Presidency of Fernando de la Rúa

Fernando de la Rúa was the president of Argentina from 1999 to 2001.

Election

Fernando de la Rua, candidate of the Alliance Party, was elected president in the elections of October 24, 1999, and the Justicialist Party lost its majority in the Chamber of Deputies. The Alliance Party and its De la Rua-Alvarez ticket won 48.5% of the vote, against 38.09% of the Peronist Eduardo Duhalde-Ramón Ortega, who had served for two terms. In third place, with 10.09% of the vote, was the former economy minister Domingo Cavallo.

One of the successes of the campaign was the De la Rua's TV advertising campaign, with the phrase "They say I'm boring ..." which he would connect back to later. Such advertising for a presidential candidate sought to contrast with the frivolity that the public perceived in the Menem government. The campaign was led by Ramiro Agulla, David Ratto (the publicist for Raul Alfonsin in the 1983 elections) and Antonio de la Rua, son of Fernando de la Rúa. The president's son would lead the "Sushi Group," an environment which influenced Fernando de la Rua's decisions.

1999 and 2000

De la Rua's victory was due to the strong public rejection of Carlos Menem, as well as the deteriorating economic situation in the country, which in 1999 ended with a decline in GDP of about 3.4 percentage points over the anterior. Unemployment was approaching 14 percent, after reaching a record high of 18.6% some years before, and poverty was at 30%, which was still lower than it was before. The country had serious problems in education and health, and the political leadership had a poor public image. In addition, the Peronist government left a high fiscal deficit, with a deficit of over a billion pesos, an external annueal debt of around 150 billion pesos, which would grow to nearly 25 billion more pesos in the next year. Because of this, De la Rua took harsh adjustment measures in order to clean up the finances. He decreed a tax increase for the middle and upper classes in January 2000, which was part of an overall package that sought to improve the economy and attend to outstanding debts such as the Teacher Incentive Fund, but this was nevertheless insufficient to solve the deterioration of the public finances. He also intervened in the Corrientes province: for months there had been a serious political and financial conflict, with consecutive strikes and the dismissal of the governor Hugo Rubén Perie. The task was entrusted to Ramón Mestre, that he would be in charge of normalizing the provincial situation.

Throughout 2000, the government sought to control public spending, lower domestic interest rates and maintain monetary and financial stability. The year ended with a slight decline of 0.5% of GDP and an unemployment rate of 14.7% (INDEC October 2000). International reserves, in the order of 33 billion dollars, were also held while reducing the fiscal deficit by about 5 billion pesos. He launched initiatives such as the Infrastructure Plan through agreements with provincial governments, and private funding sought to perform road, water and housing improvements throughout the country for 20 billion dollars. The measure was taken by decree since, according to Interior Minister Federico Storani, there was no assurance that Congress would sanction the law as quickly as necessary.

De la Rua's government asked for further assistance from the International Monetary Fund (IMF) and private banks to reduce the pressure of foreign debt. In December 2000, Economy Minister Jose Luis Machinea negotiated a bailout package of about 40,000 million dollars, known as a financial shield. The bet was to gain trust and credibility abroad, so as to lower interest payments and more easily renew maturities.

2001

Politics

In addition to the serious economic crisis, the political system as a whole appeared powerless from the resignation of Carlos Alvarez, vice president and leader of Frepaso in October 2000. Such resignation came amid a scandal, in which they denounced alleged bribes in the Senate to approve a controversial labor reform law.

The objectives of the Education Reform Act were on one hand to weaken the power of large unions in favor of small ones, and on the other hand to lower labor costs. The Justicialists' strong resistance to votes on the draft amendments produced almost completely lessened its effect on the union structure. These negotiations involved the then Labor Minister Alberto Flamarique and union leader Hugo Moyano. Moyano was firmly opposed to the reform, arguing that it would result in lower wages and that it would be driven by the IMF. Flamarique tried to get the support of the unions by promising that national associations would still be the recipients of the union dues contributed by the members, but this was divided internally to the General Labor Confederation.

The resignation of Carlos Alvarez was a break in the Alliance; but Frepaso officials remained in their positions, many of them until the end of the process. This break deepened in Parliament: there, the slim majority which had the ruling party in the House of Representatives would reduce every month, as lawmakers from the center-left parties were leaving the coalition for political differences with de la Rua's style of government.

Former President Carlos Menem was arrested and placed under house arrest on June 8, as the alleged head of a conspiracy that would have made an illegal sale of 6,500 tons of weapons and ammunition to Ecuador and Croatia, and for falsifying the contents of three presidential decrees. This, rather than signifying a success for the government, was a major problem. Justicialism took up Congress to reject the ex-president's arrest, who then was released by the Supreme Court Decision, by six votes to two, on November 21 of the same year. The Court then ruled that there was no conspiracy and forgery decretos. En ideological in June 2013 the trial was reviewed and Menem sentenced to eight years in prison. The sentence is under appeal. The political situation was generally unfavorable. In the Senate most it was the Justicialista Party. In the Chamber of Deputies he had the majority but this was minimal. Unionism made seven general strikes during the delaruista government and most provinces had their own governors PJ. Also lacked a clear partisan support, and various sectors of radicalism and the Frepaso began to distance themselves from the resignation of Carlos Alvarez, the appointment of Domingo Cavallo and sustained economic policy. The head of the UCR, Raul Alfonsin, trying to avoid breaking partidaria.28 This summer, the government managed to parliamentary approval of the law on deposits intangibility bancarios.29 In October unemployment had climbed to 18.3% .30 At year's end BCRA international reserves would fall to about 20 000 millions of dollars. Amid these problems, there were also positive aspects, as it was getting in the school year 2000 were met 180 school days, a record for more than a decade, thanks to the interest to be put on increasing weeks of the school year as teachers to avoid conflicts with the payment of educational incentive. In this context of broad political and economic problems, the legislative elections of 2001, where the Peronist won with 40 percent nationwide, with 24% of a decimated Alliance lost more than 4,500,000 votes over occurred what has been achieved just two years earlier. For the last two years of management, radical government would face a Congress fully oppositor.31 The blank or null vote reached record highs in the history of democracy in Argentina: the combination of blank ballots, invalid ballots and absenteeism rose to 41% equivalent to 10.2 million argentinos.32 The social situation led to the generalization of piqueteros groups throughout the country, a form of expression that uses the full or partial blockage of routes or streets in protest. While the Justicialist Party held the presidency of the Senate by Ramon Puerta, and appearing in the line of succession presidencial.

Economics

In January 2001 the Central Bank's international reserves had reached a record high of 37,380 million dollars, which would be passed in 2007 during the government of Néstor Kirchner.34 File: Lopez.Murphy.ogv Economy Minister Ricardo Lopez Murphy announced the setting and widespread budget cuts. Following this announcement, thousands of Argentines, especially the student movement took to the streets to protest against the setting. March 2001 Source: Radio and Television Argentina. http://www.rta-se.com.ar In March 2001, and with diversions budget targets in the first quarter of the year saw the departure of José Luis Machinea of the Ministry of Economy and named for the same to until then Defense Minister Ricardo Lopez Murphy, a respected economist but the more liberal wing radicalism that took to the objectives of shrinking state spending and increase revenue fiscal.35 his plans for improving the economy making a tremendous cuts in public spending, withdrawing funds from areas such as health or education, collided with a strong popular opposition, particularly within the Radical Party and its youth and college arms. He also put in a position to break the ruling coalition because Frepaso members within the Cabinet announced his resignation after he was presented the economic program. Because of this, Lopez Murphy was forced to retire after just 16 days in the ministry economy.36 The Alliance government resorted to name as economy minister Domingo Cavallo, who had held the position for several years the government of Carlos Menem. Cavallo took office with the backing of the vast majority of opposition PJ, with a strong push from the leader of Frepaso, Carlos "Chacho" Alvarez and also from the media financieros.37 however, generated a lot of suspicion within the radicalism party still questioned economist attitude towards the government of Alfonsin in the toughest moments of the hyperinflationary stage 1989.28 Cavallo took office promising an annual growth of 5% and trying to reduce distortionary taxes and revive the industry, which was presented as "Competitiveness Plans" 38 the tax on banking operations was approved and some delegations were made powers of the legislature in power ejecutivo.39 40 However, the markets reacted as badly as international lending agencies. In July of that year, because of the tax burden and the inability to normalize the economy, Cavallo turned to a strong economic orthodoxy. To this end it presented a plan of "zero deficit", with a new board cut in public expenditure management to avoid spending more than it earned in the Estado.41 Resistance Congress for the law in question was very large, even within the radical sectors in acceding to Alfonsin, but De la Rua was obtained by asking an effort both opposition lawmakers as own and the population in general. It was argued that .42 This did not help "chaos if no deal comes", and continuously adjusting the economy contracted further in the framework of an international context of regional and global recession, which also helped the Argentina to grow.

In November, the government of De la Rua began a restructuring of external debt commitments, so-called "mega-swap" 43 By the end of that month, the unprecedented worsening of the economic situation, investments away due to the complicated situation policy caused public distrust in the financial system, so strong withdrawals from bank deposits occurred. To stop them, the economy minister imposed restrictions involving the freezing of funds deposited in banks, measurement known as the "corralito" 44 The measure was enacted on December 1 and originally allowed only one withdrawal of 250 pesos weekly cash the ban on sending money out of the country and the obligation to perform most of the business operations by check, credit card or debit card, and was scheduled to last for 90 días.45 The yard was highly unpopular and hurt even more numerous sectors of the economy Argentina.46 The IMF, meanwhile, he hardened his position and refused to send 1,260 million that was committed to working under the loan known as " shield ", he is arguing that Argentina would not have met their commitments to maintain" zero deficit "

Crisis

By December 19, the social situation became unmanageable, with looting and riots in major parts of the country. The President urged people to calma.De la Rua responded by declaring a state of siege throughout the país.48 However vandalism did not diminish, and even increased despite the state of sitio.49 Finally there were 27 dead and more two thousand heridos.50 51 the popular rebellion, rather than end, added the support of the middle class historic electoral bastion of radicalism. The same is implied by the freezing of bank deposits. At midnight resigned finance minister Domingo Cavallo and the rest of the cabinet put their resignations at the disposal of Presidente.48 File: De.la.rua.ogv December 19, 2001, President Fernando de la Rua declared a state of siege in national chain. Source: Radio and Television Argentina. http://www.rta-se.com.ar On December 20 the City of Buenos Aires and Greater Buenos Aires were overwhelmed by a wave of looting of supermarkets and retail outlets of various tipos.52 To this was added a generalized pot-banging and self-summoned marches of thousands of people demanded the resignation the government.53 in the city's downtown federal police were overwhelmed, but managed to keep violence out of the Plaza de Mayo. The unions called for strikes to protest the siege. Initially the CTA began a 24-hour strike on 20 diciembre.54 The next day (despite having taken place the resignation of De la Rua) the CGT of Rodolfo Daer would join in a strike of 36 hours and that of Hugo Moyano time indeterminado.55 the President finally lost the support of most of his own party, the radical Civic Union, and clung to the small radical sector that still responded tried to summon the justicialismo governance agreement, joining the government. The obvious rejection of PJ decided to De la Rua to resign Parliament at 19.45 hours on 20 December 2001, when there was complete but only half of its constitutional mandate. The image of resigning President helicopter leaving the Casa Rosada, stuck forever in the memory of the Argentines. This also had as affected the political party of former president, losing most of the elections held to date, weakening the Radical against Peronism rising, that in the absence of its classic rival came to divide on two fronts. 56 57

De la Rua removed his personal effects from the Casa Rosada before quitting. What happened immediately missionary Ramon Puerta, being provisional president of the Senate, and a few days after the Peronist majority in Congress elected interim president by few months, San Luis Governor Adolfo Rodriguez Saa. This had originally supported unanimously by the PJ and should remain in office for two months and call a general election on March 3 siguiente.58 also had the support of Cavallo and bussistas.59 However, opposition parties criticized the it called elections in the midst of crisis or implementing the law of slogans intended for misma.60 was endorsed by union leaders but not the UIA (Union Industrial Argentina). In addition, the week of Christmas 2001 was strong rumor that Rodriguez Saa intended to remain in the government to complete the term of Fernando de la Rúa (December 2003), which will definitely removed the backing of several Peronist governors they had presidential aspirations, including the Cordovan Jose Manuel de la Sota, Buenos Aires Carlos Ruckauf and Nestor santacruceño Kirchner.61

Adolfo Rodriguez Saa in the Oval Office. Rodriguez Saa declared to take before Congress that Argentina would review the entire foreign debt to distinguish legitimate from illegitimate, which was interpreted as announcing captiously financial default, which Argentina declared insolvent to pay their debts. This action was very popular among Argentines and caused an ovation in Congress during his speech asunción.62 However, the government quickly lost popular support by including in his cabinet figures with very negative image, as Obeid, Vernet, Grosso, Reviglio and Britos. Subtracted backed by fierce internal party and the popular anger just a week of taking office, was presumed to be imminent resignation of Rodriguez Saa. Puerta resigned before Saá had made public his resignation. Rodriguez Saa's resignation came a few hours after the announcement of gates, so it did not occupy the presidency again. The sequence then went to the president of the Chamber of Deputies, the Buenos Aires Eduardo Duhalde Camaño. This transition took place a couple of days while Congress elected a new president. This turned out to be Eduardo Duhalde, who had been elected senator two months before, and had been second in the 1999 presidential election, behind De la Rua himself.

References

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