The Argentine Government decided to obey the guidelines imposed by the International Monetary Fund, after several “missions” to Buenos Aires. Last week, the Congress passed a law to tighting the four-month old banking freeze.
Therefore, an agreement on 14 points was made together with the main governors to strengthen links with the International organisms of credit. This plan contains broad economic intentions but few details on new policies. It includes promises to pursue fiscal and monetary discipline, respect international agreements, and guarantee a solid banking system
In turn, the new Minister of Economy, Roberto Lavagna, former ambassador to the European union, promised to maintain the country's connections to the outside world, but failed to explain what this mean for a socially devastated country. The IMF asked for more cuts in public expenses, which will probably lead to a reduction of 400 thousand public employees. This will surely increase the currently extraordinaire unemployment ratio to 30% by the end of the year. Without a social security system, one must ask the IMF authorities how the country can prevent new explosions of violence, riots, and civil disturbances among the population.
All in all, it is not certain that Argentina will secure the badly needed financial aid, as IMF’s officials stated that the South American country is “not of geopolitical interest to the USA." It is important to remember at this stage that Washington is the main supporter of this International institution. Therefore, what is the use of blindly obeying the wishes of the IMF if they are not prepared to help anymore?
This is the question that many are trying to answer, while the five-years recession, combined with an everyday increasing inflation, devastate its economy. Is the country prepared for more sacrifice without the situation becoming explosive and more violent than just five months ago?
Certainly the answer is no. Argentina is in a much worse situation than in December 2001, and not even a twinkle of light can be seen at the end on the tunnel for many that lost their last hopes. Only a miracle will avoid the world to see, again, dramatic images from Buenos Aires and other cities. Hopefully, this will end in a new call for elections soon.
Hernan Etchaleco PRAVDA.Ru Argentina