wfn.org | Church Cites Debt as Major Cause of Argentina's Economic Crisis

["Frank Imhoff" <FRANKI@elca.org>]

"In Globalization, There Are Winners And Losers"

GENEVA, 21 November 2001 (LWI) - The current grave economic crisis in
Argentina is, according to the Evangelical Church of the River Plate,
mainly due to debt. "The high foreign debt is the core problem," says
the church's President Juan Pedro Schaad.

Speaking to Lutheran World Information (LWI) during a November 15
visit to the Lutheran World Federation (LWF) Geneva secretariat,
Schaad said his church is cooperating with the Roman Catholic church
in an ecumenical network seeking to establish which part of the debt
owed to international financial institutions and private banks was
legal at all.

He cited the debt dating back to the 1976-83 military dictatorship,
saying it clearly was illegal. Furthermore he criticized the interest
rate, around 14 percent, calling it ethically questionable and
"criminal."

A partial reduction of the USD 132 billion debt, would be desirable
according to Schaad, but it would not solve the structural problems
of a neo-liberal economic system and of globalization. "In
globalization there are winners and losers," he warned. While the
countries of the North were selling their industrial products on the
Argentinean market without restrictions, they put up customs barriers
for shoes, textiles, meat and other Argentinean products at
competitive prices. "We used to be a rich country," he said,
recalling past decades.

The Evangelical Church of the River Plate, which includes
congregations in Uruguay and Paraguay, has repeatedly issued critical
statements on economic concerns. In addition, it is actively involved
in advocacy for human rights and against impunity related to
government crimes especially those that occurred during the military
dictatorship. During this time, torture, murder and abductions of
people opposed to the government were daily occurrences. "In our
society there is a growing need to lift the cover that has been
concealing this issue," said Schaad.

In recent weeks, Schaad has been strongly critical of the United
States-led military bombardment of Afghanistan as a response to the
September 11 terrorist attacks on the United States of America. In a
pastoral letter to the church members he condemned any act of terror,
referring not only to "those who killed thousands of people in New
York and Washington but also those who are in favor of measures of
retaliation by one state against another people." Instead of sending
soldiers to a "hazardous and dangerous war" there should be
reflection on how the experiences of different cultures could be
shared, to live together in peace.

The River Plate church has 47,000 members and is a minority church in
this predominantly Roman Catholic Latin American country. Relations
with the Catholics and the fast growing Pentecostal churches are
good, according to Schaad. "Ecumenism is our strength," he
underlined. "Not doing anything alone that we can do together," is
the church's motto.

The River Plate church has its origins with immigrants from Germany
and Switzerland. It was founded some 100 years ago and has been an
LWF member since 1991.

(By Ulla Jaenicke)

(The LWF is a global communion of Christian churches in the Lutheran
tradition. Founded in 1947 in Lund (Sweden), the LWF now has 133
member churches in 73 countries representing over 60.5 million of the
64.3 million Lutherans worldwide. The LWF acts on behalf of its
member churches in areas of common interest such as ecumenical
relations, theology, humanitarian assistance, human rights,
communication, and the various aspects of mission and development
work. Its secretariat is located in Geneva, Switzerland.)

[Lutheran World Information (LWI) is the information service of the
Lutheran World Federation (LWF). Unless specifically noted, material
presented does not represent positions or opinions of the LWF or of
its various units. Where the dateline of an article contains the
notation (LWI), the material may be freely reproduced with
acknowledgment.]

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