TAG | Peronism
Comments off · Posted by Andrew Stuttaford in Uncategorized
Cross-posted on the Corner:
Critics of Pope Francis who describe him as a ‘socialist’ are fairly wide off the mark. Perhaps that was inevitable: Describing the ideology of a pope in conventionally political terms is, by definition, going to be a struggle. That said, in trying to understand Francis’ politics, it’s better to look to his Argentine past and, more specifically, Peronism and the way that Peronism (something, it should be said, of a shape-shifting concept) came to be understood.
For a deep dive into this issue, “Pope Francis, Perón, and God’s People: The Political Religion of Jorge Mario Bergoglio” by Claudio I. Remeseira is very well worth reading. Less subtly, Francis betrays clear signs of Peronist style, whether it’s authoritarianism, demagoguery and a certain weakness for conspiracy theory. So far as actual politics are concerned, his rejection of globalism fits fairly comfortably into Peronist notions of economic autarchy, and his ‘leftism’ as an extension of left-Peronism, the Peronism of the descamisados, a leftism that, combined with a certain anti-Americanism (Perón again) and that liking for strongman rule, made him so willing to help out the Castro brothers.
And not just that duo: Here’s Andres Oppenheimer, writing in the Miami Herald:
The Vatican’s mediation effort in Venezuela has been — to use a word much in vogue in Washington these days — a disaster. It has legitimized that country’s authoritarian ruler Nicolás Maduro, throwing him a lifeline when millions of protesters were demanding his resignation on the streets in October 2016. And it has helped him get back on his feet by further cracking down on the opposition.
Several interviews with Venezuelan opposition leaders and Organization of American States (OAS) Secretary General Luis Almagro this week convinced me that the Vatican’s mediation, and the opposition coalition’s failure to officially suspend it, have become the biggest obstacles for a solution to Venezuela’s political and economic crisis.
The Vatican’s mediation alongside that of the Union of South American Nations (UNASUR) — a group that has done virtually nothing but defend populist demagogues in the hemisphere — failed to result in any action. Maduro didn’t release Leopoldo Lopez and other prominent political prisoners, and as he has increased the overall number of political prisoners from 83 last year to 108 today, according to the Foro Penal research group’s figures…
It’s becoming increasingly clear that, to restore democracy in Venezuela, the United States and Latin American countries should implement the OAS Democratic Charter, which calls for gradual collective diplomatic sanctions against countries that break the rule of law.
But in an interview this week, Almagro told me that his hands are tied for as long as the Vatican-UNASUR mediation remains officially alive.
“While the Vatican remains there, we will definitely not take any action to move forward with the Democratic Charter,” Almagro told me. “If they tell us that that dialogue is over, and there is a formal communication by both the opposition and the Vatican to that effect, we will restart whatever work is needed.”
He added that, as of today, the paralysis in Venezuela is a result “of the Vatican’s presence and of a wait-and-see attitude by the Venezuelan opposition.” The Pope, argues Oppenheimer, should end the Vatican’s mediation efforts “and stop being an obstacle in the restoration of democratic rule in Venezuela”….
Maybe Francis will, but given the support that he has given to the Castro regime, I’m not optimistic.
ROME (AP) — Democratic presidential candidate Bernie Sanders said in an interview with The Associated Press that he met with Pope Francis, describing the meeting as a “real honor.”
Sanders said the meeting took place Saturday morning before the pope left for his one-day visit to Greece. He said he was honored by the meeting, and that he told the pope he appreciated the message that he is sending the world about the need to inject morality and justice into the world economy. Sanders said it’s a message he has been sending as well.
“We had an opportunity to meet with him this morning,” Sanders said. “It was a real honor for me, for my wife and I to spend some time with him. I think he is one of the extraordinary figures not only in the world today but in modern world history.”
Sanders said it was a brief meeting at the papal residence. “I told him that I was incredibly appreciative of the incredible role that he is playing in this planet in discussing issues about the need for an economy based on morality, not greed.”
Sanders and wife, Jane, stayed overnight at the pope’s residence, the Domus Santa Marta hotel in the Vatican gardens, on the same floor as the pope. They were seen at the hotel reception, carrying their own bags.
“Carrying their own bags”!
Oh the humility.
The Vatican is loathe to get involved in electoral campaigns, and usually tries to avoid any perception of partisanship as far as the pope is concerned. Popes rarely travel to countries during the thick of political campaigns, knowing a papal photo op with the sitting head of state can be exploited for political ends.
However, Francis has been known to flout Vatican protocol, and the meeting with Sanders is evidence that his personal desires often trump Vatican diplomacy.
“His message is resonating with every religion on earth [and] with people who have no religion and it is a message that says we have got to inject morality and justice into the global economy,” Sanders said.
No, the pope’s message, like Sanders’, is a variant of the same old destructive millenarian nonsense, a vessel for resentment, a pathway to misery for the many, to power for the few. The most important ideological difference between these two old conspiracy-theorists is that one was deeply influenced by leftist authoritarianism, the other by Peronism.
And Francis smiles more often.
This intriguing piece by Claudio Ivan Remeseira is a (very) long read, but (very) well worth it. It underlines yet again how much Pope Francis remains shaped by the intellectual and religious traditions of his homeland. That might be disappointing for anyone who wants to slot him into the neat categories of the American political debate (Francis is neither liberal nor conservative) and it will disappoint anyone who might have hoped that a pope might be a little less, well, parochial, but there we are.
During the first decades of the 20th century, after the so-called Modernist crisis and the battles against secularism and its offspring — unfettered capitalism on the socio-economic side, liberal democracy and communism on the political one — , the Papacy devised a strategy to regain center stage in world affairs. In Argentina, this political-religious creed took the form of what Italian historian Loris Zanatta called “the myth of the Catholic nation”.
…In this theology, the People are defined in a narrow sense as the poor and the dispossessed. Yet in contrast with the Marxist analysis of economic inequities deployed by Gustavo Gutiérrez, Juan Luis Segundo, Leonardo Boff and other stalwarts of Liberation Theology, the Argentine theologians emphasized the study of national history. Their interpretation of Argentina’s past, however, was also polemical. It was a rebuttal of the mainstream storyline that celebrated Argentina’s progress as a triumph of the Liberal elite that had ruled the country from the second half of the 19th century to the rise of populism in the 20th century. Starting in the 1920s, anti-liberal intellectuals who called themselves Revisionists turned that narrative on its head. Their hero was the bête noir of Liberal historians, Juan Manuel de Rosas, a governor of Buenos Aires who exerted his power over the whole country from 1829 to 1852, when he was deposed by a former loyalist.
As a young priest close to the Iron Guard, a right-wing Peronist group, Bergoglio absorbed those ideas, which have stuck with him to this day. According to fellow Jesuit theologian Juan Carlos Scannone, Bergoglio’s “four principles” of good governance (Time is greater than space; Unity prevails over conflict; Realities are more important than ideas; The whole is greater than the part), were extrapolated by him from a letter Rosas wrote in 1835 to Facundo Quiroga, another powerful Argentine caudillo, explaining why he opposed the drafting of a national Constitution. Those principles are constantly invoked by Francis and constitute the mainstay of the fourth chapter (“The Social Dimension of Evangelization”) of his apostolic exhortation Evangelii Gaudium.
In 1960 and 70s Argentina, the Rosas-Perón parallels were a truism of political debate — a popular leader who fought for the country’s wellbeing against all-powerful foreign interests and their treacherous local representatives. For Revisionists, the antithesis People vs. Anti-people is indeed the driving force of national history. The Anti-people encompasses all historical and present-day forces that thwart the People’s way to its Liberation: the political and corporate establishment, the anti-Peronist middle class, and an old enemy of Catholicism: the culture of the Enlightenment, the uprooted intellectualism of those who worship abstractions such as Liberty and Democracy and are always looking abroad for inspiration instead of embracing the originality of their own national experience.
The theologians of the People added to the mix a few more elements of the zeitgeist — anti-Imperialism, anti-colonialism, dependency theory and its center-periphery dualism — and wrapped it all up in the revolutionary language of the era. But their most lasting contribution was the justification of popular faith, another of Francis’ recurrent themes.
And (my emphasis added):
For all the efforts made after Vatican II to find an accommodation with contemporary world, there is something at the core of this world that rejects those efforts, a radical incompatibility. In the last analysis, the issue continues to be secularization. The challenge for the Catholic Church is how to accommodate to today’s world without being assimilated into its secular values.
Francis’ mindset straddles this divide. One Anti-Modern trait of his thinking is his mistrust of Liberalism. Despite his constant appeals to political tolerance, Francis’ political thought is rooted in a pre-modern, organicist view of the community as foundation of social and political life. Liberal democracy and the modern doctrine of human rights are the antithesis of that view. In Evangelii gaudium, the word “people” appears 164 times; the word “democracy”, not once.
Another trait is his hostility toward capitalism. Far for being inspired in any left-wing or Marxist philosophy, Francis’ anti-capitalism comes down from the European right-wing writers of the early 20th century, who in turn found their source of inspiration in the Middle Ages. At the final stage of the Cold War, John Paul II made a timid move towards accepting the market as an autonomous social force. In the age of the anti-globalization movement, Francis would have none of it. His critique of capitalism seems to go even further than the objections traditionally made by Catholic Social Teaching since Leo XIII’s Rerum Novarum. It is when indicting the world’s economic woes that Francis strikes his most prophetic tone (which, by the way, is another characteristic of Argentinian theology). The encyclical Laudato si, his great jeremiad against the evils of capitalism, has established Francis as one of the world’s foremost critics of Neoliberalism….
Seen from this perspective, the fact that capitalism has done so much for so many counts for very little with a pope who continually–and with somewhat unbecoming ostentation–humblebrags that he is a pope for the poor, heading a church for the poor. And that church needs the poor to remain poor if they are to continue to be its foot-soldiers in the long war against modernity.
Uki Goñi has written an article for the New York Times on Pope Francis’s Peronist roots.Here’s an extract:
Less known is that Perón took his cue from the politicized Catholic leaders of ’30s Argentina. Church leaders back then sought the integration of Argentina’s new working class by promoting radical labor reforms. Bishops addressed some of the country’s first large rallies of workers, and Perón cut his teeth speaking at meetings of the Círculos Católicos de Obreros (Catholic Worker Circles).
Perón’s alliance with the bishops was sealed when the 1943-46 military regime, in which he was vice president, made Catholic education obligatory in Argentina’s previously secular public schools. The process culminated in 1944 when Perón decorated a statue of the Virgin Mary with a military sash and appointed her a “general,” accompanied by a 21-gun salute.
Now that’s a nice touch, but, to be fair, it’s worth noting that Perón turned sharply against the church in the later part of his first stretch in power.
Back to Goñi:
“Neither Marxists nor Capitalists. Peronists!” was the chant of Perón’s supporters. And it was borrowing from the church’s political thinking that enabled Perón to found his “Third Way.”
It’s perhaps a little more complicated than that. Perón made a careful study of the politics of inter-war Europe (he was based there for a while) and essentially concluded that Argentina could learn most from the corporatism of fascist Italy, a corporatism that was itself partly a mutation of some of the political and economic ideas set out in De Rerum Novarum, a hugely influential late-19th-century encyclical.
And Perón was not the first to believe that he had found a “third way” between socialism and capitalism, a notion that was the conceit of a number of Roman Catholic intellectuals in the early 20th century, not least G. K. Chesterton, a rather better writer than economist (interestingly, shortly before he became pope, the then Cardinal Bergoglio approved the wording of a private prayer calling for Chesterton’s canonization).
Francis has also borrowed quite a bit of Peronist style too. Reading an article in CapX by Federico N. Fernández about the upcoming Argentine election, this passage made me think of the way Francis has of scattering villains, straw men and hints of conspiracy in some of his more overtly political speeches:
The [Peronist] Kirchner couple has had three consecutive terms in office since 2003. In these twelve years they have isolated Argentina from the rest of the world and their hate mongering tactics have fractured and polarized society.
Following the intellectual guidance of Ernesto Laclau (1935–2014), the Kirchners have run their administration on the basis of constant conflict and the “friend / foe” logic…The Kirchners divided society between “the people” and different enemies – a kind of satanic anti-people who is constantly plotting to undermine the achievements of the “popular government.”
In describing Peronist rule, Goñi writes that “the populist general upended Argentina’s class structure by championing the country’s downtrodden”. There’s quite a bit to that (although Perón’s policies should also be read as an expression of Argentine caudillismo), but what he does not say is that Peronism ended in economic disaster, a fact that has not stopped Pope Francis from peddling a very similar brand of snake oil for reasons, I suspect, that do not do him credit.
With Francis’s pontifical blessing , the greens have now found a spiritual hook that goes beyond the familiar bastions of the academy, bureaucracy, and the media and reaches right into the homes and hearts of more than a billion practicing Catholics. No potential coalition of interests threatened by a seeming tsunami of regulation—from suburban homeowners and energy firms to Main Street businesses—can hope to easily resist this alliance of the unlikely.
That may (yet) overstate the impact that the Pope, raging against the Devil one day, against air conditioning the next, may actually have, but it is a reminder of just how foolish it was of Speaker Boehner to invite Francis to speak to a joint session of Congress. It’s true that the encyclical had yet to appear when the invitation went out, but the fact that Francis is a profoundly political pope was no secret, and nor was the nature of his essentially Peronist politics.
But back to Kotkin:
There are of course historical parallels to this kind of game-changing alliance. In the late Roman Empire and then throughout the first Middle Ages, church ideology melded with aristocratic and kingly power to assure the rise of a feudal system. Issuing indulgences for the well-heeled, the Church fought against the culture of hedonism and unrestrained individualism that Francis has so roundly denounced. The Church also concerned itself with the poor, but seemed not willing to challenge the very economic and social order that often served to keep them that way.
Historically Medievalism represented a “steady state” approach to human development, seeking stability over change. Coming after the achievements of the classical age—with its magnificent engineering feats as well as an often cruel, highly competitive culture—the Middle Ages ushered in centuries of slow growth, with cities in decline and poverty universal for all but a few.
There’s something else though. The medieval church’s preference for ‘stability’ may or may not have been influenced by its perception that this was somehow better for the poor than any alternative (I doubt it), but it did have quite a bit to do with its realization that innovation and affluence represented a dangerous threat to its position in the intellectual, political and social order.
That, I suspect, is something that bothers Francis, who is no free spirit.
Kotkin’s article contains so much that it seems invidious just to post a few extracts (read the whole thing, really), but here goes:
What makes the Pope’s position so important—after all, the world is rejecting his views on such things as gay marriage and abortion—is how it jibes with the world view of some of the secular world’s best-funded, influential, and powerful forces. In contrast to both Socialist and capitalist thought, both the Pope and the greens are suspicious about economic growth itself, and seem to regard material progress as aggression against the health of the planet….
… Given their lack of faith in markets or people, the green movement has become ever less adept at adjusting to the demographic, economic, and technological changes that have occurred since the ’70s. Huge increases in agricultural productivity and the recent explosion in fossil fuel energy resources have been largely ignored or downplayed; the writ remains that humanity has entered an irreversible “era of ecological scarcity” that requires strong steps to promote “sustainability.”
…Ultimately the green platform seeks not to increase living standards as we currently understand them (particularly in high income countries) but to purposely lower them. This can be seen in the calls for “de-development,” a phrase employed by President Obama’s science advisor John Holdren for all “overdeveloped” advanced countries, in part to discourage developing countries from following a similar path.
So Prince Charles, another individual whose, so to speak, business flourishes best in ‘steady state’ societies, turns out, Kotkin explains, to be something of a fan of the slums of Bombay, which apparently offer more “durable ways of living” for the developing world than those available in the suburbanized west, a comment steeped in the revolting blend of ignorance, condescension and smugness all too typical of the heir to the British throne. May the Queen live to be 120!
Kotkin does, however, note the encouraging (and entertaining) prospect that the ideas of the self-proclaimed ‘Pope of the poor’ will be rejected by, well, the poor:
Trying to sell anti-growth green ideology may prove a tougher in the developing world. Not surprising then that, no matter what the rhetoric that is adopted by the climate conference to be held in Paris this month, critical figures like India’s Prime Minister Narendra Modi will not restrict building new coal plants—the country has tripled coal imports three fold since 2008. In the sweltering cities of the subcontinent, moves to ban air conditioning are simply not good politics. And Chinese President Xi Jinping, the leader of the world’s largest carbon emitter and user of coal, clearly has no real intention of reversing rapid development, based in large part fossil fuels, till 2030, when reasonably priced alternatives may well be generally available.
And then there’s this:
Architect Austin Williams suggests that sustainability, the new prayer word of spiritual greenism, “is an insidiously dangerous concept, masquerading as progress.” It poses an agenda that restricts industry, housing and incomes in a manner that severely undermines social aspiration. Indeed, Williams argues, greens and their allies—now including the world’s most important church—have created “a poverty of ambition.” Williams suggests the common green view is that humanity is “destructive and in need of reduction” rather than “a source of innovation, creativity, imagination and socialization.”
That is a profoundly anti-humane and, yes, dispiriting view. That Pope Francis has chosen to come so close to it says a great deal, little of it good.
Full Kotkin piece here (For some mysterious reason, I still cannot link): http://www.thedailybeast.com/articles/2015/07/05/green-pope-goes-medieval-on-planet.html
Cuban President Raul Castro has said he was so impressed by a Vatican audience with Pope Francis that he might return to the faith he was born into.
Mr Castro praised the pontiff’s wisdom, adding: “I will resume praying and turn to the Church again if the Pope continues in this vein.”
He thanked the Pope for brokering a rapprochement between Cuba and the US.
The communist leader had stopped at the Vatican after attending Russia’s World War Two Victory Day in Moscow.
The Catholic Church has maintained ties with Havana since the 1959 revolution. The Pope will visit Cuba on his way to the US in September.
For Pope Francis, the restoration of relations between the US and Cuba – agreed during secret talks at the Vatican – has been a major diplomatic achievement, says the BBC’s David Willey in Rome.
The US had imposed a trade embargo after Cuba’s revolution, which it began to lift late last year.
After the 50-minute private audience on Sunday, Mr Castro told reporters: “The pontiff is a Jesuit, and I, in some way, am too. I studied at Jesuit schools.”
After suggesting he might turn again to the Church, he added: “I mean what I say.”
Both Mr Castro and his brother, revolutionary leader Fidel Castro, were baptised as Roman Catholics, but most Church activities were suppressed after the revolution.
Francis will be the third Pope to travel to Cuba, following visits there by John Paul II in 1998 and Benedict XVI in 2012.
Contrary to what his fiercer critics like to claim, Pope Francis is not a Marxist. He is more of Peronist (without the anti-clericalism!) a movement that saw itself as representing a ‘third way’ between conmmunism and capitalism. Under the circumstances it is no surprise that there may be quite a bit of the pope’s “wisdom” that the Cuban dictator can find to like.
Pope Francis gave a speech at the EU parliament last week. There were the usual leftist themes that we have come to expect from this pope (“we encounter certain rather selfish lifestyles, marked by an opulence which is no longer sustainable”, “uncontrolled consumerism” and so on) complete with the hints of dark conspiracies that remind us that Francis’ thinking remains heavily influenced by the Peronist Argentina of his youth:
The true strength of our democracies – understood as expressions of the political will of the people – must not be allowed to collapse under the pressure of multinational interests which are not universal, which weaken them and turn them into uniform systems of economic power at the service of unseen empires.
And there was the jibe directed at Europe’s failure to live up to the Vatican’s natalist expectations:
In many quarters we encounter a general impression of weariness and aging, of a Europe which is now a “grandmother”, no longer fertile and vibrant.
Over at the XX Committee, John Schindler picks up on that, correctly noting that low fertility is not only a European “problem” (his word, not mine), but then goes on to argue this:
Francis’s analysis of Europe’s population problem, which is really a deep crisis of civilizational pride, identity and meaning, manifesting in a lack of will to even reproduce, is difficult to refute…
On the contrary, it couldn’t be easier. Declining birth rates can be a response to economic pressure, certainly (as was evident, say, during the Great Depression or in Eastern Europe during and after the Soviet collapse), but it’s a stretch to see it as evidence of Europe’s civilizational decline. British birth rates, for example, began to drop in the later Victorian era, a time when its national self-confidence stood at a zenith that was, broadly, to endure until 1914:
The decline in birth rates, identified as stage three of the demographic transition, took place in England from around 1870 to 1920. In 1871 the average woman was having 5.5 children but by 1921 this had fallen to 2.4 children.
(Office of National Statistics)
Smaller families is what people want when science and the likely survival of their existing children give them the chance to make that choice. And as we enter an age where, thanks to automation, the demand for labor—as we are already seeing—is ebbing, that’s not such a bad thing.
That’s not to say that the transition to a lower birth rate is without its problems. It isn’t (who pays for the old?), but they will not be solved by more people: the unemployed will not be able to pay for the retired. Mass immigration is not the answer.
On that topic, Francis had quite a bit to say, using the hideous tragedy of the drownings at sea of would-be immigrants (“We cannot allow the Mediterranean to become a vast cemetery.”) as (in essence) an argument for Europe to adopt an even more open immigration policy than it already has, something he has done before, perhaps most notoriously in his speech on the Italian island of Lampedusa, a performance that ‘Theodore Dalrymple’ (Anthony Daniels) quite right rightly described as a display of “moral exhibitionism”.
Meanwhile, Schindler notes:
“Why aren’t hundreds of asylum seekers drowning trying to get to Japan?” asked one analyst, pointedly, a year ago. After all, Japan is a very nice country with a most advanced economy and a desperate shortage of people. But refugees don’t try to reach the coast of Japan. For the simple reason they know they will be turned away. Preferring to preserve its native population, Japan turns away virtually all refugee claimants, while Australia lets many of them in, with generous benefits to boot. South Korea, like Japan, is not open to more than few refugees despite a serious birth dearth, so few come. In 2014, any developed country that pursues a permissive policy towards refugees is going to get more of them, perhaps many more.
And finally, when it came to the pope’s comments on the current unhappy state of the EU, many euroskeptics seemed to enjoy the thought that the pope was one of them. They were wrong.
Writing in the Daily Telegraph (link via EUReferendum), Christopher Booker explains:
The Pope’s address to the European Parliament seemed devastatingly critical. He spoke of how “the great ideas which once inspired Europe seem to have lost their attraction, only to be replaced by the bureaucratic technicalities of its institutions”.
He described it as looking “elderly and haggard” in “a world which frequently regards it with aloofness, mistrust and even, at times, suspicion”. He observed how it had lost the trust of its citizens, who see it too often as “downright harmful”.
Reading the Pope’s speech in full, however, he doesn’t seem to have grasped the EU’s real nature at all: in particular, why the core principles on which it was set up were inevitably destined to bring it to its present dismal pass.
Somehow the pope seems to have missed the fact that the EU was a profoundly post-democratic project. How it was sold (peace, reconciliation and so on) bore little relation to what it really was.
There are those who think that Europe’s appalling unemployment problem can be explained by overly rigid labor markets, the spiraling energy costs that greenery has brought in its wake and, of course, the ill-judged introduction of the euro.
Pope Francis has a different explanation:
“What can we say, when faced with the very serious problem of unemployment that affects various European countries?”, he asked. “It is the consequence of an economic system that is no longer able to create work, because it has placed at its centre the idol of money…”
It’s hard to work out what’s worst about that comment, its frivolity, its ignorance or its demagoguery.
In the course of a lengthy piece on Pope Francis, The Economist looks at the pontiff’s political and economic opinions and (correctly, in my view) finds them rooted in the history of the country of his birth:
The political landscape of Francis’s homeland, however, offers a more accurate, and nuanced, understanding of his views. For most of his life Argentina has plotted a kind of third way between Marxism and liberalism—albeit one with disastrous political and economic results. “[Francis] only knows one style of politics,” says a diplomat accredited to the Holy See. “And that is Peronism.”
The creed bequeathed by Argentina’s former dictator, General Juan Perón, with its “three flags” of social justice, economic independence and political sovereignty, has been endlessly reinterpreted since. Conservatives and revolutionaries alike have been proud to call themselves Peronist. But at its heart it is corporatist, assigning to the state the job of resolving conflicts between interest groups, including workers and employers. In that respect it resembles fascism and Nazism—and also Catholic social doctrine.
The pope’s Peronist side shows in his use of a classic populist technique: going over the heads of the elite to the people with headline-grabbing gestures and comments. And it is visible in his view of political economy, which also has much in common with post-Marxist protest movements such as Occupy Wall Street, the Spanish indignados and Italy’s Five Star Movement. “While the earnings of a minority are growing exponentially, so too is the gap separating the majority from the prosperity enjoyed by the happy few,” he has written. “This imbalance is the result of ideologies which defend the absolute autonomy of the marketplace and financial speculation. Consequently, they reject the right of states, charged with vigilance for the common good, to exercise any form of control.”
The Economist is perhaps too polite to mention the fact that crude reductionism, scapegoating and argument by straw man are also often “classic populist techniques”, and ones, regrettably, that this pope sometimes appears willing to deploy. Nevertheless, the magazine does find space to include this:
One passage in Evangelii Gaudium [This pope’s first ‘Apostolic Exhortation’] appalled many: “Just as the commandment: ‘Thou shalt not kill,’ sets a clear limit in order to safeguard the value of human life, today we also have to say ‘Thou shalt not,’ to an economy of exclusion and inequality.” Even more radically, he quoted St John Chrysostom, an early church father: “Not to share one’s wealth with the poor is to steal from them.”
This, of course, was (as The Economist noted) the same document that included, without qualification, this:
“Today everything comes under the laws of competition and the survival of the fittest, where the powerful feed upon the powerless.”
Comments off · Posted by Andrew Stuttaford in economics
Under first Nestor, and then Cristina, Kirchner, Argentina has been pursuing an economic policy that, in its suspicion of free markets, distrust of globalization and strong redistributionist vein, reflects a long Argentine tradition that extends far beyond the Kirchner camp, and, indeed, finds some reflection in some of the pronouncements of, ahem, one rather prominent Argentine now resident in the Vatican.
So how’s it working out?
The Guardian reports:
Following the sudden collapse in the peso this week, some Argentinians fear their country may be lurching into a new episode of the crises that seem to hit the country’s economy almost every decade. Scrambling to protect the country’s perilously low central bank reserves, which dropped 30% last year and fell below $30bn (£18bn) this month, the government of President Cristina Fernández de Kirchner seemed at a loss how to proceed. It started the week introducing tight controls on the purchase of online goods from abroad, to prevent Argentinians from spending dollars in ever larger quantities – especially on Chinese products which, as a result of 30% inflation, can be cheaper delivered to their door from abroad than bought at local stores.
But on Friday the government seemed to do a U-turn, saying it would relax its grip on the dollar. From next week it will remove some of the controls it introduced two years ago which banned Argentinians from trading their pesos for dollars, a customary practice in a country with a long history of inflation.The dollar freeze paralysed the property market, which operates in dollars, but failed to stem the rush away from the peso. Instead it created a black market where the dollar has risen from eight to 13 pesos in the last year while the central bank continued using – and losing – reserves trying to keep the dollar in check. Its battle was ultimately lost this week in view of the peso’s sudden collapse.
Seemingly oblivious to the country’s economic plight, Fernández has referred to the last 10 years – since her husband assumed Argentina’s presidency in 2003, and she took over in 2007 – as the “victorious decade”. But this week’s forced devaluation of the official exchange rate may make it difficult to continue repeating a slogan habitually used in speeches by government officials, printed on billboards and even emblazoned on a recent series of commemorative stamps.
To 68-year-old Aida Ender, after 40 days without power in her eighth-floor apartment in the middle-class neighbourhood of Almagro in Buenos Aires, the slogan grates like a bad joke. “There’s no plan, the president is out of touch with reality, she’s lost like Alice in Wonderland,” says Ender, who has had to move out of her apartment, where she has had no water, no working lift and no refrigeration since 16 December. Her plight is shared by thousands of neighbours and even hospitals, in the middle of unusual summer highs of close to 40C. Economic observers blame the government’s populist policies – including keeping utility prices artificially low to disguise inflation – for the power crisis. They say this has made it impossible for firms to invest in maintaining power lines.
The government denies the charges and says that inflation is fuelled by anti-government businessmen.
…At least 11 people were killed and hundreds injured last month when a wave of supermarket looting spread across Argentina, fuelled by a combination of rising food prices and a police strike for higher wages.
The Economist adds:
As of Monday January 27th, the government will supposedly lift this invisible “clamp”. Today’s announcement by Jorge Capitanich, the cabinet chief, lasted only a minute and left his audience with more questions than answers. He revealed only that the exchange restrictions will be lifted for individuals, not for businesses; and that Argentines will still need to present tax affidavits along with their requests for dollars. Those making dollar purchases for travel will be charged a 20% tax advance on such purchases, down from 35% now.
One explanation for the events of the past week is that the authorities can no longer afford to prop up the peso by using Central Bank reserves. Although the 2011 dollar restrictions succeeded in stanching capital flight, they failed to stop the fall of Argentina’s international reserves. In 2011, when the clamp was implemented, the reserves were around $47 billion. They have since dropped below $30 billion. With an energy bill of $15 billion and debt obligations of $10 billion to pay this year, the Central Bank cannot endure much more pressure.
On the other hand, letting the peso plummet as Argentines rush to swap their money into dollars could quickly lead to panic. Even if the Central Bank stops intervening, AFIP, Argentina’s tax agency, will continue to control dollar sales, meaning Argentines could still face rejection of their exchange requests without explanation. Despite this morning’s announcement several black-market exchange houses in Buenos Aires, unsure of what the next week might bring, are still hungrily buying and selling at a rate of roughly 12 pesos to the dollar, well above the official rate of 8.1.
But at least Argentines are being spared the horrors of the free market!