Fernando de la Rúa (15 September 19379 July 2019) was an Argentine politician and a member of the
Radical Civic Union
The Radical Civic Union ( es, Unión Cívica Radical, UCR) is a centrist and social-liberal political party in Argentina. It has been ideologically heterogeneous, ranging from social liberalism to social democracy. The UCR is a member of the So ...
(UCR) political party who served as
President of Argentina
The president of Argentina ( es, Presidente de Argentina), officially known as the president of the Argentine Nation ( es, Presidente de la Nación Argentina), is both head of state and head of government of Argentina. Under Constitution of Ar ...
from 10 December 1999 to 21 December 2001. De la Rúa was born in
Córdoba; he entered politics after graduating with a degree in law. He was elected senator in 1973 and unsuccessfully ran for the office of Vice President as
Ricardo Balbín
Ricardo Balbín (29 July 1904 – 9 September 1981) was an Argentine lawyer and politician, and one of the most important figures of the centrist Radical Civic Union (UCR), for which he was the presidential nominee four times: in 1951, 1958, an ...
's
running mate
A running mate is a person running together with another person on a joint Ticket (election), ticket during an election. The term is most often used in reference to the person in the subordinate position (such as the vice presidential candidate ...
the same year. He was re-elected senator in 1983 and 1993, and as deputy in 1991. He unsuccessfully opposed the
pact of Olivos
The Olivos Pact ( es, Pacto de Olivos) refers to a series of documents signed on November 17, 1993, between the governing President of Argentina, Carlos Menem, and former President and leader of the opposition UCR, Raúl Alfonsín, that formed th ...
between President
Carlos Menem
Carlos Saúl Menem (2 July 1930 – 14 February 2021) was an Argentine lawyer and politician who served as the President of Argentina from 1989 to 1999. Ideologically, he identified as a Peronist and supported economically liberal policies. H ...
and party leader
Raúl Alfonsín
Raúl Ricardo Alfonsín (12 March 1927 – 31 March 2009) was an Argentine lawyer and statesman who served as President of Argentina from 10 December 1983 to 8 July 1989. He was the first democratically elected president after more than ...
, which enabled the
1994 amendment of the Argentine Constitution and the re-election of Menem in 1995.
De la Rúa was the first
chief of government of Buenos Aires
, image = R larreta.jpg
, alt = Mayor of Buenos Aires
, incumbent = Horacio Rodríguez Larreta
, incumbentsince = 10 December 2015
, style = No courtesy, title or style
, residence = Buenos Aires ...
to be elected by popular vote, a change introduced by the amendment of the Constitution. He expanded the
Buenos Aires Underground
The Buenos Aires Underground ( es, Subterráneo de Buenos Aires, links=no), locally known as Subte (), is a rapid transit system that serves the area of the city of Buenos Aires, Argentina. The first section of this network (Plaza de Mayo–Pla ...
, adding new stations to Line D, starting the expansion of Line B, and establishing Line H. He established Roberto Goyeneche Avenue and the city's first bicycle path.
In 1999,
De la Rúa was elected President after running on the
Alliance
An alliance is a relationship among people, groups, or states that have joined together for mutual benefit or to achieve some common purpose, whether or not explicit agreement has been worked out among them. Members of an alliance are called ...
ticket, a political coalition of the UCR and the
Frepaso
The Front for a Country in Solidarity ( or ) was a center-left political coalition in Argentina. It was formed in 1994 out of the Broad Front (''Frente Grande''), which had been founded mainly by progressive members of the Peronist Justicialist ...
. He was opposed by the Peronist unions and his Vice President
Carlos Álvarez resigned after denouncing bribes in the Senate. The
economic crisis
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with th ...
that began during Menem's administration worsened and by the end of 2001 led to a
banking panic
A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future. In other words, it is when, in a fractional-reserve banking system (where banks no ...
. The government established the ''
Corralito
Corralito () was the informal name for the economic measures taken in Argentina at the end of 2001 by Minister of Economy Domingo Cavallo in order to stop a bank run which implicated a limit of cash withdrawals of 250 ARS per week (at that t ...
'' to limit bank withdrawals. De la Rúa called a
state of emergency
A state of emergency is a situation in which a government is empowered to be able to put through policies that it would normally not be permitted to do, for the safety and protection of its citizens. A government can declare such a state du ...
during the
December 2001 riots. Following his resignation on 20 December, the Argentine Congress appointed a new president. After leaving office, De la Rúa retired from politics and faced legal proceedings for much of the remainder of his life until his death in 2019.
Early life
Fernando de la Rúa was the son of Eleonora Bruno and Antonio De la Rúa; he was born in the city of
Córdoba and attended the local Military Lyceum before entering the
National University of Córdoba
The National University of Córdoba ( es, Universidad Nacional de Córdoba,) is an institution of higher education in the city of Córdoba, Argentina.
Founded in 1613, the university is the oldest in Argentina, the third oldest university of t ...
, from which he graduated with a law degree at the age of 21. He married a
Buenos Aires
Buenos Aires ( or ; ), officially the Autonomous City of Buenos Aires ( es, link=no, Ciudad Autónoma de Buenos Aires), is the capital and primate city of Argentina. The city is located on the western shore of the Río de la Plata, on South ...
socialite,
Inés Pertiné, in 1970; they had three children, including
Antonio de la Rúa
Antonio de la Rúa Pertiné (born 7 March 1974) is an Argentine lawyer, and the son of former president Fernando de la Rúa (who governed Argentina from 1999 to 2001) and Inés Pertiné. He was an advisor to his father during his father's pres ...
. De la Rúa became involved in politics at a young age; he entered public service in 1963 as an advisor to President
Arturo Illia
Arturo Umberto Illia (; 4 August 1900 – 18 January 1983) was an Argentine politician and physician, who was President of Argentina from 12 October 1963, to 28 June 1966. He was a member of the centrist Radical Civic Union.
Illia reached t ...
's minister
Juan Palmero.
![UCR1973](https://upload.wikimedia.org/wikipedia/commons/4/4d/UCR1973.jpg)
He was elected senator in the
March 1973 general elections, defeating the
Peronist Marcelo Sánchez Sorondo
Marcelo Sánchez Sorondo (born 8 September 1942) is an Argentine prelate of the Catholic Church who was Chancellor of the Pontifical Academy of Sciences and the Pontifical Academy of Social Sciences from 1998 to 2022. He was made a bishop in 2 ...
. He was the only politician from the
Radical Civic Union
The Radical Civic Union ( es, Unión Cívica Radical, UCR) is a centrist and social-liberal political party in Argentina. It has been ideologically heterogeneous, ranging from social liberalism to social democracy. The UCR is a member of the So ...
(UCR) who could defeat the Peronist candidate in his administrative division. The elected president
Héctor José Cámpora
Héctor José Cámpora (26 March 190918 December 1980) was an Argentine politician. A major figure of left-wing Peronism, Cámpora was briefly Argentine president from 25 May to 13 July 1973 and subsequently arranged for Perón to run for preside ...
and his vice president resigned a few months later, leading to the call to new elections.
Ricardo Balbín
Ricardo Balbín (29 July 1904 – 9 September 1981) was an Argentine lawyer and politician, and one of the most important figures of the centrist Radical Civic Union (UCR), for which he was the presidential nominee four times: in 1951, 1958, an ...
ran for president in the
September general elections, with De la Rúa as his running mate for the post of vice president. The UCR was defeated by
Juan Perón
Juan Domingo Perón (, , ; 8 October 1895 – 1 July 1974) was an Argentine Army general and politician. After serving in several government positions, including Minister of Labour and Vice President of a military dictatorship, he was elected P ...
in a landslide. De la Rúa was removed from the Congress during the
1976 Argentine coup d'état
The 1976 Argentine coup d'état was a right-wing coup d'état, coup that overthrew Isabel Perón as President of Argentina on 24 March 1976. A military junta was installed to replace her; this was headed by Lieutenant General Jorge Rafael Videl ...
. He left politics and worked as a lawyer for the firm
Bunge y Born
Bunge & Born was a multinational corporation based in Buenos Aires, Argentina, whose diverse interests included food processing and international trade in grains and oilseeds. It is now known as Bunge Limited.
History
Bunge & Born was founded in 1 ...
.
The
National Reorganization Process
The National Reorganization Process (Spanish: ''Proceso de Reorganización Nacional'', often simply ''el Proceso'', "the Process") was the military dictatorship that ruled Argentina from 1976 to 1983, in which it was supported by the United Sta ...
ended in 1983. De la Rúa intended to run for president but lost in the primary elections of the UCR to
Raúl Alfonsín
Raúl Ricardo Alfonsín (12 March 1927 – 31 March 2009) was an Argentine lawyer and statesman who served as President of Argentina from 10 December 1983 to 8 July 1989. He was the first democratically elected president after more than ...
, who was elected in the general election.
De la Rúa ran for the post of senator instead, defeating the Peronist
Carlos Ruckauf. He ran for re-election as senator in 1989 but, despite his electoral victory, the
electoral college voted for the Peronist
Eduardo Vaca
Eduardo Vaca (1944-1998) was an Argentine senator for the Justicialist Party.
Eduardo Vaca was elected deputy for the 1985-1989 period. He ran for senator and lost the 1989 elections in Buenos Aires to the radical Fernando de la Rúa
Fernan ...
. De la Rúa was elected deputy in 1991 and returned to the senate in 1993. President
Carlos Menem
Carlos Saúl Menem (2 July 1930 – 14 February 2021) was an Argentine lawyer and politician who served as the President of Argentina from 1989 to 1999. Ideologically, he identified as a Peronist and supported economically liberal policies. H ...
, elected in 1989, wanted to amend the constitution to allow him to run for re-election in 1995, which was opposed by the UCR. Alfonsín signed the
Pact of Olivos
The Olivos Pact ( es, Pacto de Olivos) refers to a series of documents signed on November 17, 1993, between the governing President of Argentina, Carlos Menem, and former President and leader of the opposition UCR, Raúl Alfonsín, that formed th ...
with Menem, negotiating terms to support the proposal. De la Rúa led the opposition to the pact within the UCR, but Alfonsín prevailed in the internal dispute. This damaged the relationship between the two leaders, but helped the party to retain a number of radicals who were against the pact.
[Reato, p. 73] De la Rúa could not prevent the
1994 amendment of the Argentine Constitution. As a result, Menem was re-elected in 1995. The UCR finished third in the elections for the first time, being surpassed by the
Frepaso
The Front for a Country in Solidarity ( or ) was a center-left political coalition in Argentina. It was formed in 1994 out of the Broad Front (''Frente Grande''), which had been founded mainly by progressive members of the Peronist Justicialist ...
, a new party composed by former Peronists.
Mayor of Buenos Aires
The constitutional amendment gave autonomy to the city of Buenos Aires, allowing it to sanction local laws and elect
its own mayor, who was previously appointed by the president of the nation. De la Rúa was the first mayor elected in this manner, defeating the previous mayor
Jorge Domínguez. During his term of office he created or reformulated several institutions to fit the new status of the city, as required by the national constitution and the recently approved
Constitution of Buenos Aires.
De la Rúa worked on the expansion of the
Buenos Aires Underground
The Buenos Aires Underground ( es, Subterráneo de Buenos Aires, links=no), locally known as Subte (), is a rapid transit system that serves the area of the city of Buenos Aires, Argentina. The first section of this network (Plaza de Mayo–Pla ...
. The first stations of the extended
Line D,
Olleros and
José Hernández, were opened in 1997,
Juramento
Juramento is a municipality in the north of the Brazilian state of Minas Gerais. the population was 4,345 in a total area of 432 km². It became a municipality in 1953.
Juramento is located 42 km to the southeast of Montes Claros on ...
was opened in 1999, and
Congreso de Tucumán in 2000. He also started the works to extend the
Line B. Carlos Menem started to transfer the control and financing of the underground system to the city, but the 2001 economic crisis halted the process.
The former mayor Domínguez intended to expand the
Pan-American Highway
The Pan-American Highway (french: (Auto)route panaméricaine/transaméricaine; pt, Rodovia/Auto-estrada Pan-americana; es, Autopista/Carretera/Ruta Panamericana) is a network of roads stretching across the Americas and measuring about in to ...
into
Saavedra, but the project met widespread opposition. De la Rúa reformulated the project and built an avenue instead of a highway, which was accepted. The avenue was named Roberto Goyeneche. He also restarted a project to build the
Cámpora Highway linking
Dellepiane Avenue with the
Riachuelo, and established the first non-recreational
bikeway
Cycling infrastructure is all infrastructure cyclists are allowed to use. Bikeways include bike paths, bike lanes, cycle tracks, rail trails and, where permitted, sidewalks. Roads used by Motor vehicle, motorists are also cycling infrastructu ...
in Buenos Aires at
Avenida del Libertador.
Presidential elections
![De la Rúa jura como presidente](https://upload.wikimedia.org/wikipedia/commons/9/9d/De_la_R%C3%BAa_jura_como_presidente.jpg)
The Pact of Olivos diminished the electoral strength of the UCR, leading to the rise of the
Frepaso
The Front for a Country in Solidarity ( or ) was a center-left political coalition in Argentina. It was formed in 1994 out of the Broad Front (''Frente Grande''), which had been founded mainly by progressive members of the Peronist Justicialist ...
. Both parties united in a political coalition, the
Alliance
An alliance is a relationship among people, groups, or states that have joined together for mutual benefit or to achieve some common purpose, whether or not explicit agreement has been worked out among them. Members of an alliance are called ...
, which defeated the PJ in the 1997 midterm elections. It was the PJ's first national defeat since 1985. The parties held open primary elections for the 1999 presidential elections. De la Rúa stood for the UCR; the whole party, including Alfonsín, supported him. The Frepaso candidate was
Graciela Fernández Meijide, who had defeated Peronism in the populous Buenos Aires province. De la Rúa won the primary elections by a wide margin. In the primaries, De la Rúa was voted for by more people than those who voted for the UCR in 1995.
[Reato, p. 75] Despite his victory, Alfonsín was still the president of the UCR. They disagreed on the vice president for De la Rúa's ticket; he thought that it should be Meijide because she took part in the primary elections and came from a different district than him. Alfonsín preferred the popular
Carlos Álvarez, leader of the Frepaso, saying he could attract more voters and had more political expertise.
It was also a result of the internal politics of the Alliance: except for Meijide, the Frepaso did not have a political figure who could run with high prospects for winning the post of Governor of the
Buenos Aires province
Buenos Aires (), officially the Buenos Aires Province (''Provincia de Buenos Aires'' ), is the largest and most populous Argentine province. It takes its name from the city of Buenos Aires, the capital of the country, which used to be part of th ...
. Had she run for vice president, Frepaso would have had to resign that candidacy to a radical candidate.
Carlos Menem dismissed De la Rúa as a "boring" candidate. De la Rúa exploited that description in television advertisements, embracing it and setting a comparison with the glitzy style of Menem and the perceived political corruption of his administration. He also compared himself with the Peronist candidate
Eduardo Duhalde
Eduardo Alberto Duhalde (; born 5 October 1941) is an Argentine Peronist politician who served as the interim President of Argentina from January 2002 to May 2003. He also served as Vice President and Governor of Buenos Aires in the 1990s.
B ...
. He promised to solve the
economic crisis
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with th ...
with fiscal austerity and higher tax controls, hoping it would lower interest rates, bring more foreign investments, and reduce unemployment. He also promised to keep the
convertibility plan
The Convertibility plan was a plan by the Argentine Currency Board that pegged the Argentine peso to the U.S. dollar between 1991 and 2002 in an attempt to eliminate hyperinflation and stimulate economic growth. While it initially met with cons ...
established by Menem that pegged the
Argentine peso
The peso (established as the ''peso convertible'') is the currency of Argentina, identified by the symbol $ preceding the amount in the same way as many countries using peso or dollar currencies. It is subdivided into 100 ''centavos''. Its ISO 4 ...
one-to-one with the
United States dollar
The United States dollar ( symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the officia ...
.
The
1999 presidential election was held on 24 October. De la Rúa defeated Duhalde by 48.4% to 38.3%, well ahead of the threshold to avoid a
second round run-off election.
Domingo Cavallo
Domingo Felipe Cavallo (born July 21, 1946) is an Argentine economist and politician. Between 1991 and 1996 he was Economic Ministry of Argentina during Carlos Menem presidency. He is known for implementing the '' Convertibility plan'', which ...
, Menem's former minister of economy, finished the race in third place. De la Rúa was inaugurated
President of Argentina
The president of Argentina ( es, Presidente de Argentina), officially known as the president of the Argentine Nation ( es, Presidente de la Nación Argentina), is both head of state and head of government of Argentina. Under Constitution of Ar ...
on 10 December 1999. He took office with a favorability rating of 75%. Unlike Menem, whose initial cabinet was composed of trusted friends, De la Rúa's cabinet included five people with international degrees and four economists.
Presidency
He was
President of Argentina
The president of Argentina ( es, Presidente de Argentina), officially known as the president of the Argentine Nation ( es, Presidente de la Nación Argentina), is both head of state and head of government of Argentina. Under Constitution of Ar ...
from 10 December 1999 to 21 December 2001.
Domestic policy
![Fernando De la Rúa, su hijo Antonio y Darío Lopérfido](https://upload.wikimedia.org/wikipedia/commons/0/04/Fernando_De_la_R%C3%BAa%2C_su_hijo_Antonio_y_Dar%C3%ADo_Lop%C3%A9rfido.jpg)
In the first days of his presidency, De la Rúa sent a bill to the Congress to request a
federal intervention
Federal intervention () is a power attributed to the federal government of Argentina, by which it takes control of a province in certain extreme cases. Intervention is declared by the President with the assent of the National Congress. Article 6 o ...
in the province of
Corrientes
Corrientes (; Guaraní language, Guaraní: Taragüí, literally: "Currents") is the capital city of the Provinces of Argentina, province of Corrientes Province, Corrientes, Argentina, located on the eastern shore of the Paraná River, about from ...
. The province had a high level of debt, and organizations of ''
piquetero
A ''piquetero'' is a member of a group that has blocked a street with the purpose of demonstrating and calling attention over a particular issue or demand. The word is a neologism in the Spanish of Argentina, coming from ''piquete'' (in English ...
s'' blocked roads to make demonstrations. There were two interim governors disputing power. The bill was immediately approved. The intervenor selected for the task was
Ramón Mestre.
The Peronist unions opposed De la Rúa and held seven general strikes against him. He sent a bill known as the
labour flexibility law The Labour flexibility law is a former law in Argentina that was enacted in 2000 during the presidency of Fernando de la Rúa. Vice President Carlos Álvarez (Argentine politician), Carlos Álvarez resigned the following year, denouncing the fact, t ...
to deregulate labor conditions, attempting to reduce the political influence of unions, to the Congress. This project was opposed by the PJ and was changed from the original draft. It was finally approved but Álvarez said several legislators were bribed to support the bill. Álvarez asked for the removal of the labor minister
Alberto Flamarique, but De la Rúa instead promoted him to be his personal secretary. Álvarez resigned the following day and the political scandal divided the coalition. Several deputies who initially supported De la Rúa switched to the opposition. Alfonsín tried to prevent a breakup of the UCR. Some months later, it was proposed that Álvarez return to the De la Rúa government as the
Chief of the Cabinet of Ministers. Álvarez initially supported the idea but De la Rúa opposed it. Cavallo was also proposed for the office before he was appointed Minister of Economy. De la Rúa intended to include the Frepaso in the new cabinet but to exclude Álvarez himself because he still resented the latter's resignation. The negotiations failed and the new cabinet included no Frepaso politicians, but the Alliance was still working as a coalition in the Congress. It also included several radical politicians from Alfonsín's internal faction. The new Chief of Cabinet was
Chrystian Colombo, who mediated between Alfonsín and the president.
The PJ won the
2001 midterm election by 40% to 24%, giving it a majority in both chambers of the Congress. However, the
abstention
Abstention is a term in election procedure for when a participant in a vote either does not go to vote (on election day) or, in parliamentary procedure, is present during the vote, but does not cast a ballot. Abstention must be contrasted with ...
rate and several forms of
protest vote
A protest vote (also called a blank, null, spoiled, or "none of the above" vote) is a vote cast in an election to demonstrate dissatisfaction with the choice of candidates or the current political system. Protest voting takes a variety of forms a ...
s combined reached 41%, the highest in Argentine history, as a consequence of the popular discontent with the two main parties. Even the few candidates of the Alliance who won at their districts, such as the radical
Rodolfo Terragno
Rodolfo Terragno (born 16 November 1943) is an Argentine politician and lawyer, former Senator and journalist. From 2016 to 2019, he was Argentina's ambassador to UNESCO.
Life and times
Terragno was born in Buenos Aires, Argentina, in 1943 and ob ...
in Buenos Aires, did so with political platforms against De la Rúa's administration.
Foreign policy
![Fernando de la Rúa with George W](https://upload.wikimedia.org/wikipedia/commons/b/b8/Fernando_de_la_R%C3%BAa_with_George_W._Bush.jpg)
The first year of De la Rúa's presidency coincided with the last year of
Bill Clinton
William Jefferson Clinton ( né Blythe III; born August 19, 1946) is an American politician who served as the 42nd president of the United States from 1993 to 2001. He previously served as governor of Arkansas from 1979 to 1981 and agai ...
's presidency of the United States.
Ricardo López Murphy
Ricardo Hipólito López Murphy (born 10 August 1951) is an Argentine economist, academic and politician. He served as Minister of Defense and Minister of Economy during the presidency of Fernando de la Rúa. His time at the helm of the econom ...
, Minister of Defense at the time, met
William Cohen
William Sebastian Cohen (born August 28, 1940) is an American lawyer, author, and politician from the U.S. state of Maine. A Republican, Cohen served as both a member of the United States House of Representatives (1973–1979) and Senate (1979 ...
, U.S. Secretary of Defense, in a summit of ministers that took place in Brazil in 2000. Both countries agreed to share classified information and to hold joint operations against terrorism.
George W. Bush
George Walker Bush (born July 6, 1946) is an American politician who served as the 43rd president of the United States from 2001 to 2009. A member of the Republican Party, Bush family, and son of the 41st president George H. W. Bush, he ...
took office as President of the United States in January 2001, and changed American policy towards countries in financial crises. His Treasury Secretary,
Paul H. O'Neill, a critic of financial aid, said, "We're working to find a way to create a sustainable Argentina, not just one that continues to consume the money of the plumbers and carpenters in the United States who make $50,000 a year and wonder what in the world we're doing with their money". The
September 11 attacks
The September 11 attacks, commonly known as 9/11, were four coordinated suicide terrorist attacks carried out by al-Qaeda against the United States on Tuesday, September 11, 2001. That morning, nineteen terrorists hijacked four commercia ...
occurred a few months later, and the U.S. focused its foreign policy on the
War on Terror
The war on terror, officially the Global War on Terrorism (GWOT), is an ongoing international Counterterrorism, counterterrorism military campaign initiated by the United States following the September 11 attacks. The main targets of the campa ...
against countries suspected of harboring terrorist organizations. As a result, the U.S. gave no further financial aid to Argentina. This policy was confirmed after an interview of Bush with the Brazilian president,
Fernando Henrique Cardoso
Fernando Henrique Cardoso (; born 18 June 1931), also known by his initials FHC (), is a Brazilian sociologist, professor and politician who served as the 34th president of Brazil from 1 January 1995 to 31 December 2002. He was the first Brazi ...
, who confirmed Brazil would not be affected by the Argentine crisis.
Although Argentina maintained neutrality as for the conflict itself
in Afghanistan to topple the Taliban rule, defense minister
Horacio Jaunarena ordered the
Argentine Air Force
"Argentine Wings"
, mascot =
, anniversaries = 10 August (anniversary) 1 May (Baptism of fire during the Falklands War)
, equipment = 139 aircraft
, equipment_label =
, battles =
* Operation Independence
* Operation Soberanía
* Falkl ...
to prepare to deploy to Afghanistan under UN humanitarian mission "after the war was over" with military personnel returning from
Kosovo
Kosovo ( sq, Kosova or ; sr-Cyrl, Косово ), officially the Republic of Kosovo ( sq, Republika e Kosovës, links=no; sr, Република Косово, Republika Kosovo, links=no), is a partially recognised state in Southeast Euro ...
. The mission never materialized as the war extended in time beyond de la Rúa's term.
Economic policy
De la Rúa's first Minister of Economy was the progressive
José Luis Machinea
José Luis Machinea (born October 5, 1946) is an Argentine economist and United Nations official. He was Minister of Economy and President of the Central Bank.
Career
Machinea was born in Buenos Aires, and earned a degree in Economics from th ...
, who was proposed by Alfonsín and Álvarez. Menem had left a deficit of 5
Gross Domestic Product
Gross domestic product (GDP) is a money, monetary Measurement in economics, measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjec ...
(GDP) points that Machinea tried to compensate with higher taxes to people with the highest incomes, and a reduction of the highest retirement pensions. The deficit was reduced but the crisis continued. The scandal over the labor law and the resignation of Álvarez increased the
country's risk, and made Argentina's access to international credit more difficult. The government negotiated a US$38 billion
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster globa ...
(IMF)
line of credit
A line of credit is a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds. A line of credit takes se ...
to prevent a default and allow the economy to grow again. Machinea also proposed appointing former minister Cavallo as the new President of the
Central Bank of Argentina. However, Machinea was unable to achieve the levels of austerity negotiated with the IMF and resigned a few days later. The Minister of Defense
Ricardo López Murphy
Ricardo Hipólito López Murphy (born 10 August 1951) is an Argentine economist, academic and politician. He served as Minister of Defense and Minister of Economy during the presidency of Fernando de la Rúa. His time at the helm of the econom ...
became the new Minister of Economy. During the election camapain, De la Rúa had promised not to appoint him to that ministry, but with the ongoing crisis he did not want to risk problems caused by a temporary lack of minister. López Murphy announced a stricter austerity plan, with reduction to the health and education budgets. His plan was rejected by street demonstrations and the Frepaso, so De la Rúa declined it. Murphy resigned after being minister for 16 days.
![Fernando De La Rua en el Salon Blanco](https://upload.wikimedia.org/wikipedia/commons/a/a3/Fernando_De_La_Rua_en_el_Salon_Blanco.jpg)
De la Rúa appointed Cavallo, who had served under Menem and had established the convertibility plan. He was supported by the PJ, Carlos Álvarez, and the financial groups, but he was rejected by the rest of the UCR. The government announced it would retain the convertibility plan and that there would be no devaluation or
sovereign default
A sovereign default is the failure or refusal of the
government of a sovereign state to pay back its debt in full when due. Cessation of due payments (or receivables) may either be accompanied by that government's formal declaration that it wi ...
. Cavallo proposed several bills; De la Rúa sent them to the Congress and they were approved. The "
superpowers law" authorized the chief of government to modify the national budget without the intervention of the Congress. There was a new tax on bank operations and more products attracted
value-added tax
A value-added tax (VAT), known in some countries as a goods and services tax (GST), is a type of tax that is assessed incrementally. It is levied on the price of a product or service at each stage of production, distribution, or sale to the en ...
. The wages of national customs workers were increased and some industries benefited from tax exemptions. The
Megacanje The Megacanje was an Argentine program that refinanced the Argentine foreign debt in 2001, during the 1998–2002 Argentine great depression. The payment of 30,000 million dollars was delayed to 2005, in exchange of a 14% interest rate.
The presid ...
was a negotiation to delay the payment of foreign debt in exchange for higher interest rates.
[Reato, p. 130] However,
internal debt
In public finance, internal debt or domestic debt is the component of the total government debt in a country that is owed to lenders within the country. Internal government debt is complement is external government debt. The main sources of fun ...
was still a problem because the provinces, especially
Buenos Aires
Buenos Aires ( or ; ), officially the Autonomous City of Buenos Aires ( es, link=no, Ciudad Autónoma de Buenos Aires), is the capital and primate city of Argentina. The city is located on the western shore of the Río de la Plata, on South ...
, were nearing default. This led to conflicts between Cavallo and the provincial governors. Congress approved a bill for a "Zero deficit" policy to prevent further increases of debt and to work only with money from tax revenue. There was a
banking panic
A bank run or run on the bank occurs when many clients withdraw their money from a bank, because they believe the bank may cease to function in the near future. In other words, it is when, in a fractional-reserve banking system (where banks no ...
in November; the government reacted by introducing the "''
corralito
Corralito () was the informal name for the economic measures taken in Argentina at the end of 2001 by Minister of Economy Domingo Cavallo in order to stop a bank run which implicated a limit of cash withdrawals of 250 ARS per week (at that t ...
''", which prevented people from withdrawing cash from banks. It was initially a temporary measure. The IMF refused to send the monthly payment for the line of credit approved at the beginning of the year because the government had not stuck to the "zero deficit" policy.
Riots and resignation
![De la Rua renuncia](https://upload.wikimedia.org/wikipedia/commons/c/c7/De_la_Rua_renuncia.JPG)
The crisis worsened and by 19 December 2001, riots and looting broke out at several points in the country. De la Rúa announced in a ''
cadena nacional
In several Latin American countries, a (; plural ), also referred to as a () or (), is a joint broadcast, over various media (usually radio and television), directed at the general population of a state. Initially conceived as a form of emergen ...
'' (national network broadcast) that he had established a
state of emergency
A state of emergency is a situation in which a government is empowered to be able to put through policies that it would normally not be permitted to do, for the safety and protection of its citizens. A government can declare such a state du ...
.
The riots continued; his speech was followed by increased protests, the ''
cacerolazo
A cacerolazo ( or ), cacerolada (, ) or casserole is a form of popular protest which consists of a group of people making noise by banging pots, pans, and other utensils in order to call for attention.
The first documented protests of this styl ...
s'', which caused 27 deaths and thousands of injuries.
Cavallo resigned at midnight the same day, and the rest of the cabinet followed suit.
![Obelisco 20Dic01](https://upload.wikimedia.org/wikipedia/commons/2/26/Obelisco_20Dic01.jpg)
There was increased looting on 20 December, both in Buenos Aires and the Conurbano. The ''cacerolazos'' continued; large groups of people started demonstrations calling for the government's resignation. The unions—first the CTA and then the
CGT—began general strikes against the state of emergency. Most of the UCR withdrew their support for De la Rúa, so he asked the PJ to create a government coalition. The PJ refused, and De la Rúa resigned from government. His last administrative action was to lift the state of emergency.
He gave his resignation to Congress at 19:45 local time on 20 December 2001, and left the
Casa Rosada
The ''Casa Rosada'' (, eng, Pink House) is the office of the president of Argentina. The palatial mansion is known officially as ''Casa de Gobierno'' ("House of Government" or "Government House"). Normally, the president lives at the Quinta de ...
in a helicopter. He had presided for two years, half of his allotted
term of office
A term of office, electoral term, or parliamentary term is the length of time a person serves in a particular elected office. In many jurisdictions there is a defined limit on how long terms of office may be before the officeholder must be subject ...
.
Because Vice President Carlos Álvarez had already resigned, the Congress convened to appoint a new president.
Adolfo Rodríguez Saá
Adolfo Rodríguez Saá (born 25 July 1947) is an Argentine Peronist politician. Born in a family that was highly influential in the history of the San Luis Province, he became the province's governor in 1983, after the end of the National R ...
, governor of
San Luis Province
San Luis () is a province of Argentina located near the geographical center of the country (on the 32° South parallel). Neighboring provinces are, from the north clockwise, La Rioja, Córdoba, La Pampa, Mendoza and San Juan.
History
The cit ...
, was in office for two months while calling for new presidential elections. Renewed demonstrations forced him to resign as well, and
Eduardo Duhalde
Eduardo Alberto Duhalde (; born 5 October 1941) is an Argentine Peronist politician who served as the interim President of Argentina from January 2002 to May 2003. He also served as Vice President and Governor of Buenos Aires in the 1990s.
B ...
was appointed as the new president. He was able to complete De la Rúa's term of office.
Later life and death
![Macri Velatorio de De la Rúa](https://upload.wikimedia.org/wikipedia/commons/e/ef/Macri_Velatorio_de_De_la_R%C3%BAa.jpg)
De la Rúa retired from political life after his resignation. The scandal over the labor flexibility law was renewed in 2003 when a former Senate worker,
Mario Pontaquarto, claimed to be a witness of the case who delivered $5,000,000 to the legislators. De la Rúa was indicted alongside seven politicians from both the UCR and the PJ. In 2013, they were all cleared of charges by a unanimous resolution, and Pontaquarto was removed from the witness protection program.
De la Rúa was also indicted for the police repression which took place during the crisis; he was tried by judge
Claudio Bonadio, who in 2009 declared him innocent. The Supreme Court overturned Bonadio's ruling and ordered him to further investigate the matter. De la Rúa and Cavallo were indicted for illegally benefiting the banks that took part in the Megacanje. They were declared innocent on 6 October 2014.
He died of heart failure on 9 July 2019 at age 81. He received a state funeral in Congress before a private burial the following day.
Public image
De la Rúa started to work in politics from a very young age. He was nicknamed "Chupete" ( es, "Pacifier") because of this; the nickname was still employed when he grew up. During Carlos Menem's administration he was perceived as a serious and formal politician, in stark contrast with Menem's style. De la Rúa took advantage of this perception during the electoral campaign of 1999. When he became president and the economic crisis worsened, he was perceived as a weak and tired man who was unable to react to the crisis. He was perceived as a man without leadership skills who could not make use of his presidential authority. De la Rúa thought that the parody of him by the television comedian
Freddy Villarreal Freddy or Freddie may refer to:
Entertainment
*Freddy (comic strip), a newspaper comic strip which ran from 1955 to 1980
*Freddie (Cromartie), a character from the Japanese manga series''Cromartie High School''
*Freddie (dance), a short-lived 1960 ...
helped to establish that image.
[Reato, p. 80] He sought to change his image by appearing on the television comedy show ''
El show de Videomatch'', but his appearance on the program backfired. He confused the names of the show and that of the host
Marcelo Tinelli
Marcelo Hugo Tinelli (born 1 April 1960) is an Argentine television host, media producer and businessman, best known as the host of the TV show '' Showmatch'' broadcast on Argentina's El Trece.
One of the most famous supporters of Club San Lor ...
's wife. After De la Rúa's participation ended, Tinelli began to close the program; De la Rúa could be seen seeking an exit from the set in the background.
The aforementioned popular image of De la Rúa was further magnified when he was hospitalized for
peripheral artery disease
Peripheral artery disease (PAD) is an abnormal narrowing of arteries other than those that supply the heart or brain. When narrowing occurs in the heart, it is called coronary artery disease, and in the brain, it is called cerebrovascular dis ...
caused by
high blood cholesterol. Although it is a standard, simple medical intervention, the medic told the press De la Rúa suffered from
arteriosclerosis
Arteriosclerosis is the thickening, hardening, and loss of elasticity of the walls of Artery, arteries. This process gradually restricts the blood flow to one's organs and tissues and can lead to severe health risks brought on by atherosclerosis ...
, which is usually linked with a lack of speed and reflexes.
Honours
* : Grand Cross (or 1st Class) of the
Order of the White Double Cross
The Order of the White Double Cross ( sk, Rad Bieleho dvojkríža) is the highest state decoration of the Slovak Republic.
The Order was instituted on 1 March 1994 after Slovakia became independent on 1 January 1993. It continues the Czechoslova ...
(2001)
* : Key of Honor to the City of Lisbon on 15 November 2001
References
Bibliography
*
*
*
External links
Biography and tenure by CIDOB(in Spanish)
, -
{{DEFAULTSORT:Rua, Fernando de la
Presidents of Argentina
1937 births
2019 deaths
Members of the Argentine Senate for Buenos Aires
Members of the Argentine Chamber of Deputies elected in Buenos Aires
Mayors of Buenos Aires
Radical Civic Union politicians
Politicians from Córdoba, Argentina
National University of Córdoba alumni
20th-century Argentine politicians
21st-century Argentine politicians
Deaths from kidney failure
Heads of government who were later imprisoned