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The information in this file was recently published in FREEDOM - the fortnightly anarchist journal published by FREEDOM PRESS: FREEDOM PRESS (IN ANGEL ALLEY) 84B WHITECHAPEL HIGH STREET, LONDON E1 7QX GREAT BRITAIN Do write for a sample copy or for a copy of our booklist of publications. We will be putting more of this information out so watch this spot... DEPRESSION AND UNEMPLOYMENT IN LATIN AMERICA A VIEW FROM URUGUAY In 1990 the total level of unemployment in Latin American countries hit 50 million; but by the year 2000 a further 100 million jobs will be needed. The population of the area is doubling in the space of 30 years as opposed to 100 in North America and 600 in some European countries. The bed produces many births but the table little food and with underdeveloped agriculture and industry the future looks bleak for the end of this and the beginning of the next century. Some Latin American analysts, who look at the persistant structural imbalances in the economies of some 20 countries south of the Rio Grande, estimate that the crisis is growing more severe year on year with a snowballing effect. In this climate of ideas, journals linked with CEPAL, believe that between 79 and 89 'Latin America lost 10% of economic growth'... it can also be noted that growth in GDP per capita in the region was negative in 88 and 89 with figures of -1.5 and -1% respectively. This is due to the fact that the annual rate of population growth is 2.6%, one of the highest in the world and only surpassed in Africa. Faced with the slow growth in agricultural and industrial production in the region and the rapid population growth, some international financial organisations have put conditions on credit demanding malthusian family planning policies. The truth, however, is that this is not the main cause of the inertia in GDP but rather the fact that the developed world has shouldered the underdeveloped world with external debt amounting to $1.2 billion of which 440.000 million is Latin American. The region is not overpopulated: population density is 20 per km2, against 101 in Asia, 100 in Europe and 27 in the USA with Japan coming in at 322. However, Japan enjoys double the GDP rate of Latin America in absolute terms and is six times richer than a Latin American. South Korea and Taiwan, two decades ago, were underdeveloped - as much or more so than Latin America. Both countries were overpopulated but economic growth was high because they ceased being exporters of primary products and started producing and exporting manufactured goods, which gives added value, provides work and sells well internationally. Thus, unbelievably, Taiwan in a reduced area and with a population of only 20 million produced in value terms half the exports of Latin America and has currency reserves many times greater. The population growth in the area is actually beneficial. In reality a vacuum lies at its centre given that the population concentrates around the deltas of its great rivers and the seabord penetrating the interior by about 1500 kms. Economic and technological development within a given country requires population densities of some 100 per km2 for only thus can markets be created which can supply the demand necessary to sustain agriculture and industry. Currently in those markets that do exist only primary materials are produced and exported and therefore given the lack of added value trade balances are in deficit and the final outcome is crippling external debt. In this sense, accelerating population growth coupled with exports of primary materials has led to the collapse of economic and technological development and the necessary importation of modern machinery, up-to-date technology has proved impossible to finance as has also the cost of patents and new materials to export quality manufactured goods - the only way to maintain relatively full emploment. This all explains the level of 46 million unemployed roughly the equivalent of half the young labour force. But in the perspective of 2000 if the region wishes to escape from this crisis of underdevelopment 100 million new jobs will be needed. Currently the active labour force stands at around 124 million paradoxically with more emploted in the terciary sector rather than agriculture and industry. If on top of official unemployment we add unproductive employment of travelling salesmen, shoeshiners, domestics, excessive bureaucracy in the state aparatus, supernumaries in small businesses and low productivity companies we arrive at an unemployment rate of 40%. But, moreover,since the active part of the labour force is no bigger than 30% as opposed to 43% in the EEC there is a difference of 13% underemployment in Latin America. The reality is that work is scarce and 50 million live in extreme poverty. The EEC has a productive labour force of 139 million as opposed to Latin America's 124 but has a GDP four times higher. Given the facts one asks oneself. How come Latin America with more university and technological development than for example South Korea 20 years ago the later has industrialised whereas a country like Argentina is facing an almost inescapable crisis? It all suggests a crisis in the economic, scientific, technological and cultural development model in Latin America which has perversely led to growth in the wrong sectors of the economy... Abraham Guilln Quark Dec. 93 URUGUAY