Reading response - Essay Example

Many factories and hotels were closed leaving the employees without payment. Employees fought for their compensation for the termination of employment and salary, but they were unsuccessful. On the process, they decided to form cooperatives and reopen the businesses on their own. This is a form of revolution as the employees moved from being employed to self-employment through court permissions (Frank 99). For example in Argentina when the economy collapsed in 2001, more than 160 factories were occupied by workers and operated as cooperatives.

Cooperatives formed a base for the beginning of social economy. Everyone perform the assigned task or the occupation he/she is capable of doing. Those who were unemployed perform artisan projects, vegetable gardens, and some bread factories. Farmers concentrated on the production of food, charcoal and any other food from the farm. Through these activities of production of goods and services, channels of distribution networks, retail centers, and markets emerged. This improvement on economy led to the improved standard of living among the workers.

There was improved infrastructure, which made the movement of goods and services to market easy and affordable. Other recreational facilities like schools, health centers, and sports ground were accessible and affordable to everyone. This is unlike the situations where they were controlled and limited in accessing the services by their employers (Frank 216). In 2007, a charter was signed which marked the foundation of The Bank of South. This bank was formed so that it can challenge the dominating banks like World Bank, International Monetary Bank, and Inter-American Development Bank.

The bank was very important, as it would give the participating governments an opportunity to use part of the collective currency. The part of the collective currency would be used to strengthen and improve Latin Americas economy by promoting cooperative development. The Bank of the South was advantageous, as it would free the participating nations from chains of underdevelopment and dependence. Those who invested in Washington Consensus were not happy about the Bank of the South. This is because they were supporting World Bank and IMF as the banks were in control of the poorer countries.

The banks controlled and regulated the poor countries on how to they can access credit and development financing. The bank restricted the poor nations not to default their debts and provide them with funds on difficult times. The nations would pay back the returns, which were very steep (Frank, 161). The bank of the South relieved the poor nations from these problems. The rate of economic growth, which was rapidly growing in 1960s, and 70s was very hard during this period when World Bank and IMF were controlling.

The Bank of the south would bring the growth rate back to normal. The improvement in the economy and freedom of the employees from the suppression they underwent as they were employed showed a great step in revolution and development. This would attract other neighboring nations to invest in these countries. As a result, this will stimulate the economic growth, as more industries will be created. This will offer employment to the unemployed residents leading the improved standards of living. In addition, professionals in various fields will migrate to these countries in search employment opportunities.

This leads to improved and quality services due to their expertise and professionalism. This opportunity of the workers forming the cooperatives will motivate other workers to realize that they can do anything to stand on their own employment (Frank 45). The hard work portrayed by the workers will attract other non-governmental organizations to support them in contribution of ideas, funds, and expansion of the cooperatives. The workers will have realized those financial institutions like World Bank and IMF which are using them, frustrating and suppressing their opportunities.

They shy away from these institutions and go to friendly bank like The Bank of the South. Reference Frank, Andrew. American Revolution: People and Perspectives, United States; ABC-CLIO, 2008.