The formal launch of the candidacy of the main challenger to an incumbent president would normally receive copious coverage in the press. Not so with Roberto Lavagna, the former economy minister of President Néstor Kirchner. Lavagna's inauguration of his Concertación para Una Nación Avanzada (UNA), a coalition comprised of Radicals, dissident Peronists and independents, was all but knocked off the front pages on 11 May by events in Santa Cruz on the same day: Kirchner's native province lost its third governor in the space of a year.
If the timing of the launch was unfortunate for Lavagna, it did not stop him trying to make his mark. The main thrust of his speech was that the Kirchner administration had become "dangerously populist and authoritarian, because the only thing it wants is to remain at any cost". He dug up every scrap of evidence in his endeavour to prove it, ranging from government manipulation of inflation figures to trampling on the separation of powers and resorting to extensive patronage to hold sway over the provinces.
Ironically, given that Santa Cruz stole the spotlight from him, Lavagna was able to use events in the province to good effect. "Look at the province of Santa Cruz after 15 years of government by the Kirchners. An extractive, paternalist and authoritarian model cannot generate development," he said. Kirchner dismissed the governor, Carlos Sancho, for his mishandling of protests by teachers and replaced him with another stooge, Daniel Peralta.
Lavagna said that Kirchner would ensure that October's presidential elections were dominated by the three Ps: plata (money) patronage and, if these failed to work, pressure. By contrast, he said his coalition offered "a better alternative". However, while his reference to the three Ps might have sounded good, it was not convincing. Lavagna is, after all, flanked by two veteran caudillos of Argentine politics, former presidents Raúl Alfonsín and Eduardo
Duhalde.
Lavagna went on to present himself as the intellectual author of the economic recovery in Argentina and the only man capable of transforming the last few years of high growth into development now. He was critical of the government's clumsy intervention in the ostensibly autonomous national statistics agency, Indec, in February when it replaced the official responsible for calculating the consumer price index (CPI) with someone loyal to the trade secretary, Guillermo Moreno [WR-07-06]. He said that the truth about the economy, especially inflation, was now being "swept under Indec's carpet".
Lavagna received a boost, in this regard, on 16 May when the prosecutor in charge of administrative investigations, Manuel Garrido, requested that Moreno and his chosen head of the CPI, Beatriz Paglieri, be dismissed on the grounds that they could obstruct the investigation. He spoke of "gimmicks and devices" used to falsify information.
Garrido might also look into the government's appointment this week of Claudio Comari, an adviser of the piquetero group Movimiento Barrios de Pie, to the position of national director of living conditions. This position had been vacant since February when Clyde Trabucchi resigned over Paglieri's appointment. Indec employees have promised more protests.
Inflation fears
With the economy booming, Lavagna has little choice but to play on fears that the government is concealing the real rate of inflation which is eroding the earnings of hardworking Argentines. "Inflation is a machine that destroys the middle class and creates poverty," he said. He promised to tackle the roots of poverty and to lead a crusade against indigence, which he said the government had not done enough to alleviate.
If Indec's figures are to be believed, and it should be noted that the CPI is used to calculate the price of the basket of basic consumer goods used to define poverty, Lavagna's criticism is difficult to sustain. Indigence fell from 12.2% at the end of 2005 to 8.7% at the end of last year, while poverty as a whole fell seven points to 26.9%, the equivalent of 6.45m people. This is a dramatic improvement on the peak of 54% reached in the first half of 2003 (when indigence stood at 27.7%) and back down to a pre-crisis level.
Lavagna is not the only one to take issue with the figures, however. A study by the umbrella trade union Central de Trabajadores Argentinos (CTA) in January, using an updated methodology, found that poverty was 35% in the second half of 2006.
Lavagna's prospects
Kirchner appears to be responding to Lavagna's attack on the poverty front. He quickly announced the launch of a national productive plan which he said (using his favourite soundbite) would "lift Argentina out of hell" by the end of his mandate in December. The plan aims to sustain a more competitive exchange rate and tackle poverty in the northern provinces where, along with the suburbs of Buenos Aires, it is much higher than the national average.
Kirchner will now wait to see how Lavagna fares in the polls in the coming weeks before finally clarifying whether it will be he or his wife, Senator Cristina Fernández running for election. Fernández has been assiduously cultivating her image abroad, with visits to France, Venezuela, Mexico and the US. The lead held by both Kirchner and Fernández in the polls looks unassailable. In addition to the fact he enjoys the support of only one of the three factions within the Unión Cívica Radical (UCR), as well as a motley crew of pro-Duhalde Peronists, Lavagna also seems to have problems with his new coalition. Why else did he fail to name a running mate at its launch?
Santa Cruz
As we go to press, teachers in Santa Cruz are considering an offer made by Governor Peralta to raise their basic salaries from Arg$161 (US$52) to Arg$500 a month in an effort to bring an end to the strike. Passions had run very high in the province. On 12 May Alicia Kirchner, the social development minister and the president's sister, was set upon by more than 300 protesters when she left a restaurant in Río Gallegos, the provincial capital: she was struck, had her hair pulled and was pelted with eggs and flour before being whisked away by police.
- Population below poverty and indigence lines by region
(% of total population, 2nd half 2006)
Buenos Aires (city)
Poverty 10.1
Indigence 2.6
Buenos Aires (suburbs)
Poverty 30.2
Indigence 9.7
Central-west (Cuyo region)
Poverty 26.3
Indigence 7.2
Northeast
Poverty 45.7
Indigence 15.9
Northwest
Poverty 39.1
Indigence 12.6
Pampas region
Poverty 22.6
Indigence 7.8
Patagonia
Poverty 15.91
Indigence 5.7
Total
26.9 8.7
Source: Indec.