JEAN SOMERS,
Sir, - Keith Duggan's article on Argentina's crisis (Weekend, February 9th) highlights the underlying causes of the collapse, among them spiralling debt, which has left the country insolvent. But are the people of Argentina responsible for all of this debt? During the military regime of 1976-1983, debt multiplied six-fold. Also during this period, billions of dollars of the debts of private companies in Argentina were nationalised and ended up on the backs of the Argentinian people.
Keith Duggan reminds us of the 30,000 people who "disappeared" under the Argentinian dictatorship. Should a country be expected to repay loans which bolstered an oppressive and bloody military dictatorship? Should it not be a case of: "Let creditors who deal with such regimes beware"? They should not have the right to demand repayments from democratically elected governments for loans made to past dictatorships.
Argentina's crisis again highlights the lack of a fair, independent and effective way of dealing with countries' unpayable debt. The inadequacy of the response to the worldwide Jubilee campaign for debt cancellation exposed the current system, which allows creditors to act as both plaintiff and judge. They decide how much, if any, debt reduction they will grant and there is no scrutiny of whether past lending was legitimate or responsible.
Integration into a globalised world is put forward as the only way for developing countries to prosper and reduce poverty. Currently this means integration into a world with huge power imbalances between the rich and powerful countries and impoverished developing countries. The debt crisis is one example of this deeply skewed relationship. A fair, transparent and independent process to deal with unpayable debt is urgently needed.
Such a process would look at creditor as well as debtor responsibility in running up the debt. It would also ensure that debt payments were not made at the expense of the health, welfare and futures of the people of indebted countries.
Ireland should use its voice in international forums to press for such a process to be put in place. - Yours, etc.,
JEAN SOMERS,
Co-ordinator,
Debt and Development
Coalition Ireland,
All Hallows,
Dublin 9.