Six months ago, President Arturo Illia, 63, an obscure back-country physician, took office in Argentina amid a wave of good will and relief. At the time a foreign diplomat said: “The best thing Dr. Illia could do is to do nothing for six years.” That seems to be exactly what the good grey doctor has in mind; he seldom leaves the palace, makes few speeches and fewer decisions. Yet by doing almost nothing, Illia seems to be giving Argentines what they need—a healing peace to recover from the 18 months of military-dominated government and economic confusion that followed the overthrow of President Arturo Frondizi.
Wheat & Beef. Though Argentina is still troubled by inflation and foreign debt, the dynamics of its basically rich wheat-and-beef economy are carrying the country along. Exports this year are expected to exceed imports by $350 million to $600 million—from bumper wheat and meat sales to Western Europe and Red China. Going for Illia are premium beef prices and one of the best wheat crops in history. In La Pampa province alone, wheat farmers this season have harvested 796,000 tons v. 5,300 tons during last year’s searing drought. At long last, the cost-of-living spiral is leveling off (down 1.3% last month), and so is the peso. The exchange rate is holding steady in a range of 132 to 138 to the dollar, after sinking as low as 157 last year. To tighten the economy further, Illia last week restricted the amount of foreign currency Argentines can hold or take out of the country.
Industry, still shaky, is just beginning to get back on its feet. Argentine steel production is three times what it was in 1961; auto production is climbing rapidly; and commercial bankruptcies are declining. Following Illia’s one decisive act—annulling foreign (largely U.S.) oil contracts—many economists expected a heavy flight of capital. But the oilmen are fighting their case through the courts, and other investors are keeping their money in the country.
Labor unions occasionally rumble about high prices and a 9% unemployment rate. Last month the 3,000,000-member Peronista-dominated General Confederation of Labor threatened widespread protests, including occupation of all factories, but agreed to hold off after talks with the government. Apart from a handful of Castroite guerrillas in the provinces and an occasional bombing by neo-Nazis, Argentina is free from organized violence.
Unruffled & Unhurried. Illia’s critics complain about his government’s lack of definite objectives and long-term programs. In answer, he promises a comprehensive five-year economic plan to encourage private investments and increase public works. But that will not be ready until November. In the meantime, he remains unruffled and unhurried. “Our major and only problem,” says Illia, “is to keep faith with ourselves and confidence in our future.”
More Must-Reads from TIME
- How Canada Fell Out of Love With Trudeau
- Trump Is Treating the Globe Like a Monopoly Board
- Bad Bunny On Heartbreak and New Album
- See Photos of Devastating Palisades Fire in California
- 10 Boundaries Therapists Want You to Set in the New Year
- The Motivational Trick That Makes You Exercise Harder
- Nicole Kidman Is a Pure Pleasure to Watch in Babygirl
- Column: Jimmy Carter’s Global Legacy Was Moral Clarity
Contact us at letters@time.com