LATIN AMERICA IN THE ERA OF HOT MONEY
In: Dissent: a journal devoted to radical ideas and the values of socialism and democracy, Band 43, Heft 1, S. 47-50
ISSN: 0012-3846
THE MEXICAN DEVALUATION AND SUBSEQUENT CRISIS OF DECEMBER 1994 THROUGH JANUARY 1995, PUT ALL LATIN AMERICAN GOVERNMENTS ON ALERT. THE "TEQUILLA EFFECT," AS THE MEXICAN DEBACLE WAS KNOWN, WAS THE RESULT OF PROBLEMS FACING THE WHOLE REGION, DESPITE ARGUMENTS BY GOVERNMENT MINISTERS IN BRASILIA AND BUENOS AIRES THAT "WE ARE NOT MEXICO." EVEN IN MEXICO, WHOSE LEADERS CLAIM THAT THE ECONOMY HAS STABILIZED, THE REAL CRISIS IS NOT OVER AS OF 1996. THE AUTHOR EXPLAINS THAT PROBLEMS RUN DEEPER THAN MERE EXCHANGE RATE DISEQUILIBRIA, AND RELATES TO THE CHANGING NATURE OF GLOBAL CAPITALISM. AS GLOBAL CAPITAL HAS EXPANDED RELENTLESSLY INTO THE FORMER COMMUNIST WORLD AND ALSO INTO COUNTRIES THAT HAD PREVIOUSLY OFFERED SOME DEGREE OF PROTECTION TO NATIONAL CAPITAL, THE RULES OF ECONOMIC LIFE HAVE CHANGED. CHANGES IN GLOBAL CAPITALISM HAVE LED TO THE REWRITING OF SOCIAL CONTRACTS IN MANY COUNTRIES AND AN ALARMING LOSS OF LEGITIMACY ON THE PART OF MANY GOVERNMENTS.