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Re: Argentine's elections




Victor:

I do not believe you go far enough in your analysis. It is not only the
leftists and populists that the population is "disgusted with" in Latin
America, but the "militarists" as well. Peru, Argentina, Brazil, etc. have
all had recent military governments, and without exception, these
governments have made a total mess of the economy and eventually simply
threw up their collective hands and gone back to the barracks.

In the early part of this century Argentina was the fifth most prosperous
nation (in terms of per-capita income) on earth, ahead even of Great
Britain. The country did relatively well during the period of WW-II, but in
the late 40's, Peron (military) combined militarism with populism in an
unholy mixture that bankrupted the country. From 1950 to the present, some
15 "zeros" have been taken off the Argentina currency.

As Governor of "La Rioja" province, Menem went so far as to print his own
"money" when the provincial treasury ran low! By the time he went into
national politics, about 25% of the provincial working population was on the
government payroll, and the province was broke.

When Menem ran for President the first time, Argentina was living with
2000%+ inflation and daily devaluations. The "Radicals" (Raul Alfonsin) had
been totally discredited, and Menem was seen as someone who simply "couldn't
be worse", so why not give the Peronistas a chance once again. About the
same time, after yet another devauation, Argentines found themselves behind
even Haiti in terms of per-capita income, something that shocked them into
something approaching reality!

The ruined economy discredited the populists and state socalists; the
"Malvinas" misadventure discredited the military. About the only
political/economic theory not given a chance in recent memory was some form
of capitalism/free marketism, so that's what Menem attempted. 

It has not been easy, and there has been more corruption than most people
like to admit to, but it certainly has left more Argentines better off than
most people can remember. The government has made a lot of mistakes, but has
also been willing to give up some economic control to the "Currency Board"
that has managed to keep the value of the Peso stable for the first time
this century. To date, no one has been able to come up with a credible
alternative to the "free market" flawed as it is. Until someone does, it
looks like that theory is going to be the one of choice, warts and all.

Regards-

Ken Price
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-+-+-                                 Kenneth M. Price
                PanAmerican Consulting Associates, Inc.
            <>Greenville, SC, USA <> Irapuato, Gto. Mexico <>  
    kenprice@sunbelt.net <> kenprice@mcimail.com <> 72646.2107@compuserve.com
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