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Via Workers World News Service
Reprinted from the Oct. 17, 2002
issue of Workers World newspaper
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ARGENTINA: CAPITALIST CRISIS SPURS LEFT ORGANIZATIONS

By Alicia Jrapko

[Excerpts from a talk
at the Sept. 21-22 Workers World Party Conference.]

Last March, while in Buenos Aires, I saw a young girl 
begging for money. The container she was holding was a 
McDonald's cup. This hated chain throws their leftovers 
mostly to children.

While growing up in Argentina, I was taught that it was 
different from the rest of Latin America; that Argentina was 
more like a European country. My country was once the most 
prosperous country in Latin America, with an abundance of 
natural resources and an educated and skilled work force, 
many of them immigrants from Europe.

After World War II, Juan Domingo Peron, a bourgeois 
nationalist, was elected president and Argentina went 
through a period of rapid industrial expansion and increased 
social benefits. Significant increases in union membership 
consolidated the power of the General Confederation of 
Labor.

The Peron regime nationalized large parts of the economy and 
put up protective trade barriers. Steel and iron industries 
were built; the manufacture of farm and industrial machinery 
was subsidized. Argentina made airplanes and ships for its 
merchant marine.

The government bought 70 percent of the nation's railways 
and the entire trolley system, which had been British-owned. 
Peron nationalized the U.S.-owned International Telephone 
and Telegraph. He put limits on the amount of foreign-owned 
firms' profits, resulting in a dramatic drop in foreign 
investment.

Even though Peron provided working-class reforms, including 
women's right to vote, he was a loyal defender of 
capitalism. This was the basis of the myth of Argentina 
being part of and separated from Latin America, helping to 
shape its national identity.

After Peron's tenure, years of civilian and military 
governments followed. By the end of the 1960s, the United 
States prepared a continental plan of neo-liberal policies 
that changed Argentina's social landscape.

During the 1970s, many Latin American leftist organizations, 
including those in Argentina, followed the example of Cuba 
and joined the revolutionary currents developing in Africa 
and Asia. These movements threatened imperialism's plans in 
Latin America, which the United States was not willing to 
concede. The United States began covert operations causing 
economic destabilization.

First there was the overthrow of President Salvador Allende 
in Chile in 1973, followed by bloody military coups in 
Uruguay in 1975 and in Argentina in 1976.

While the U.S.-backed military were torturing and murdering 
students, workers and cadres of leftist political 
organizations, imperialist economists implemented free-
market policies that devastated domestic industries but 
rewarded financial speculation.

Thirty thousand people paid with their lives. I left 
Argentina during that time, and many of my college friends 
disappeared and were killed.

Beginning in 1983, civilian governments followed the 
austerity measures imposed by the International Monetary 
Fund and World Bank. Argentina's foreign debt grew to $164 
billion. It faced a devalued peso, a shrinking middle class 
and third-world status. Argentina was forced to sell off 
everything and every sector of the economy became 
privatized.

Probably the most graphic example of this was the highway 
between Cordoba and Buenos Aires. A French firm bought the 
right to collect the tolls.

One of the schemes by which Argentina plans to pay loans on 
which it continues to default is to give away huge areas of 
land in Patagonia as payment. This concession to foreign 
banks weakens sovereignty.

Last December massive resistance began in response to 
unemployment over 20 percent, 18 million people living below 
the poverty line and children dying every day. Huge 
demonstrations have caused five imperialist-backed 
presidents to resign.

An outgrowth of privatization has been the formation of 
unemployed workers' organizations known as Piqueteros, whose 
social program is geared towards workers' control.

Part of this movement has dismissed the notion that more IMF 
loans are a good thing. A significant part of this current 
shows no confidence in the national bourgeoisie and is 
willing to struggle on every issue against them. I was able 
to see a meeting of the Piqueteros, and it was working-class 
democracy in action.

If the Piqueteros and the unions can merge, it will be a 
pivotal ingredient to the overthrow of the national 
bourgeoisie and freeing Argentina from imperialist 
domination.

A mass movement is reawakening and reorganizing. There are 
positive signs of a recovery of the revolutionary movement 
that could be even greater than the 1970s and could 
eventually seize state power. This potential is why the IMF 
and the World Bank have not been able to complete their 
plans of recolonizing Argentina.

- END -

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