Macri in the Next 100 Days

By Nicolás Comini*

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Argentine President Mauricio Macri. / Casa de América / Flickr / Creative Commons

Everybody seems to love President Mauricio Macri outside Argentina – it’s not hard to understand why – but he faces tough challenges at home.  Foreign supporters have plenty of reasons to believe in him.  First, he is not Cristina Fernández de Kirchner, the former president whom they branded a populist too close to Venezuela, Bolivia, or Ecuador.  Like many conservatives inside Argentina itself, they see Macri as the person who avoided the “Venezuelization” of the country, and his market-friendly credentials were sealed through his campaign promise of a “rain of investment” and his government’s implementation of a package of measures aimed at financial liberalization, regulatory flexibility, liberalization of foreign trade, and stronger fiscal discipline.  He has been less confrontational in diplomacy.  “Return to the world,” “de-ideologization,” “pragmatism,” and “transparency” are the continuous slogans that draw the foreign accolades.

Things look different at home, however.  The federal government confronts a convoluted scenario in the next 100 days, during which it will face at least three sets of sensitive issues in the run-up to Legislative primaries in August and elections in October.

  • Domestic issues. The government will have to deal with a hostile internal front.  One challenge will be resolving a long-running pay dispute with teacher unions – especially in the province of Buenos Aires.  Another is quelling complaints about steep increases in the costs of government services and deep slashes in funding for Science and Technology, Culture, Human Rights, Health, Production, and Energy.  Macri’s failure to meet inflation reduction targets (prices rose by 40 percent in 2016); the need to stimulate the economy; and debates on tax reform are a daunting agenda.
  • Controversy over human rights and immigration. One of the Achilles’ heels of the current administration is the imprisonment of social activist Milagro Sala in the northwestern province of Jujuy.  An ally of former President Fernández de Kirchner, Sala was arrested in January 2016 – one month after Macri took office – on highly contested charges: initially of “instigate criminal activity disorder” and later of “illicit association, fraud, and extortion.”  Pope Francis, Canadian Prime Minister Trudeau, and UN officials have expressed concern, fueling tensions inside Argentina.  An immigration reform decree facilitating deportations and restricting access at border crossings has been rejected by social movements, international organizations, and much of the Argentine political opposition.  The repudiation is not only felt in the formal political arena but also on the streets.
  • External dynamics with internal consequences. Brazil’s Lava Jato scandal is splashing as much onto Macri’s government as his predecessor’s.  Officials from both administrations are being accused of receiving bribes from Odebrecht, the largest Brazilian construction company, and no one knows how this process will develop hereafter.  Congresswoman and Macri ally Elisa Carrió claims the whole political elite is complicit in the Odebrecht mess.  The “Panama Papers” – leaked from the law firm Mossack Fonseca, which allegedly was involved in helping companies hide bribes paid to a number of South American leaders – has so far not touched Macri, whose family has links to firms cited in the documents.

The August primaries, followed by full legislative elections in October, are a potential inflection point for both Macri and his opponents.  Neither side has yet announced its slate of candidates, but one essential factor is already clear: the candidacy (or not) of Cristina Fernández de Kirchner.  The primary election will define how the pieces of the political chessboard are placed, and Macri’s handling of his economic, political, and social challenges will be decisive.  Achievement of his reform agenda – including the overhauling the National Institute of Statistics and Census (INDEC, accused of cooking data during previous governments), an ambitious “Plan Belgrano” infrastructure program, and the end of currency controls – may not be enough.  The potential reunification of his key Peronist opponents, increased social unrest, splits in his own coalition, and the spillover from the Brazilian crisis suggest a sobering future.  True love cannot be achieved from one day to the next, but in the domestic political arena it is simple to lose it suddenly.

June 8, 2017

* Nicolás Comini is Research Fellow at CLALS; Director of the Bachelor and Master Programs in International Relations (Universidad del Salvador, Argentina); and Professor at the New York University-Buenos Aires.

Argentina: The (Un)Fulfilled Promises of an Election Year

By Ernesto Calvo*

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Palace of the Argentine National Congress / Andresumida / Wikimedia / Creative Commons

As the 2017 mid-term election approaches, both Argentine voters and party elites see a gloomy present and a bright future. With only seven months until the October 22 election, the economy still shows few signs of recovery. Patience is running thin in Congress, among governors, and with organized labor – but it seems to be never-ending among voters.

  • For over a year, surveys have shown that a majority of voters perceive their personal economic situation as dire. In survey parlance, each month voters perceive that they are worse off than in the previous month. Yet, to the surprise of specialists, a majority of voters also expect the economy to improve in the next month. Indeed, voters seem as willing to credit the current administration of President Mauricio Macri for its policy choices as they are unhappy with the economy.
  • The opposition is betting its future success on the dismal economic outlook: high inflation, stagnating wages, and lack of growth. The government expects voters’ optimism, the raw expectation of future growth, to carry the day. The increasing gap between current perceptions and future expectations has baffled specialists. The only possible result, many confide, is either a rude awakening for the administration or a real change in the pace of economic growth.

Both parties suffer from divisions. Former President Cristina Fernández’s Front for Victory still carries most support among Peronists, although many fear that a Senate victory by their leader in the Province of Buenos Aires will ensure a divided party in the election of 2019. Peronist dissident Sergio Massa is still running outside the party, and few anticipate any grand-coalition before 2019. The other traditional party, the UCR, remains on life support after a decade of mishaps, and is only a minor partner of President Macri’s party, Republican Proposal (PRO), in the government coalition. Meanwhile, the incumbent PRO has yet to decide their strategy to form Provincial alliances and nominate its candidates.

As the election nears, it is unclear whether voters will hold the government responsible for their current economic malaise or will still believe in PRO’s capacity to deliver a better economy. Voters have one leg in a bad economy and another leg in the promise of a better tomorrow. They are, in the words of the Herald Editor J.G. Bennet, “Like a stork by a frog pond, they are as yet undecided which to rest upon.” Eventually, one of the two legs will have to go up, for either the government or the opposition – but not both – to celebrate on Election Day. Regardless, the mid-term election may provide little information as to who the real winner is. With no presidential candidates on the ballot, no important gubernatorial races to publicize, and only one important Senator on the line (that of the Province of Buenos Aires), the signal will be unclear. If the government does extremely well, it may gather a third of the House vote, all provinces considered together. If the government performs badly, it may get a quarter of the House seats. As the election approaches, it would seem that the only measure of success or failure would be whether the government coalition, Cambiemos, wins first, second, or third place in races for the National Senators of the Province of Buenos Aires. More troubling yet, it is unlikely that the result of the election, whichever it may be, will clarify the choices faced by voters, the future of the Peronists, or the likelihood of a steady government coalition after 2017.

March 9, 2017

*Ernesto Calvo is a Professor and Associate Chair of the Department of Government and Politics at the University of Maryland.

Intense Electoral Year in Latin America

By Carlos Malamud*

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Chilean President Michelle Bachelet with the leaders of her coalition, Nueva Mayoría. The Chilean presidential election of 2017 will determine the legacy of the Nueva Mayoría. / Gobierno de Chile / Flickr / Creative Commons

The new year will be an intense one for Latin American elections.  Although perhaps not as important as those taking place in 2018, this year’s elections will have a significant impact on the countries holding them and, in some cases, the region as a whole.

  • In Ecuador’s presidential and legislative elections on February 19, the PAIS Alliance will run a slate of nominees for the first time without Rafael Correa heading its slate. The President said he’s stepping down for family reasons, but Ecuador’s economic problems, aggravated by the decline in oil prices, apparently convinced him to seal his legacy on a high note now rather than end his time in office in defeat.  The party’s presidential candidate, former Vice President Lenin Moreno, has a 10-point lead in polls over his closest competitor and has the advantage of facing an opposition divided among seven candidates, but his leadership remains uncertain.
  • In Mexico, the state governors of México, Nayarit, and Coahuila and mayor of Veracruz are up for election on June 4. The race in México state will measure the popular backing of the four parties in contention – PRI, PAN, PRD, and López Obrador’s new Movimiento Regeneración Nacional (Morena) – in the 2018 presidential election.  The older parties will begin to weed out the weaker pre-candidates.
  • Elections for half of the Argentine Congress and a third of its Senate in October will define the second half of President Mauricio Macri’s presidency. The government is confident that economic recovery will strengthen its election prospects.  A weak showing will strengthen the Peronista opposition and complicate Macri’s agenda.  The Peronistas are currently divided into three big factions – that of Sergio Massa; the “orthodox” wing headed by some provincial governors, and corruption-plagued Kircherismo grouping headed by former President Cristina Fernández.  Open, simultaneous, and obligatory primaries (known by the Spanish acronym PASO) in August will be an important test for all.
  • Chile will elect a successor to President Michelle Bachelet on November 19. Primaries in July will reveal whether the country’s two big coalitions – the center-left (including the President’s Nueva Mayoría) and the center-right – are holding, as well as the presidential candidates’ identity.  The names of former Presidents Sebastián Piñera and Ricardo Lagos are in the air, but it’s too early to know how things will play out in the environment of growing popular disaffection with politics and politicians.
  • Honduras will hold elections on November 26. Due to a Supreme Court decision permitting reelection, incumbent President Juan Orlando Hernández could face a challenge from ex-President Manuel “Mel” Zelaya, who was removed from office by the Army in June 2009, running as head of the Libertad y Refundación (Libre) Party.
  • Also in November, Bolivia will elect members of various high courts, including the Constitutional, Supreme, and Agro-Environmental Tribunals and the Magistracy Council. These elections will reveal the support President Evo Morales will have as he tries to reform the Constitution to allow himself to run for yet another term in office.

These elections in 2017 have a heavy national component but will shed light on the region’s future direction.  The success or failure of the populist projects in Ecuador and Honduras, or of President Bachelet’s Nueva Mayoría in Chile, will tell us where we are and, above all, help us discern where we’re headed.

January 17, 2017

*Carlos Malamud is Senior Analyst for Latin America at the Elcano Royal Institute, and Professor of Latin American History at the Universidad Nacional de Educación a Distancia (UNED), Madrid.  This article was originally published in Infolatam.

Latin America Sees Little That’s “Great” about U.S. Caudillo

By Aaron T. Bell*

Trump Latin America

Photo Credit: Maialisa/Pixabay/Public Domain (modified) and NASA/Wikimedia Commons/Public Domain

Donald Trump’s presumptive nomination as the Republican Party’s candidate for president is raising fears among Latin Americans that the United States could close the door on them, while also provoking self-reflection about the region’s own potential to produce a Donald of its own.  Mexico has borne the brunt of Mr. Trump’s hostility for “beating us economically” and “sending people that have a lot of problems.”  He has proposed imposing steep tariffs on Mexico, restricting its access to visas, and forcing it to pay for a border wall.  Gustavo Madero, former president of the Partido Acción Nacional, denounced him as a “venom-spitting psychopath,” while members of Mexico’s Partido de la Revolución Democrática organized a social media campaign – #MXcontraTrump – to rebut Mr. Trump’s attacks.  Mexican President Peña Nieto has pledged to stay out of U.S. electoral politics and work with whomever is elected, but he rejected any notion that Mexico would pay for a wall and compared Mr. Trump’s rhetoric to Adolf Hitler and Benito Mussolini’s.  In addition to initiating a public relations campaign to promote the positive effects of U.S.-Mexican relations, Peña Nieto replaced his ambassador to the United States, who was criticized for soft-pedaling Mr. Trump’s comments, with Carlos Sada, an experienced diplomat with a reputation for toughness.

Other nations have joined in the criticism while looking inward as well:

  • Latin American critics have compared Trump’s populism to that of Venezuelan Presidents Hugo Chávez and Nicolás Maduro, and former Argentine President Cristina Fernández de Kirchner. In Colombia, a member of the Partido Verde described former President Álvaro Uribe’s call for civil resistance to peace negotiations with the FARC as a “Donald Trump-like proposal.”  In Lucia, Prime Minister Kenny Anthony accused opposition leader Allen Chastenet of “fast becoming the Donald Trump of St. Lucian politics” for resorting to the “politics of hate and divisiveness.”
  • While worrying what might happen if immigrants to the United States are forced to return home, the editorial page of Guatemala’s La Hora has raised the issue of the long-term wisdom of relying on remittances. Meanwhile Argentina’s Nueva Sociedad used attention to Trump’s immigrant comments to analyze restrictive immigration policies within Latin America.
  • Some political observers see Mr. Trump’s rise as a warning of the danger of divisive politics. In Colombia’s El Tiempo, Carlos Caballero Argáez wrote that polarization and anti-government discourse in Washington paved the way for a “strong man” like Trump, and cautioned that something similar could happen in Colombia.  In El Salvador, Carlos G. Romero in La Prensa Gráfica attributed Trump’s success to his ability to connect with the working class, and warned that his country’s own parties risk facing a Trump lest they make similar connections.

Much of Latin America’s take on Trump mirrors that of opponents in the United States: they recognize that his support reflects the frustration of those who feel cut out from the benefits of globalization and ignored by political elites of all stripes; they reject his anti-immigrant and misogynistic comments; and they fear that someone with seemingly little depth on global politics may soon be the face of a global superpower.  While the region hasn’t exactly surged in its appreciation for President Obama’s leadership over the past seven years, Trump’s popularity reminds them that many Americans have less appealing values and principles, which could result in policies harmful to the region.  Latin Americans know of what they speak.  One need not look too far into the past to see the catastrophic effects of simplistic, nationalistic, strong-man policies on the people of Latin America.

 June 21, 2016

* Aaron Bell is an adjunct professor in History and American Studies at American University.

Correction 2016.06.22: Gustavo Madero is the former president of Mexico’s PAN, currently headed by Ricardo Anaya.

Behind Argentina’s Making up with its Creditors

By Arturo C. Porzecanski*

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Photo Credit: Mauricio Macri / Flickr / Creative Commons

A recently concluded agreement in principle between Argentina and most of its holdout creditors is part of a 180-degree turn in economic policy that the new administration of Mauricio Macri is attempting to make in order to end five years of economic stagnation, 10 years of double-digit inflation, and 15 years of isolation from the international capital markets.  President Macri has to navigate very carefully, however.  First, he does not have a majority in either congressional chamber, so he has to work hard to persuade legislators to support his policy initiatives.  Second, the judiciary and the Executive branch are packed with political appointees from the Néstor and Cristina Kirchner administrations, and while some of them have been fired, Macri and his economic team must still tread cautiously.  Third, all the key economic institutions, such as the government’s commercial and development bank (BNA), the central bank (BCRA), and the social security administration (ANSES) have been stuffed to the gills with either risky or unprofitable assets (from bad loans to government IOUs), thereby compromising their effectiveness.  Last but not least, Macri must be mindful of his very fickle electorate: over the past seven decades, Argentines have periodically voted non-Peronists into office to clean up the mess left behind by the Peronists, but then they have soured and yanked their support.  It is a sobering fact that not a single non-Peronist government has ever made it to the end of its constitutional term in office.

This is why the Macri administration is going for some “quick wins” rather than for major structural reforms or the necessary dose of fiscal austerity and monetary restraint.  And this is the context within which his willingness to “bury the hatchet” with private and official creditors must be understood.  As a former businessman, Macri realizes that if one takes over a money-losing enterprise – in this case the public sector, which is running a deficit equivalent to more than five percent of GDP – one needs to cultivate sources of interim financing until the enterprise can be turned around.  After all, the prior government had been living hand-to-mouth on loans from the BNA, the BCRA, and ANSES, with increasingly inflationary consequences.  Having lost official international reserves and seen the currency depreciate rapidly after abolishing capital controls, the authorities are now under great pressure to obtain interim financing from abroad to help stabilize international reserves and support the weak currency.

President Macri faces a very difficult governance challenge in the months and years ahead.  His ability to mend fences with private creditors – Argentina has been in arrears to all its bondholders since mid-2014 – as well as with the IMF, multilateral development banks, and official creditors such as the Ex-Im banks – is crucial to the restoration of financing to the private and public sectors and the fostering of an investment-friendly climate.  Macri’s agreement in principle with most holdout creditors is a big step in the right direction, but he must now secure the requisite congressional approvals to dismantle Kirchner-era legislation inimical to a settlement and obtain interim financing at reasonable interest rates to clear all overdue debts.  These are early and relatively easy tests for a government that is yet to adopt most of the divisive and unpopular austerity measures that circumstances warrant.

March 10, 2016

*Dr. Porzecanski is Distinguished Economist in Residence at American University and Director of the International Economic Relations Program at the School of International Service.

Gender Violence in Argentina and the Education of Mauricio Macri

By Brenda Werth*

Macri Ni Una Menos

Photo Credit: Mauricio Macri Facebook page. Public Domain.

Argentina’s new President, Mauricio Macri, has an historic opportunity to address the country’s longstanding crisis of gender violence.  In a radio interview in 2014, he notoriously stated that “All women like to be catcalled,” and asserted, “I don’t believe the ones who say they don’t.”  Little did he know at the time that the most intense period of his presidential campaign in 2015 would coincide with a revolution in public awareness of gender violence in Argentina.  #NiUnaMenos – a movement launched in response to a rash of femicides and their graphic coverage by the news media – organized  marches in cities across Argentina, Uruguay, and Chile, drawing an estimated 300,000 protesters in Buenos Aires alone last June.  Journalists, artists, and activists, in collective denunciation of machismo and violence against women, demanded that the government develop a plan of action to implement the Comprehensive Law on the Prevention, Punishment and Elimination of Violence against Women (Law 26.485), approved in 2009.  The law was a significant milestone in addressing violence against women at the national level, yet without government support, its effectiveness has been limited.  Current data indicate that a femicide takes place every 30 hours in Argentina, and statistics suggest that the total number of femicides occurring in 2015 will meet or surpass numbers in 2014.  The NiUnaMenos movement has captured the public’s attention.

The presidential candidates (Macri included) took note of the impact of NiUnaMenos and pledged support to prevent violence against women as outlined in the five major points it published.  Macri posted a picture of himself holding a handmade #NiUnaMenos sign on Facebook and Twitter.  Yet activists remain concerned about Macri’s sincerity, not just because of his 2014 remarks.  As mayor of Buenos Aires (2007-15), he undermined initiatives to prevent violence against women and provide assistance to victims.  Specifically, in 2014 he closed an outreach center for victims of sexual violence that had operated under the Subsecretary of Human Rights in Buenos Aires, and he reduced the budget of the National Agency for Women from 0.1 percent in 2007 to 0.06 percent in 2015.

Macri has his work cut out for him if he wants to be perceived as a leader confronting Argentina’s gender violence.  Although his promises to slash government spending suggest social programs will suffer, there are some promising signs.  Macri’s Minister of Social Development, Carolina Stanley, has offered the post of President of the National Council for Women to Fabiana Tuñez, the founder of the Casa del Encuentro, a leading NGO on gender rights and eliminating sexual violence – and key in the #NiUnaMenos movement.  In a broader human rights framework, Macri’s agenda still remains relatively undefined.  Although his vision will depart significantly from former President Cristina Fernández de Kirchner’s, he has reiterated his commitment to continuing trials against former military accused of human rights abuses during dictatorship, rejecting claims that such efforts reflect “politics of revenge.”  In interviews, moreover, he has emphasized a forward-looking conception of human rights, rooted in the 21st century, focusing on issues related to pubic health, education, and freedom of expression.  While some observers view this as a regression to a “culture of amnesia” associated with the Menemist era, Macri has an opportunity to move the country forward by heeding activists’ demands for leadership addressing gender violence in Argentina. 

January 7, 2016

* Brenda Werth is Associate Professor of World Languages and Cultures at American Unviersity.

What Does Macri’s Victory Mean for Latin America’s Left Turns?

By Eric Hershberg and Fulton Armstrong

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Photo Credits: Douglas Fernandes and _Butte_ / Flickr / Creative Commons

Argentine President-elect Mauricio Macri’s actions since his historic victory last week indicate a rightward shift in domestic and foreign policy that some observers are tempted to proclaim as part of a broader Latin American trend.  He has reiterated promises of broad economic reforms and appointed a cabinet – including former JP Morgan executive and ex-Central Bank chief Alfonso Prat-Gay as his finance minister – to implement them.  He has further pledged to reverse outgoing President Fernández de Kirchner’s protectionist trade policies.  (During the campaign, advocates of unbound capitalism cheered when he named Ayn Rand’s “The Fountainhead” as one of his favorite books.)  Macri has named Susana Malcorra, a senior aide to UN Secretary General Ban Ki-moon with strong diplomatic credentials, to be his foreign minister and, for starters, directed her to reverse policies he judged to coddle Venezuela. The President-elect, who takes office on December 10, is speaking with the confidence of a President elected with more than a 3-point margin over Kirchnerista candidate Daniel Scioli and with control over more than the 91 seats (one third of the total 257 seats) that his Cambiemos coalition won in the lower house of Congress.  (His party is the first, however, to control simultaneously the Province of Buenos Aires, the City of Buenos Aires, and presidency.)

The temptation in some quarters to declare Macri’s victory as the beginning of the end for Latin America’s “Left Turns” is understandable but nonetheless premature.  To be sure, the Argentine electoral results coincide with other major setbacks for various currents of the Latin American left:  The Chavista project in Venezuela is crashing; Brazilian President Rousseff and her party are mired in a corruption morass and economic crisis whose combined effects may cut short her time in office; President Correa, facing a dire economic situation in Ecuador, is increasingly talking about abandoning efforts to run yet again in 2017.  Chilean President Bachelet’s low popularity and declining public support for the Vázquez government in Uruguay may be additional signs that the prospects for the “pink tide” are very much in doubt.

But in Argentina and beyond, the jury is still out.  Through no action of its own, the South American left enjoyed the multiple benefits of the decade-long commodity boom that began in 2003.  Just as its electoral successes did not indicate wholesale shifts to the left in the region – indeed political scientists have long questioned whether the evidence supports claims of a leftward shift in popular preferences – today’s parallel crises may reflect the end of of the boom rather than a rejection of left-leaning governments.  Many of the policies advanced by various currents of the “pink tide” may remain highly popular, even while they are no longer affordable.  Another tempting explanation is that Latin Americans are rejecting leaders who they perceive as corrupt, irrespective of their placement on the left-right spectrum.  In Argentina, notably, Macri hasn’t rejected the Kirchneristas’ redistributive agenda but has instead emphasized the confusing, corrupt way it has been pursued for the past 12 years.  (Never before has an Argentine rightist portrayed eliminating poverty as a core priority.)  It may well be that voters understand economic slowdowns and dysfunction as a product of corruption rather than the fallout from declines in historically high commodity prices.

Regardless of the underlying drivers of electoral change and public disillusion with incumbents, it’s fair to ask if the left’s current travails and the right’s resurgence will open the way toward more accountable political leadership, whatever its ideological proclivities, or just signal an alternation of power.  Like Macri in Argentina, a new cohort of Latin American leaders will have to prove that they are more than outsiders drawing on sentiment to throw out the incumbent rascals.  The question is whether they pursue policies that make democracy more transparent, expand meaningful political participation, and sustain the social gains that have been achieved by the pink tide governments that now appear to be on the ropes.

December 2, 2015

Argentine-U.S. Relations: Things Can Only Get Better

By Federico Merke*

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Argentine presidential candidate Mauricio Macri. Photo Credit: Nico Bovio and Guillermo Viana GCBA / Flickr / Creative Commons

Foreign policy remains largely uncharted territory as Mauricio Macri (Cambiemos) and Daniel Scioli (incumbent Peronist Frente para la Victoria) head into the presidential runoff on November 22, but they both are likely eager to get over Argentina’s rough patch with the United States.  Foreign policy has rarely been a big campaign issue, and this time there are probably reasons behind the silence.  The mainstream Argentine media portray the candidates as representing two different political and economic stances on domestic policies, with only nuanced differences on foreign policy.  Macri is seen as more friendly to the outside world in general and to the U.S. in particular, but he has been reluctant to play up his “anti-Bolivarian” views.  Scioli has the same incentives as Macri to restart a dialogue with Washington, but he has not wanted to highlight this difference between himself and his party’s standard bearer, outgoing President Cristina Fernández de Kirchner (CFK).

Argentina’s relations with the U.S. are at a low point in which nothing really good or really bad takes place.

  • The impasse started early in CFK’s administration. Just two days after her inauguration on December 10, 2007, U.S. federal prosecutors claimed that five foreign nationals in the so-called “suitcase scandal” were attempting to deliver funds to CFK’s presidential campaign.  The President maintained that the United States manufactured the scandal to punish her for maintaining close relations with then-President Hugo Chávez of Venezuela.
  • Washington was clearly irritated again in 2011 when Argentine authorities seized the cargo of a U.S. Air Force plane that was delivering supplies for an authorized police training program. Argentina’s foreign minister accused the United States of smuggling weapons and “drugs” into the country.  In 2013, CFK reached an agreement with Iran to set up a truth commission (which was never established) to investigate the bombings of the AMIA Jewish community center in Buenos Aires in 1994 – alienating Jews in the U.S. and Argentina, but giving her a boost among her domestic constituency.
  • Terrorism, human rights, and nuclear proliferation have brought the two countries together, albeit with little publicity. But Venezuela, Cuba (the U.S. embargo), trade (tough license and import restrictions on both sides), and Iran have been divisive issues.

Because the twists and turns in the bilateral relationship have revolved around scandals, rhetoric, and domestic political maneuvering – not driven by either deep ideological differences or substantive material interests – CFK’s successor will be free to shift gears.  Thus, in a sense, it does not matter who wins on November 22; a new chapter will begin in Argentina-U.S. relations.  Macri no doubt will be more enthusiastic than Scioli in declaring a new beginning, but the latter exhibits a pragmatic tone and intention to attract investment and promote trade, including by resolving the confrontation over “holdout debt” plaguing ties with the U.S. financial community.  Both candidates are aware that the ongoing litigation in New York complicates access to international credit.  Both also understand that the memorandum with Iran represented a major step backwards and thus will probably change course on this matter.  Scioli and Macri exhibit contrasting styles and might look at the world through different lenses, but they both will have the opportunity – and probably the desire – to develop a more constructive relationship with the U.S. 

November 19, 2015

*Federico Merke directs the Political Science and International Relations Programs at the Universidad de San Andrés in Buenos Aires.

Argentina Presidential Campaign: Harbinger of Deep Change?

By Federico Merke*

Candidates, left to right: Daniel Scioli, Mauricio Macri, and Sergio Massa. Photo Credits: Cgazzo, Inés Tanoira, and Tigre Municipio, respectively / Wikimedia Commons / CC BY 2.0

Candidates, left to right: Daniel Scioli, Mauricio Macri, and Sergio Massa. Photo Credits: Cgazzo, Inés Tanoira, and Tigre Municipio, respectively / Wikimedia Commons / CC BY 2.0

As the 2015 presidential race begins to take shape in Argentina, the leading candidates – Daniel Scioli (Frente para la Victoria, FPV), Mauricio Macri (Propuesta Republicana, PRO), and Sergio Massa (dissident Peronist faction Frente Renovador, FR ) – have already begun to outline their visions, but sweeping change doesn’t yet appear on the horizon.  According to early polls, Massa had a strong start in the runup to the August 5 presidential primary, but his popularity has faded, making Scioli and Macri appear to be the real contenders.  Originally considered an unexciting three-way race, it has now become a polarized contest.  It should come as no surprise if campaign speeches start to follow a continuity-versus-change line.

Several developments suggest the presidential race will be close:

  • The fact that Scioli has named Carlos Zannini, President Cristina Fernández de Kirchner’s legal secretary, as his running mate has been a game-changer. The Scioli-Zannini effort to bridge two different factions of the FPV, namely the left-wing Kirchnerites with more business-friendly Peronists, will demand tons of rhetoric.  This ticket casts them as guarantors of continuity: el modelo with some modifications.  Yet in electoral politics, almost everything is about framing – explaining to core and potential supporters how new decisions, which for all their twists and turns, remain faithful to the flags of the party.  This is when Peronism gets real.
  • The Zannini gambit on the Peronist side prompted Macri to follow a pure PRO formula, naming Gabriela Michetti, a former deputy-major of Buenos Aires City, as his vice-presidential candidate. This ticket bets on the idea that most Argentine voters reject the government and want substantial change, while polls suggest that many just opt for moderate adjustments.  Macri’s record indicates that he would propel a more pro-business government than that of Fernández de Kirchner, but his victory would not portend a return to the neoliberal heyday of the Menem years during the 1990s.
  • Sergio Massa, on the other hand, is the plain-speaking candidate of the dissident Peronist faction who’s challenged by the FPV and PRO candidates to duke it out over the issues. Polls indicate that he will draw 15 percent of the votes in the election – making him an important powerbroker.

These early stages of the campaign reflect a recurrent pattern in Argentina’s political landscape: a tendency of ruling party candidates to move away from incumbents with lofty rhetoric but little specificity on the one hand, as opposition candidates issue harsh criticism while at the same time manifesting a reluctance to embrace radical change.  Scioli seems to be going all-out Kirchnerite, but it’s too soon to judge whether the electorate will follow, or whether once in office he would govern as if it were Cristina’s third term.  He and Macri both aspire to grab Massa’s 15 percent, as it could enable them to win the presidency in the first ballot rather than having to contest a second round of voting between the two top vote-getters.  But he hasn’t stated a credible price, and neither Scioli nor Macri seems ready yet to begin bargaining with him.   President Fernández may have avoided plunging the economy into crisis before she steps down, but her successor will definitely have to make tough choices because the country is mired in recession and cannot access foreign investment.  Macri might initially enjoy some leeway to introduce austerity measures that would clean up a good part of the macro-economic mess and reopen Argentina to international capital markets, but even he – like Scioli – is likely to be constrained by embedded Kirchnerism in Congress and in the ministries.  Those in Argentina and beyond who have dreamed that Kirchnerism’s days are numbered will have to wait to see.  Kirchnerism, Argentina’s latest “ism,” has profoundly altered the political and ideological landscape – and, at this early point in the campaign, it appears likely to continue to be part of the country’s political ethos into the future.  It could even turn out to be the dominant force in the administration that takes office in 2016.

July 2, 2015

*Federico Merke directs the Political Science and International Relations Programs at the Universidad de San Andrés in Buenos Aires.

Argentina: Wild Tales, Indeed

By Jeffrey Middents*

Photo Credit: inigo_montoya_es4 / Flickr / Creative Commons

Photo Credit: inigo_montoya_es4 / Flickr / Creative Commons

The Latin American film of the moment – Relatos salvajes or Wild Tales – is not just a cultural phenomenon in Argentina, but perhaps a political touchstone as well  Damián Szifrón’s madcap dark comedy about revenge won this year’s Goya Award for Best Iberoamerican Film and was nominated for this year’s Best Foreign Film Oscar.  It has also been a box-office powerhouse, easily becoming the top-grossing movie of the year at home in Argentina and gaining significant financial success in Spain, Italy and throughout South America.  In the United States, the film’s slow roll-out over the last two weeks since Oscar weekend earned a remarkable $385,000 in just 28 theaters nationwide.  This is particularly impressive since its format – an anthology of six short films that are narratively unrelated – historically results in a somewhat uneven cinematic experience that plays poorly with audiences.  Relatos salvajes bursts at the seams with the hottest Argentine movie stars of the moment: Ricardo Darín from El secreto de sus ojos/The Secret in Their Eyes, Dario Grandinetti from Almodóvar’s Hable con ella/Talk to Her, Leonardo Sbaraglia from Plata quemada/Burnt Money and especially Érica Rivas from Coppola’s Tetro.

The film’s real impact, however, comes from its contemporary themes, which resonate strongly, especially with Argentine audiences.  It has inspired new slang: on the streets of Buenos Aires, “Bombita,” the nickname of the character played by Darín, now refers to the welcome rage against an impossible system.  “Pasternak” also has taken on special meaning that, without spoiling one of the most delicious segments of the film, refers to a low-flying plane involved in a hilarious act of ultimate revenge.  So memorable is this name that, in a public speech about a new train project around the Buenos Aires airport, President Cristina Kirchner last September 8 used it when joking with reporters about the number of low-flying Aerolineas Argentinas flights.  Szifrón even noted her “official support” by posting the clip on his Facebook page.

Kirchner may be ruing the day Relatos salvajes ever appeared in theaters.  Although the film is explicitly unpolitical, commercial cinema – yielding its sharpest dagger against the most universal circumstances of contemporary society writ large – it has steered directly into Argentine politics.  The mysterious death of whistleblower prosecutor Alberto Nisman, blamed on the President, has prompted calls for revenge against her.  The film’s premise – people exacting revenge on the powers they cannot otherwise fight – has surfaced as a common point of departure in several biting op-eds in Argentine newspapers in the last month, referring to the “wild tales” the Kirchner government has been telling to cover up the growing scandal.  “Like the memorable film that arrived on the red carpet this year from the points of the cinematic world,” Federico Sánchez Chopa wrote in Tandil Diario, “Kirchner’s regime wants to launch the last act of its tale in a wild way.”  Nelson Salvidio takes the concept even further in a scathing indictment: “Cristina, Néstor [her husband, and the former president] before her, and their quarrelsome followers can be credited for crafting images and acts so that half the country believes their tales.”

With his midnight-dark, hyper-stylized fable, Szifrón may have inadvertently captured Kirchner in his lens.  In the last segment of the film, the bride exhorts the videographer at her wedding to capture the mayhem she has caused, resulting in another line that has become an Argentine catchphrase: “Shoot this, Néstor!”  We shall see whether Argentina’s real-life revenge narrative will be as entertaining.

March 9, 2015

*Jeffrey Middents is an Associate Professor of transnational cinema and literature at American University, with a particular interest in Latin American narrative. He is currently working on a book on director Alfonso Cuarón.