Global Background to the Falklands/Malvinas War A little perspective on an unlikely conflict.

Britain and Argentina are historically allies and trading partners(Beef). Britain colonised Malvinas in 1833 in order to get a foothold in South Pacific and Atlantic. Argentina has fought diplomatically for many years to get the Malvinas back, mainly through the United Nations.

The International Climate The post war World leaned heavily towards social policies in government and consequently economic equality was improving, however a degree of economic stagnation had set in. Soviet communism is still very much a threat and the West(specifically America) wanted to show a clear economic alternative to communism. Ronald Reagan(Republican and a Hollywood film star) is elected on a platform of a strong response to communism and socialism. Margaret Thatcher(Conservative) is elected in Britain on a platform of economic reform and private sector job creation.

Professor at University. Milton Freedman Professor at University. Free Market Economics: Theory that believes a fully free market approach to economics will generate growth. The Chicago Boys: Students trained by Freedman to spread his policies globally New World Policy: Both Reagan and Thatcher have adopted free market economics as the way forward for the world. This new school of economics demands a completely liberal approach to economic policy. The government must allow the market(corporations) to decide their own policies without any interference. Basically what is best for business is best for the economy. Absolutely no regulation is allowed of employment, finance, banking, environment and corporate policy.

So how do these policies actually affect the real world So how do these policies actually affect the real world? Are they not just theories? Redundancy and wage cuts Reduced social protections No government regulation Mass privatisations Private sector domination All of these policies are intended to create a climate of freedom for business to grow. This should then generate employment and rapid economic growth. But the question is how much is America willing to do to spread these ideas?

Both Thatcher in Britain and Galtieri in Argentina were aggressively psuhing Freedman economics on their countries. This had led to widespread labour unrest and posed a clear threat to their continued leadership. And if History has taught us nothing, there is nothing like a overseas war to distract people away from the problems at home.