[A-List] Latest Argentine president repudiates IMF - WnPost 01-02-02 (fwd)

[Andre Gunder Frank <franka@xxxxxxx>]

fyi





    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

                    ANDRE  GUNDER  FRANK
Department of History			   Home
University of Nebraska Lincoln [UNL]       4440 North 7th Street 
612 Oldfather                              Apt. 107 
P.O. Box 880327				   Lincoln, NE 68521 USA
Lincoln, NE 68588-0327 			   Tel: 1-402-742 7931
Tel: 1-402-472 3251=direct 2414=Dpt        Fax: 1-402-742 7932 
Fax: 1-402-472 8839
E-Mail: franka@xxxxxxx          Web Page: csf.colorado.edu/agfrank/
    



---------- Forwarded message ----------
Date: Wed, 2 Jan 2002 13:03:26 -1000
From: Ralph Johansen <michele@xxxxxxxx>
Reply-To: Discussions on the Socialist Register and its articles
    <SOCIALIST-REGISTER@xxxxxxxx>
To: SOCIALIST-REGISTER@xxxxxxxx
Subject: Latest Argentine president repudiates IMF - WnPost 01-02-02

IMF down a rathole? - Bush in deep doodoo (as his beloved father used to say) with Argentine 'middle class'

Argentina Gets a New President -- Again
Protectionist Vows to End 'Immoral' Economic Policies

By Anthony Faiola
Washington Post Foreign Service
Wednesday, January 2, 2002; Page A01

BUENOS AIRES, Jan. 1 -- Eduardo Duhalde, an influential senator from the
populist Peronist party, was installed tonight by the Argentine
legislature as the country's fifth president in two weeks, winning
a two-year term to confront a deepening economic crisis.

An economic protectionist, Duhalde, 60, vowed tonight to restore social
order and lead Argentina down a new path. Evoking the names of legendary
nationalists Juan and Eva Peron to thunderous applause
in Congress, Duhalde blamed the financial collapse of Latin America's
third largest economy on the failings of U.S.-backed free-market
policies adopted in the 1990s, when the government lowered trade
barriers and sold off state-owned companies.

He promised to quickly break with what he called an "immoral" economic
model that he held responsible for decimating Argentina's middle class,
once Latin America's most vibrant.

"There has been a profound moral and political incapacity to change a
failed economic model that led to the desperation of millions of
Argentines," Duhalde said. "We need a new model now, one that will
lead to the recuperation of national production, jobs, domestic markets
and an improved distribution of wealth. . . . Together, we will restore
our country's dignity."

Duhalde said he would increase the state's role in the economy and
restore protection to local industries devastated by a decade of foreign
competition. Though it remains to be seen how Duhalde will
translate his words into deeds, analysts say such moves could herald a
retrenching in Latin America from U.S.-style capitalism a decade after
it swept over the region, dealing a major blow to Bush
administration hopes of forging a free-trade area of the Americas from
Tierra del Fuego to the Arctic Circle.

Though many economists blame Argentina's collapse on widespread
corruption and an uncompetitive economy, protectionist measures will
prove popular in Argentina, now suffering from a four-year
recession, record 18.3 percent unemployment and a 40 percent poverty
rate -- its highest in history. Duhalde also hinted tonight that
Argentina may be forced to soon break with its one-to-one peg of the
peso to the U.S. dollar created a decade ago to fight hyperinflation.

Duhalde enjoyed overwhelming bipartisan support in tonight's general
assembly vote. Politicians put aside earlier plans to hold an election
in March and instead granted Duhalde the remaining two years of
the term of former president Fernando de la Rua, who resigned on Dec.
20. The longer term, legislators argued, will strengthen the presidency
and provide time to enact longer-term policies while putting off
a potentially politically divisive election campaign. However, soon
after Duhalde's presidency was approved, hundreds of Argentines poured
into the streets to demonstrate for elections.

Duhalde's ascension represents an attempt by Argentina's political
establishment to install a strong, nationalistic leader capable of
riding out a crisis in a nation that historically has been Latin
America's
wealthiest but has brought in four new presidents over the past two
weeks.

Centrist president de la Rua resigned halfway through his four-year term
after riots killed 28 people and injured hundreds. That left power in
the hands of the Peronists, whose choice of a successor lost the
faith of his peers and resigned two days ago. One other caretaker
president shied away from the task, and another was asked to serve only
until Duhalde takes power Wednesday at noon.

For Duhalde, a portly, tough-talking leader known for his links to many
of the same labor unions that sparked de la Rua's downfall, today's
appointment marks a personal triumph. He lost to de la Rua in
1999 presidential elections after publicly calling for a suspension of
payments on Argentina's crushing foreign debt -- a move the bankrupt
nation finally was forced to undertake nine days ago.

Duhalde has signaled that he is likely to include members of the leading
opposition parties in his cabinet, analysts said, creating a "national
salvation" government.

Though Duhalde is seen as enjoying broader support than his
predecessors, there is still no guarantee that he will serve out the
full two years. The social climate in Argentina remains tense, and he
will face
quick tests in the days and weeks ahead.

He promised tonight to guarantee the eventual return of funds in bank
accounts frozen a month ago by de la Rua, a move taken to avert a
collapse of the financial system after a run on the banks. But
analysts say Duhalde is likely to be forced to extend the wildly
unpopular measure for months to come.

Equally important is how Duhalde will handle what many here say is an
unavoidable devaluation of the peso. Duhalde said his economic team
would release details of his strategy on Friday, but Peronist
sources said the new administration may attempt a limited devaluation of
the peso, which has been pegged one-to-one to the U.S. dollar.

Because most Argentines maintain debts in dollars, the government is
contemplating forcing lenders to convert personal and corporate debts
into pesos before any devaluation. That could prevent a string of
new bankruptcies here but probably would worsen Argentina's already poor
image with investors and lenders.

Duhalde will also confront a question of legitimacy. Though his
supporters stressed tonight that he had come in a second in the 1999
presidential elections, and thus is in a better position than most
politician to claim popular support, his ascension would nevertheless be
the result of intense bargaining among political leaders widely
discredited in the public eye.

"The questions is not whether the people will support him, but whether
they will tolerate him enough to let his government survive," said
Ernesto Tiffenberg, director of Pagina 12, a Buenos Aires
newspaper. "Duhalde is very much from the political class, and his
[presidency] comes from agreements between politicians. And the fact is,
right now, no one has less prestige in Argentina than the political
class."

                                                                © 2002
The Washington Post Company