http://mrzine.monthlyreview.org/2016/images/saudi_arabia_vs_venezuela.jpgThe political task of course is to explain to the people the true situation and to revitalise institutions of people's power which could act as a check on the Left governments themselves, especially since corruption has emerged as an important complaint. But what can be done at the level of the economy? One of the obvious ways that the collapse of primary commodity prices makes its impact felt is through a shortage of foreign exchange to finance necessary imports. This gives rise to inflation, to currency depreciations which further exacerbate inflation, and to shortages of essential commodities. At the same time, the reduced incomes, on account of the slump in the primary commodity demand, cause recession, stagnation and unemployment. The conservation of foreign exchange for importing essential commodities, and the prevention of outflow of foreign exchange, whether openly or clandestinely, by wealth-holders hedging against exchange rate depreciation, are matters demanding the highest priority. Towards this end, many on the Left have argued in favour of a nationalisation of banks and of foreign trade. No doubt, for governments that are already embattled, taking such decisions increases the threat of resistance and loss of support. But, for governments of the Latin American Left, the current moment calls for decisive action.

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