Social insecurity, skyrocketing inflation and internal strife are cornering the Argentine government. The unemployment movement organized a protest march against poverty and hunger.
Buenos Aires: Labor Day demonstration, May 1, 2022
The inflation rate for the previous month will be published in Argentina on Thursday. There will be no positive news after the index rose to 6.7 percent in March and gained 16.1 percent overall in the first quarter, according to data from the National Institute of Statistics (INDEC).
< p>On the same day, the “March for Jobs, Wages, Against Hunger and Poverty” arrives at Plaza de Mayo in the heart of Argentina's capital, Buenos Aires. It was organized by the unemployment movement Unidad Piquetera and will be the culmination of protests that began Tuesday in different parts of the country.
Peasant protests: demonstration against President Alberto Fernández and his government
The protest returns to the streets as poverty has soared; to more than 43 percent in the third quarter of last year, according to a report by the Social Observatory of the Catholic University of Argentina. In 2017, around 28 percent of people were still living below the poverty line.
Government aid measures are not enough
“The social organizations that called for this demonstration are demanding that the state – if it doesn't give any answers to the structural crisis – should at least give answers to the social emergency,” Silvia Saravia told DW. “The answers so far are not enough. We need food, we need help to start a business and earn some income.” Silvia Saravia is National Coordinator of Barrios de Pie – Libres del Sur, one of the social organizations that have come together in the Piquetero movement. She emphasizes that the government has announced two aid measures after the recent protests: ration cards and vouchers are to be issued. “But as these vouchers are eaten up by inflation, we believe that everyone in the working-class neighborhoods will take to the streets in a peaceful and organized manner.”
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“There is a great deal of social and economic discontent in many sectors of society, not just in the low-income sectors,” notes Argentine economist Jorge Neyro. He recalls that “Things didn't go too well during the pandemic in 2020 and 2021 either, but there were fewer protests because of the pandemic. Now there are always marches and demonstrations from different sectors of society demanding similar things.”
The spiral of inflation continues
According to Neyro, inflation is the big underlying problem. “All in all, the labor market in Argentina has recovered somewhat after the pandemic. But there is the phenomenon of impoverished workers. Many receive an income below the cost of a basic food basket. And that is largely due to high inflation. ” The economist speaks to DW of “inflationary gymnastics that has been going on for many years.” And the negative development is accelerating. “It is clear that the international situation has greatly aggravated Argentina's problems.”
The rise in fuel prices, which has virtually the entire world in turmoil, will also affect Argentina – especially as it comes under pressure from the International Monetary Fund to phase out energy subsidies. The Ministry of Economy is expected to pass large increases in gas and electricity tariffs, affecting Argentina's entire economy.
Pressure from the International Monetary Fund – and protests against the IMF in Buenos Aires in March 2022
Food prices have already risen significantly. The statistics agency INDEC recorded an increase in food prices of 7.2 percent in March. Silvia Saravia doesn't want to accept that. Argentina “is a country that mainly produces food. And yet it is sold as if we don't produce it here and have to import it. It is estimated that our country produces food for about 400 million people. We are 45 million here. We propose that a quota necessary to feed the population be set aside and only then be sold on the world market,” she stresses. “With world food prices at a critical point, we believe these businessmen will make good profits. But we have to put the people first here.”
Dispute paralyzes the government
According to Neyro, Alberto Fernández's government is trying to strike a “balance” between the different demands, “which is not easy and doesn't work very well either”. He adds that “the economy is cornering the government. The forecasts for this year are 67 or even 70 percent annual inflation, while two or three months ago we were still pessimistic about 55 or 60 percent.”
The economist reminds that presidential elections are coming up next year and that the executive is aware of the need to correct course in order to achieve a good result. But the government is divided.
Elections are coming soon: Vice-President Cristina Fernández de Kirchner and President Alberto Fernández< /p>
“From the ranks of the government, especially Vice President Cristina Fernández de Kirchner and her supporters, there is weekly, I would even say daily, criticism of economic policy, the direction of foreign policy and other things. It is public criticism of the president's decisions “. According to Jorge Neyro, this is a serious problem as it affects the political legitimacy of the government and makes politics less predictable.
Insecurity and dissatisfaction are spreading among the population. Protests are once again a means of political pressure. Silvia Saravia expects between 100,000 and 200,000 people on the Plaza de Mayo. There are also many and large events in the provinces. However, she rejects comparisons with the social unrest in countries such as Chile and Colombia. “At the moment we see it as something else. Because in this case, the protests are carried out by long-established organizations.”