2. • Argentina’s political upheavel in 2001 led to the resignation of
President Fernando de la Rua.
• Before 1930, 70 years of political stability facilitated rapid economic
development and made Argentina one of the wealthiest countries.
• In 1943, the military intervened, a colonel serving as Secretary of
Labor, Juan Peron, took over the country.
• Peron’s mobilization of the working class had an effect on
Argentina’s political system over the next four decades.
• He was ousted in 1955, he spent 18 years in exile. A year after his
return he died and his second wife took over, with little political
experience.
• There was political and economic chaos, political violence surged
and Argentina experienced its first bout with hyperinflation.
• The military intervened again in 1976, and ruled until 1983, when it
fell into disrepute after the failure of the Falkland Islands war with
Great Britain in 1982.
• In 1983, civilian democratic rule returned with the election of Raul
Alfonsin, a moderate Radical Civic Union(UCR).
• Because of chaotic economic conditions with hyperinflation and
labor unrest, he left office six months before his six-year term ended.
• 1989 election winner, Carlos Menem of the Justicialist Party (PJ, or
the Peronist Party), took office early.
3. • Menem transformed Argentina from a state-dominated protectionist
economy into on committed to free market principles and open to
free trade.
• Hyperinflation was eliminated; and the economy was opened up to
foreign trade and investment.
• Fernando de la Rua won in October 1999 because of high
unemployment and government corruption towards the end of
Menem’s second term.
• In 2001 Argentina was unable to produce a balance budget.
Argentina’s began withdrawing dollars from the bank. The
government put a limitation of $1,000.00 per month that could be
drawn.
• Denial of bank funds, combined with high poverty and unemployment
rates after four years of recession, sparked widespread opposition to
the government.
• President de la Rua fled the presidential palace and resigned in
2001. Peronist Senator Eduardo Duhalde became president on
January 1, 2002.
• Argentina’s economy stabilized under Duhalde’s government.
• Governor Nestor Kirchner, a center-left Peronist, was inaugurated to
a four-year term.
• Kirchner’s policies in human rights, instutional reform, and economic
4. Relations have been strong since the return of democracy in 1983.
In 1997, the U.S. designated Argentina as a major non-NATO ally, because of its military
contributions.
Tough U.S. approach towards Argentina during its political and financial crisis in 20014-2001
caused some friction in the relationship.
In 2003 the U.S. supported Argentina in its negotiations with the IMF, this turned some of the
friction.
The U.S. exported $4.1 billion in goods to Argentina in 2005 (machinery, organic chemicals, and
electrical machinery topping the list).
The U.S. imported $4.6 billion in goods, almost half consisted of oil imports.
U.S. officials have concerns about the tri-border area (TBA) of Argentina, Brazil, and Paraguay
because of activities of the radical Lebanon-based Hezbollah (Party of God) and the Sunni Muslim
Palestinian group Hamas (Islamic Resistance Movement).
TBA has been long used for arms and drug trafficking, contraband smuggling, document and
currency fraud, money laundering, and the manufacture and movement of pirated goods.
The U.S. is concerned that Hezbollah and Hamas were raising funds among the Muslim
communities in the region but stated that there was no corroborated information that these or
other Islamic extremist groups had a presence in the area.
In 2006, a U.S. Treasury Department official maintained that Argentina could risk international
financial isolation if it did not take action to criminalize terrorist financing.
5. ARGENTINA’S POLITICAL PARTIES
• Multi-party system with two or three strong political parties or
alliances, and many smaller parties.
• Justicialist Party – the strongest party. It is also known as the
Peronist party.
• The party’s platform is centered around populism. Peron
ordered mass nationalization of public services, strategic
industries, and the farm export sector, while enacting
progressive labor laws and social reforms.
• Favors technical schools, and promoted urbanization as it
raised taxes of the agrarian sector.
• Radical Civic Union – positions on issues range from liberal to
social democratic. Is a member of the Socialist International.
• Founded by radical liberals, it is the oldest political party.
• A spin-off of the Civic Union.
• Socialist Party – a social-democratic party. Divided into the
radical Argentine Socialist Party and the moderate
Democratic Party. The remaining of the PSA formed the
Popular Socialist Party.
• Republican Proposal – a centre-right electorial alliance.
Referred to as PRO. Principally an alliance between
commitment to change and Recreate for Growth parties.
