Category Archives: Guatemala

James Petras : Latin America: The Middle Class, Social Movements and the Left | My Catbird Seat

In Argentina, the middle class, especially the private petite bourgeoisie, supported the neo-liberal Menem regime in the 1990’s. Their support was based on cheap credit (low interest rates), cheap imports of consumer goods, a dollarized economy and an expanding economy based on overseas borrowing. With the economic crises (1999-2002) and collapse of the economy (December 2001-December 2002), the middle class saw their bank accounts frozen, lost their jobs, businesses went bankrupt and poverty affected over 50% of the population. As a result, the middle class ‘radicalized’: they took to the streets in a mass rebellion protesting in front of banks, the Congress and the Presidential palace. Throughout the major cities, middle class neighborhoods formed popular assemblies and fraternized with the unemployed workers organizations (piqueteros) in blocking all the major highways and streets. This spontaneous middle class rebellion adopted the apolitical slogan Que se vayan todos! – All Politicians Out! – reflecting a rejection of the neo-liberal status quo but also of any radical solution. The left public employees trade union (CTA) and the right-wing private sector union (CGT) provided little in the way of leadership – at best individual members played a role in the new social movements based in the villa de miseria – the vast urban slums. The left and Marxist parties intervened to fragment the mass unemployed workers movement while over-ideologizing and dissolving the middle class neighborhood assemblies. By the middle of 2003, the middle class shifted to electoral politics and voted for Kirchner who campaigned as a ‘center-left’ social democrat. Beginning in 2003, world commodity prices rose significantly, Argentina postponed and later lowered its debt payments and Kirchner stabilized the economy, unfroze the bank accounts of the middle class who then shifted toward the center.

via James Petras : Latin America: The Middle Class, Social Movements and the Left | My Catbird Seat.

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New Left Review – Lena Lavinas: 21st Century Welfare

The social-protection paradigm that emerged at the end of the 19th century and developed, in parallel with the workers’ movements, during the 20th, aimed to protect and equalize access and opportunities, irrespective of income level and social status. In this model, the structure of social spending prized not only income security but above all the promotion of equity and convergence. By contrast, the hegemonic paradigm of the 21st century holds that market mechanisms are the key to improving general welfare; cash transfers and expanded household debt, the latter underwritten by the former, are the key elements in this framework, in which decommodified provision is to be pared to the barest bones. What is taking place—spurred on by the ‘success story’ of ccts—is a downsizing of social protection in the name of the poor. Over the past six years these programmes have benefited from boom conditions, as surplus capital flooded into ‘emerging economies’ from the crisis-stricken advanced capitalist zones. Yet how they will weather a reversal of capital flows and tightening of credit, if quantitative easing in the North finally starts to slow, remains to be seen.

via New Left Review – Lena Lavinas: 21st Century Welfare.

VIDEO – Υπέροχη Μακροοικονομία – ERTonline

ΤΟ Δ.Ν.Τ. βρίσκεται στη Γουατεμάλα από το 1984. Τα τελευταία εφτά χρόνια η χώρα εμφανίζει εντυπωσιακή οικονομική ανάπτυξη που θα ζήλευαν πολλά ανεπτυγμένα κράτη. Ο μέσος όρος αγγίζει το 4%! Ωστόσο, την ίδια στιγμή, το 1 στα 2 παιδιά κάτω των 5 ετών πεθαίνουν από την πείνα και τον υποσιτισμό. Ένα ντοκιμαντέρ συγκλονιστικών αντιφάσεων, όπου τα υπέροχα οικονομικά στοιχεία δεν έχουν καμία σχέση με την πραγματική ζωή.

via Play – Υπέροχη Μακροοικονομία – ERTonline.