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The formation of a club of debtors, the nationalization and regionalization of the local banking systems, and the support of popular mechanisms of financing, are some of the alternatives in order that developing nations are no longer hostages of the current international financial market, pointed out the Argentinean economist Jorge Marchini.

During the IV Social Debt Summit held in Caracas, in the “Financial Economic Crisis” forum, Marchini also referred to control over capital and financing coming from central or importing countries, as issues to consider in the reformulation of the current logic of operation of international finances.

“We can be neither puppets nor hostages of the international financial markets”, stated the economics professor of the University of Buenos Aires.

In order to overcome this situation, he proposed that the countries of Latin America, which he considers the main victims of the current international credit system, decide on several fundamental points: foreign debt, nationalization of the banking system, popular financing mechanisms, and control over capital and financing coming from central countries, through trade credit lines abroad.

Marchini advocated for the necessity of debtor nations to unite as a club in order to negotiate, as a single bloc, future auditing, refinancing, and eventually; even the nullification of acquired debt. As for the national banking system, he argued that their financial resources should be at the service of national savings and of investment for local development, but without neglecting programs of financial complementation among developing countries or the support of any local popular savings and loan system.

According to this expert, the implementation of these alternatives would revert the current world tendency to privilege financial realism in the markets over the people and their well being.

Luis Quiaro and Isa Sierra, presidents of the state run institutions Banco Industrial de Venezuela (BIV), and Fondo de Desarrollo Microfinanciero (Fund for Microfinancial Development, Fondemi), respectively; also participated in this forum.

Both officials explained Hugo Chavez’ government’s accomplishments in addressing the financial needs of Venezuelan micro-entrepreneurs.

According to official figures, the BIV approved more than 4,300 micro-credits, a total 64 billion bolívares (Bs.) (around 33 million U$ at the current rate), while Fondemi has granted 12,400 small credits, nearly 50 billion Bs. (26 million U$).