[Marxism] Argentinean government thrown into crisis

["Fred Fuentes" <fred.fuentes@xxxxxxxxx>]

Argentinean government thrown into crisis

Federico Fuentes
20 July 2008
http://www.greenleft.org.au/2008/759/39238


Only six months into her term as president, Cristina Fernandez de
Kirchner faces a massive crisis following the decision by
Vice-President Julio Cobos to vote against Fernandez's proposed tax
increases on food exports, breaking the senate vote deadlock in favour
of the opposition.

The previous day, close to 100,000 people had come out onto the
streets in defence of the government's project, while almost double
had attended a nearby anti-government demonstration.

Faced with her lowest popularity rates since coming to power, this
recent defeat will only weaken the government in the face of a
resurgent right wing longing for a return to the days of
neoliberalism.

The dispute traces back to the March 11 decree on implementing a
system of variable tax increases tied to world prices for the export
of soya, wheat and sunflower oil. Hoping to capitalise on the
extraordinary rent from the countryside resulting from high prices
with the taxes, the government was confronted by massive, united
opposition from the four main agricultural institutions.

For over 100 days, the organisations representing a united bloc of
small to large producers, organised roadblocks against the decree that
led to crippling food shortages in the cities.

During that time, they also organised one of the largest
anti-government demonstrations in recent history with more than
200,000 people marching on May 25. The government also rallied its
supporters in the northern city of San Miguel de Tucuman the same day,
with a much smaller turnout.

Forced to partially retreat on the initial project, the Fernandez
government first moved to lessen the tax burden on small producers and
then proposed to put the controversial law to a vote in congress,
hoping to rely on its majority to get the votes.

However, fractures in its government coalition and the loss of support
from some allied governors meant that the government's position
continue to weaken in the face of mounting protests.

Fernandez was elected on the basis of alliances constructed with
defectors from parties traditionally opposed to her own Peronist
(nationalist-populist) Justicialist Party (PJ), while two other PJ
candidates stood against her.

These alliances were a reflection of the continuing disintegration of
the traditional party system, following the 2001 economic crisis and
subsequent popular uprising, which signified a rupture in the
neoliberal economic policies implemented by successive governments.

Policies, continued by Fernandez, were implemented supporting greater
regional integration and more state regulation in order to stimulate
development and strengthen national capital as a way out of the
crisis.

Winning just under 45% of the vote, Fernandez won the national vote
but lost in the three largest cities in Argentina. In large part,
Fernandez won the elections on the back of the votes of those rural
sectors that have since mobilised in large numbers against her
government.

In this situation, those sectors opposed to state regulation and in
favour of retaining the huge profits generated in the countryside for
themselves have come out strengthened.

________________________________________________
YOU MUST clip all extraneous text when replying to a message.
Send list submissions to: Marxism@xxxxxxxxxxxxxxxxxxx
Set your options at: 
http://lists.econ.utah.edu/mailman/options/marxism/archive%40archives.econ.utah.edu