’s resignation.
Just after 11 A.M., under government orders, police cleared the Plaza with tear gas and rubber bullets. Protesters dispersed and about 30 were arrested, but in no time at all they started to trickle back in the Plaza. The scene was repeated over and over. The more force used by the police, the more determined the people appeared to return.
At the end of the two days of national protests the masses won three immediate gains. 1) The inept and backward de la Rua-Cavallo government had been thrown out of office. 2) The ruling class’s decree of allowing the executive branch to rule with “special powers” was defeated. 3) And the government was forced to distribute large amounts of food.
The ruling class was in a bind with no apparent way out. They were held on one side by the IMF and on the other by the masses of Argentineans. The next president in the line of succession was Puerta (head of the senate) who quickly passed the position off to Saa, who was too far left of center for the ruling elite’s taste. Next came Camano who was quickly rushed out by masses of protesters and left the spot open for the current president Eduardo Duhalde. Duhalde has come to rule through heavy police enforcement and a ring of thugs around him. He is backed by the capitalist parties of Argentina and is look! ing to reconcile the national debt by seemingly more cuts in social programs.
The excitement builds when we look at the way the people of Argentina have organized themselves in this struggle. For the most part the major strikes and protests have been called and led by the union for the unemployed (“piqueteros”). This organization is made up of mostly laid off industrial workers who have a long history of activism. They are a direct action, direct democracy organization that have influenced and inspired the masses of Argentineans. They represent a very active and militant wing of the current struggle, though their leadership is not necessarily predominant within the general movement.
In the same vain, the whole country has seen a rise in the neighborhood general assemblies, in which people get together and discuss issues and policies of the struggle. At these local meetings protests are organized and campaigns are put into practice. The phenomena of this kind of organization of society is reminiscent, in ways, of the Russian soviet model which became an outstanding mode of worker’s power. The rise of this organization points to the radicalization of the general population and their willingness to play a part in the struggle.
The trade unions have also played a part in the recent uprisings, though they are more conservative. There are three major trade unions that span the range of conservatism. They have bulky bureaucracy at their helm who, in strange ways, have certain ties and allies within the ruling class. This, obviously hinders their program and tarnishes them in the eyes of the Argentinean masses. They have often looked down on the mobilizations of “piqueteros” and have not supported their calls, though they are obvious class allies. However, they have shown in recent events that they are able to work together with var! ious organizations on a decided political program. Such and alliance is key in order for the Argentinean people to win their struggle.
A Argentinean news correspondent had this to say of the organized left in Argentina,
“These are desperate people today. These are not employed workers fighting against a particular cutback. They’ve lost all their savings. They been out of work or underemployed for a long time. Many of them haven’t seen meat in months. This is a whole desperate mass of people that cuts across class lines—but in which class demands are articulated."
What are the demands of the movement? In a recent national general assembly meeting of 2,000 folks (representing 44,000) a clear cut, nine point program was drafted. The points are as follows:
1) Release of the imprisoned comrades and drop the cases against them.
2) Bring to justice those who were responsible of the Dec. 19-20th murders (30 killed.)
3) Nonpayment of the national debt. Nationalization of banks and utilities.
4) A ban on layoffs and suspensions.
5) Nationalization and operation under worker’s control of any enterprise that shuts down or lays off its workers and reopening all those that have shut down.
6) The immediate return of small savers’ deposits
7) Fight for real and steady jobs through cutting the work hours without cutting pay.
8) A minimum wage and unemployment benefits in accordance with a family budget and adjusted according to rises in cost of living.
9) Duhalde and IMF out! For a worker’s government!
Conclusion
No doubt, the people of Argentina have a long road ahead of them, but they have begun to take the first major steps on a hopefully triumphant journey. Their demands are transitional meaning that they can only truly be realized by going through a full blown revolution in which the working class and its allies overcome and subordinate the current ruling elite and its interests to the well being of all. This is a daunting task set out before our brothers and sisters in Argentina, ! but it is a task that inevitably lies before all the workers of the world. It is exceedingly important that we pay attention the twists and turns that take place in this soon-to-be civil war, and the triumphs and tribulations that befall our comrades. For it is as true now, as it was when the historian and revolutionary Victor Serge said it nearly 100 years ago, “Struggle is the only school for the proletariat.”
The article above is based on a speech given by Rob Welsh at a YSA meeting in Ashland, WI.
