Fw: After the Fall: Argentine Crisis and Possible Repercussions

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@wueconc.wustl.edu> is professor emeritus
at Washington  
University.) 
 
See this new FPIF Global Affairs Commentary at:  
http://www.fpif.org/commentary/0112argentine.html