FOREIGN POLICY IN FOCUS http://www.fpif.org/
What's in the News at FPIF? December 26, 2001
* After the Fall: Argentine Crisis and Possible Repercussions
By David Felix
The currency, debt, and political crisis in Argentina presents the Bush II administration with a Hobson's choice. It could hang tough on no emergency loans to Argentina, re-enforced perhaps by a hard line in the forthcoming debt renegotiations, in order to raise the probability of failure for Argentina's breakaway from neoliberalism. That would also increase the risk that the resulting economic chaos could produce political chaos and a return of the jackboots. It would also increase opposition within the IMF directorate to U.S. dominance of IMF policy toward the developing
countries, which could further erode the institution's usefulness to the U.S. as a key instrument for globalizing neoliberalism. Economist David Felix examines the policy options facing the new Peronist government in Argentina, while also reviewing the possible repercussions inside the IMF and to the global economy.
(David Felix <felix at wueconc.wustl.edu> is professor emeritus at Washington University.)
See this new FPIF Global Affairs Commentary at: http://www.fpif.org/commentary/0112argentine.html