Argentina’s Economic Collapse (2004)

Argentina’s Economic Collapse Documentary Film

Argentina’s Economic Collapse: This documentary film describes the events that led to the economic collapse in, of Argentina in 2001, which annihilated the middle class and raised the level of poverty to 57.5%. Reason for the collapse was the implementation of neoliberal policies, which enabled the defraud of billions of dollars by foreign banks and corporations. The net result was monolithic wealth transfers and the pauperization of society which culminated in many deaths due to oppression and malnutrition.

Argentina’s Economic Collapse : This documentary film talks about the event of 2001, Domingo Cavallo, the father of the peso exchangeability program, returns as economy minister. A “mega-swap” of Argentine bonds, aimed at giving the country breathing space to re-start growth by stretching out the government’s principal and interest payments. Which is concluded, with nearly $30 billion worth of bonds exchanged and markets continue to slide. IMF, under Horst Kohler’s management, approves an $8 billion rise in its loan package for Argentina, including an obscure proposal for some of the money to go toward restructuring the country’s debt, but markets resume their decline soon thereafter.

To hold a flight of deposits from the banking system, Domingo Cavallo levies restrictions on withdrawals and the international monetary fund (IMF) declares that, it does not intend to disburse a $1.3 billion loan installment. Riots results forcing Cavallo and de la Rua to resign. Political chaos enfolds Argentina as a succession of presidents assumes office briefly. Living in Argentina, suppliers of goods to a supermarket many times call a boycott in protest against sharply rising prices.

In order to facilitate the burden of the extreme crisis on the poor, the government has to expend millions of dollars on providing food and other basics. And that could leave them in formal nonpayment of their debts. People in the financial community saying from many weeks that a default is inevitable. Domingo Cavallo had been trying for months to re dialogue, the terms of that debt, to avoid calling it a default. But now Cavallo gone and the crisis remains.

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Filed Under: Around the WorldEconomics

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