NY Times, July 19, 2002
Still Poor, Latin Americans Protest Push for Open Markets
By JUAN FORERO


AREQUIPA, Peru, July 13 � The protest that shook this colonial city last
month was very much like others in Latin America recently. There were
Marxists shouting 60's-era slogans, and hard-bitten unionists. But there
was also Fanny Puntaca, 64, a shopkeeper and grandmother of six.

Though she had never before protested, Ms. Puntaca said, she could not bear
to see a Belgian company buy what she called "our wealth" � the region's
two state-owned electrical generators. So armed with a metal pot to bang,
she joined neighbors in a demonstration so unyielding that it forced
President Alejandro Toledo to declare a state of emergency here, suspend
the $167 million sale and eventually shake up his cabinet.

"I had to fight," Ms. Puntaca said proudly. "The government was going to
sell our companies and enrich another country. This was my voice, my protest."

Across Latin America, millions of others are also letting their voices be
heard. A popular and political ground swell is building from the Andes to
Argentina against the decade-old experiment with free-market capitalism.
The reforms that have shrunk the state and opened markets to foreign
competition, many believe, have enriched corrupt officials and faceless
multinationals, and failed to better their lives.

Sometimes-violent protests in recent weeks have derailed the sale of
state-owned companies worth hundreds of millions of dollars. The unrest has
made potential investors jittery, and whipsawed governments already
weakened by recession.

The backlash has given rise to leftist politicians who have combined
pocketbook issues and economic nationalism to explosive effect. Today the
market reforms ushered in by American-trained economists after the global
collapse of Communism are facing their greatest challenge in the upheavals
sweeping the region.

"The most worrying reading is that perhaps we have come to the end of an
era," said Rafael de la Fuente, chief Latin American economist for BNP
Paribas in New York. "That we are closing the door on what was an
unsuccessful attempt at orthodox economic reforms at the end of the 90's."

full: http://www.nytimes.com/2002/07/19/international/americas/19PERU.html

Louis Proyect
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