09.25.05
Fall, 2005 - Roots of Latin American History & Culture
Sometimes, I actually write like I know what I’m talking about!
“Keen and Haynes note that when neoliberal orthodoxy took precedence in the early 1980’s, Latin America subsidized wealthy nations. ‘Wealth redistribution’ meant forcing Latin American countries into deeper debt while trying to keep up on debt service. ‘Mexico alone has paid almost $300 billion in foreign debt service on an original loan of $100 billion.’ (p. x)
“They also note that poverty and inequality have either remained very high or grown. Even the World Bank, staunch supporter of the neoliberal paradigm, has begun to realize that its programs are not helping those in most need. (Perhaps they should turn to lessons learned in Africa in terms of micro-finance.)
“Latin America is now more dependent on foreign investors than ever before. The export-driven model has forced dependence upon a very few resources (agricultural and mineral), without providing for expansion of resources.
“Unemployment, underemployment and ‘informal sector’ employment are all increasing making it very difficult for anyone, especially families to survive on just one income. Women are especially hard hit, being forced into jobs that take them away from their families with salaries that are lower than comparable men’s wages.
“Then, disillusionment among the population of Latin America has led to political violence as governments are overthrown or riots disrupt cities. Support for democracy has fallen in every country, except Mexico due to the popularity of president Vincente Fox.
“All this happened not during an economic recession, but in a boom which illustrated the large disparity between rich and poor. Drug trafficking has increased as has the immigration of illegal workers into the US seeking better jobs with which to support their families.
“The damage done to Latin America due to other countries’ (Europe and the US) greed cannot be easily undone and needs a paradigm different from the neoliberal that put the region in this perilous economic mess.”
(Source: Keen & Haynes. A History of Latin America. pp. x-xi)
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