wfn.org | Argentine Churches Call for Change in Economic Model

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

Financial Aid Must Earmarked for Social Programs

BUENOS AIRES, Argentina/GENEVA, 5 March 2002 (LWI) - As Argentina
experiences its worst economic, social and political crisis in
decades, Lutheran churches there blame the current situation on
the global free-market economic system, and call on national and
international partners to speak out against this model and
petition for change.

"Given the collapse of the 'neo-laissez-faire' model and its
aftermath in Argentina, we must together defend the idea that
there is another way, whereby everyone can have a place on this
earth with dignity and can enjoy the gifts of God's creation,"
Rev. Juan Pedro Schaad, President of the Evangelical Church of the
River Plate (IERP)told a February 20 forum in Berlin, Germany.

'Argentina: Who Foots the Bill' was the title of the one-day forum
organized by the Lutheran World Federation (LWF), Germany's Church
Development Service - Evangelischer Entwicklungsdienst (EED) and
the institute for economy and ecumenism - Institut SUDWIND. Schaad
told participants in the meeting that "we must together admit that
as churches we have done too little to combat corruption, impunity
and unethical business practices that are characteristic of this
[neo-liberal] model."

The meeting, which brought together representatives from the
political field, universities, development organizations and
Argentine experts, deliberated on how to handle the debt problem
in light of the global economic system and, in Argentina's case
how to effect declaration of an orderly, transparent insolvency.
Argentina services its USD 132 billion external debt at some USD
1.3 billion per month.

Schaad, representing the IERP and United Evangelical Lutheran
Church (IELU), both LWF member churches, asked the participating
ecumenical organizations and churches to develop 'a diaconia
policy' to advocate for discussion on how Argentina became
bankrupt, and reveal the unethical actions of power brokers.

The IERP president sought support for "new international laws that
in future would not allow capital flight and would also protect
southern countries from being bled dry." He appealed for people to
ensure that "the protection of national production would not give
rise to violent reactions among the rich countries in the name of
the free market." Schaad urged that requests for financial aid
from the Government of Argentina "be supported on condition that
they were earmarked for social programs and not for shoring up the
old system."

Criticism of the neo-liberal model was also expressed by the
Lutheran churches in a recent meeting between representatives of
Protestant churches and organizations and State President Eduardo
Duhalde.

"The 'neo-laissez-faire' model, with its corrupt officials, has
brought us to the present situation in the country, where entire
Lutheran communities and families are suffering from increasing
poverty and are being forced to emigrate for economic reasons,"
said IELU President, Rev. Angel Furlan commenting on Lutherans'
participation in the early February meeting.

"As churches, we cannot give up the task of prophesying," said
Furlan. "It is not enough to pray for the government. We also have
to remember that people are going hungry in this country and that
the recent 'balancing' of debts served only the powerful, since by
so doing they have written off the deficits of the major economic
groups."

Duhalde's administration recently decided that all debts owed in
US dollars would be converted to Argentine pesos at a one to one
exchange rate, the value before the devaluation of the peso,
currently running at two to the dollar. What this means is that
the government would pay the difference to the banks, but the
ordinary tax payer would effectively shoulder the shortfall of the
small debtors and major economic groups.

Furlan cautioned the government against adhering to the dictates
of the International Monetary Fund (IMF) blindly. "All the
adjustment recipes we have received from the World Bank, the IMF
and the countries which oppress us have brought us to this
situation because we, as a country, honored our commitments. Now,
we are looking to our leaders to provide appropriate answers.
Unfortunately it looks as if the model being introduced is nothing
more but the old one."

"To serve the people's interests and not those of international
high finance," was fundamentally necessary for Argentina's
political representatives, Schaad said in the meeting with
Duhalde. "Transparency, honesty and competence should be the rule
and not the exception in the civil service." The tax system must
be fair, and justice "must gradually ensure that no offence or
crime goes unpunished," he added.

(By Juan Michel, IERP Communications Officer)

(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
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