Tag Archives: Argentina

A New Weapon in the South Atlantic

In 1982, a continuing dispute over a few small, sparsely populated islands in the South Atlantic became the catalyst for a brief war between Argentina and the United Kingdom, resulting in a decisive British victory.  Paying tribute to the long and complicated history of these islands, Museo Las Malvinas (Malvinas Museum) is located on the grounds of the former Naval Officer Mechanic School and is now one of the newest and most prized museums in the Argentine capital of Buenos Aires. Since its opening, the museum watchtower has maintained vigil over the main highway running through Buenos Aires, proudly displaying the word “Sovereignty”, and reminding commuters of Argentina’s enduring ambition to govern these otherwise undistinguished islands in the South Atlantic.

According to the March 2016 United Nations Commission on the Limits of the Continental Shelf (CLCS), the Falklands/Malvinas lie within Argentina’s maritime borders. Thirty-four years after fighting to keep the islands, the British see this as a new threat to their continuing sovereignty over the islands and their surrounding waters. Learning from past mistakes, Argentina has introduced a new weapon in the struggle over the South Atlantic –not a machine of war, but a potentially more terrifying and effective tool: lawyers.

Argentina's claimed territory around the islands. UNCLCS acknowledged that the islands are within Argentina's EEZ in March 2016. Photo Credit: http://news.bbc.co.uk/2/hi/business/8520038.stm
Argentina’s claimed maritime territory in the South Atlantic.                                                                           Photo Credit: http://news.bbc.co.uk/2/hi/business/8520038.stm

Miscalculation

The struggle for sovereignty of the islands is nearly two centuries old. English Captain John Strong discovered the islands in 1690 and the first British settlement followed in 1766. For decades  British control of the islands waxed and waned during multiple international wars, no easy feat as the Falklands/Malvinas are located a daunting 7,939 miles from London and a mere 415 miles east of the Argentine city of Rio Gallegos. Finally in 1833, after several disputes with the fledgling Argentine Confederation, the British solidified control and have maintained their hold on the islands despite the expense of supporting the territory over such a vast distance. With only 2932 English residents, the Falklands/Malvinas are one of the most expensive foreign territories per capita in the world.

The pursuit of sovereignty over the Falklands/Malvinas was a costly decision for Argentina’s military dictatorship. In 1982, daily strikes by labor unions and anti-government supporters were a result of the loss of confidence in the leadership of Lt. General Leopoldo Galtieri who had assumed command of the junta after a 1976 coup that deposed President Isabel Perón. Unemployment rates were skyrocketing, and the inflation rate ballooned to more than 600 percent.  In an effort to distract the population from the collapsing economy and to restore national pride and support for the government, Galtieri ordered the invasion of the Falklands/Malvinas on 2 April 1982.

The initial days of fighting saw great success for the Argentine military. The first 4,000 soldiers arriving on the islands met minimal resistance and quickly took control, raising their flag over the captial city, Port Stanley. Their victory ignited strong nationalism, pride, and support for the military by ordinary Argentines that flooded the streets of every city in the country. The military government fostered this sentiment by publishing propaganda and positive reports promoting the success of their military. Triumphant claims —“Estamos Ganando” (We Are Winning) graced the covers of newspapers and magazines nationwide.

Across the Atlantic, the British government rapidly prepared a response force to take back the islands. Less than three weeks after the initial invasion, the UK launched a counterattack with more than 120 ships, 160 aircraft, and multiple Special Air Service (SAS) and commando units. The British quickly gained the initiative, and by 14 June 1982 the 3-month war was over. In the end, a little more than two months of combat resulted in the deaths of 648 Argentine, 255 British service members, and three civilians. Most of the Argentine casualties –and the fighting spirit of the Argentine Navy– lay at the bottom of the Atlantic with the ARA Belgrano, sunk by a British torpedo.  The islands have remained securely in Britain’s hands ever since.

Black Gold

A few months after the war, the international community legitimized the British presence in the South Atlantic. The 1982 UN Convention on the Law of Sea established the limits of the continental shelf and solidified British rights to the water and resources surrounding the Falklands/Malvinas. In 1998, after tentative discoveries 20 years earlier, the British began drilling the first offshore oil wells, discovering large reserves in the area with two fields, Sea Lion and Isobel Elaine, thought to hold half a billion barrels of recoverable oil each. These, and many other repositories around the islands, have the potential to make the tiny population there one of the richest communities per capita in the world.

The discovery of oil intensified debate on both sides of the Atlantic but the situation on the ground remains quite complex. Though a majority of Argentines believe that the Falklands/Malvinas belong to Argentina, multiple referenda reveal the actual residents of the islands want to remain under the British crown. Citing concerns about stability and security, the British maintain a substantial military presence that includes strike aircraft, warships, and more than 1,300 service members. The Argentine government sees the presence of such a large and active military force as a threat and has argued this point continuously and unsuccessfully to the international community.

UNCLCS decision of March 2016 includes the islands within Argentina's maritime borders. Photo Credit : http://en.mercopress.com/2016/06/03/delimitation-of-the-argentine-continental-shelf
UNCLCS decision of March 2016 includes the islands within Argentina’s maritime borders. Photo Credit : http://en.mercopress.com/2016/06/03/delimitation-of-the-argentine-continental-shelf

Changing the Game

In 2015, Argentina began to use a different approach that avoids direct confrontation with Britain. Filing a petition with the United Nations, the Argentine leadership decided to pursue international arbitration to prove the islands reside within the maritime territory of Argentina. In March 2016, after more than nine months of debate, the CLCS extended the maritime territory of Argentina by 35%. By doing so, the UN acknowledged Argentina’s claims that the Falklands/Malvinas lie within its maritime territory.

Victorious on the battlefield and secure on the basic question of governance of the islands, Britain now faces an unusual challenge to its supremacy in the South Atlantic –an internationally-arbitrated legal battle over resources. Historically committed to international cooperation and the rule of law, the UK would face significant challenges should it choose to ignore the UN, especially as doing so would set a precedent for other states looking to circumvent international arbitration.

Argentina may not yet have achieved the lofty goal of “Sovereignty” as displayed atop the watchtower at the Las Malvinas Museum, but it has found traction in pursuing a legal resolution to the territorial dispute. Now more than ever, the Falklands/Malvinas are an economically and strategically significant territory for the UK, and it is unlikely Britain will let the islands go easily. However, after nearly two centuries of struggle, the balance of power relationship in the South Atlantic may finally shift to favor Argentina thanks to a new tactic that neutralizes the otherwise superior power of the British. Perhaps the pen is truly mightier than the sword.

Jon NielsenCPT Jonathan Nielsen is a U.S. Army Infantry Officer with combat experience in multiple countries in the Middle East and extensive multinational training experience. He is currently attending the University of Belgrano in Buenos Aires as part of the George and Carol Olmsted Scholar Program. The views expressed in this article are those of the author and do not reflect the official policy or position of the U.S. Army, the Department of Defense,  or the Olmsted Foundation.

Let’s Change: Argentine Voters Speak

In the first run-off election in the history of Argentina, the people’s voice demonstrated a drastic change for the future of Argentina and potentially the international community.

On 9 August 2015, all seemed certain that Frente Para La Victoria (FPV) candidate Daniel Scioli was destined to continue the current 12-year reign of the Peronist Party in Argentina. However, after the presidential primary elections were held the assurance that Argentina would continue marching under the same political party rapidly disintegrated with every passing day. As the days and months grew nearer to the presidential elections on 25 October 2015, the voice of the Argentine voters echoed one unified idea: change. The people of Argentina rallied behind a new hope and a new image of an improved future. The face of that future rested in the ideas, initiatives, and spirit of one man that led not only a young political party, but a significant social movement. That man was Mauricio Macri.

Top: Presidential Elections, 9 August 2015 Bottom: Presidential Elections, 25 October 2015
Top: Presidential Elections, 9 August 2015
Bottom: Presidential Elections, 25 October 2015

A Rising Opposition

Macri was the face of the political opposition, “Cambiemos,” (Lets Change) and rightfully so as he started the party just eight years ago when he ran for and was elected mayor of the City of Buenos Aires. Many would describe Macri as a well-connected businessman whose party was considered by so many as having a long shot to win the elections and lacking the political influence to govern the country. However, with every passing election in 2015, “Cambiemos” demonstrated the power of a socially connected and driven movement.

First, Horacio Larreta maintained the influence of the Cambiemos party within the city of Buenos Aires when he was elected mayor on 19 July 2015. A few months later during the primary elections, Maria Vidal defeated Anibel Fernandez (FPV) to claim the governorship of the Province of Buenos Aires. So as the first national run-off election approached on 22 November 2015, the strength and the support for the Cambiemos movement should not have come as a surprise to the FPV Party. However, even with the energy behind the Cambiemos Party and Macri’s continual climb, he was substantially aided by three significant flaws made by Scioli, the FPV Party, and the current government.

The Lead up to the Election

The first of those errors occurred immediately following the primary elections in August 2015 when the Province of Buenos Aires suffered a significant natural disaster. In the two weeks that followed the primary elections, the Province of Buenos Aires received more than 14 inches of rain causing water levels in some areas to raise more than 30 inches and forcing the evacuation of more than 30,000 residents. The storm was one of the worst in history. As the storms started, then Governor of Buenos Aires, Daniel Scioli, departed for Italy to receive treatment on his prosthetic arm while leaving little to no plan to resolve the dire situation. So as Scioli remained in Italy, the floods continued to worsen and Macri remained as the strongest voice of support to aid those in need and provide a plan to assist with the situation.

The second event that continued to deflate Scioli’s campaign occurred on 5 October 2015 during the first-ever presidential debate. The debate consisted of all Presidential candidates except Scioli who elected not to participate. In the events leading up to the debate, Scioli stated that nothing good comes from a debate. A portion of that comment proved to be true, but the reality was that nothing good came for Scioli. As Scioli watched from a distance, the other five candidates used the forum to promote their ideas and highlight the flaws of the current frontrunner, Scioli, resulting in a significant drop in polls for Scioli the following week.

Results of the run-off election showed Macri defeated Scioli and signaled a change in Argentine Politics.
Results of the run-off election showed Macri defeated Scioli and signaled a change in Argentine Politics.

The third and most powerful of the issues that led to Scioli’s defeat was his relationship, or better said, lack of relationship, with the FPV Party and the current President Cristina Fernandez de Kirchner. With every passing day after the primary elections, Scioli attempted to separate himself from the criticisms of the Kirchner government in order to obtain more of the votes needed to achieve 45% of the popular vote and avoid a runoff election. However, in doing so, he continued to lose the confidence and support of his party, so much so that President Kirchner would not publicly endorse her support for him as a candidate, an endorsement she did with many other FPV candidates. Furthermore, a week before the runoff election, President Kirchner affirmed that if Scioli was to lose, his decline was not a fault of her or the FPV Party, but that of the actions of Scioli. And as predicted by many, Scioli was defeated. Scioli started as a candidate who presented a grand idea for the future of Argentina, but ultimately lacked the plan, conformity, and energy to continue the reign of the FPV party.

Daniel Scioli’s collapse was fast and essentially unstoppable after the first initial polls in July when he garnered close to 50% of the vote with more than 10 presidential candidates. However, at the end of November when there were only two candidates, he was unable to achieve 50% of the vote to secure the presidency. Thus, Scioli fell to Macri in the runoff election by close to 4% of the popular.

The future of change now rests with President Macri.
The future of change now rests with President Macri.

Moving Forward

The defeat of the FPV Party and the victory of the Cambiemos Party signal a new future in the domestic and international relations of Argentina. As President Macri donned the presidential sash and grabbed hold of the presidential scepter, he takes office with grand ideas to improve the international relations of Argentina most notably with the United States and European leaders. Furthermore, President Macri vows to improve the security situation surrounding the increased drug trade in Argentina as well as improve critical infrastructure along major routes throughout the country. Lastly, among many issues that Macri strives to improve, he looks to take strong and swift action to improve the rapidly devaluating peso that has plagued the people of Argentina for the past two years.

Many of Macri’s right-wing ideas demonstrate a significant shift in the mentality and actions of the future government of Argentina. The question that remains is whether that shift will provide that “change” that Argentines voted for during the country’s first runoff election. Nevertheless, one can expect to see a different domestic and international Argentina in the years to come.

CPT Jonathan Nielsen is a U.S. Army Infantry Officer with combat experience in multiple countries in the Middle East and extensive multinational training experience with various NATO partners.  He is currently attending the University of Belgrano in Buenos Aires as part of the George and Carol Olmsted Scholar Program. The views expressed in this article are those of the author and do not reflect the official policy or position of the U.S. Army, the Department of Defense, the U.S. Government, or the Olmsted Foundation.

Some More Equal than Others

Argentine President Nestor Kirchner, left, transfering power to his wife Cristina on her inauguration day in 2007
Argentine President Nestor Kirchner, left, transfering power to his wife Cristina on her inauguration day in 2007 (Infolatam)

In the midst of presidential election season, life in Argentina today is a bizarre mixture of cries for equality and human rights, contrasted with insidious government propaganda, limits on personal freedom and frustrating consumer choice.

By Jared Wilhelm

In October 2015, the citizens of Argentina will elect a new president. For the past twelve years, the large and resource-rich South American nation was headed by a member of the Kirchner family: first Nestor in 2003 and then his wife, Cristina since 2007. Much in the vein of famous Argentine first lady Eva “Evita” Peron, Cristina is a charismatic, populist figure within in the nation, exerting tight control over monetary policy, the media, and those who oppose her controversial policies.

The election will prove to be important not only for the nation, but also for the world. While Cristina can’t run due to term limits, a victory for one of her Kirchnerismo Party candidates might signal a continuation of some of her edicts, like allowing China to build it’s first overseas military base in Argentine Patagonia, cozying up to Vladimir Putin’s Russia and his houseguest Edward Snowden, and alleged suspicious dealings with Venezuela and Iran.

Uncertain future aside, it is interesting to look past the sensational headlines of corruption and international intrigue to consider the day-to-day life of the average Argentine who lives with the oddities of Kirchnerite rule. Would Argentina’s Founding Fathers- who modeled Argentina’s Constitution almost exactly after the United States of America’s in 1853– recognize the life that Cristina has imposed on the average citizen?

Free Fútbol for Everyone: A Captive Audience

While Argentina is famous for its grass-fed beef, wine and Tango, the key to the average Argentine’s heart is soccer, or fútbol. The Argentine league is the third oldest in the world, and no Sunday afternoon family meal is complete without watching one of the local or national clubs on television.

Since 2009, Argentines don’t need a satellite dish or a cable subscription to see their favorite local team, international tournaments or even the World Cup.  Instead of tuning in to one of the major local networks, fans turn to the government-run TV Publica. Outbidding traditional media conglomerates with a contract nearly double the size of what private companies previously paid, Cristina uses taxpayer dollars to ensure there will be Football for Everyone broadcast on her own personal station.

Since there are sometimes weekends with no national soccer games, in addition to Fútbol para Todos, there are Boxing for Everyone and Racing for Everyone as well. Anyone used to paying $99.99 for a blockbuster boxing match will be shocked to see the broadcast free for all.

Under the guise of providing equal access across the class spectrum and in an effort to compete with opposition media tycoons, Cristina and her propaganda machine waste no time taking advantage of their captive audience. In place of selling advertising time to the highest bidder, the government uses these precious opportunities to reach the people using spots that tout the government’s achievements, or to advertise for the state-owned airline, Aerolineas Argentinas, or the state-owned oil company, YPF. Both of these companies were expropriated from private businesses after takeovers by Spaniards in the 1990s turned sour.

In an almost eerie dichotomy with everyday life, the government’s slickly produced propaganda spots show a country where everything works beautifully and everyone is happy. No matter if the commercials are one-sided campaign ads, showcases of nuclear energy projects, satellite launches or simple advertisements for upcoming free sports broadcasts, one clear message is always sent during the final few seconds of each spot: Brought to you by the President.

While taxpayers are paying for the production and airtime for the Ministries of Education, Tourism, Health or Science and Technology, each commercial includes a not-so-subtle reminder of who is behind it all.
While taxpayers are paying for the production and airtime for the Ministries of Education, Tourism, Health or Science and Technology, each commercial includes a not-so-subtle reminder of who is behind it all.  See an example here.

Journalists estimated in January 2015 that during its six-year existence, the Argentine people  bankrolled a staggering $793 million US dollars worth of government propaganda through the program. Compared to a world where the market demand determines availability and private advertising dollars or subscriptions pay for broadcasts, taxpayer-paid government control of the majority of soccer broadcasting is a small price to pay for the Presidenta to spread her message on a daily basis to households across the nation.

Price Controls

Ever since Cristina expropriated the national petroleum company from Spain in 2012, the government controls the price of gas at the pump. Citizens no longer have to worry about the whims of supply and demand, world events or the decisions of the OPEC nations; instead, Cristina’s government ministers decide the price of a liter and then negotiate with the rest of the privately-owned companies to cap prices for six months at a time.

Price controls don’t stop at the gas pump. In 2014, Cristina launched a nationwide campaign to control prices and combat double-digit inflation on some 470 items in grocery stores, restaurants, airports, and even motorcycle dealerships. Cristina’s economic team decided that instead of letting market forces drive the price of certain items in stores, the government would set the price. What does the Price Guarding program mean to the consumer?

When a shopper visits any grocery chain or Wal-Mart Argentina, a large list of every Price-Guarded item is posted at the front of the store. The store shelves look the same, except there are special Price Guard logos on certain brands of the milk, hotdogs, cereals… even beer. A pack of cookies that should cost $2 is only $1.50- a good savings for the generic, tasteless cookies. Unfortunately, these price controls have unintended consequences. If you don’t like generic, tasteless cookies and instead prefer made-in-Argentina Oreos- well the Oreos that should cost $2.50 now can cost $4.50 or $5.

While businesses are not forced to comply with this scheme, more than 100 nation-wide chains have agreed to participate to maintain competitive market share. But Cristina and her team do not trust big business, so they encourage every day citizens to verify Price Guard prices are followed. During soccer broadcasts, government propaganda spots encourage shoppers to print out the Price Guard list and check to make sure the prices are set at the government’s rate. If not, Cristina has set up a 1-800 number and smartphone-app that allows everyone to report businesses for charging extra. When someone calls to make a citizen’s report, the odds are they probably won’t be using an iPhone.

A Nation without iPhones

Since 2011, Argentina has not permitted the legal import and sale of Apple iPhones. Thanks to Cristina, only cell phones that are locally made can be sold on the legal market. Cristina and her economic team have decided that in order to spark national growth, imports of all kinds will be limited and the local industries will be protected. The idea is to create jobs: now instead of being assembled in Asia, Samsung phone parts are shipped across the Pacific so that they can be assembled in country by Argentines and then considered a legal product. The same goes for televisions, refrigerators, even cars.

If someone really, really wants an iPhone, there are options.  Besides the healthy trade on the black market, one could order the phone (or any other prohibited foreign item) through a site like the US’s Amazon. If the phone costs $300, the buyer is responsible for paying the $300 cost of the phone and shipping to Amazon, and then an additional 50% tax to the Argentine government. A $300 phone will cost around $500 and require a trip to a local customs office for pickup, because Cristina doesn’t allow foreign deliveries to be sent directly to your home. Home delivery makes 50% tax collection complicated.

So if the average citizen of the Argentina has decided to save $300 of his or her hard-earned salary to buy an iPhone, unfortunately that citizen can’t buy one in a local store. Instead, he or she must save $200 extra to order from overseas, or cross the border to Chile or Uruguay to buy one there. Many weekends, especially holidays, there are six to eight hour lines at international border crossings, allowing citizens to purchase Apple Products, Kitchen-Aid Mixers, X-Boxes or Lego toys for their children. On the way back into Argentina, they of course need to hide these products from customs so they don’t have to pay the 50% tax.

While the import substitution policy protects local workers and the economy in theory, in practice it creates a class-based unfairness that even eclipses the most pure free-market capitalist society.  The wealthy, mobile political class can and do afford travel overseas to buy superior products. The average worker has no choice but to buy inferior or obsolete products, based on the rules imposed by the supposedly well-meaning political class. In true Animal Farm style, political leaders artificially determine the market in the name of the “good of the economy,” while jet-setting to the United States or Europe to buy the same products they keep from the people.

The Future of Argentina

Supporters of the three consecutive Kirchner administrations trumpet accomplishments on human rights, reparations from the most recent military junta, equality, social justice and Argentine sovereignty. While Cristina and her husband do deserve some credit, it is not enough to outweigh the restrictions imposed on personal freedom of action and thought as illustrated above. Surprisingly enough, there are many more examples that would elicit similar reactions.

 In 1853, Argentina’s forefathers based the Argentine Republic’s Constitution on the model of the Constitution of the United States of America. By 1914, Argentina had become one of the world’s richest nations.   A century later, Argentina was ranked second out of 108 nations in the CATO Institute’s 2015 economic “Misery Index,” only less miserable than Venezuela and slightly more miserable than Syria, Ukraine and Iran. Ten more pages would be required to even start to explain how a nation- a Republic- based on Constitutional freedoms is embroiled in a “separation of powers crisis” and now looks more like an Orwellian, Big-Brother State. Through a complicated history filled with crises, coups and collapses, Argentina is again in trouble despite its many natural resources and deep cultural diversity.

In addition to continued government meddling, there is also a risk of the pendulum swinging too far in the opposite direction as it has in the past. After twelve years of Kirchnerite rule, international investors are licking their chops, imagining a presidential victory for an opposition candidate that would reopen Argentina to the world market. Some pundits fear a repeat of the 1990s, when neoliberal policies allowed international corporations and investors to take advantage of industry privatizations that did not benefit the everyday Argentine.

Whatever the outcome of the election, an unbiased observer can maintain an cautious optimism for the nation of Argentina that the next executive can prioritize the rights and freedoms of its people above personal ambition, enrichment and control. It may seem trivial to focus on fútbol, price controls and consumer purchasing freedom when the Kirchner administration has been accused of large-scale corruption, repression, and even murder. But the reality for the everyday Argentine citizen speaks more to the state of the republic than the high-level political scandals.   In a nation based on the US model of individual rights and freedoms, the political devolution of all-powerful populist executives has left life in Argentina today far from what her founders envisioned.

Jared Wilhelm is a Naval Aviator who served two deployments in Africa, Central America and Europe as a P-3C Orion Maritime Patrol Pilot. He is currently attending the National University of Cuyo in Argentina as part of the General George Olmsted Scholar Program. The views expressed are those of the author and do not reflect the official policy or position of the US Navy, the Department of Defense, the U.S. Government, or the Olmsted Foundation.