Yearbook 2008
Argentina. The year was largely dominated by large
peasant protests. Argentina's four farmers' unions objected
to increased export taxes for soy exporters, which is one of
Argentina's most important export crops, at the same time as
the country suffered the worst drought in 100 years and
increased production costs. According to
Countryaah reports, the new export taxes are part of
President Cristina Fernández de Kirchner's new agricultural
policy, which was voted through in the Senate with only
seven votes overweight, a surprisingly narrow margin given
that the government controlled 47 of the 72 seats there. The
decision was also preceded by a lot of political turmoil
within the government coalition Concertación Plural. Among
other things, Vice President Julio Cobos refused to step on
the government line, and Prime Minister Alberto Fernández
resigned.
The government's savings policy also affected the
provinces, which in the 2009 budget will only have a quarter
of the state budget at their disposal, the lowest proportion
in 50 years. Provincial governors in opposition around the
country expressed their support for the protesting peasants.
Major pension reform was voted in the Senate at the end
of the year with a larger margin than the Land Reform Act.
After a 12-hour marathon debate, it was decided that
Argentina's private pension funds should be nationalized
from January 1, 2009, which will give the state the
equivalent of $ 30 billion in assets and $ 5 billion in
annual premiums to administer. The government, which claimed
that the measure would save Argentine pension savers from
mismanaged pension management, has estimated that private
pension funds lost more than 17 percent of their capital in
just one year and that their privatization in 1994 is the
cause of more than 40 percent of Argentina's foreign debt.
Two of Argentina's historically most important
institutions suffered defeat during the year. The special
military jurisdiction was abolished, which means that
military personnel and civilians are now equal before the
law. The Supreme Court also made a decision that the
monopoly position long held by Argentina's largest trade
union Confederación General del Trabajo (CGT), a creation of
President Juan Perón (1946-55, 1973-74), may be broken.
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