Argentineans
left with little hope
With presidential elections on the horizon,
Argentinean citizens are hoping that one
of the two candidates will relieve them
from the worst economic crisis since the
Great Depression during the 1930s.
In result of the economic turmoil, Argentina
stopped repaying $141 billion in foreign
loans — the largest default ever by a sovereign
nation. If this was not enough, a steep
currency devaluation followed which in effect
has wiped out people’s savings and generated
an explosion of unexpected poverty.
May 18 is the election runoff date between
provincial Gov. Nestor Kirchner and ex-president
Carlos Menem. The latter name is where I
have difficulty comprehending the citizens
in Argentina. The name ‘Menem’ instantly
rings scandal to my delicate ears.
Menem served as president from 1980 to 1999.
During his presidency Argentina did prosper
with an abundance of jobs and an annual
economic growth of five percent. However,
while Menem was preparing to leave office
in 1998, recession made its cameo in Argentina,
but recession decided to extend its role
into morphing itself as the worst economic
crisis Argentina has ever experienced.
Many people blame Menem’s free spending
that included the government’s overspending
and running up a sustainable debt. In addition,
they blame Menem’s pro-market reforms for
contributing to Argentina’s current crisis.
In addition, according to an article in
the New York Times last summer, it is said
that Menem received $10 million from the
Iranian government to cover up its suspected
involvement in the bombing of a Buenos Aires
Jewish center that killed 85 people eight
years ago.
Regardless who is to blame for Argentina’s
economic and social crisis, things will
definitely not get better by finding a unanimous
scapegoat. Presently, Argentina has roughly
60 percent of its 36 million people living
in poverty; double the amount from the 30
percent just a year ago. Also, 25 percent
of Argentina’s population is jobless.
Before the economic crisis, Argentina boasted
a strong middle class. Now the country is
deeply divided between rich and poor. These
statistics are amazing from a country that
was considered one of the model nations
in the Latin American region.
In the early 1900s, Argentina experienced
the arrival of an influx of immigrants from
Spain and Italy. These immigrants constructed
a country modeled after their homelands,
laying out wide boulevards and assembling
buildings that are reminiscent of Mediterranean
European architecture.
Today, ironically many of the descendants
are returning to Europe in their quest for
jobs. One in five Argentines is unemployed,
and the citizens that do have jobs have
had to endure severe pay cuts.
On April 27, 2003 Argentine citizens have
selected either Kirchner or Menem to make
an attempt to decrease the poverty and unemployment
rate and develop a stable economy.
Menem’s approach is to create friendlier
ties with Washington and the International
Monetary Fund to renegotiate Argentina’s
huge debt. However, the problem with this
approach is that many Argentine citizens
blame Washington and the IMF for their current
crisis.
Kirchner’s approach is almost the opposite.
Kirchner has campaigned on taking a tough
stand with international creditors that
have billion of dollars defaulted with Argentine
bonds. He promises to put Argentina first
and to spawn production and job creation.
Kirchner may not be the most promising candidate,
but compared to Menem he seems to be the
best alternative. Argentines in Buenos Aires
seem to agree, according to a recent poll
conducted last week, Kirchner seems to have
a significant advantage. However, I believe
neither Kirchner nor Menem is Argentina’s
savior. The process of stabilizing the country
will demand the work of not just one president,
but with any luck Kirchner or Menem may
at least lay the seeds in transforming Argentina
to the country it use to be.
Oscar Montealegre is a journalism major
at Cal State Long Beach. He can be reached
at oscarmonte80@hotmail.com.
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