LA DEUDA ETERNA

EXTERNAL DEBT

1 Years 1945-1960
After second world war the economy is rising.
The European reconstruction through the “Marshal Plan”, the start of institution “Bretton Woods”, the commercial liberation and international cooperation -among western countries- made possible that economy enter in a stage that commerce rise over world wide production. As we can see, a big war sometimes is not bad to world economy, and if the economy is good doesn’t mind anything else!
2 Years 1960-1972.
The accumulation model of post-war ended.
The United States economy start “red numbers”. The public deficit because of the rising expenses, the Viet Nam war, makes USA to get into debt. A lot of dollars flood the international market as result of paid of this debt. There are a huge amount of capital: the eurodollar.

3 Years1960-1972.
The accumulation of post-war ended.
The developing countries maintain a stable rising.
The eurodollars arrives easily and a low interest ( but floating ). Africa, although rising is the less helped, as always, for this economics goods because of their later independence and the situation of their borders after this.

4 Year1973.
First petroleum crisis.
113 000 millions of debt.
As a result of western and USA support to Israel, OPEP decide to change the petroleum price from 1 to 4 dollars the barrel. OPEP countries have big capital in the commercials banks of first world: petrodollars.


5

The western economy made adjustment policies, the state weight and public expense are lesser and lesser. But the development countries cant make this policies and to maintain their rising needed external finances that easily arrived as euro and petrodollars.

6

The relationships between north and south start deteriorating: dropped of prime material price and rising of manufactured products. The western crisis made the reduction of import from development countries but they maintain their offering ( sometimes rising) Because of this the prime material prices dropped, so they must borrow more money.


7 End of 70th.

456.000 millions $ of debt.

USA have strong fiscals debts, the inflation rise. the interest rise ( trying to attract money from the exterior ). Do you remember that development countries covenanted loans with floating interest?

8 Year 1979.

Second petroleum crisis. From 18.9 to 30.2 a barrel.
The development countries are in rising process that continue needing external loans, but now they are at high interest: start the untenable debt.

9

The private bank follows lending money as crazy, because the states pay the loans if private companies don’t do it. Is the nationalization of debts.

10 Year 1982.
650 000 millions $ of debt

Mexico declares moratorium of pay.

The financing system awake from their dream and assume the cruelty of the reality: cant collect the debt and sometimes nor the interest. The financing system can broke.


11

IMF
Structural adjust program for the countries debts are designed (SAP)

12

The development countries still need borrow money for not to broke their economy and to pay the previous interest. But the IMF only lend to countries that “carry well” applying SAP.

13 Year 90.

1.227.900 millions $ of debt.
The private bank and borrowers governs save themselves from the collapse of external debt that can make not to pay. Nevertheless, they refuse to its forgiveness, because with this they have the future of the development countries in their hands ; but it does not interest either that it causes a social outbreak, for that reason they are continued making certain loans

14
Many development countries cant pay the external debts nor the interest.

1998. The external debt is 2 090 000 millions $.

The speech

My name is Ines Beron. I am from Montevideo, the capital city of Uruguay, a little country in South America. I have been in this country since the end of March 2003. My husband came first as a result of an economic crisis that brought a lot of unemployment to my country. I came later to learn about America, and I was very lucky because I met some wonderful human beings with values that I share and I am proud of.

From the first day that I arrived in the USA I said that I will stay here only if I would get involved and integrated in the American society. I think this is impossible without being fluent in English, so I started going to the conversation group at the Worcester Public Library on Wednesdays, and I enrolled at the Worcester Adult Learning Center. I waited until last January for an available place in the class.

During this two years I have been studying sculpture at the Worcester Art Museum; I have been part of Women Together, a group of women who started meeting because of rising violence in the neighborhood that cost many young lives; I received training as a community organizer to help transform the neighborhood; I have also been working for Hawley Street Community Garden. I enjoy growing vegetables as well as working with the group. I think this is an excellent way to build community. As you can see, I am a very community-minded person.

I think that I have so much to share and to learn from you, and it is for this that I attend the Worcester Adult Learning Center. This school has been an invaluable help to reach this goal.

I am grateful to the Worcester Adult Learning Center for all the help that has been given to us. I am also grateful to our teacher who knew how to motivate us to come to class everyday, to raise our vocabulary, to improve our pronunciation, and to understand the way that your democracy works, and his passion for the Red Sox. I am also grateful because he didn’t limit his work to class hours; he also sent us messages by e-mail daily and read and corrected the long essay that I sent him when suddenly I got inspired.

The Worcester Adult Learning Center gives us the opportunity to meet people from all around the world, and the English language enriches us and allows us to share the diversity of cultures.

I must also add my gratitude to my tutor Lorraine who brought me her friendship and to Worcester people who made me feel very welcome.