I acknowledge that there may be differing opinions regarding the content of this article, but it is important to recognize and appreciate the legacy left by Néstor Kirchner.
The untimely passing of Néstor Kirchner represents a significant loss not only for Argentina but also for the broader region and the world. Taking office as president in May 2003 during Argentina's early recovery from a severe recession, Kirchner played a pivotal role in rescuing the country's economy, drawing parallels to Franklin D. Roosevelt's efforts during the Great Depression in the United States. Similar to Roosevelt, Kirchner faced opposition not only from powerful economic interests but also from the majority of the economics profession, which doubted the success of his policies. Contrary to these predictions, Kirchner's policies proved effective, leading Argentina on a path of recovery.
The economic downturn in Argentina from 1998-2002 mirrored the U.S. Great Depression in terms of high unemployment rates, peaking at over 21 percent, and a substantial decline in output (approximately 20 percent of GDP). Many Argentines, accustomed to relatively high living standards in Latin America, fell below the poverty line. The crisis in late 2002 and early 2003 saw a massive devaluation, a historic sovereign default on $95 billion of debt, and a collapse of the financial system.
While some unconventional policies that contributed to Argentina's rapid recovery were initiated before Kirchner took office, he faced formidable challenges in implementing and sustaining them, ultimately transforming Argentina into the fastest-growing economy in the region.
One significant challenge arose from the International Monetary Fund (IMF), which had played a role in the economic collapse by supporting detrimental policies, including an overvalued exchange rate and escalating indebtedness at rising interest rates. Despite the Fund offering no assistance when Argentina's economy collapsed, Kirchner refused its conditions, leading to a temporary default in 2003. This bold move, unprecedented for a middle-income country, compelled the IMF to back down and extend the loans.
Argentina subsequently experienced an average annual growth rate of more than 8 percent until 2008, lifting over 11 million people out of poverty in a country of 40 million. Despite facing criticism from Washington and the business press, Kirchner's policies, such as the Central Bank's focus on a stable and competitive real exchange rate, proved successful.
Kirchner's confrontation with the IMF occurred at a time when the organization was losing global influence after failures in the Asian economic crisis preceding Argentina's collapse. This event demonstrated that a country could defy the IMF and survive, contributing to the decline of IMF influence in Latin America and middle-income countries. The diminishing influence of the IMF also played a role in the waning power of the United States, particularly in South America's newfound independence.
Moreover, Kirchner played a crucial role in consolidating this independence by collaborating with other left-leaning governments in Brazil, Venezuela, Ecuador, and Bolivia. Through institutions like UNASUR and MERCOSUR, South America reshaped its trajectory. Kirchner's leadership, together with other left-leaning governments, supported Bolivia against a right-wing challenge in 2008 and stood behind Ecuador during an attempted coup a few weeks ago.
Despite the unsuccessful attempt to overturn the military coup in Honduras, where U.S. support for the coup government was decisive, Argentina, alongside UNASUR, continues to oppose Honduras' return to the OAS, despite strong lobbying from Washington.
Kirchner's commitment to human rights earned him respect from organizations for prosecuting and extraditing military officers accused of crimes during the 1976-1983 dictatorship, reversing previous government policies. Néstor Kirchner, alongside his wife, current president Cristina Fernández, has made a significant contribution to steering Argentina and the region in a progressive direction. While these efforts may not have garnered widespread approval in Washington and international business circles, history will undoubtedly recognize him as not only a great president but also an independence hero of Latin America. This column was originally published by The Guardian Unlimited (UK) on October 27, 2010.
http://www.huffingtonpost.com/mark-w..._b_774966.html
