A Sovereign Debt Story – Argentina vs NML Capital

Dear friends and colleagues,

We are pleased to share with you an article by economist T Sabri Öncü in the India-based ‘Economic & Political Weekly’ recounting the series of events preceding Argentina’s bond defaults of 2001.

The early 1980s saw developing countries – Argentina being one of them – restructuring their economies by way of deregulating their financial sectors and integrating with global markets.

As Öncü points out, however, the policy shifts taken by Argentina rendered the economy highly vulnerable to changes in the international arena, and has taken the country from crisis to crisis, up to the present legal pressure the country faces from US holders of old Argentine debt.

A country needs to be very careful, Öncü concludes, when reorganising its economy into a free market and integrating it with global financial markets.

The article can be accessed at http://www.ftamalaysia.org/file_dir/163504676553956bcd82a04.pdf.

With best wishes,

Third World Network
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