Booker T. Washington High School
Model United Nations Club
Country Briefing: Argentina
Argentina is the third-largest country in South America, with a population of almost 38 million people. With a per capita Gross Domestic Product (GDP) of $6,940, it qualifies as a middle-income country, neither rich nor poor. Income distribution remains a problem however, with 37% of the populace living below the poverty line.
History: founded as a Spanish colony, Argentina won its independence early in the 19th century. It was ruled by a succession of dictatorships and conservative governments dominated by the upper classes until the 20th century. In 1946, the pro-Labor Peronist Party came to power. Led by Juan Peron (husband of Eva, now famous as ‘Evita’), this government broadened mass participation and enlarged the government as a socialist institution, while flirting with a fascist style of politics. In 1955 Peron fell from power in a rebellion led by opposing forces. Power passed back into the hands of conservatives, although political competition between the two sides continued. Peron and his party returned briefly from 1973-76, until a military coup ended this period of representative government. For several years, chaos followed as the army waged a silent war against political opponents. Some 20,000-30,000 people disappeared without a trace, and were probably murdered during this period. A succession of military juntas ruled, sometimes using repression to keep the opposition in check. Finally, the ruling junta launched a war against Great Britain in 1982 in an effort to distract public opinion. The armed forces seized the neighboring Falkland Islands, claimed by Argentina for many years as “Los Malvinas.” The war went badly, and the junta finally had to give way to democratic elections. Since 1983 politics have been founded on competition between parties representing labor, the middle class, business interests, and other important groups.
The economy has developed in fits and starts. Between 1960 and 1980, trade grew steadily with other Latin American states. Excessive debts, runaway inflation and a strong US dollar dragged down the economies of many South American states in the 1980s, including Argentina. In the 1990s Argentina pursued a strategy of free trade with the US and other states, attracting large amounts of foreign direct investment (FDI) and again racking up large debts with foreign banks and the International Monetary Fund (IMF). In 1999, investors began to lose confidence in the Argentine economy’s ability to pay its debts. Argentina meanwhile attempted to grow out of the problem by linking the Argentine peso to the dollar and the euro. In theory, this should have promoted international confidence and increased trade. Instead, investors began withdrawing their Argentine assets, causing the peso to plunge in value. Many ordinary Argentines lost their savings as banks closed. At the same time, inflation soared, making it difficult for the people to get by. Riots followed, and a succession of governments fell under the pressure. Presidential elections are currently under way, and voters appear to be on the verge of rejecting William Carlos Menem, the candidate most closely associated with the policies of international economics.
Diplomatic Agenda: Argentina’s primary concerns are economic. They need a deal with foreign banks, especially the IMF, to stabilize their currency. A favorable deal to lower the interest rate on foreign debt would help, but the IMF would likely require austerity measures such as reduced government spending. Since much of this spending goes to public employees and poverty relief, this might lead to more riots and instability. Another goal is economic aid from richer states, especially the United States. Any aid would come with strings attached, but it might be worth it if foreign aid helped bring some balance back to the government budget. On humanitarian issues, there are many in the government who would support measures to protect human rights in the region. Currently, there are serious human rights violations in Colombia Cuba and Venezuela, and recent violations in Peru (during the civil war of the 1990s) deserve attention. However, any international efforts to investigate crimes going back to the 1970s might draw unfavorable attention to Argentina, and would be opposed by the Argentine military. Argentina faces no serious current security threats, but it is concerned by the growing power of international crime and terror groups. Argentina has a large Jewish population, which might attract attention from groups like Hamas in the future. Drug traffickers and smugglers are another problem. Opinion is divided, however, on whether to invite the United States to take on a greater role in promoting Argentine security. While the US could provide material assistance to Argentine law enforcement, such aid might undermine Argentine sovereignty. As for environmental issues, Argentina enjoys a diverse climate, with many natural assets. However, its priorities are likely to remain economic for the near future.