Regarding the stuff on Sachs in Bolivia, the piece plays so fast and loose
with the details as to -- unfortunatley -- bring into question the rest of
the article.

>           The thousands of tin miners who lost their jobs were
>           forced into an economy with few alternatives. Of the
>           ways to survive, only one held any realistic
>           possibilities-coca farming. In 1984, the C.I.A.
>           engineered a coup d'�tat to ensure that there would
>           be a government that would agree to professor Sachs'
>           austerity recommendations. 

In fact, that government came into power in 1980 (the Garcia Meza regime),
and quickly turned out to be so corrupt that even the Reagan administration
him unpalatable, and fianllly cut of funding.  Sachs wasn't anywhere to be
seen yet, arrving 4.5 years later.

>           But such were the sordid details. Sachs was a hero
>           who had protected the income stream of the banks by
>           demonstrating that the calls for economic structural
>           adjustments could be flexibly applied in even the
>           worst-case scenario. The fact that he an author of
>           an agreement that would help swamp American cities
>           with cheap crack probably never even entered his
>           head. No economic model demonstrates a link between
>           tin mining and drug addiction so for Sachs, it
>           didn't exist as a possibility.

Golly, such simplifications DO obscure more than they reveal.  Nope, my
favorite Sachs-bashing quote is the one I posted some time ago here.  He is
reported to have said "I told the Bolivians, from the very beginning, that
what you have here is a miserable, poor economy with hyperinfaltion; if you
are brave, if you are gutsy, if you do everything right, you will end up
with a miserable, poor economy with stable prices."  (See Duncan Green's
_Silent Revolution_, London: Latin American Bureau, 1995). And you know
what?  He was right.

The degree to which this stability (social/political, not prices) was
dependent upon repatriation of capital no-questions-asked (cocaine $
laundering through the central bank) remains unknown, though widely
specualted over.

To find political ill deeds one needn't resort to conspiracies, cocaine, and
what-not (though, of course, all that might be true too).  Former president
Sanchez de Lozada, Sach's local counterpart during the period of savage
adjustment, is proud to point out that such adjustmet was first and foremost
POLITICAL, a necessary adjustment to the balance of social power (breaking
the militant miners unions) essential for realizing his vision of capitalist
development.  Heck, that's conspiracy enough for me.

Tom

Tom Kruse / Casilla 5812 / Cochabamba, Bolivia
Tel/Fax: (591-4) 248242
Email: [EMAIL PROTECTED]



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