Hernan Etchaleco: Crisis made in Argentina

Argentina is facing today winds of change on his economical and political structure and shocking announcements are expected in no time. Daylong cabinet meetings are being held at the moment to discuss new economical policies, which oscillate between dollarization and devaluation of its peso.

Three voluntary restructuring of the country’s 128 billion dollar public debt in this year have proved to be insufficient to reinstate confidence in foreign investors as well in the depressed internal market. Furthermore, an economic slump lasting more than three years has fed fears that Argentina might default on its debt.

In fact, international credit associations have stopped lending money in view of the poor ratings of the country, forcing the National Government to introduce a zero – deficit policy. The law limits government spending to what the nation collects in taxes and authorises reductions in public salaries and pensions to come at that end.

In response, national strikes and protests against austerity measures have dogged President De la Rъa and his closer collaborators, taking the ruling party to a catastrophic countrywide defeat in the last legislative elections. However, not only the government lost in the polls, but also the whole political class as result of the extraordinary share of blank and spoiled votes registered.

For Atilio Boron, Executive Secretary of the Latin - America council for Social Sciences: “Lack of active participation is the result of the growing social exclusion of a huge group of the Argentinean society, for whom democracy has not showed any interest“. “The gap between the reach and the poor, one of the widest in Latin America and the world, is the result of the neo liberal programmes implemented during the last decade, which is now in crisis”.

New measures are imminent, as everybody in Argentina is sure the current scenario cannot be held forever. Now, the major threat for the young democracy is subtler, internal and perhaps formidable: a potential loss of citizen confidence in democracy itself.

Hernan Etchaleco PRAVDA.Ru Argentina