With Argentina mired in its largest economic crisis in history, a proposed devaluation of the currency that for 10 years has been Latin America’s strongest was given an approval by the Argentine Congress allowing the government to sharply devalue the currency in the midst of a deepening economic crisis due to the default on its $142 billion national debt which ended the country’s 11 years old peg of the peso to the US dollar. Argentina embraced US-style capitalism and adopted US-backed economic reform in the 1990s in the form of a fixed-currency system and unbridled free-market policies. An exchange rate of one-to-one with the dollar had been fixed by the law and every peso from the centra

Such events illustrate how “globalized the international economy had become” (Malcolm, 2001, 88) that reflects the idea of globalization which is “ a relatively complete phenomenon in that it connects the economies of the entire planet… demonstrates the connection of the global to the local… it confirms that globalization is by no means a finished process – the crisis is solved by the IMF loans and regulations dominated by the US government with the IMF working closely with the US treasury” (Malcolm, 2001, 89), the US being the prime shareholder in IMF. The stringent conditions imposed by the US- backed IMF on Argentina in order to qualify for such an aid from international financial institutions so that it can start rebuilding its c

Some topics in this essay:
American European, Argentine Congress, Immanuel Wallerstein, IMF Argentina, Crisis Argentina, US-backed IMF, Latin America’s, world system, System Theory, economic crisis, dictated capitalist core, malcolm 2001, dictated capitalist, capitalist core, argentina qualify, global dominant,