History of Argentina
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Europeans arrived in the region with the 1502 voyage of Amerigo Vespucci. Spanish navigator Juan Diaz de Solias visited what is now Argentina in 1516. Spain established a permanent colony on the site of Buenos Aires in 1580, although initial settlement was primarily overland from Peru. The Spanish further integrated Argentina into their empire by establishing the Vice Royalty of Rio de la Plata in 1776, and Buenos Aires became a flourishing port. Buenos Aires formally declared independence from Spain on July 9, 1816. Argentines revere Gen. Jose de San Martin, who campaigned in Argentina, Chile, and Peru as the hero of their national independence. Following the defeat of the Spanish, centralist and federationist groups waged a lengthy conflict between themselves to determine the future of the nation. National unity was established, and the constitution promulgated in 1853. Two forces combined to create the modern Argentine nation in the late 19th century: the introduction of modern agricultural techniques and integration of Argentina into the world economy. Foreign investment and immigration from Europe aided this economic revolution. Investment, primarily British, came in such fields as railroads and ports. As in the United States, the migrants who worked to develop Argentina's resources--especially the western pampas--came from throughout Europe. 

From 1880 to 1930 Argentina became one of the world's 10 wealthiest nations based on rapid expansion of agriculture and foreign investment in infrastructure. Conservative forces dominated Argentine politics until 1916, when their traditional rivals, the Radicals, won control of the government. The Radicals, with their emphasis on fair elections and democratic institutions, opened their doors to Argentina's rapidly expanding middle class as well as to groups previously excluded from power. The Argentine military forced aged Radical President Hipolito Yrigoyen from power in 1930 and ushered in another decade of Conservative rule. Using fraud and force when necessary, the governments of the 1930s attempted to contain the currents of economic and political change that eventually led to the ascendance of Juan Domingo Peron (b. 1897). New social and political forces were seeking political power, including a modern military and labor movements that emerged from the growing urban working class. 

The military ousted Argentina's constitutional government in 1943. Peron, then an army colonel, was one of the coup's leaders, and he soon became the government's dominant figure as Minister of Labor. Elections carried him to the presidency in 1946. He aggressively pursued policies aimed empowering the working class and greatly expanded the number of unionized workers. In 1947, Peron announced the first 5-year plan based on the growth of industries he nationalized. He helped establish the powerful General Confederation of Labor (CGT). Peron's dynamic wife, Eva Duarte de Peron, known as Evita (1919-52), played a key role in developing support for her husband. Peron won reelection in 1952, but the military sent him into exile1955. In the 1950s and 1960s, military and civilian administrations traded power, trying, with limited success, to deal with diminished economic growth and continued social and labor demands. When military governments failed to revive the economy and suppress escalating terrorism in the late 1960s and early 1970s, the way was open for Peron's return. 

On March 11, 1973, Argentina held general elections for the first time in 10 years. Peron was prevented from running, but voters elected his stand-in, Dr. Hector Campora, as President. Peron's followers also commanded strong majorities in both houses of Congress. Campora resigned in July 1973, paving the way for new elections. Peron won a decisive victory and returned as President in October 1973 with his third wife, Maria Estela Isabel Martinez de Peron, as Vice President. During this period, extremists on the left and right carried out terrorist acts with a frequency that threatened public order. The government resorted to a number of emergency decrees, including the implementation of special executive authority to deal with violence. This allowed the government to imprison persons indefinitely without charge. 

Peron died on July 1, 1974. His wife succeeded him in office, but a military coup removed her from office on March 24, 1976, and the armed forces formally exercised power through a junta composed of the three service commanders until December 10, 1983. The armed forces applied harsh measures against terrorists and many suspected of being their sympathizers. They restored basic order, but the human costs of what became known as "El Proceso," or the "Dirty War" were high. Conservative counts list between 10,000 and 30,000 persons as "disappeared" during the 1976-83 period. Serious economic problems, mounting charges of corruption, public revulsion in the face of human rights abuses and, finally, the country's 1982 defeat by the United Kingdom in an unsuccessful attempt to seize the Falklands/Malvinas Islands all combined to discredit the Argentine military regime. The junta lifted bans on political parties and gradually restored basic political liberties. 

On October 30, 1983, Argentines went to the polls and chose Raul Alfonsin, of the Radial Civic Union (UCR), as President. He began a 6-year term of office on December 10, 1983. In 1985 and 1987, large turnouts for mid-term elections demonstrated continued public support for a strong and vigorous democratic system. The UCR-led government took steps to resolve some of the nation's most pressing problems, including accounting for those who disappeared during military rule, establishing civilian control of the armed forces, and consolidating democratic institutions. However, failure to resolve endemic economic problems, and an inability to maintain public confidence undermined the effectiveness of the Alfonsin government, which left office 6 months early after Peronist candidate Carlos Saul Menem won the 1989 presidential elections. 

Despite having campaigned as a traditional populist candidate, as president, Menem launched a major overhaul of Argentine domestic policy. Large-scale structural reforms dramatically reversed the role of the state in Argentine economic life. A decisive leader pressing a controversial agenda, Menem was not reluctant to use the presidency's extensive powers to issue decrees when the Congress was unable to reach consensus on his proposed reforms. 

The so-called Olivos Pact with the opposition Radical Party led to the constitutional reform of 1994 that opened the way for Menem to seek and win reelection, winning 50% of the vote in the three-way 1995 presidential race. Late in Menem's second term, fears began to build among foreign investors about Argentina's ability to service its large public sector debt, especially in the wake of Russia's debt default in 1998 and Brazil's currency devaluation in January 1999. These fears were exacerbated when Argentina's fiscal deficit ballooned during 1999, Menem's final year in office. 

Fernando de la Rua, of the Radical Party, running on an anti-corruption platform, defeated Peronist candidate Eduardo Duhalde in the 1999 presidential election. Upon taking office, he increased taxes to eliminate the huge fiscal deficit he had inherited, but the tax increase choked off economic growth and intensified the recession leading to a decline in government revenues. Political infighting hindered adoption of thoroughgoing reform measures by the government, and the economy continued to stagnate. The political situation deteriorated further when Vice President Chacho Alvarez (of the junior partner in the coalition) resigned, alleging a lack of support from other members of the executive branch to investigate charges of corruption within the administration. 

Even a large IMF-led stabilization package in December 2000 was insufficient to prevent a looming crisis, given the De la Rua administration's inability to get a handle on the fiscal situation. Throughout 2001, production fell from already low levels, and unemployment continued to rise. By late 2001, depositors in Argentine banks were withdrawing funds as a run against the peso developed. The government's restrictions on depositors' access to their accounts only fueled popular discontent. Supermarket sackings and property damage proliferated, first in the provinces and then the Federal Capital. De la Rua resigned on December 20, 2001, after violence claimed several lives during riots in and around the plaza directly facing the seat of government. 

A legislative assembly on December 23, 2001, elected Adolfo Rodriguez Saa to serve as president and called for general elections to elect a new president within 3 months. Rodriguez Saa announced immediately that Argentina would default on its international debt obligations, but expressed his commitment to maintain the currency board and the peso's 1-to-1 peg to the dollar. Rodriguez Saa, however, was unable to rally support from within his own party for his administration and this, combined with renewed violence in the Federal Capital, led to his resignation on December 30. 

Yet another legislative assembly elected Peronist Eduardo Duhalde president on January 1, 2002. Duhalde--differentiating himself from his three predecessors--quickly abandoned the peso's 10-year-old link with the dollar, a move that was followed by currency depreciation and inflation. In the face of rising poverty and continued social unrest, Duhalde also moved to bolster the government's social programs. In the first round of the Presidential election on April 27, 2003, former President Carlos Menem (PJ) won 24.3% of the vote, Santa Cruz Governor Nestor Kirchner (PJ) won 22%, followed by Ricardo Murphy with 16.4% and Eilsa Carrio with 14.2%. Menem withdrew from the May 25 runoff election after polls showed overwhelming support for Kirchner. President Kirchner took office on May 25, 2003. 

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