Travel Reference
In-Depth Information
In October 2011, in an effort to curb capital from heading overseas, the government
started requiring Argentines to substantiate their purchases of US dollars. This created a
mercado azul
(literally, 'blue market') for US dollars, which are highly sought after as a
stable currency. The real-estate market stalled, since purchases were pretty much always
transacted in US dollars. Calle Florida is now even more full of
arbolitos
(or 'little trees',
since they stand around), who target tourists with dollars to change - at nearly double the
official rate.
Many economists believe that the government needs to reduce spending and stop bor-
rowing from its central bank and public pension system; control inflation; and maintain
foreign-exchange reserves. Moreover, government policies need to become more transpar-
ent to encourage both domestic and foreign investment. These are tall orders and go
against the traditional Argentine economic flow, but recession and even devaluation are
increasing risks. Who knows - maybe another crash is just what Argentina needs to get on
top again.
Cristina's Reign
In 2011 Cristina Kirchner was re-elected president by a landslide majority of 54%. She
ran on a platform that appealed to the populist vote, promising to raise incomes, restore
industry and maintain Argentina's economic boom. Her approach worked like a charm.
Since then, however, things haven't been so rosy. Her popularity plunged as the eco-
nomy hit the brakes, inflation skyrocketed and crime kept rising.
The Economist
and inter-
national agencies such as the IMF have accused her government of cooking the topics (es-
pecially inflation figures). Her health has been on the rocks: she had to have surgery to re-
move her thyroid in 2012, and she underwent a procedure to remove a blood clot on her
brain in 2013. She lost even more political support in the October 2013 midterm elections,
making a Chavez-like third term - currently not allowed in the constitution, but something
that many thought Cristina was after - very unlikely.
But nobody can write
la presidenta
off yet - she still maintains majorities in both
chambers, her term won't be up until 2015 and she's been known to make comebacks.
And despite her many detractors, Cristina has made admirable social strides. She's ad-
dressed the abuses of the military dictatorship, championed same-sex marriage laws and,
above all, supported the blue-collar classes. And her people love her for it, just as they did
Evita.
Cultural Evolutions
