(2 of 3)
Whether this alliance of traditional adversaries can produce solutions to Argentina's myriad problems remains to be seen. But one diplomat in Buenos Aires speaks of Alfonsín as dealing with the country's economic difficulties in "a measured, calculated way." At the top of the list is hyperinflation: the monthly cost of living jumped by 18.5% in April, which is equal to an annual rate of 560.2%. In most countries, newspaper headlines and gossip focus on crime or sports; in Argentina, there is a morbid fascination with the economy. Even during the Falkland Islands war with Britain, the major topic of conversation continued to be the pocketbook. People are also intensely interested in talking about Argentina's $43.6 billion foreign debt, which represents about 75% of last year's gross domestic product.
There will be considerable tension on June 30, the date by which the government must come up with $1.6 billion in foreign-debt payments. Quips Máximo Gainza, director of the right-wing La Prensa (circ. 50,000): "Our external debt is becoming an eternal debt."
Alfonsín has yet to produce his long-promised strategy for curbing inflation or for negotiating with the International Monetary Fund a restructuring of the country's foreign loan obligations (although last week Argentina, Brazil, Colombia and Mexico were reported to be discussing in general terms various proposals for repaying their debts after a grace period that has yet to be determined). Instead, his administration seemed at first to neglect economic concerns in order to concentrate on human rights and labor issues. One of Alfonsín's first official acts was to sign decrees accusing the three past military juntas of human rights abuses that led to the deaths of at least 10,000 Argentines. His next step was to try to bring democratic procedures to the omnipotent labor unions that are the Perónists' power base. Explains Edgardo Catterberg, Alfonsín's adviser on public opinion: "If you want to create a democratic society, you have to have democratic unions." The attempt to proceed against the juntas has produced scant results beyond the detention of a few officers, although a newly established military tribunal has until the end of June to take action. And a bill that would have required democratic elections to fill union leadership positions was defeated in the Senate last March.
Thus most observers regard the dalliance with Isabel as a good move for Alfonsín. "Alfonsín can't lose," explains a senior diplomat in Buenos Aires. "If the unity approach works, he will have six to nine months of discussion rather than combat. If it doesn't work out, he will have an advantage because it could serve to split the opposition even further, and he can blame future failures on the Perónists."