Argentina » History

Recent History

President Carlos Menem imposed a peso-dollar fixed exchange rate in 1991 to stop hyperinflation and adopted far-reaching market-based policies, dismantling protectionist barriers and business regulations, and implementing a privatization program. These reforms contributed to significant increases in investment and growth with stable prices through most of the 1990s.

The Menem and de la Rua administrations faced diminished competitiveness of exports, massive imports which damaged national industry and reduced employment, chronic fiscal and trade deficits, and the contagion of several economic crises. The Asian financial crisis in 1998 precipitated an outflow of capital that mushroomed into a recession, which led to a total freezing of bank accounts (the corralito), and culminated in a financial panic in November 2001. The next month, amidst bloody riots, President de la Rua resigned.

In two weeks, several new presidents followed in quick succession, culminating in Eduardo Duhalde being appointed interim President of Argentina by the Legislative Assembly on 2 January 2002.

In 2003, Nestor Kirchner was elected president. During Kirchner's presidency, Argentina restructured its defaulted debt with a steep discount (about 70 percent) on most bonds, renegotiated contracts with utilities, and nationalized previously privatized industries.

Longer Historical Perspective

The first signs of human presence in Argentina are located in the Patagonia (Piedra Museo, Santa Cruz), and date from 11,000 BC [1]. Around 0 AD, several corn-based civilizations developed in the western and northwestern Andean region (Ansilta, Condorhuasi, Cienaga, Aguada, Santa Maria, Huarpes, Diaguitas, Sanavirones, among others); some of them were conquered by the Quechuas and integrated into the Inca Empire as a region called Tucma. Europeans arrived in 1502. Spain established a permanent colony on the site of Buenos Aires in 1580, and the Viceroyalty of the Rua de la Plata in 1776. In 1806 and 1807 the British Empire invaded the Viceroyalty, but the creole population managed to repel the invasions. On May 25, 1810, after the confirmation of the rumors about the overthrow of King Ferdinand VII by Napoleon, the most prominent citizens of Buenos Aires took advantage of the situation and created the First Government Junta. Independence from Spain was declared on July 9, 1816. Centralist and federationist groups were in conflict until national unity was established and the constitution promulgated in 1853.

Foreign investment and immigration from Europe led to the adoption of modern agricultural techniques and integration of Argentina into the world economy in the late 19th century. In the 1880s, the "Conquest of the Desert" subdued or exterminated the remaining indigenous tribes throughout Patagonia.

From 1880 to 1930, Argentina enjoyed increasing prosperity and prominence. Conservative forces dominated Argentine politics until 1916, when their traditional rivals, the Radicals, won control of the government. The military forced Hipolito Yrigoyen from power in 1930, leading to another decade of Conservative rule.

Political change led to the presidency of Juan Peronn in 1946, who tried to empower the working class and greatly expanded the number of unionized workers. The Revolución Libertadora of 1955 deposed him.