One of the hallmarks of Menem's
second term as president was the
increasing
venality of an
administration that had lost much of
its earlier reforming impetus. In
1996, he sacked Domingo Cavallo -
ostensibly for his unwillingness to
counter greater state intervention
in the economy, but some say because
he saw his powerful minister of the
economy as a potential rival. This
move backfired to an extent, as
Cavallo formed a new political
party, the Acción por la República
which, though never gaining much of
a power base, served to bring the
issue of corruption in government
into higher public focus.
Human-rights issues
continued to surface on the
front-line agenda, despite Menem's
attempts to stifle the issue. One of
the most important developments was
the start of a campaign to prosecute
those guilty of having
"kidnapped" babies of
desaparecidos born in detention
in order to give them up for
adoption to childless military
couples. This crime, not covered by
the Punto Final legislation of
Alfonsín's years, has resulted in
the successful interrogation and
detention of many of the leading
members of the old junta, including
Videla and Massera. Tension still
simmers in minority factions of the
military about this issue, although
the armed forces in general are now
very much subordinate to the
civilian authorities. In the
mid-1990s, the armed forces did,
belatedly, acknowledge their role in
the atrocities of the dictatorship,
making a public apology - a
symbolic act that was followed by
similar repentance by the Catholic
Church.
The economic situation remained
on a knife-edge, with austerity
measures seeming to apply to anyone
not in government, and a foreign
debt that continued to balloon.
When, at the beginning of 1999,
Brazil's currency lost fifty percent
of its value, the government had to
resist acute pressure to devalue the
peso. Convertibility held, but Menem
announced that Argentina ought
seriously to consider the "
dollarization " of the economy -
an issue that would have severe
ramifications on national pride. In
the field of foreign policy ,
Menem proved himself able to rise
above rhetoric. This included a
significant rapprochement
with Britain over the Falklands; and
in 1999, he finally secured
ratification of a treaty with Chile
conceding sovereignty over a
disputed part of the Southern
Patagonian Icecap in the southeast
of the Parque Nacional Los Glaciares
- the last of continental
Argentina's border disputes .
As the end of his second term
approached, the president indulged
in an undignified display of
political chicanery. This saw him
moot the possibility of him running
for a third consecutive term of
office, by arguing that, although
his own constitutional amendment of
1994 allowed a sitting president to
stand for re-election only once, he
had only enjoyed one full term of
government since that amendment had
been passed. The real issue here was
not really whether he genuinely
intended to stand or not - but that,
it was widely felt, it was all
bluster designed to alienate voters
and to scupper the chances of fellow
member of the Justicialist Party,
Eduardo Duhalde, in the forthcoming
election. Duhalde, as Governor of
Buenos Aires Province, was the
favoured candidate to replace the
dead duck Menem and lead the
election fight. However, Menem, who
increasingly seems to treat the
party as his own dynastic fief,
apparently preferred the
Justicialists to lose the election
rather than see himself lose the
position of party leader. This would
then clear the way for himself to
stand in the elections of 2003. The
tactic certainly seemed to work: the
shenanigans of the so-called
re-re-eleccionistas alienated
the populace from the Peronists
still further, in the run up to the
vote in 1999.
Fernando de la Rua , mayor
of the city of Buenos Aires, won the
candidacy of the Alianza
(Alliance Party). The Alianza formed
out of a coalition between the
radicals (UCR), of which he was
leader, and FREPASO , itself
a coalition party of left-wingers
and disaffected Peronists that rose
to prominence in the 1995 election.
A third coalition party involved in
the elections was the National
Action Party (PAN), led by
ex-Minister of Finance, Domingo
Cavallo, and running on a platform
of fiscal responsibility, and,
crucially, anti-corruption - the
theme that dominated the election.
With the desire for change palpable
across the country, Fernando de la
Rua, the candidate for the Alianza,
won a clear mandate. Duhalde,
embittered, vowed to continue what
has become a personal vendetta
against Menem.