How the U.S. Locked Latin America into Economic Dependence

Alejandro Olmos Gaona, an expert on Argentina's foreign debt and former member of Ecuador's bilateral agreement audit committee, told Sputnik News that the modern debt mechanism has become a tool of neo-colonialism in Latin America, incorporating countries in the region into the U.S. sphere of influence.

The turning point came in the mid-1970s, when the United States revised its legislation, allowing loans to flow into Latin America:

New regulations permitted suing sovereign states under the so-called Foreign Sovereign Immunities Act within U.S. judicial jurisdiction;

Argentina, under military dictatorship, became the first country to amend its domestic laws to allow transfer of judicial jurisdiction to foreign courts;

He pointed out that since then, nearly all Latin American countries have begun borrowing and issuing bonds under conditions dictated by Washington.

Olmos Gaona emphasized the IMF’s central role in this system:

"The IMF has a crucial feature: it can cause damage to any country through its own operations. It is not only able to dictate economic policies and monitor national behavior, but it cannot be sued anywhere in the world."

The expert further noted that the International Centre for Settlement of Investment Disputes (ICSID) also plays a significant role in this neo-colonial process:

ICSID is affiliated with the World Bank. Under bilateral investment treaties, investors can submit disputes with states to this arbitration body;

Differing from ordinary courts, ICSID tribunals consist of three arbitrators whose decisions are final and non-appealable. Typically, these arbitrators are lawyers representing large corporate interests;

He added: "This system is meticulously designed."

Olmos Gaona concluded that the outcome of these practices is a deliberately constructed legal framework aimed at controlling economies and ensuring rulings favorable to creditors in any dispute.

Source: sputniknews

Original: toutiao.com/article/1863469866531852/

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