The departure of Nestor Kirchner and the entrance of his wife Cristina Kirchner, in 2007, practically did not change the internal political scenario from Argentina, even more so with the absence of a project to oppose the so-called “Kirchner couple” capable of convincing the electorate Argentine. Several protectionist measures were taken, such as restrictions on wheat exports to ensure meeting domestic consumption, which generated protests and stoppages by rural producers.
The president, Cristina Kirchner, re-elected in 2011, sought to use some national symbols such as the Falkland Islands to calm social protests. Britons and Argentines were the protagonists of the Falklands War, a conflict that occurred in 1982 when the Argentine dictatorship tried, in vain, recover possession of the archipelago from the use of military force, which remains to this day as a bitter memory for the people Argentine.
With recent oil discoveries in the Falklands, which are still under British control, Kirchner has required some kind of economic compensation or even the complete return of the islands, something not considered by the English. Talking about Malvinas and the heroes who fought for the attempt to reconquer it represents a stereotype of the ideal of a nation, which has proven to be a great strategy to keep the population united to the government project in times of crisis Social.
In 2012, populism once again appeared in political measures. The government expropriated the oil company YPF, nationalizing the 57% of the company's shares that were under the control of the Spanish transnational Repsol. In practice, this maneuver can be translated as the expulsion of the Spanish company from the control of YPF, without any kind of financial compensation. The argument for such a radical act was an alleged lack of commitment by Repsol to promote investments in the sector. With the measure, 51% of the company's shares were now controlled by the federal government, while 49% of the shares were distributed among the country's provinces.
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The year 2013 began with the threat of a new Argentine debt default, yet another consequence of the historic 2001 crisis. That year, the country carried out a renegotiation of debts with several international financial institutions, something lawful and known as a moratorium. The process was quite simple: exchange the bonds that would no longer be paid (that's why many called it default) for new bonds, with longer terms and less profitable conditions. The New York court ruled, back in 2012, that the Argentine government would need to remunerate some creditors who did not accept these conditions, which should add up to an amount of approximately 1.3 billion dollars, something that, in the short term, the country will not be able to pay.
The nationalization of YPF further diminished investor confidence in Argentina, which since the crisis of the 2000s has lost much of its credibility in the international market. The country's image is increasingly linked to political instability and economic weakness. As a result, it becomes increasingly difficult for the country to acquire new loans and modernize sectors such as oil, which are essential for its economic recovery.
Julio César Lázaro da Silva
Brazil School Collaborator
Graduated in Geography from Universidade Estadual Paulista - UNESP
Master in Human Geography from Universidade Estadual Paulista - UNESP
Would you like to reference this text in a school or academic work? Look:
SILVA, Julius César Lázaro da. "The Difficulties Faced by the Argentine Economy – Kirchner Government"; Brazil School. Available in: https://brasilescola.uol.com.br/geografia/as-dificuldades-enfrentadas-pela-economia-argentina-governo-kirchner.htm. Accessed on June 28, 2021.
