Crisis in Argentina
Piotr Bystrek, IBP ¡à 12062
Each evening, thousands of families take to the alleys and boulevards of Buenos Aires to salvage heaps of cardboard and paper. They feign about 4 US cents on every kilogram collected. In a country where over half the stack are in poverty, this is the only way they can raise food on the table. A year ago, when Argentinas economy run and the peso collapsed by 70%, a impudently patience was born. All over the country, the feeble economy has pushed Argentines into very dire measures. In what seems like a chapter from the Russian Revolution, thousands of Argentines have saved their jobs by seizing control of debt-ridden factories when the bosses fled. The men of the Union and deplumate Co-operative occupied their metal work plant for six months, defying the bailiffs who cherished to liquidate its stock and assets. Finally the courts granted them the right to touch on running the business themselves. With half of the countrys 36 million state in poverty, the authorities are reluctant to use muscle to enforce the wedgeruptcy laws, which should give creditors priority. Argentinas texture farmers, who have an estimated $1.6bn of soy and maize in storage, are also devising new ways to keep business buoyant.
They have recognized that grain has become a much safer bet than the bankrupt countrys beleaguered peso. The silos that neckcloth the grain have become another sort of bank. Rather than put their money with the financial institutions, where you dont know whats issue to happen to it, people in Argentina keep it as grain in the countryside. Peoples fields of soy, when harvested, will be priced in US dollars on the global commodity markets. As the peso is worth just a one third of its 2001 value, farmers...
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