- Created: Wednesday, 06 August 2014 10:11
- Written by Alvaro Michaels
Fight Racism! Fight Imperialism! 240 August/September 2014
Central to the export of capital by imperialism is the imposition of debt on weaker states. Debt interest payments have to be enforced if the rich are to prosper and a domestic middle class be paid off. After Argentina’s default on its $100bn debt in 2001, including $81bn of international debt, its ruling class has tried to weaken the hold the EU and US’s financial elite have on the country. Default was Argentina’s only option in the face of a 2001 state debt of 160% of GDP, a 10% fall in GDP from 1998, unemployment around 25% and over half the population in poverty. However the ruling class needs access to foreign capital. Some accommodation to its creditors is essential. Alvaro Michaels reports.