Due to grave crisis: Uprising erupts in Argentina
The further worsening of the economic crisis in Argentina has resulted in turmoil and a subsequent popular uprising. Pres. Fernando de la Rua was forced to resign on December 20, the second day of intense protest actions and riots in different parts of the country.
The violence erupted when hundreds of hungry citizens thronged to supermarkets and stole food on December 18. Some shops were also burned by the desperate crowd. Five persons were killed, more than 100 were injured and around 350 were arrested when police reacted violently.
De la Rua declared a 30-day state of siege on December 19 to suppress the spreading disorder, suspending constitutional rights and giving the government broad powers to quell the violence.
But the declaration of a state of siege only heightened the people's anger. Even de la Rua's pledge to release $7 million in food assistance to the needy failed to ward off thousands of people from taking to the streets of the capital Buenos Aires to demand his resignation. They honked their car horns and beat pots and pans in protest. Three labor unions in the province of Cordoba declared a general strike.
By the time de la Rua resigned, 26 had died, 200 injured and more than 2,000 arrested in connection with the widespread uprising.
Intense protests continue as chances of finding a solution to the crisis in time are naught. Within a mere 11 days since de la Rua resigned, four successors had already also resigned for failing to take decisive steps regarding the crisis.
The uprising erupted as a result of the nation's grave crisis. The Argentine economy has been in recession for almost four years now, pushing the unemployment rate to 20%. Poverty and popular discontent worsened even more when de la Rua adopted an austerity measure in compliance with the dictates of the International Monetary Fund (IMF), cutting down the budget for basic social services.
The Argentine economy is facing impending collapse due to the government's incapacity to avoid defaulting on its $132 billion debt. Ninety-seven billion dollars ($97 billion) or over 73% of its debt is set to mature soon. Six hundred million dollars ($600 million) worth of bonds are due by the end of December.
Should Argentina default on its loans, it would be the worst case ever by any debtor country in history. Without outside help, Argentina's chances of avoiding such a fate is nil.
The bad news is that the IMF now refuses to release its $1.3 billion assistance package due to the country's failure to balance its budget despite the imposed austerity. The US has likewise declared that no immediate assistance can be expected from it.
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