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    SocialistStudies/tudessocialistes7(1/2)Spring/Fall2011:259281Copyright2011TheAuthor(s)

    RuthFelder isaLecturer inAdministrationandPublicPolicies in theFacultyofSocialSciencesat theUniversityofBuenos Aires (Argentina) and a PhD Candidate in Political Science at York University. Her work has focused onneoliberalrestructuringofthestateandtheroleofthestateunderneoliberalism anditscrisis inArgentina.VivianaPatronisworkhas focusedonthechangingnatureofstatelabourrelationsunderneoliberalism, theemergenceofnew forms of workers organization in Argentina during the 1990s and the post2002 transformation of labourmarketsinthiscountry.

    RuthFelder

    enseigne

    dans

    le

    programme

    dadministration

    et

    de

    politiques

    publiques

    la

    facult

    des

    sciences

    sociales

    delUniversitdeBuenosAires(Argentine).ElleestgalementcandidateaudoctoratensciencepolitiquelUniversitYorkdeToronto(Canada).Sesrecherchesportentsurlatransformationnolibraledeltatetsurlerledeltatpendantlacrisedunolibralisme enArgentine.LesrecherchesdeVivianaPatronisontaxessurlestransformationsdesrelationsentreltatetlemondedutravaillrenolibrale. Elletudielmergencedenouvellesformesdorganisationdestravailleursettravailleuses enArgentineaucoursdesannes1990,etlesmodificationsdumarchdutravail2002danscepaysaprs2002.

    SocialistStudies/tudessocialistes:TheJournaloftheSocietyforSocialistStudies/RevuedelaSocitd'tudessocialistes

    www.socialiststudies.com

    ISSN19182821

    SPECIALISSUEONORGANIZINGFORAUSTERITY:THENEOLIBERALSTATE,REGULATINGLABOURANDWORKINGCLASSRESISTANCE

    AusterityanditsAftermathNeoliberalismandLabourinArgentinaRUTHFELDERandVIVIANAPATRONI AdministrationandPublicPolicy,UniversityofBuenosAires.Argentina.SocialScience,YorkUniversity.Toronto,Ontario,Canada.

    Abstract

    ThecrisisArgentinafacedinthelate1980slegitimizedadiagnosisthatlinkedthecountryspooreconomicperformancetoaninwardlookingeconomy,excessivefiscalspending,unwarrantedstateregulations,amisguidedsetofincentivesthatfailedtoboostcompetitivenessandtheeconomicpopulismthatprivilegedpoliticalgoalsover

    economicefficiency.

    Alternatively,

    the

    solution

    was

    sought

    in

    policies

    that

    privileged

    deregulation,thefreeflowofcommoditiesandcapital,privatizationandaselectiveinterventionofthestateintheeconomy.InthisarticlewewillaccountfortheshapeofneoliberalrestructuringinArgentinabydrawingattentiontotheheavycostsstabilizationimposedonthecountryasthedecadeprogressed.Wewillemphasizethecoststheworkerswerecalledontobearandtheresponsesthatemergedfromthemtochallengeneoliberalism.

    Rsum

    LacrisequiafrapplArgentinelafindesannes1980ajustifiundiagnosticquiliaitlafaibleperformanceconomiqueplusieursfacteurs:lecaractreendognedesonconomie,lesdpensesexcessivesdeltat,lesrglementationsmalavises,les

    stimulants

    mal

    cibls

    qui

    ne

    sont

    pas

    parvenus

    soutenir

    la

    comptitivit

    et

    le

    populismeconomiquequiprivilgiaitlesfinalitspolitiquespluttquelefficacitconomique.Enrponsecediagnostic,lessolutionsprivilgiesvisaientladrglementation,lalibrecirculationdesmarchandisesetducapital,lesprivatisationsetlinterventioncibledeltatdanslconomie.CetarticleprsentelaconfigurationdesrformesnolibralesenArgentineeninsistantsurlescotslevsquelastabilisationaentransaucoursdeladcennie.Noussoulignonslimportancedu

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    fardeauimposauxtravailleursettravailleusesainsiqueleursractionspourcontrerlenolibralisme.

    Keywords

    Argentina;labourreform;labourorganizations;neoliberalrestructuring;postneoliberalism

    Motscls

    Argentine;organisationdestravailleurs;postnolibralisme;rformenolibrale;rformedutravail

    Duringthe1990s,Argentinaunderwentaprocessofstructuraladjustmentwithuniquecharacteristicsintermsofbothitsintensityanditsscope.

    Reformsgainedmomentumaftertheimplementationofastabilizationplanthatrapidlytemperedratesofinflationthatwereexorbitantevenforacountrythathadbeenexperiencingconstantpricespikesofnotoriousintensitysinceatleastthe1960s.Thesereformsencompassedtheessentialingredientsofwhatwehavecometorefertoasneoliberalism.Inparticular,throughoutthedecade,therewasanunremittingtendencytopositionfiscalausterity,thereformofstateinstitutionsandthefurtherflexibilizationoflabourmarketsasessentialvariablesforaddressingtheobstaclestoeconomicgrowththatincreasinglytarnishedtheoriginalsuccessofstabilizationinreactivatingaseriouslytroubledeconomy.Specifically,itbecameapriorityasithadrepeatedlyinthepastto

    debilitatealabourmovementwiththeorganizationalpowertojeopardizetherestructuringplansofthegovernment.Anotherprioritywas,mostcertainly,toproducethereductioninlabourcostsrequiredtomaketheentirepackageofreformsviable. Inthisarticle,wewillaccountfortheshapethatneoliberalrestructuringacquiredinArgentinabydrawingattentiontothesteepcoststhatstabilityentailedforthecountryasthedecadeprogressed.Wewillplaceparticularemphasisonthecoststhatworkerswerecalledupontobear,aswellastheresponsesthatdespitethedifficultiesnormallyentailedinorganizinganincreasinglyheterogeneousworkingclassemergedintheirchallengetoneoliberalism.

    HyperinflationandNeoliberalReformsThe1980swasthedecadeofthetransitiontodemocracyandthefailedattempttoreversetheeffectsoftheorthodoxeconomicpoliciesofthepreviousdictatorship.ThegovernmentofRalAlfonsn(19831989)

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    centreditseconomicpoliciesonresuminggrowthbyimplementingtraditionalKeynesianpolicies,stabilizingtheeconomyandovercomingthe

    debtcrisisinasustainablemanner.However,thegovernmentfailedonmostcounts,andby1988,itsdecisiontopostponedebtservicingcreatedtheconditionsforaspeculativerunagainsttheArgentiniancurrencyledbycreditorbanksandahyperinflationaryepisodein1989(Azpiazu,Basualdo,andNotcheff1998,18).Thisepisodehasbeendefinedasaneconomiccoupdtat,asitgeneratedanextremeexacerbationofdistributiveconflictswherethebigwinnerswerethemostconcentratedcapitalistfractions. ThescopeofthecrisisatthattimewasalsoacrucialelementincementingtheconsensusabouttheexhaustionoftheimportsubstitutionstrategyandKeynesianmacroeconomicpoliciesand,especially,aboutthe

    needtoreformthestate.Asithappenedelsewhere,thenaturalsolutionwastodownsizethestate,toopenthebordersfortradeandfinance,toeliminateunnecessaryregulationsthatpurportedlydistortedtheoperationofmarketsandtostrengthentheruleoflawandtheinstitutionalarrangementsinordertocreateafavourableclimateforinvestments.Theneedtoleaveextremeinstabilitybehindalsolegitimizedthecostsandsacrificesassociatedwiththesereformsand,tosomeextent,explaintheswiftpaceandradicalnatureofreformsinthecountry. Stateindebtednessoneoftheproblemsthatbothtriggeredandjustifiedreformsparadoxicallybecameacharacteristicfeatureoftheperiod,asreformsgraduallycreatedtheconditionsandtheincreasing

    needforthestatetoborrowininternationalfinancialmarkets.Inturn,mountingsovereigndebtcreatedconditionsforspecificformsofsubordinatingthedomesticeconomy,publicpolicyandtheinstitutionalstructureofthestatetothevagariesofcapitalflightandtothemonitoringandconditionalityofcreditratingagenciesandtheinternationalfinancialinstitutions(IFIs).Thissubordinationhasproducedchangesintheworkingofthestate,thedistributionofwealthandthebalancesofpowerbetweencapitalandlabourthathavelargelytranscendedthejunctureinwhichthesepolicieswereimplemented. Whenthenegativeeffectsofthereformsthemselvesbecameevident,thethreatofareturnofhyperinflationjustifiedfurtherstructural

    reforms,fiscaladjustment,andthereductionofthesocalledArgentiniancost(mainly,thecostofthelabourforce).Moreover,thepoorperformanceoftheArgentinianeconomyduringmostofthe1990s,itsvulnerabilitytointernationalfinancialcrisesandthecriticallossofconfidenceonthepartofportfolioinvestorsduringthesecondhalfofthe

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    decadewereattributedtothepersistenceofilliberalenclavesandthedecelerationofreforms.Thus,theneedtoprotectwhathadbeenachieved

    andmoveforwardwiththeeliminationofstillexistingobstaclestorestructuringtookprecedenceovertheincreasingcoststhatreformswerepalpablyinflictingonworkersandothersocialgroups.Recession,fallingtaxcollectionandhighercountryriskpremiumsonsovereignborrowingwerestrongincentivesfordeepeningfiscalausterity,whilegrowingunemploymentandthefallingcompetitivenessofdomesticproductionjustifieddecliningwagesandlabourflexibilization.Astheexplosiveeconomic,politicalandsocialcrisisof2001madepainfullyevident,reformsfailedtodeliversustainablegrowthwithincreasedsocialwelfareaspromisedbytheirdefenders.Butthereformiststrategywaseffectiveincreatingnumerousspacesforaccumulation,alteringthepowerofsocial

    actorstoplacetheirdemandsonthestateandtighteningthelinksbetweenthedomesticeconomyandglobalfinance.TheVirtuousStageofNeoliberalReforms

    InJuly1989,amidsta200percentmonthlyrateofinflation,PresidentCarlosMenem(19891999)cametopowerannouncingadrasticfiscaladjustmentandanambitiousreformofthestateandtheeconomyheraldedastheonlyalternativeinordertoleaveinstabilityandstagnationdefinitivelybehind,solvethedebtcrisis,attractinvestmentsand,ultimately,fostergrowthandwelfare.Thisstatereformconsistedoftheprivatizationofpublicassets,amajorbureaucraticdownsizingandthe

    liberalizationoftheeconomy.Reformscreatedfavourableconditionsforrenegotiatingthedefaultedsovereigndebtandattractedforeigndirectandportfolioinvestmentsthatwouldbecentralforthesustainabilityofthemacroeconomicstabilizationprogramimposedin1991. InApril1991,economicauthoritiesannouncedtheimplementationofacurrencypeg.ThesocalledConvertibilityProgramconsistedofalegislatedfixedexchangerateof10,000australesperUSdollar.1FullbackinginUSdollars,gold,ordollarnominatedbondswasrequiredforcirculatingaustrales,andtheUSdollarwasestablishedaslegaltender.Priceindexationapracticethathadbecomehabitualineconomictransactionswasprohibited,andwageincreasesweremadeconditional

    uponproductivitygains.Thisway,thecreationofmoneybecamesubordinatedtocapitalinflowsor,whatisthesame,moneywas

    1In1992,thepesoreplacedtheaustral.Thepesostoodat1USdollarthroughoutthedecadeofConvertibility.

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    transformedintoanexogenousvariablebeyondthecontrolofdomesticmonetaryauthorities(Schvarzer1998).Theunderlyingassumptionbehind

    themeasurewasthatmonetaryandfiscalindisciplinewereamaincauseofinstability.Thus,bylimitingthepossibilityofincreasingthemonetarysupply,thestatewouldbeforcedtoeliminateitsdeficit.Itwouldalsobeforcedtocarryoutpoliciesthatstrengthenedinvestorconfidenceinordertoregainaccesstovoluntarycredit.TheConvertibilityPlanwasaccompaniedbytariffreduction,thederegulationofmanyeconomicactivities,theeliminationofrestrictionsonforeigninvestments,theexpansionofthenumberofstateassetstobeprivatizedandthereformoftheCharteroftheCentralBank.2SeveralbillsweresenttoCongresstomodifythetaxstructureandtaxmanagement,includingtaxincreasesandstrategiestoimprovetaxcollectionandfightevasion.Convertibility

    succeededinstabilizingtheeconomyandcreatingconditionsforaperiodofgrowth.3Thisoriginalsuccesswaspivotalinstrengtheningthelegitimacyofneoliberalreformsandcreatingtheconditionsforatriumphalismthatovershadowedanyconsiderationofeithertheeffectsonworkersorthenumberofenduringmacroeconomic,fiscalandexternalimbalances. Interestingly,thecelebrationoftheroleofreformsindefinitivelysolvingthecrisiscoexistedwithargumentsaboutthepersistenceofthreatstostability.Aneverfragilestabilizationjustifiedfurtherfiscaladjustmentandmadeitssocialcostsinescapable.Hence,thepoorperformanceofthelabourmarketandtheneedtoraisetheinternational

    competitivenessofthedomesticeconomyjustifiedaseriesofchangesinlabourregulationswhosepurposewastoflexibilizelabourmarketsandreducelabourcosts. In1993,ArgentinajoinedtheBradyPlantorestructurethepublicdebt.Throughit,theprincipalofthedebtandpartoftheoutstandinginterestsweresecuritizedwithzerocouponbondsfromtheUSTreasuryacquiredwithfundslentbytheIFIs(Fernndezetal.2007,15).TheBrady

    2ThereformeliminatedtheCentralBanksfunctionoflenderoflastresortandfurtherrestricteditsroleasregulatorofmonetarysupply.TheserestrictionswerelaterflexibilizedtogivetheCentralBankinstrumentstoassistprivatebankswiththepurposeofcontrollingthe

    disruptiveeffects

    of

    the

    Tequila

    crisis

    (see

    below)

    on

    the

    domestic

    financial

    system.

    3Inflationfellfromamonthly27percentinFebruary1991to11percentinMarchand5.5percentinApril.Withsomeexceptions,theCPIcontinuedtofallduringtherestofthedecade(INDEC,n.d.b).Afterfalling2.5percentin1990,theGDPgrew9.1percentin1991,7.9percentin1992and8.2percentin1993.Growthdeceleratedinthefollowingyears(INDEC,n.d.c).

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    agreementdidnotprovidesignificantdebtreliefbuthadpositiveeffectsonbanksportfolios,astheywereabletotransformdefaultedcredits,

    includingpastinterest,intonewdebtbonds(Damilletal.2005,42).ItalsosignalledArgentinascomebacktointernationalcapitalmarketsandwasthestartingpointofanewcycleofstateindebtednessthattookthepublicdebttounprecedentedlevels(Gambina2003,58).Inthefollowingyears,borrowingwouldbeamainelementforfinancingtheactivityofthestateandoffsettingthegrowingcurrentaccountdeficit.Asthedevaluationofthepesowasprecludedbylaw,thegovernmentseffortstoboostthecompetitivenessofdomesticproductionandtosoothethedemandsofdomesticindustrialcorporationsandexportersnegativelyaffectedbyexternalcompetitionwereconcentratedonreducingtaxesandlabourcosts.Thiswasinadditiontodismissalsassociatedwiththeprocessof

    privatizationofpublicsectorcompanies,successiveroundsoffiscaladjustmentandafreezeonwagesthatreducedworkersincomesandthedisciplinaryeffectsofgrowingunemployment.Theoutcomewasamomentousincreaseinunemploymentaswellassocialturmoil. Insummary,theperiodofstabilizationandexpansionwasnotcharacterizedbythecreationofemployment.Neitherwasitaperiodofsustainedimprovementsinworkersincomes(Baeretal.2002,6769;Frenkel2002,4546).However,povertydropped,andwageearnersandothergroupsespeciallyvulnerabletotheeffectsofinflationwerebenefitedbystabilityandbytheexpansionofcredit.Thelatterimprovedthepurchasingpowerofsomegroupsofformalworkersandmiddleincome

    sectors,thusreinforcingthelegitimacyoftheprogramandincreasingtheobstaclestoanychangesintheexchangeregimethatwouldeventuallyaffectdebtorsthathadborrowedindollars.Convertibilityputanendtolongtermformsofdistributiveconflictthathadbeenattherootofhighinflation.Ultimately,thecommitmenttomaintainingthefixedexchangerateinacontextoftradeandfinancialopennesspreventedthestatefromregulatingtheeffectsofinternationalfinancialturmoilandimprovingtheinternationalcompetitivenessofdomesticproduction.FromBoomtoCrisis

    Untilearly1994,capitalinflowsfavouredtheaccumulationofforeign

    reserves,theexpansionofcredit,economicgrowthandconsumption.ThesituationtookaturnfortheworseinFebruary1994,whentheriseofinternationalinterestratesreducedcapitalinflowstoemergingmarkets.ThegradualovervaluationofthedomesticcurrencyandthegrowingtradedeficitthatresultedfromthestabilizationprogrammadeArgentina

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    extremelyvulnerabletothechangeintheinternationalfinancialclimate(Damilletal.2002,10).Thedomesticeconomywasseverelyhitbythe

    Tequilacrisis,whichreversedcapitalflowsandforcedadrasticreductioninmoneysupplytooffsetthelossesoftheCentralBanksreserves.Creditfell,andtheeconomyenteredintoarecessiveperiodinwhichunemploymentandpovertygrew(Baeretal.2002,75).AbailoutofthedomesticbankingsystemorganizedbytheCentralBank,alongwithIMFassistanceandadrasticfiscaladjustment,succeededinstoppingmassivecapitaloutflowsandpreventingthebreakdownofthecurrencypeg.Thecrisisalsotriggeredanewroundofreforms,inparticular,abankingrestructuringaimedtoeliminateweakerlocalbanksandpromotetheconcentrationandtransnationalizationofthesystem,thereformofprovincialstatestostreamlineprovincialbudgetsandthetransformation

    ofpubliceducationandhealthcaresystemswiththeobjectivesofrationalizingspendingandmodernizingthemwithmanagerialtechnocraticcriteria(Felder2009,62).4 AftertheTequilacrisis,thestateregainedaccesstocredit,creatingtheconditionsforaneconomicrecovery.Similarly,stateborrowinghelpedtoovercometheeffectsoftheSouthAsiancrisisin1997.ButtheimpactoftheRussiancrisiswasextremelysevereand,inthecontextofthecurrencypeg,irreversible.Thecountryriskpremiumrosetounprecedentedlevels,capitalinflowsfelldramatically,andtheeconomy(especiallythebankingsystem)becameincreasinglydollarized(Damilletal.2002,1011).Theriseofthecountryriskpremiumincreasedthecostofborrowingand,with

    it,fiscalhardship.Asevidenceofitscommitmenttoservicingitsinternationalobligationsandregaininginvestorconfidence,thestatedeepeneditsdrivetoreducepublicspendingandimplementadditionalstructuralreforms. However,fiscaldisciplinefailedtoreverserecessionortoregainfiscalbalance.TheBraziliancrisisanddevaluationof1999exacerbatedboththeexistingrecessionandfiscalhardship,asitrestrictedaccesstothemainmarketforArgentinianexportsandaggravatedtheovervaluationofthedomesticcurrency(Baeretal.2002,7475).Inthiscontextofdeflation,growingunemploymentandpoverty,theeffortsofthegovernmentwereaimedatdemonstratingitswilltomeetthestatesfinancialcommitments

    4Ingeneralterms,allthesereformsfailedtoattaintheirstatedgoals.Amoretransnationalizedbankingsystemfellshorttopreventthefinancialcrisisof2001,provinceswereincreasinglyunabletodealwithgrowingsocialdemandsandfallingresourcesandtheperformanceofthepublicschoolsandhospitalsfelltounprecedentedlevels.

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    bymeansoffurtherfiscaladjustment,institutionalreformsandrepressionandcontrolofsocialprotestscombinedwithselectiveclientelistichand

    outs.Butthecombinationofpooreconomicperformance,generalizedsocialdiscontentandwidespreadgovernmentcorruptionledtotheelectoraldefeatofthepartyinpowerandthecomingtopowerofFernandodelaRa(19992001),thecandidateoftheAllianceforWork,EducationandJustice(AlianzaporelTrabajo,laEducacinylaJusticia).HyperdeflationandtheEndofConvertibilityWhendelaRatookpower,recessionseemedhardtoreverse;debtservicingdemandedagrowingshareoffallingstaterevenuesandthecountryriskpremiumwasgrowinggeometrically.Consequently,doubtsabouttheabilityofthecountrytomeetitsfinancialcommitments

    mushroomed.Thegovernmentrespondedbyannouncinganewfiscaladjustmentplanthatincludedacutinpublicemployeesnominalwages,theeliminationandmergingofstateagencies,ariseintheVAT(ValueAddedTax),thepostponementofpublicworksandtheeliminationofseveralsocialassistanceprograms,amongothersavings.Theadjustmentwasjustifiedonthegroundsthatinternationaltrustworthinesswouldhelptoreducethecountryriskpremiumandattractcapitalinflows,leadingtoeconomicrecoveryand,withit,improvedtaxcollection.Inaddition,thegovernmentattemptedtocounteracttheeffectsofthecurrencyovervaluationonthecompetitivenessofdomesticproductionbydeepeninglabourmarketflexibilityandreducingpayrolltaxes.Predictably,

    thedraconianfiscaladjustmentaggravatedthealreadyseriousrecessionandaffectedtaxcollection.Thefallinstaterevenuesfurtherincreasedthecountryriskpremium,forcingthegovernmenttopayextraordinarilyhighinterestratestorolloverthepublicdebtandintensifyingdoubtsabouttheabilityofthestatetoserviceit(Damilletal.2002,12).Facingacrisisofconfidence,inDecember2000thegovernmentobtainedapreventiveloan,administratedbytheIMFandcontributedtobytheFunditself,theWorldBank,theInterAmericanDevelopmentBankandtheSpanishstate,aswellassomeinternationalprivatebanks.Eventhoughtheloanwaspresentedasaninstrumentforboostingeconomicactivity,inamannercongruentwiththeIMFspolicypriorities,theintentionwasactuallyto

    protectcreditorsagainstaprobabledefault.Thequidproquowasthecommitmenttointroducingadditionalbudgetaryreductionsandmodifyingtheretirementandhealthcaresystemsinordertoreducefuturestatecontributionsandexpandtheroomforprivatecapitalaccumulationwithinthem.

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    Astherecessioncontinued,taxcollectiondidnotimprove,andthegovernmentfailedtomeetthecommitmentsincludedinitsagreement

    withtheIMF,whichledtheinstitutiontocancelthereleaseoffunds.InMarch2001,aplantoimposeadrasticfiscalcutthatwouldespeciallyaffectpubliceducationwasblockedbymassivesocialprotests.Soonafter,Congresspassedabillthatgrantedtheeconomyministerextraordinarypowerstoreducethefiscaldeficit,butwhich,nonetheless,failedtorestorelendersconfidence.Instead,therecessiveeffectsofstateausterityanditseffectsontaxcollectionenhanceddoubtsabouttheabilityofthecountrytomeetitsfinancialcommitments,thusincreasingthecountryriskpremium. Inordertoalleviatetheburdenofdebtservicing,inMarch2001thegovernmentimplementedanexchangeofexistingsovereigndebtbondsfornewbondswithlongermaturityandhigherinterestrates.Thebond

    exchangeandthenewfiscaladjustmentproposalhelpedtounlockIMFlending.However,theydidnothaveanysignificanteffectonthecountryriskpremium,nordidtheystopcapitalflight. Asthecrisisworsened,thegovernmentreneweditscommitmenttomaintainingConvertibilityandprioritizingthefinancialcommitmentsofthestateoveranyothergoal.InJuly2001,thegovernmentannouncedazerodeficitpolicy,makingstatespendingotherthandebtservicingconditionalupontheavailabilityoffiscalresources.Nominalpublicsectorwagesandretirementpensionswereimmediatelyreducedby13percent,andplansweremadeforfurtherreductionsinthefuture.Thisnewfiscaladjustmentalsofailedtosolvethefinancialhardshipofthestate,butit

    fuelledsocialangerandresistancetoausterity,destroyingthealreadythinlegitimacyofthegovernment(Felder2007). ThefailureofanewattempttorestructurethesovereigndebtinOctober2001acceleratedcapitalflight.Afterinternationalinstitutionalinvestorsandbankshadleftthecountry,theIMFlostitsinterestinprotectingtheArgentinianeconomy,blockingitsdisbursementsandpushingforadefault,arestructuringofthepublicdebt,adevaluationandadeepeningoffiscaladjustmentandstructuralreforms.However,prominentmembersoftheArgentiniangovernmentweremoreinclinedtodollarizetheeconomy(asawaytoeliminatingexchangerisk).Asthedollarizationwasunfeasible,adesperateattempttomaintainthepegwas

    madeinDecember2001.Respondingtomassivewithdrawalsofbanksavings,thegovernmentimposedrestrictionspreventingbankcustomersfromwithdrawingtheirsavings,thesocalledcorralito.ThecorralitotransformedtherecessionintoaparalysisandsocialangerintoarevoltthatforceddelaRasresignation.Duringthefollowingweeks,thecountry

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    defaultedonpartofitssovereigndebtanddevaluedthecurrency.Thedevaluationrequiredarevisionofthelegalandinstitutionalframework

    thathadruledtheeconomyduringthe1990sandtriggeredfiercestrugglesaroundthedistributionofthecostsofthecrisisandtheorientationoftherecovery. Afterthedevaluation,inflationreemergedinadeeplyrecessivecontext.AttemptstofollowtheIMFsrecommendationstodeepenfiscaldisciplineandfurtherliberalizetheeconomymetmassivesocialresistanceandaggravatedtheexistingeconomicinstabilityandrecession.Theeconomicsituationstartedtochangeinmid2002,whendisregardingIMFrequirementstheeconomicauthoritiesmadethedecisiontointerveneintheexchangemarketandtoregulatecapitalmovementsinordertocontrolthedevaluationofthecurrency.Thesubsequent

    stabilizationandamorecompetitiveexchangeratecreatedtheconditionsforaneconomicrecovery. Aprocessofpoliticalnormalizationthatincludedacallforpresidentialelectionsandagradualdeclineofsocialmobilizationaccompaniedtheeconomicrecovery.InApril2003,NstorKirchner(20032007),thengovernorofaprovinceinsouthernArgentina,wontheelection.Giventherecognitionofthepoliticalimpossibilityofsolvingthecrisiswithtraditionalneoliberalinstruments,Kirchnerspolicieshavebeeninterpretedbymanyanalystsasasignaloftheendofneoliberalism.Nonetheless,thedepthofthetransformationthatneoliberalismbroughttothecountryhasprovendifficulttochange.

    WorkingunderNeoliberalism:ReshapingtheMeaningofWork

    Aswehavesuggestedabove,theprogramofstructuralreformsinArgentinaundertheaegisofafixedexchangerateregimecreatedaveryparticularsetofeconomiccircumstances,withdeleteriousconsequencesforworkers.Onekeyvariableinthedeterminationofthisproblemwastheperformanceoftheindustrialsector.Immediatelyafterthestabilization,domesticindustryunderwentaprocessofexpansionandrationalization.Investmentsinnewtechnologiescombinedwiththereorganizationoflabourprocessesandchangesinlabourregulationsresultedinacceleratedgrowth,withhigherlabourproductivityandareductioninthenumberof

    jobsperunit(Frenkel2002,46).Gradually,theappreciationofthedomesticcurrencyincombinationwithtradeliberalizationforcedalargenumberoffirmsoutofthemarket.Thosewhosurvivedthecompetitionfromartificiallylowpricedimportsdidsobyreplacinganincreasinglyexpensivelabourforcewithcapitalequipmentthatovervaluationhad

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    madecheapertoacquire(ChitarroniandCimillo2007,7).Bothtrendstheeliminationoflesscompetitivefirmsandgrowinginvestmentin

    laboursavingtechnologyresultedinrisinglevelsofunemployment.Aswehavementionedabove,theprivatizationofstatecompaniesbecameanothersourceoflabourdisplacement.Thenegativeperformanceofemploymentwasalsorelatedtothechangingstructureofexports.Theproductionoftheseexportswasintensiveintheuseofprimaryresourcesandcapitalandthuscouldnotprovideadynamicalternativefortheabsorptionofworkersdisplacedfromothereconomicactivitiesundergoingmajorrestructuringduringthe1990s(Nochteff1998,32). Thenatureofeconomicgrowthanddeclineduringthe1990swas,then,acriticalvariableintheradicaltransformationoflabourmarketsinArgentina.Thefollowingstatisticsprovideagoodindicationofthe

    devastatingresultsofneoliberalism.Unemploymentincreasedfrom6percentin1991to18.3percentin2001,withunderemploymentaffectinganadditional16.3percentofworkers.In2000,thenumberofprecariousjobsthatis,workthatdoesnotprovidehealthcare,socialsecurity,paidvacationsorotherformsofprotectionincreasedto40percent,from26.7percentin1990.ThesefiguresonlyworsenedafterthemeltdowninDecember2001andearly2002.Thus,byMay2002,thepercentageofunemploymenthadrisento21.5percentandunderemploymentto18.6percent.FiguresforpovertyandindigencelevelsreachedtheiralltimehistoricalhighinmodernArgentinainMay2002,when53percentofthepopulationwaslivingbelowthepovertyline,and24.8percentwasliving

    belowtheindigenceline(INDECn.d.a).Structuralchangesandtheirimpactonlabourmarketswerealsoreflectedinthedistributionofincome:whilein1974thepoorestdecileofthepopulationreceived4percentofthenationalincome,by2003thefigurewasonly1.9percent.Incontrast,therichest10percentofthepopulationsawitsshareofnationalincomesoarfrom21.2to31.7percentoverthesameperiod.Moreover,itisimportanttonotethatwhilepovertylevelswerecloselyrelatedtothegrowthofunemploymentandprecariousness,itisalsoevidentthatworkitselfwasnotsufficienttoprovideforthesatisfactionofbasicneeds. Worseningsocialconditionsandtheincreasingpressureofsocialmobilizationpromptedthegovernmenttofindmechanismstoaddressthe

    demandsofthesectorsmostaffectedbytheemploymentcrisis.Asageneralpattern,though,programsimplementedtoprovidesomereliefdidnotbecomeeffectivemeansforshelteringpeoplefromthedevastatingconsequencesofneoliberalism.FollowingtheprescriptionsoftheWorldBankandtheIMF,theseprogramstargetedaveryspecificandsmall

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    portionofthepopulation.Thus,forexample,themostimportantemploymentprogramduringthisperiod,PlanTrabajar,onlyreached

    150,000beneficiaries,althoughunemploymentaffectedapproximately5millionpeopleatthetime(Ogando2004).Itwasonlyafterthemomentoussocialupheavalandpoliticalcrisisof20012002thatthenewProgramforUnemployedHeadsofFamily(ProgramaJefesyJefasdeHogaresDesocupados),withamuchbroaderscope,wasimplemented.Thisprogramreached2millionbeneficiariesacrossthecountrybytheendof2002,butitdidnotovercomethelimitationsofprevioussocialprogramswithrespecttotheextremelylowlevelofbenefitsitprovided.Moreover,itdidnotprovidehealthcareorsocialsecuritycoverageeither.Inasimilarvein,intheearly1990sthegovernmentinstitutedanunemploymentinsuranceprogram.However,by1999only7percentofunemployedworkers

    qualifiedtoreceivetheverylowbenefitstheprogramoffered(CELS2003,16).Inshort,therewasnoescapefromthepovertythatneoliberalismhadimposedonaverylargesegmentofthepopulation.Undertheseconditions,workersdidnothavemanyoptionsotherthanacceptingtheprecariousconditionsemployerswereincreasinglyabletoimpose.Eitherbecausethegovernmentsucceededinpassinglabourlegislationthatregularizedformsofprecariousemployment,orbecauseofthehighlevelsofunemploymentandunderemployment,workerswereforcedtoacceptjobsthatdidnotofferanykindofprotectionunderthelaworprovideaccesstotheexistingsocialsecuritysystem.Growinginformality,precariousness,unemploymentandthewideningincomedifferentialbetweenworkers

    experiencingthesekindsofirregularworkandthoseabletoretainformalemploymentwereallkeyindeterminingthegrowingheterogeneityoftheworkingclass.NothingWouldBetheSame:WorkersandLabourReformDuringthe1990s

    ThepoliciesputforthbythePeronistadministrationofCarlosMenemcametothesurpriseofmanywhohadunderstoodhisvictoryasakeystepinareturntothepartysmoretraditionalconcernwithredistributiveissues.Thenewscenariointhe1990spresentedthepowerful,mainlyPeronistConfederationofLabour(CGT,ConfederacinGeneraldelTrabajo)withpoliticaldemandsandchallengestowhichitwasonlypartially

    equippedtorespond.First,thekeyroleoftheCGTwithinPeronismanditsparty(theJusticialistParty),ineffectsincetheconsolidationofPeronismasthecentralpoliticalforceinArgentinainthemid1940s,hadbeenindeclinesincethe1980s.Menemsfirstmeasuresingovernment,andinparticularhislabourreforminitiatives,wereindeedclearmanifestationsof

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    organizedlaboursdeterioratingpositionwithintheparty(Gutierrez2001).

    Nonetheless,evenunderlessthanoptimalconditions,theCGTwasstillaforcewithconsiderableresourcesatitsdisposal.Specifically,throughitsrepresentativesandalliesinCongress,itwasabletoblocklegislationormodifybillsunacceptabletolabourleadersintheiroriginalform.Moreover,itwastheabilitytoreachconsensuswiththeCGTaffiliatedmembersofCongressthatmadethesanctioningofkeylabourreformbillspossible(EtchemendyandPalermo1998,376).ItswillingnesstonegotiatewithagovernmentitconsidereditsallydidnotpreventtheCGTfromusingmorepressurewhenitdeemeditnecessary.Thus,after1996theCGTcalledanumberofgeneralstrikes,particularlywhenitbecameconcernedthatthereformswerethreateningareasitconsidered

    fundamentaltoitsinstitutionalintegrity,orwhenitwantedtosecureitsplaceinthenegotiationoflabourreforms.Ingeneral,though,itsinterventionwasineffectualinpreventingsuccessivereformsthatlegalizedvariousformsofprecariousemploymentandthatunderminedanumberofkeylabourrights.Thesereformsaffectedlabourcostsinveryconcreteanddirectwaysandthusbecameincreasinglyimportantasthenationalcurrencybecameovervaluedduringthe1990sandpressuretoreduceproductioncostsmounted.Particularlysignificantinthisareawerereformsaimedatreducingthecontractualobligationsofemployers,therebyfacilitatingboththecreationofamoreflexiblelabourforcebyreducingthecostsofhiringandfiringworkersaswellastheuseof

    temporaryandparttimeworkers.Theseconditionsalsocurtailedtherighttostrikeandmadewageincreasessubjecttosectoralimprovementsinproductivity.5 Menemalsointroducedlegislationtochangetheregulationofcollectiveagreementsinordertomakeplantlevelnegotiationspossible.Whilethechangewaseventuallyrevertedwithnewlegislationintroducedin1998,inpractice,unionsagreedtonegotiateattheplantlevel,inmanycasesacceptingreductionsinwagesorthedeteriorationofgeneralworkingconditions(Salviaetal.2000,62).Thegovernmentalsoattemptedtounderminethemonopolythatunionshadexercisedontheprovisionofhealthandwelfareservicesbyallowingprivatecompetitioninthearea.

    5TheprohibitionongrantingwageincreasesnotrelatedtoproductivitygainswasapivotalaspectofthelegalframeworkofConvertibility,aimedateliminatingpriceindexation(Bissio,Battistini,andMontesCat1999).Theresultwasavirtualabsenceofwagebargainingduringthedecade.

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    However,thiswaspreciselywheretheCGTdrewthelineonwhatitwaswillingtoaccept,andthusreformsintheseareasdidnotprosperduring

    theMenemadministration.RespondingtoNeoliberalism

    ThesupporttheCGTextendedtomanyofMenemsreformsandtheineffectiveoppositionitpresentedtochangesthatunderminedseveraloftherightsthatworkersinArgentinahadaccumulatedover50yearsofstruggleputtheCGTinaparticularlyweakposition.TheCGTalsofacedanewscenariointermsofitsunityanditseffectiveholdonitsmonopolyonrepresentationinthelabourmovement.TheCGThadfacedproblemsofinternaldivisionseveraltimesbeforeinitshistory,aswellaschallengesfromstrongoppositionalmovementswithinitsrankandfile.However,in

    the1990s,theleadershipoftheCGTwasforcedtoaddressthesechallengesunderconditionsthatincreaseditsvulnerability:itsdiminishedpoliticalcloutwithinthepartyandtheincreasingheterogeneityoftheworkingclass.Undertheweightofthecircumstances,theCGTsplitintwofrom1989to1991.Theleadersofthesectorsthatremainedclosertothegovernmentbenefittedinsignificantwaysfromthevariousperksassociatedwiththeirrelationship. AnimportantfactionoftheCGTrepresentingunionsinsectorsthathadbeenlessaffectedbytheeconomictransformationduringthe1990s(inparticular,servicesandtransportation)presentedamuchmoreopenoppositiontoreforms.Theleaderofthisfaction,HugoMoyano,becamea

    vocalcriticofthereformsthatMenemintroduced.MoyanowouldlatersucceedinbecomingtheleaderofthereunifiedCGTin2004,whichonceagainbecameakeyinterlocutorofthestateundertheKirchneradministration. By1992,agrouporiginallycomposedmostlyofpublicsectorunionssplitfromtheCGTandconstituteditselfasanindependentorganizationthatlaterbecametheCentralofArgentineWorkers(CTA,CentraldeTrabajadoresdelaArgentina).ThisorganizationsstrategicefforttoorganizetheincreasinglyheterogeneousworkingclassrepresentedanewandvitalexperienceforthelabourmovementinArgentina.TheCTAplayedafundamentalroleinthisrespect,andwhileits

    trajectoryafterthe2001crisishasbeenmarkedbytensionsandinternalconflicts,itsdecisiveparticipationinthe1990ssetaveryvaluableexampleofmoreprogressiveandinnovativeformsofunionism.AnimportantfactorintheCTAssuccesswastheincorporationofasectorofunemployedworkers,theFederationofLand,HousingandHabitat(FTV,Federacinde

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    Tierra,ViviendayHbitat),undertheleadershipofLuisDElia.TheFTVwasbutoneofthemanyorganizationsoftheunemployedthatemerged

    duringthe1990sasalternativeformsoforganizingthegrowingmassofworkerswhofacedunemploymentandwhohadbeenmostnegativelyaffectedbychangesinthelabourmarket.Thepiqueteromovement,asitbecameknown,wasandremainsaveryheterogeneousmovement,representingorganizationswithdiversepoliticalbackgroundsandorganizationalstrategies(SvampaandPereyra2003). Whilethesumoftheconditionsoutlinedabovegrowinginstabilityinlabourmarkets,increasingpoverty,weaknessinworkersorganizationspointedtoajuncturehardlyconducivetotheeffectivedefenceoflabourrights,infactworkerspresentedamajorchallengetothepoliciesoftheMenemadministration.Interestingly,resistanceto

    neoliberalismwasarticulatedthroughtheemergenceofnewactors,inparticulartheCTAandthepiqueteromovement.Itis,then,towardtheseorganizationsthatwewouldliketofocusourattention.WorkersStrugglesandtheCollapseofConvertibility

    Initsoriginalform,theCTAbroughttogetherlargeunionswithinthepublicsector,inparticulartheAssociationofPublicWorkers(ATE,AsociacindeTrabajadoresdelEstado)andtheCentralofEducationWorkers(CTERA,ConfederacindeTrabajadoresdelaEducacindelaRepblicaArgentina).Duringthe1990s,theCTAgrewtoencompassotherunionsindifferentsectorsoftheeconomy,butitsmostimportantareaof

    expansionwasinsectorsoutsidethetraditionalsphereofunionaffiliation,inparticulartheunemployedandalsotheprecariouslyemployed.Partofitsgrowingstrengthduringthisperiodwasrelatedtoitspracticeofindividualformsofaffiliation,asopposedtothetraditionalmodelbasedontherepresentationofconstitutedunions.TheCTAwaseffectiveinattractingaverywiderangeofworkers,includingtheunemployed,underemployed,selfemployed,retirees,workersinworkerrunenterprises,andthoseemployedintheformalsector.Almostparadoxically,theinfluencetheCTAachieveduntil2001wasunderminedbythepoliticaleventsofthepostConvertibilityperiodandtheunfoldingofanewphaseinworkersstrugglesunderconditionsofrapidand

    sustainedeconomicgrowth. Nonetheless,duringthe1990s,organizationsliketheCTAwereinstrumentalinfacilitatingthelinesofcommunicationamongvarioussectorswithintheworkingclass.TheCTArepresented,inthisrespect,amajorantineoliberalefforttobringtogetherarangeofdemandsfrom

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    sectorsaffectedinparticularwaysbytheprocessofrestructuringandtoarticulatethemthroughvariousbutcoordinatedformsofstruggleand

    protestduringthe1990s.VitalinaccountingfortheachievementsoftheCTAasanorganizationalalternativefortheworkingclasswasitsinfluenceamongthemovementoftheunemployed. Forthosewithoutajob,formsofprotestthathadpreviouslybeenonlymarginalbecameextremelyimportantastheygainedagrowingcapacitytoorganize.Inparticular,thedisruptionofhighwaysandbridges,andinsomecaseslandoccupations,becamecentralinstagingdemandsarticulatedaroundthemosturgentcommunityneeds:workprogramsandtheirextensionandrenewal,thedistributionoffoodassistance,andthereductioninpublicservicefees. Keyactorsintheearliestpiquetesinthe1990swereskilledworkers

    inthecountrysinteriorprovinces.Roadblocksbecameafundamentalpartofmassprotests,emerginginseveralregionshitveryhardbytheprivatizationofpublicenterprises,whichuntilthenhadprovidedthemainsourceofemployment.Insomecases,roadblocksalsobecamecentraltoorganizingmassdemonstrationsagainstwagepaymentdelaysforpublicsectoremployeesasprovincialgovernmentsfacedincreasingfiscalproblems.Progressively,piquetesbecamethemostcommonformofprotestinthepoorerareasaroundthecityofBuenosAiresandlaterinotherurbancentrescriticallyaffectedbythegrowthofunemployment.Intheprocess,theyalsobecamedisassociatedwiththeworkplaceofthoseinvolved,quiteclearlybecauseforthemajorityofpiqueterostheresimply

    wasnoworkplace. Thegrowingpresenceandsignificanceofpiqueteroorganizationsbecameoneofthemostimportantpoliticaleventsofthe1990s,astheygainednotonlymomentumintheirstrugglesbutalsolegitimacyaspoliticalactors.TherapidexpansionoftheArgentinianeconomysince2003andtheresultingreductioninunemploymentgoesalongwaytoexplainingthewaningsignificanceofthepiqueteromovementsincethen.Nonetheless,thereweresomefeaturesinthedevelopmentoftheorganizationsoftheunemployedthatalsoaccountfortheirdiminishingcapacitytoorganizeworkersonlyprecariouslyinsertedinthelabourmarket.

    Onekeyproblemwasrelatedtothedifficultiesthatpiqueterosencounteredincoordinatingtheirstruggles.Thus,whileweusuallyrefertothemasamovement,inpracticetheorganizationsremainedmarkedbydeeplinesofdivisionregardingpoliticsaswellasstrategiesoforganizationandrepresentation.Thepropensityandwillingnessto

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    maintainopencommunicationwiththegovernmentwasanothermajorlinedividingtheseorganizations(Epstein2003,2021).Differences

    regardingrelationswiththegovernmentbecameevendeeperaftertheelectionofNstorKirchnertothepresidencyin2003.Finally,someoftheseorganizationstookonakeyroleinthedistributionofworkprograms,andthiswasthesourceofaconsiderableamountofconflict,sincethegovernmentthusacquiredimportantleveragewithwhichtofurtherinfluence,controlanddividetheseorganizations.Nevertheless,piqueteroorganizationsvariedconsiderablyintermsofsizeandorganizationalstrength,sotheinfluenceofthegovernmentandotherlocalactorsonthemwasalsowideranging(SvampaandPereyra2003,90). Notwithstandingtheirdifferencesandtheireventualdownfall,itisstillimportanttopointoutthecrucialroleofalltheseorganizationsin

    configuringanessentialspacefortheemergenceofacommonidentityamongtheirparticipants.Inparticular,theyprovidedanewsocialmeaningtotheirexperienceofbeingexcluded,givingthemovementaspecificpoliticalpotentialatthetime(CrossandMontesCat2002,9293).Thiswasnominorachievement,particularlyconsideringthevisibilitytheseorganizationsgavetotheplightofabroadsectorofsocietysonegativelyaffectedbyneoliberalism. Thelackofapoliticalforcethatcouldprovidebroadercontenttothedemandsemanatingfromthissectorwasoneofthemostseriousdeficitsofthetime.Nonetheless,theCTAasaunioncentralwascapableofcontributingvitallytothepromotionofalternativesthatattemptedto

    injecttheprotestsaroundunemploymentandpovertywithbroaderpoliticalobjectives.InthemonthsleadinguptotheuprisingofDecember2001,forexample,theCTAwasakeyforcebehindtheorganizationandcoordinationofmassproteststhatbroughttheunemployedtogetherthroughroadblocksandmassdemonstrationsindowntownBuenosAires,alongwithpublicsectoremployeeandteacherstrikesandotherformsofcommunitybasedprotestssuchascacerolazos(potbangingprotests).Probablythemostimportantoutcomeofthesedaysofprotestwastheconfirmationoftheroleoforganizationsoftheunemployedasleadersintheoppositiontothegovernmentsadjustmentplans. ItisimpossibletoaccountfortheeventsofDecember2001without

    understandingthepivotalrolethatworkersorganizationsacquiredinmobilizingoppositiontopoliciesthathadtakenArgentinatoacrisisofsuchenormousproportions.Thepoliticaleventsthathaveunfoldedsincehavecreatedaradicallydifferentpoliticalscenario,withchallengesofitsownfortheworkingclass.Yet,asproblematicandcontradictoryasthe

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    processhasbeen,whatisbeyonddoubtisthelossoftheconsensusthatfreemarketpoliciesonceenjoyedandthekeyroleplayedbylabour

    mobilizationinproducingthisoutcome.BeyondNeoliberalism?

    Argentinastrajectoryduringthe1990spointstothecentralityofpoliciesthat,asithappenedinsomanycountriesatthetime,profoundlytransformedthenatureoftheinterventionofthestateintheeconomyandtheobjectivesofitsregulatoryrole.ThedepthofthecrisisArgentinafacedearlyinthatdecade,theparticularcharacteristicsofthestabilizationplandesignedtoaddressit,andtheintensitywithwhichreformswerecarriedforwardalsoindicatethenecessityofunderstandinglocalconditionsinthedeterminationofthecontoursneoliberalismacquiredinparticularcases.

    Acknowledgingthedeeppoliticalcrisisthataffectedthelegitimacyofthestatein2001,NstorKirchnerandCristinaFernndezdeKirchner(20072011)haverejectedinternationalanddomesticpressurestobothresumethepathofneoliberalstructuraladjustmentandeliminatenewlyintroducedregulationsthathavepartiallyisolatedtheArgentinianeconomyfromthevolatilityofglobalfinance.

    Thehigherexchangeratehasresultedinadrasticreductionofdomesticcosts(includinglabourcosts)andcreatedmorefavourableconditionsforaprocessofimportsubstitutionandindustrialrevitalization.Likewise,amorecompetitiveexchangerateandrisinginternationalpricesforthecountrysagriculturalandagroindustrial

    productshaveresultedinasustainedgrowthofexports.Throughtheimpositionofataxontheexportsofprimarygoods,thestatehasappropriatedpartoftheforeignexchangewindfall.This,inturn,hashelpedtosolvethetwindeficit(externalandfiscal)thataffectedthecountryduringthepreviousdecadeofcurrencyovervaluation.Finally,thereversalofthedecadelongfiscalhardshipandthepoliticalcrisisofthediscourseoffiscalausterityhavegiventhestatearenewedroleinsubsidizingdiverseeconomicactivitiesandexpandingwelfareandsocialsecuritybenefitsfordiversegroups.

    Thiscycleofgrowthhasnotbeenfreeoftensions.Theeconomicrecoveryandthedropinunemploymentmaderoomforrenewedunion

    strengthandwagedemands.Thelatter,alongwithgrowingdomesticconsumptionandtheoligopolisticnatureofsomemarketsformassconsumptiongoods,havecreatedstronginflationarypressures.Risinginflationhasbeenatthecentreofeconomicpolicymakingandpoliticalcontroversy.

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    Closelyrelatedtotheprioritygiventogrowthandtherejectionofpressurestoresumethepathofadjustmentandausterity,policiesinthe

    areaoflabourrelationsacquiredaparticularlycriticalsignificanceinthewakeofthecrisisinemployment,thealarminglevelsofpovertyandthedemandsoforganizationsrepresentingprecariousandunemployedworkersintheearly2000s.Reducingunemploymentwasclearlyacentralpriority,butaddressingpovertyalsodemandedanimprovementinwagesandspecificwelfarepoliciesthattargetedtheworkingpoor.Initially,thegovernmentreliedonpresidentialdecreesgrantinglumpsumwageincreasesforall(OrovitzSanmartino2010).Theseacrosstheboardincreasespartiallyoffsettheeffectsofinflationandimprovedthewagesofformalworkersaswellassomesectorsamongtheprecariouslyemployed.Since2004,collectivebargainingbetweenworkersandemployerswiththe

    mediationofthestatehasgainedmomentumandhascementedthetrendtowardasignificantimprovementofsalariesamongregisteredworkers.Moreover,someofthelabourflexibilizationmeasuresintroducedduringthedelaRagovernmenthavebeenreversed.Precariousworkershavealsobenefitedfromsomewageimprovementinconnectiontotheincreaseinthelegalminimumwageandtheriseinsalaries,buttheirwagesareincreasinglylowerthanthesalariesofformalworkers(ChitarroniandCimillo2007,78).

    Nonetheless,salarieshavealsobeenslowinrecovering.Taking1970asthebaseyear,theaveragerealwagereachedthelowestpointin2003(54.8percentofthe1970level).Itgraduallyroseto69percentin

    2006,butwithoutreachingthelevelofthemid1990s(88.6percentofthebaseyearin1994)(GraaandKennedy2008).Aclearexpressionofthelossesworkershaveexperiencedisthefactthatin2006,unemploymentdroppedtoalevelsimilartothatof1993,butthenumberofhouseholdsbelowthepovertylinewas50percenthigher(Graaetal.2008).Inflationisanimportantfactorexplainingthegapbetweeneconomicgrowthandtheevolutionofrealwagesandothersocialindicators.Theimplementationin2009ofachildsubsidyforfamiliesofthoseunemployed,informallyemployedorselfemployedwithsalariesbelowtheminimumwagehashadsomeimpactinraisingfamilyincome,butagain,inflationmightunderminesomeofitsantipovertypotential.

    Tofightinformality,thegovernmenthasconcentrateditseffortsonsimplifyingtheproceduresforregisteringworkers,onimplementingataxmoratoriumforemployersthatregisteredtheirworkersandonintensifyingaudits.Thesepolicieshavebeeneffectiveamongunregisteredworkerswithinformalfirms.However,manyotherprecariousworkers

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    whoformsegmentsoftheinformalsectorremaintrappedinsituationsofvulnerability.Theyarepartofthegrowingnumberofverysmall

    companies,familyfirmsandselfemployedworkerslinkedtolargerfirmsintheformalsectorthroughtheoutsourcingofactivities(GiozaZuaza2007,332334).Thus,although85percentofthejobscreatedbetween2003and2008wereregisteredformally,precariousworkersstillrepresent36.5percentoftheworkforce(OrovitzSanmartino2010).Thisfigureisstillconsiderablyhigherthanthelevelin1991,wheninformalworkersrepresented30percentoftheworkforce,whichwasalreadyamajorincreasefromthe19percentin1980(ChitarroniandCimillo2007,6). Aswehavesuggested,changessince2003cannotbefullyunderstoodwithouttakingintoaccountthefundamentalroleofsocial

    mobilizationindelegitimizingthepreviousconsensusonneoliberalism.Inthesameway,thecoursethateconomicchangehastakeninthepostConvertibilityperiodmustbeconsideredintermsofthepoliticalcontextthathasmadeitpossible.Thetransformationofthelabourmovementhasbeenparticularlyimportant.Aspartofthegovernmentssupportforreestablishingthecentralroleofcollectivebargaininginthedeterminationofwages,theCGT,undertheleadershipofHugoMoyano,haseffectivelyrepositioneditselfasthehegemoniclabourrepresentativeinthecountry.ThenewstrengthoftheCGTdoesnotimplythatithasbeenabletoeffectivelyrepresentallworkersstrugglesortheplightofprecariousworkers,butthishasnotpreventeditfromregainingtheprivilegedroleit

    historicallyenjoyedasthemaininterlocutorbetweentheworkingclassandthestate. ThedemandsofmanyoftheorganizationsoftheunemployedalsoencounteredaverydifferentresponseunderthegovernmentofNstorKirchner.Partlybecauseofthegovernmentsrecognitionofthedemandsraisedbythesesectorsandalsobecauseofthepoliticalsignificanceofrepresentingthem,organizationswithinthepiqueteromovementweredrawnwithinthespheresofthestateinaprocessthatemergedasanew,viablechanneltoinfluencepolicymaking.Thiswasnotsimplyanissueofcooptationorclientelism,butratheranalternativewaytoinstitutionalizethedemandsoftheseorganizationsinamomentwhenincreasingthebasis

    ofsupportwascriticalforthegovernment. TheCTAstransitionintothisnewstagewasprofoundlyaffectedbythetwoprevioustransformationsintheuniverseoflabourpolitics:thedemobilizationoftheorganizationsoftheunemployedandprecariouslyemployedandthereaffirmationofthepositionoftheCGTwithinthe

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    government.Thesenewconditionsproducedimportantnewtensionsanddivisionswithintheorganizationthatalsorevealedsomeofthe

    fundamentalweaknessesinthetrajectoryoftheCTA.Inparticular,itsdecisiontobecomeapoliticalmovementin2002turnedtheproblemoffindingacommongroundtorepresentamoredemocraticsegmentofthelabourmovementintoafunctionofitsabilitytoinnovatepolitically.However,alltheCTAsnewroleasapoliticalforceachievedwastoencourageitsleaderstoparticipatewithinotherpoliticalparties,thusconstitutinganotherfactorinthedevelopmentofdeepcleavageswithintheorganization(Patroni2008).DeepdisagreementswithintheCTAalsoexistwithrespecttoagovernmentthatpositionsitselfasprogressivebuthassupportedtherebuildingofthecentralroleoftraditionalunionism.

    Toconclude,thepersistentfragmentationoftheworkingclassis

    oneofthekeycharacteristicsofthecurrentprocessofdevelopmentinArgentina.Itcoincideswithamomentofuncertaintywithrespecttodifferentalternativeswithinorganizationsoftheworkingclassandtheircapacitytostructuretheirstrugglearoundprecariousness.Itisdoubtfulthatfurthereconomicgrowthbyitselfcanaddresstheproblem,asitislogicaltosuspectanimportantcorrelationbetweeninformalityandtheaccumulationrequirementsofcapitalisminArgentinatoday.Inthisrespect,debatesoverwhetherthepostConvertibilityadministrationshavedistancedthemselvesfromneoliberalismareinmanyrespectsmisguided.Thechangeisevident,althoughthisdoesnotprecludetheexistenceofimportantcontinuities.Inourview,amuchmorerelevantquestionisthe

    degreetowhichstructuralchangesintheeconomysincethe1970scanbereversed,giventhedistributionofpowerinArgentinaandthedynamismofitsnewstageofeconomicgrowthandinsertionintointernationalmarkets.Regardingthestructureoflabourmarkets,thepersistenceofveryhighlevelsofprecariousemploymentpointstothedeepseatedtransformationintheeconomybroughtaboutbyneoliberalreforms,whichmightliebeyondthespaceofviablechange,evenforamoreprogressivegovernment.ReferencesAzpiazu,Daniel,EduardoM.Basualdo,andHugoJ.Notcheff.1998.Menem'sGreat

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