2001 Economic Crisis

On May 29, 2000, Argentina declared a 649 million pound spending cut, thus spurring a protest of 20,000 people in opposition to the cuts (“Timeline: Argentina’s Economic Crisis”). As things worsened due to the cuts being 3.6 billion pounds rather than the previous plan, in March of 2001, Mr. Machinea resigned as the economic minister (“Timeline: Argentina’s Economic Crisis”). By July 3, 2000, Argentine stocks fell to a “28 month-low after rumors of the resignation of Mr. de la Rua (“Timeline: Argentina’s Economic Crisis”), who was the leader of the Radical Civil Union. As a sense of panic developed in Argentina, by December, the, “Government declares state of siege giving it special powers to stop the worst looting and riots in a decade sparked by austerity measures and poverty” (“Timeline: Argentina’s Economic Crisis”). In the end, Rua resigned after thousands protested his government’s handling of the situation (“Timeline: Argentina’s Economic Crisis”). For a country that had once been one of the top economies in the world, their unemployment rate reached 25% and some agricultural products were rejected in certain international markets (“1998–2002 Argentine Great Depression”). Argentina has since bounced back and is experiencing and has since been stable since 2005.

The image shown shows the devastation the economic crisis had on Argentina. It affected everyone and had lasting effects for how Argentina is viewed globally as an economic power by the world. The leadership under which the economic crisis occurred has influenced other elections since and informed Argentines on how best to proceed economically.

“1998–2002 Argentine Great Depression.” Wikipedia. Wikimedia Foundation, December 9, 2019. https://en.wikipedia.org/wiki/1998–2002_Argentine_great_depression#Immediate_effects.

“Timeline: Argentina’s Economic Crisis.” The Guardian. Guardian News and Media, December 20, 2001. https://www.theguardian.com/world/2001/dec/20/argentina1.