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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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