Source Pravda.Ru

Poor results for Latin American economies

Neo-liberal programs deepened long-running recession processes

As per the annual report released by the Economic Commission for Latin America and the Caribbean - CEPAL, by its initials in Spanish - the economies of the region went down 0.5% during the ongoing year. Argentina, Uruguay and Venezuela show the worst figures amid their neighbors. Besides, for the second consecutive year GDP per capita slump 1.9%, in a critical international scenario.

Consequently, CEPAL report warns on the deterioration in life conditions of a great number of Latin Americans. Poverty, indeed, grew up in 7 million people during the last twelve months. The majority of the new poor were "manufactured" in Argentina, the only working industry of the country. Furthermore, unemployment ratio went up from 8.4% to 9.1%.

The worsening of the international financial conditions had, as a consequence, an extraordinary transference of financial resources to markets outside the region. CEPAL calculated it in $ 39.000 millions, half of them from Argentina.

The CEPAL a UN organization, stated that wrong monetary and fiscal politics deepened countries' crisis as nations lost capabilities to handle economic short-term scenarios. CEPAL, organism that cannot be blamed on being managed by Marxists makes clear those Neo-liberal policies are very dangerous for the welfare of population's majority.

The only country that showed good results during 2002 is Chile. The reasons is easy, Chile implemented an expansive monetary policy in view of the hardening on international finances; as a matter of that, avoid a certain recession process, generalized amid other countries.

Argentina's GDP went down 11% (22% in the aggregate for the last four years), Uruguay 10% and Venezuela 9%. According with Jose Antonio Ocampo, CEPAL's Executive Officer, those countries are expected to start growing again in 2003, but it will depend on the solution of internal political conflicts.

Latin America finds on this report another reason to say no to neo-liberalism. However, it is not necessary to insist on this as the increasing of the social conflicts speaks by itself.

Hernan Etchaleco PRAVDA.Ru Argentina