Fifth president in a fortnight says country is bankrupt
Uki Goni in Buenos Aires Thursday January 3, 2002 The Guardian
A veteran senator took office as Argentina's fifth president in two weeks by declaring that his country was bankrupt and by pledging to ditch his predecessors' free-market model.
But the swearing in of Eduardo Duhalde, a 60-year-old former vice-president and Peronist heavyweight, took place in an atmosphere of confrontation between Peronists and their opponents.
Sceptical demonstrators repeated their call for the eviction of the country's entire political class, perceived as hopelessly corrupt by a vast segment of the population.
"Argentina is bankrupt," Mr Duhalde said, blaming the free-market model imposed by his predecessor Carlos Menem during 1989-1999 for the current social chaos.
"It cast millions of our fellow countrymen into poverty; it destroyed the middle class," Mr Duhalde said, even though he himself had been vice-president during Mr Menem's first two years in office.
To restore public confidence, Mr Duhalde has to reconcile the deep political differences dividing Argentinians, while finding a way out of the current economic standstill and simultaneously proving he is serious about ending corruption.
But instead of quelling a wave of massive demonstrations, Mr Duhalde's election as caretaker president for a two-year period by an emergency session of Congress has only inflamed sensibilities further.
While "Elections now!" became the rallying cry for marches by the middle class against Mr Duhalde that continued into the early hours of Tuesday morning, a smaller but better organised demonstration in favour of him filled the Plaza de Mayo, with Peronist supporters banging loud drums on Tuesday afternoon.
Mr Duhalde is certainly better equipped than any of his immediate predecessors to steer Argentina out of its grave crisis, but the waters of protest may have reached too high for even this powerful and savvy politician.
Mr Duhalde is expected to announce an economic package tomorrow that will include a devaluation of between 20% and 50% of the peso.
In his inaugural speech, Mr Duhalde assured bank account holders that this devaluation will not affect savings, promising their return in a dollar-equivalent currency.
But with only $14bn of liquid reserves available, it remains to be seen how Mr Duhalde plans to return the $66bn belonging mostly to small account holders that was frozen in Argentina's nearly bankrupt banking system one month ago, when fears of devaluation caused a run on deposits.
The freeze quickly drained the market of cash over Christmas and provoked food riots, widespread looting and finally two mass marches, the first of which forced the resignation of the Radical party president, Fernando de la Rua, two weeks ago, and the second that of his Congress-appointed caretaker successor, Adolfo Rodriguez Saa, last Saturday morning.
Mr Duhalde is no stranger to the "Pink House", the presidential palace overlooking the Plaza de Mayo in Buenos Aires. He already held the post of vice-president there under Mr Menem, and he was afterwards twice elected governor of the rich province of Buenos Aires.
In 1999, running on the Peronist ticket, Mr Duhalde lost the presidential elections to Mr de la Rua of the Radical party. Since then, in anticipation of his eventual return to the political arena, Mr Duhalde has been patiently weaving allegiances with the young breakaway Peronists of the independent Frepaso party who are expected to form an important part of his power base.
How to end corruption without dismantling the political party structures that harbour it seems to be the biggest challenge for their nascent alliance.
Any solution to Argentina's ills that does not arise directly from the revolt of a long-suffering middle class that is demanding the resignation not only of the president, but of the supreme court and congress as well, remains doubtful. To appease these demands, advisers to Mr Duhalde have said that the removal of the corruption- tainted supreme court is in the works.
The ins and outs
· Fernando de la Rua
Elected: October1999
Resigned: December 20 2001
A member of the moderate Radical party, he campaigned as a reserved, sensitive figure. But De la Rua's lack of political charisma translated into a lack of political judgment and his leadership weakened until, with riots raging over the country, he stepped down.
· Ramon Puerta
Assumed caretaker presidency: December 20 Handed over power: December 23
As senate president, Puerta took over as leader and in so doing put the country back into the hands of the Peronists. On December 21 it was announced the party had chosen Adolfo Rodriguez Saa as successor.
· Adolfo Rodriguez Saa
Sworn in: December 23
Resigned: December 30
Saa has been the Peronist governor of the province of San Luis since 1983. He has a reputation for having kept San Luis on a sound economic footing, although he has also been accused of corruption. Saa resigned a week later after fresh street protests.
· Ramon Puerta
Reassumed caretaker presidency: December 30
Assumed interim presidency: resigned on grounds of poor health.
· Eduardo Camano
Assumed caretaker presidency: December 31
Handed over power: January 1
Under the constitution the speaker of the chamber of deputies, Eduardo Camano, takes over the reins. On his second day in office, Congress votes for his Peronist ally, Eduardo Duhalde.
· Eduardo Duhalde
Chosen as president by Congress: January 1
Eduardo Duhalde's rise to president in effect reverses the results of the general election two years ago, in which he won only 38% of the vote. Duhalde is a former vice-president and two-term governor of the province of Buenos Aires.