European Stars and Stripes (Newspaper) - January 1, 1992, Darmstadt, Hesse 119/9/ilatins ended lost decade by Daniel Drosdoff u i senior editor Buenos Aires Argentina a Only two years ago latin America appeared caught up in an endless spiral of gloom suffering to a disastrous degree much of what is afflicting the . Economy now debt deficit and income decline. Those years were so bad that the economic commission on latin America and the Caribbean a United nations entity known by the initials eclat wrote off the entire Loyear soothe 1980s As the a lost now the latins Are on the other end of the Seesaw Tilting toward the sky. The years of hyperinflation and spreading poverty and chaos while far from forgotten Are fading like a bad dream. Countries that were forced to tighten their belts and Reform their economies Are now beginning to see some of the fruits of their sacrifices. According to an estimate by eclat in 1991 latin american economies on a whole a grew something More than 2 percent its first improvement in four capital flight according to eclat has been reversed and the latins Are getting More Money from abroad rather than constantly shelling it out. What a More most latin american nations Are achieving better economic growth rates while simultaneously reducing inflation. A few years ago the trend was the reverse runaway inflation and a decline in National wealth. This Means promises by Many latin american leaders who Are telling their people that next years economic performance will be As Good As or better than this year Are Likely to be kept in spite of a recession in the United states. Economic management that reduces inflation while increasing wealth is the kind of performance that pleases experts at the International monetary fund the . Financial institution that monitors fiscal programs of countries embarked on Reform and Grants them stand by Loans if they demonstrate sound fiscal policies. The latin turnaround is also music to private investors and International Bankers anxious to recoup at least a substantial proportion of the $445 billion latin America still owes the world but is slow in paying even now. A latin America is enjoying Strong investment led growth which in some countries is expected to match the performance of the Best economies in Asia a according to a report of Scudder Stevens and Clark inc., a Wall Street investment firm. Daniel Pierce chairman of Scudder said in a recent visit to Buenos Aires that Many latin american Wall Street country investment funds were providing steady High returns reflecting the a year of dram world a vents regional economic turnaround. A notable exception he said was the Brazil fund set up in 1988, which a goes up and Down Quot a reflection of the erratic handling of latin America s largest Economy that Hasni to been Able to match some of the Star performances of its neighbors. As for the winners Venezuela buoyed by its expanding Oil Industry led the pack As the fastest growing latin american Economy in 1991, achieving a growth rate of 10 percent. Panama though still suffering High unemployment and from the devastation of the 1990 . Invasion that ousted strongman Manuel Noriega achieved a growth of 6 percent while the economies of Mexico Argentina and Chile surged ahead by 5 percent. Bolivia Only six years ago the sickest Economy of latin America with a 24,000 percent inflation rate registered a 4 percent positive growth rate in 1991 with annual inflation estimated at 15 percent one of the lowest in a Region where two years ago the monthly Cost of living Rose i Romany countries at a double digit rate. Leaders of Bolivia Colombia Mexico Argentina Venezuela Uruguay Panama Peru Chile and Ecuador Are All predicting positive growth rates in 1992, a contrast to fears of a yearlong recession in the Economy of its Northern neighbor the United states. How did latin America manage to throw off its rags each individual country managed its own recovery program according to local needs and resources but in general their recovery was achieved with three remedies privatization of state companies which attracted investment and transformed Money losing industries into winners fiscal discipline and debt restructuring the latter achieved Only after torturous negotiations with International Banks following an eyeball to eyeball default in interest payments. Huge sacrifices were made and continue to be made. Bolivia closed most of its Money losing government owned tin mines throwing 20,000 miners out of work. That forced Many to Migrate from their andean villages to the humid valleys to grow coca leaves the raw material of the illegal cocaine Trade. Argentina sacked tens of thousands of workers from inefficient state industries and services such As steel and Salinas electricity and ousted a Small army of redundant bureaucrats from state Banks and administrative services. Mexico began to climb out of a Hole of economic decline and inflation in 1988, the year president Carlos Salinas de Gortari was inaugurated. He led the transformation of Mexico a Economy away from statism by privatizing official Banks and the state steel company and he embarked on historic free Trade talks with the United states and Canada. The Northern american free Trade bloc which will be the world s largest in terms of wealth must still be approved by a reluctant Congress anxious to protect lost american jobs. Its ratification is crucial to Mexico a future economic health. A the Prospect of a free Trade agreement has created Confidence in the country a according to Caroline Bolivar economist and president of the Ludwig von Mises cultural Salinas Institute. A but if the agreement is not signed things will even countries that had a Tough year in 1991 and expect to find the going equally As hard in 1992 a namely Peru and Brazil a made impressive gains in rescuing their economies from shambles. Brazil s president Fernando Collor de Mello was unable to convince a hostile Congress to approve much of his stabilization program yet he managed to Cut inflation from the hyper level of 1,585.18 percent in 1990 to an estimated 450 percent in 1991. Collor recently received approval from the if for a 20-month austerity plan to push ahead with his stabilization program and he warned that 1992 a will be a year of sacrifices less than in 1991, but still a year of Peru a president Alberto Fujimori facing even worse Odds than Collor and dogged by constant attacks from two left Wing terrorist organizations Cut inflation from 7,650 percent in 1990 to 150 percent in 1991. An estimated 300,000 peruvians lost their jobs in governmental restructuring. Salaries plunged 22 percent in the private sector and 70 percent in the state sector. Peru having renegotiated its foreign debt with the if world Fujimori Bank and inter american development Bank is expected to achieve a turnaround in 1992. Peruvian economic officials Are predicting a growth rate of 4 percent for next year and another drastic drop in inflation this time to 45 percent. Uruguay a country with a sparce population and a relatively High Standard of living took a step toward pulling out of its Long stagnation in 1991 when its Congress after Long debate finally approved Laws allowing the privatization of its burdensome Public enterprises. Next year the government of president Luis Ernesto Lacalle Herrara is expected to actually begin the privatization process As Well As terminate the indexation of salaries lift Price controls and reduce tariffs for imports. Uruguay like Chile and Paraguay have the distinction of belonging to the reduced list of latin american countries that kept up to Date on their foreign debt and did not default in the a lost Burma in world spotlight Over detained dissident United press International Bangkok Thailand the worlds attention turned to isolationist Burma in 1991 because of someone who was neither seen nor heard All year. Detained dissident Leader Aung san Suu Kyi who United opposition to the military government in the late 1980s, was awarded the Nobel peace prize for her non violent struggle against a regime the Oslo based committee said was a characterized by the award set off an explosion of International condemnation of Burma a military Junta and a Brief show of Defiance from burmese students. But the regime ended the year even More firmly entrenched in Power diplomats said. The government announced in december that even Suu Kyin a own party the National league for democracy which swept 80 percent of the seats in the 1990 election Nad expelled her. A it was another lost year for the burmese people a said a burmese exile in Bangkok Thailand. Exiled party leaders however said the expulsion was made at gunpoint in violation of the wishes of party members. Amnesty International the human rights organization reported that 200 opposition politicians were detained Between january and july adding to the 1,300 already being held. Amnesty said it believed a this May Only be a fraction of the real number an old faction that lied Rangoon and set up a parallel government in the Jungle along the thai Border failed to win much International recognition. The military said it had offered to free Suu Kyi if she would leave the country and renounce politics but she refused Suu Kyi remaining under arrest in her House a potent Symbol of the silenced political opposition. The Junta also moved to quash dissent among civil servants announcing in september that 10, government officials had been disciplined. Wednesday thursday january 1/2, 1992 the stars and stripes Page 5
