- Other Regions
- Agenda 21
- Our missions
Tuesday, July 8, 2014
Argentina Paid Its Debt by Growing Its Economy, Not Killing Its People
Jason Ross sits down with Dennis Small of Executive Intelligence Review and discusses the global implications of the Argentine debt crisis.
In a very timely intervention, the United Nations Economic Commission on Latin America and the Caribbean (ECLAC), has just issued a report showing that between 2002 and 2010, Argentina had the highest average annual economic growth rate in the last 50 years, far surpassing Ibero-America's other large economies, as well as South Korea.
Argentina's growth was the result of the anti-austerity policy adopted by the late President Nestor Kirchner in 2003 and continued by his wife and successor, current President Cristina Fernandez. Shortly after taking office, Kirchner made a statement that Alexander Hamilton would have understood very well:
"Let us grow so we can pay our debts; dead people don't pay."
That insistence on sovereign economic growth was also the premise of the 2005 and 2010 debt restructuring, which drove London and Wall Street and their allied vulture funds wild.
ECLAC's report, "Strengthening the Chains of Value as Instruments of Industrial Policy," shows Argentina had an average annual GDP of 5.56% between 2002 and 2010, greater than Brazil's (3.38%), Chile (3.43%), Mexico (1.81%), as well as South Korea (4.16%). Job creation (4.20%) was also the highest in the past 50 years, surpassing Brazil, Chile and Mexico.
The British Empire's rage over Argentina's failure to "follow the rules" is driving the vulture funds' assault on the country today.
The legal battle continues. Yesterday, Finance Minister Axel Kicillof and his delegation met for three hours with Special Master Daniel Pollack in New York, after which he returned immediately to Argentina, taking no questions from the media. The Finance Ministry immediately issued a short release saying simply that Kicillof had laid out the debt situation to Pollack in great detail, and reiterated that it is "impossible" for Argentina to comply with Judge Thomas Griesa's ruling stating that Argentina can't pay its restructured bondholders unless it also pays the vulture funds the full face value of the defaulted bonds they hold, for $1.6 billion. Argentina is willing to continue in dialogue "to guarantee fair, equitable and legal conditions, which implies taking into account the interests of 100% of creditors," the release concluded.