The Neoliberal Era

1. The Neoliberal Era • The Falklands/Malvinas War • The End of Dictatorship • The Economic Costs of Dictatorship • The Military and the Prospects of Democracy • Neoliberal Economic Policies

2. The Malvinas/Falklands War • Bleak set of islands originally claimed by Spain as the result of the Treaty of Tordesillas. • Claimed by several European countries during the 18th Century • Independent Argentina claimed it in 1811 and by 1828 sent a governor (a Frenchman) • Site of whaling and seal hunting

3. British Claims to the Falklands • Result of 1831 incident with U.S. fishing vessel • Governor tried to limit fishing and hunting, and in reprisal, US captain captured the inhabitants, ruined the cannons, and declared the island uninhabited

5. Background to the War • Both governments highly unpopular in their own countries • British government had been allowing Argentines to provide mail and emergency services to the Falklands • Malvinas important symbol to Argentines while Falklands meant little to British • US government had led Argentina to believe that Britain would not respond to an Argentine takeover • Both Argentine generals and Margaret Thatcher needed an issue to improve government’s popularity

6. The Outbreak of War • In 1980 negotiations began with islanders regarding the possible takeover of Argentina • Impatient with British foot dragging, the Argentines attacked on April 2. • Initially the Argentines appeared to be winning, but squabbling among the military branches, as well as poor planning and exploitation by Argentine officers of their rank and file, led to defeat. • Equally important, the US took the side of Great Britain

7. British Sensationalism

8. Argentine Etandard Planes used Exocet Missiles

9. Harrier Planes helped British Win the War

10. Postwar Consquences • Renewed calls for democracy • Election of Raúl Alfonsín-member of Radical Party not associated with the military government • Trials of military officers for results of both military defeat and the violations of human rights

11. Economic Problems Facing Alfonsín • Bloated administration—too many employees • Inefficient industries—money being sent abroad instead of invested in the country • Increasing inflation • Higher foreign debts

12. Inflation

13. Economic Performance

14. Foreign Debt

15. Unemployment Rate

16. Fears of Military Unrest • Upset over the trials of officers and military junta • Formation of carapintadas, commandos who felt unappreciated • Reacted to 1986 Punto Final law designed limit the time to make legal accusations against military • Functioned between 1987 and December 1990 • Led by Aldo Rico and Mohamed Alí Seinheldin

17. Carapintada Leaders

18. Consequences of Military Rebellion • Led to Alfonsín stepping down early • Elections led to return of Peronism under Carlos Saúl Menem • Promulgation of pardons for military and guerrillas • Dollarization of the economy to limit inflation • Massive sale of government operated companies (privatization)

19. Carlos Saúl Menemand friend

20. Menem’s version of Peronism • Campaigned as a rock star • “Surgery without anesthesia” • No Evitas—threw wife out of the Casa Rosada • Aligned himself with conservative neoliberals • Promoted a new, conservative constitution, 1994, so that he could be reelected.