Ruben Vidaurreta

 

357L

 

 

S. Karene Witcher, "As Latin Debtor Nations Prepare to Meet, Political Unrest Becomes a Big Concern," Wall Street Journal, 6/19/84.

 

On the 21^st of this month Latin finance ministers and their respective foreign ministries will meet in Cartagena, Columbia to discuss their foreign debt problems.  The presence of the foreign ministers on this financial meeting calls attention to the political dimension of the international debt crisis.  The foreign debtors argue that while the industrial nations of the north understand the economic aspects of debt repayment, they fail to comprehend the political risks associated with severe economic austerity programs.  Venezuela’s foreign minister told reporters that the Latin America’s intention is to pay back their loans, but in a way that creates minimal political and social turmoil.  Foreign leaders are afraid, after seeing what has happened to other Latin American countries after imposing austerity measures in the past, of political unrest.  One of the purposes of the meeting in Cartagena is to improve the spirit of solidarity of the Latin American debtors and increase their bargaining power of each country so that “debt servicing” will not suppress the potential for economic and social development.  Many fear that the other debtor nations will follow in Argentina’s footsteps and openly refuse the IMF’s austerity measures.