Carlos Menem
Encyclopedia
Carlos Saúl Menem is an Argentine politician who was President of Argentina
from 1989 to 1999. He is currently an Argentine National Senator
for La Rioja Province
.
, Argentina. His parents were immigrants from the Syria
n village of Yabrud
(part of the Ottoman Empire
when they departed), and as a young man, he joined his father as a traveling salesman
dealing in feed and sundry items. Menem enrolled in the National University of Córdoba
, and received the degree of "Abogado", equivalent to a Bachelor of Laws, in 1955. As a Law student, he became a vocal Peronist, and after President Juan Perón
's overthrow that year, he was briefly incarcerated. He later joined the Peronist Party's successor, the Justicialist Party
, and was elected President of its La Rioja Province chapter, in 1983.
in March 1976. Having been close to La Rioja Bishop Enrique Angelelli
(a Third World Priest
opposed by much of Argentina's conservative Roman Catholic Church), he was imprisoned by the military junta
in Formosa Province
until 1981, reportedly tortured in the process.
in the 1988 primary elections and was elected President on May 14, 1989, succeeding Raúl Alfonsín
. His campaign was centered on vague promises of a "productive revolution" and a "salariazo" (jargon for big salary increases), aimed at the working class, the traditional constituents of the Peronist Party
. Jacques de Mahieu
, a French ideologue of the Peronist movement (and former Vichy
Collaborationist), was photographed campaigning for Menem.
Menem was originally slated to take office on December 10. However, amid a massive economic downturn, Alfonsin opted to transfer power to Menem five months early, on July 8. Menem's accession marked the first time since Hipólito Yrigoyen
took office in 1916 that an incumbent government peacefully surrendered power to a member of the opposition.
Menem assumed duties in the midst of a major economic crisis which included hyperinflation
and recession
. After a failed stabilization program sponsored by Bunge y Born
(a leading agribusiness
firm), and another one involving the conversion of time deposits into government bonds, newly-appointed Finance Minister Domingo Cavallo
introduced a series of reforms in 1991 and pegged
the value of the Argentine peso
to the US$. This Convertibility Plan
was followed by a wholesale privatization
of utilities (including the oil company Yacimientos Petrolíferos Fiscales
(YPF), the post office, telephone, gas, electricity and water utilities). A massive influx of foreign direct investment
funds helped tame inflation (from 5,000% a year in 1989 to single digits by 1993) and improved long-stagnant productivity, though at the cost of considerable unemployment.
Menem's successful turnaround of the economy made the country one of the top performers of the developing countries in the world. Argentina's GDP (below 1973 levels when Menem took office) increased 35% from 1990 to 1994 and fixed investment
, by 150%. Negotiations with Brazil resulted in the Mercosur
customs union
, in March 1991, and on November 14, he addressed a joint session of the U.S. Congress, being one of only three Argentine presidents who had that distinction (together with Raúl Alfonsín
and Arturo Frondizi
). Menem was reelected to the presidency by a large majority in the 1995 elections.
The early success of the dollar peg (when the dollar was falling) was followed by increasing economic difficulties when the dollar began to rise from 1995 onwards in international markets. High external debt also caused increasing problems as financial crises affecting other countries (the Tequila Crisis in Mexico, the East Asian financial crisis
, the Russian financial crisis in 1998) led to higher interest rates for Argentina as well. At the end of his term, Argentina's country risk
premium was a low 6.10 percentage points above yield on comparable U.S. Treasuries.
Some years after the end of Menem's term, the combination of fixed-rate convertibility and high fiscal deficits proved unsustainable, despite massive loan support from the International Monetary Fund
, and had to be abandoned in 2002, with disastrous effects
on the Argentine economy. Though most of the State enterprises privatized during his tenure remain in private hands, perhaps the most significant economic legacy of his administration, private pension fund
s, have since largely been returned to the public sector. First licensed in 1994, these grew to over us$ 30 billion in assets, but suffered large losses during the 1998–2002 crisis, and by 2008, depended on subsidies to cover minimum monthly pensions. Most affiliates, moreover, had stopped making contributions. The 2008 financial crisis exacerbated the problem, and the funds were largely replaced by the public social security system in late 2008.
enjoyed victories in mid-term elections in 1991
and 1993
, as well as in his 1995 campaign for reelection. Menem's government re-established relations with the United Kingdom, suspended since the Falklands War
, within months of taking office. He also earned plaudits for resolving territorial disputes with neighboring Chile
, and during his administration, over 20 border issues
with Chile – including the arbitration of the especially serious Laguna del Desierto dispute – were peacefully solved. In domestic policy, programs were created for improving AIDS awareness, flood prevention, vaccination, and improving child nutrition. In addition, a Social Plan was launched which increased spending on antipoverty programs, while a number of social programs executed by other government agencies targeted poor Argentines. These policies arguably had a positive impact on poverty reduction, with the percentage of Argentines estimated to living in poverty falling during Menem's first term as president.
In 1994, after a political agreement (the Olivos Pact) with the Radical Civic Union
party leader, former president Raúl Alfonsín
, Menem succeeded in having the Constitution
modified
to allow presidential re-election, so that he could run for office once again in 1995. The new Constitution, however, introduced decisive checks and balances to presidential power. It made the Mayor of Buenos Aires
an elective position (previously the office belonged to a presidential appointee and was in control of a huge budget), to be lost to the opposition in 1996; the president of the Central Bank and the Director of the AFIP (Federal Tax & Customs Central Agency) could only be removed with the Congress
's approval. It also created the ombudsman
position, as well as a board to propose new judicial candidates.
His tenure suffered, however, from local economic fallout due to the Mexican peso crisis of 1995, and became tainted with repeated accusations of corruption. His handling of the investigations of the 1992 Israeli Embassy bombing
and the 1994 bombing of the AMIA Jewish community center
was often criticised as being dishonest and superficial. He is suspected of diverting the investigation from the "Iranian clue", which would lead to the responsibility of that country in the attack.
One of the most criticized measures of his administration was the pardon
he granted on December 29, 1990, to Jorge Videla, Emilio Massera, Leopoldo Galtieri
and other leaders of the 1976–83 dictatorship
convicted in the 1985 Trial of the Juntas, and some guerrilla leaders as well, on the grounds of "national reconciliation". This action sparked a protest of nearly 50,000 people in Buenos Aires. Former President Raúl Alfonsín
called it "the saddest day in Argentine history." His neoliberal
policies were also criticized by the majority of the population and by some in the Catholic Church
, and gave rise to the Piquetero
movement of unemployed workers. These mounting problems and a rise in crime rates helped lead to the president's first electoral defeat, during the 1997 mid-term elections
.
With regards to the military, Menem ordered the forceful repression of a politically-motivated uprising by a far-right figure, Col. Mohamed Alí Seineldín
, on December 3, 1990, and thus ended the military's involvement in the country's political life. Menem also effected drastic cuts to the military budget, and appointed Lt. Gen. Martín Balza
as the Army's General Chief of Staff (head of the military hierarchy); Balza, a man of strong democratic convictions and a vocal critic of the Falklands War
, had stood up for the legitimate government in every attempted coup d'état throughout his senior career, and gave the first institutional self-criticism about the Armed Forces' involvement in the 1976 coup and the ensuing reign of terror. Following the brutal death of a conscript, Menem abolished conscription
in 1994, decisively ending a military prerogative over society and its self-perceived role as an institution that it "made men out of boys
".
Menem's attempt to run for a third term in 1999 was unsuccessful, as it was ruled to be unconstitutional. Opposition candidate Fernando de la Rúa
defeated Eduardo Duhalde
, the nominee of Menem's party, and succeeded Menem as President.
Menem tried again four years later, winning the greatest number of votes, 24%, in the first round of the April 27, 2003 presidential election
. This was far from the 45% required for election (or 40% if the margin of victory is 10 or more percentage points), and so a second-round run-off vote between Menem and second-place finisher and fellow Peronist Néstor Kirchner
, who had gotten 22%, was scheduled for May 18.
However, by this time Menem had become very unpopular, and the consensus of most polls was that he faced almost certain defeat by Kirchner in the runoff. A few polls showed Menem losing by 40 points. Certain that he was about to face a humiliating electoral defeat, Menem withdrew his candidacy on May 14, effectively handing the presidency to Kirchner.
In June 2004 Menem announced that he had founded a new faction within the Justicialist Party
, called "People's Peronism," and stated his ambition to run in the 2007 election
.
In 2005, the press reported that he was trying to make an alliance with his former Minister of Economy
Domingo Cavallo
to fight in the parliamentary elections. The alliance was apparently frustrated; Menem said that there had been only preliminary conversations. In the October 23 elections, Menem won the minority seat in the Senate representing his province of birth. This was viewed as a catastrophic defeat, signaling the end of his political dominance in La Rioja, since the two senators for the majority were won by President Kirchner's faction, locally led by former Menemist governor Ángel Maza
. It was the first time in 30 years that Menem lost an election.
Menem ran for Governor of La Rioja in August 2007, but was defeated, receiving third place with about 22% of the vote. Following this defeat in his home province, he withdrew his candidacy for president. At the end of 2009 he announced that he intends to run for the presidency again in the 2011 elections.
and Croatia
in 1991 and 1996, and remained under house arrest until November. He appeared before a judge in late August 2002 and denied all charges. It was hinted that Menem held more than US$ $10 million in Swiss bank accounts. However, the Swiss banks and authorities denied these allegations.
Menem and his second wife Cecilia Bolocco, who had had a child since their marriage in 2001, moved to Chile
. Argentine judicial authorities repeatedly requested Menem's extradition to face embezzlement charges, but this was rejected by the Chilean Supreme Court, as under Chilean law people cannot be extradited for questioning.
On December 22, 2004, he returned to Argentina
after his arrest warrants were cancelled. He still faces charges of embezzlement and failing to declare illegal funds outside of Argentina
.
In August 2008, it was announced Menem was under investigation for his role in the 1995 Río Tercero explosion
, which is alleged to have been part of the arms scandal involving Croatia and Ecuador.
In December 2008, the German multinational
Siemens
agreed to pay an $800 million fine to the United States government, and approximately €700 million to the German government, to settle allegations of bribery. The settlement revealed that Menem received about US$2 million in bribes from Siemens in exchange for awarding the national ID card and passport production contract to Siemens; Menem denied the charges.
President of Argentina
The President of the Argentine Nation , usually known as the President of Argentina, is the head of state of Argentina. Under the national Constitution, the President is also the chief executive of the federal government and Commander-in-Chief of the armed forces.Through Argentine history, the...
from 1989 to 1999. He is currently an Argentine National Senator
Argentine Senate
The Argentine Senate is the upper house of the Argentine National Congress. It has 72 senators: three for each province and three for the Autonomous City of Buenos Aires...
for La Rioja Province
La Rioja Province (Argentina)
La Rioja is a one of the provinces of Argentina and is located in the west of the country. Neighboring provinces are from the north clockwise Catamarca, Córdoba, San Luis and San Juan.-History:...
.
Early life
Carlos Saúl Menem Akil was born in 1930 in Anillaco, a small town in the mountainous north of La Rioja ProvinceLa Rioja Province (Argentina)
La Rioja is a one of the provinces of Argentina and is located in the west of the country. Neighboring provinces are from the north clockwise Catamarca, Córdoba, San Luis and San Juan.-History:...
, Argentina. His parents were immigrants from the Syria
Syria
Syria , officially the Syrian Arab Republic , is a country in Western Asia, bordering Lebanon and the Mediterranean Sea to the West, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest....
n village of Yabrud
Yabrud
Yabrud is a city in Syria, located in the Rif Dimashq governorate about 80 km north of the capital Damascus. The city is known for its ancient caves, most notably the Iskafta cave , and the Yabrud temple, which was once Jupiter...
(part of the Ottoman Empire
Ottoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...
when they departed), and as a young man, he joined his father as a traveling salesman
Vendor (supply chain)
A vendor, or a supplier, is a supply chain management term meaning anyone who provides goods or services to a company. A vendor often manufactures inventoriable items, and sells those items to a customer.- History :...
dealing in feed and sundry items. Menem enrolled in the National University of Córdoba
National University of Córdoba
The National University of Córdoba, , is the oldest university in Argentina, and one of the oldest in the Americas. It is located in Córdoba, the capital of Córdoba Province. Since the early 20th century it has been the second largest university in the country in terms of the number of students,...
, and received the degree of "Abogado", equivalent to a Bachelor of Laws, in 1955. As a Law student, he became a vocal Peronist, and after President Juan Perón
Juan Perón
Juan Domingo Perón was an Argentine military officer, and politician. Perón was three times elected as President of Argentina though he only managed to serve one full term, after serving in several government positions, including the Secretary of Labor and the Vice Presidency...
's overthrow that year, he was briefly incarcerated. He later joined the Peronist Party's successor, the Justicialist Party
Justicialist Party
The Justicialist Party , or PJ, is a Peronist political party in Argentina, and the largest component of the Peronist movement.The party was led by Néstor Kirchner, President of Argentina from 2003 to 2007, until his death on October 27, 2010. The current Argentine president, Cristina Fernández de...
, and was elected President of its La Rioja Province chapter, in 1983.
Governor of la Rioja
1st term (1973–1976)
Menem was elected Governor of La Rioja in 1973, a prominent post that left him exposed after the overthrow of President Isabel Martínez de PerónIsabel Martínez de Perón
María Estela Martínez Cartas de Perón , better known as Isabel Martínez de Perón or Isabel Perón, is a former President of Argentina. She was also the third wife of another former President, Juan Perón...
in March 1976. Having been close to La Rioja Bishop Enrique Angelelli
Enrique Angelelli
Enrique Ángel Angelelli was a bishop of the Roman Catholic Church in Argentina, killed during the Dirty war for his involvement with social issues....
(a Third World Priest
Movement of Priests for the Third World
The Movement of Priests for the Third World was a tendency among the Catholic Church in Argentina which aimed at combining reform ideas which followed the Second Vatican Council with a strong political and social participation...
opposed by much of Argentina's conservative Roman Catholic Church), he was imprisoned by the military junta
National Reorganization Process
The National Reorganization Process was the name used by its leaders for the military government that ruled Argentina from 1976 to 1983. In Argentina it is often known simply as la última junta militar or la última dictadura , because several of them existed throughout its history.The Argentine...
in Formosa Province
Formosa Province
Formosa Province is in northeastern Argentina, part of the Gran Chaco Region. Its northeast end touches Asunción, Paraguay, and borders the provinces of Chaco and Salta to its south and west, respectively...
until 1981, reportedly tortured in the process.
2nd and 3rd terms (1983–1989)
In October 1983, with the collapse of military rule, Menem was elected once again as Governor of La Rioja, and reelected in 1987. During this second turn at the Governor's desk, Menem implemented generous corporate tax exemptions, attracting the first sizable presence of light manufacturing his province had ever seen. The pragmatic Governor Menem, nevertheless, kept provincial payrolls well-padded.The 1989 election
Campaigning as a maverick within his own party, he defeated longtime Peronist leader Antonio CafieroAntonio Cafiero
Antonio Francisco Cafiero is an Argentine Justicialist Party politician.-Biography:Cafiero was born in Buenos Aires. He joined Catholic Action in 1938, and enrolled at the University of Buenos Aires, becoming President of the Students' Association...
in the 1988 primary elections and was elected President on May 14, 1989, succeeding Raúl Alfonsín
Raúl Alfonsín
Raúl Ricardo Alfonsín was an Argentine lawyer, politician and statesman, who served as the President of Argentina from December 10, 1983, to July 8, 1989. Alfonsín was the first democratically-elected president of Argentina following the military government known as the National Reorganization...
. His campaign was centered on vague promises of a "productive revolution" and a "salariazo" (jargon for big salary increases), aimed at the working class, the traditional constituents of the Peronist Party
Peronism
Peronism , or Justicialism , is an Argentine political movement based on the programmes associated with former President Juan Perón and his second wife, Eva Perón...
. Jacques de Mahieu
Jacques de Mahieu
Jacques de Mahieu was a French academic and Nazi collaborator who taught mainly in Argentina.- Early life and political activities :...
, a French ideologue of the Peronist movement (and former Vichy
Vichy
Vichy is a commune in the department of Allier in Auvergne in central France. It belongs to the historic province of Bourbonnais.It is known as a spa and resort town and was the de facto capital of Vichy France during the World War II Nazi German occupation from 1940 to 1944.The town's inhabitants...
Collaborationist), was photographed campaigning for Menem.
Menem was originally slated to take office on December 10. However, amid a massive economic downturn, Alfonsin opted to transfer power to Menem five months early, on July 8. Menem's accession marked the first time since Hipólito Yrigoyen
Hipólito Yrigoyen
Juan Hipólito del Sagrado Corazón de Jesús Irigoyen Alem was twice President of Argentina . His activism became the prime impetus behind the obtainment of universal suffrage in Argentina in 1912...
took office in 1916 that an incumbent government peacefully surrendered power to a member of the opposition.
Economy
Hyperinflation
In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...
and recession
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
. After a failed stabilization program sponsored by Bunge y Born
Bunge y Born
Bunge y Born was a multinational corporation based in Buenos Aires, Argentina, whose diverse interests included food processing and international trade in grains and oilseeds...
(a leading agribusiness
Agribusiness
In agriculture, agribusiness is a generic term for the various businesses involved in food production, including farming and contract farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing, and retail sales....
firm), and another one involving the conversion of time deposits into government bonds, newly-appointed Finance Minister Domingo Cavallo
Domingo Cavallo
Domingo Felipe "Mingo" Cavallo is an Argentine economist and politician. He has a long history of public service and is known for implementing the Convertibilidad plan, which fixed the dollar-peso exchange rate at 1:1 between 1991 and 2001, which brought the Argentine inflation rate down from over...
introduced a series of reforms in 1991 and pegged
Fixed exchange rate
A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.A fixed exchange rate is usually used to...
the value of the Argentine peso
Argentine peso
The peso is the currency of Argentina, identified by the symbol $ preceding the amount in the same way as many countries using dollar currencies. It is subdivided into 100 centavos. Its ISO 4217 code is ARS...
to the US$. This Convertibility Plan
Argentine Currency Board
The Argentine Currency Board pegged the Argentine peso to the U.S. dollar between 1991 and 2002 in an attempt to eliminate hyperinflation and stimulate economic growth. While it initially met with considerable success, the board's actions ultimately failed. In contrast of what most people think,...
was followed by a wholesale privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
of utilities (including the oil company Yacimientos Petrolíferos Fiscales
Yacimientos Petrolíferos Fiscales
Yacimientos Petrolíferos Fiscales is an Argentine oil company.Founded in 1922 under President Hipólito Yrigoyen's administration, it was privatized in 1993 by Carlos Menem, and bought by the Spanish firm Repsol; the resulting merger in 1999 produced Repsol YPF...
(YPF), the post office, telephone, gas, electricity and water utilities). A massive influx of foreign direct investment
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
funds helped tame inflation (from 5,000% a year in 1989 to single digits by 1993) and improved long-stagnant productivity, though at the cost of considerable unemployment.
Menem's successful turnaround of the economy made the country one of the top performers of the developing countries in the world. Argentina's GDP (below 1973 levels when Menem took office) increased 35% from 1990 to 1994 and fixed investment
Fixed investment
Fixed investment in economics refers to investment in fixed capital, i.e., tangible capital goods , or to the replacement of depreciated capital goods which have been scrapped....
, by 150%. Negotiations with Brazil resulted in the Mercosur
Mercosur
Mercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,...
customs union
Customs union
A customs union is a type of trade bloc which is composed of a free trade area with a common external tariff. The participant countries set up common external trade policy, but in some cases they use different import quotas...
, in March 1991, and on November 14, he addressed a joint session of the U.S. Congress, being one of only three Argentine presidents who had that distinction (together with Raúl Alfonsín
Raúl Alfonsín
Raúl Ricardo Alfonsín was an Argentine lawyer, politician and statesman, who served as the President of Argentina from December 10, 1983, to July 8, 1989. Alfonsín was the first democratically-elected president of Argentina following the military government known as the National Reorganization...
and Arturo Frondizi
Arturo Frondizi
Arturo Frondizi Ercoli was the President of Argentina between May 1, 1958, and March 29, 1962, for the Intransigent Radical Civic Union.-Early life:Frondizi was born in Paso de los Libres, Corrientes Province...
). Menem was reelected to the presidency by a large majority in the 1995 elections.
The early success of the dollar peg (when the dollar was falling) was followed by increasing economic difficulties when the dollar began to rise from 1995 onwards in international markets. High external debt also caused increasing problems as financial crises affecting other countries (the Tequila Crisis in Mexico, the East Asian financial crisis
East Asian financial crisis
The Asian financial crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion....
, the Russian financial crisis in 1998) led to higher interest rates for Argentina as well. At the end of his term, Argentina's country risk
Country risk
Country risk refers to the risk of investing in a country, dependent on changes in the business environment that may adversely affect operating profits or the value of assets in a specific country...
premium was a low 6.10 percentage points above yield on comparable U.S. Treasuries.
Some years after the end of Menem's term, the combination of fixed-rate convertibility and high fiscal deficits proved unsustainable, despite massive loan support from the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
, and had to be abandoned in 2002, with disastrous effects
Argentine economic crisis (1999-2002)
The Argentine economic crisis was a financial situation, tied to poilitical unrest, that affected Argentina's economy during the late 1990s and early 2000s...
on the Argentine economy. Though most of the State enterprises privatized during his tenure remain in private hands, perhaps the most significant economic legacy of his administration, private pension fund
Pension fund
A pension fund is any plan, fund, or scheme which provides retirement income.Pension funds are important shareholders of listed and private companies. They are especially important to the stock market where large institutional investors dominate. The largest 300 pension funds collectively hold...
s, have since largely been returned to the public sector. First licensed in 1994, these grew to over us$ 30 billion in assets, but suffered large losses during the 1998–2002 crisis, and by 2008, depended on subsidies to cover minimum monthly pensions. Most affiliates, moreover, had stopped making contributions. The 2008 financial crisis exacerbated the problem, and the funds were largely replaced by the public social security system in late 2008.
Politics
Menem's presidency was initially bolstered by the significant economic recovery in evidence following Cavallo's appointment as Economy Minister, and his Justicialist PartyJusticialist Party
The Justicialist Party , or PJ, is a Peronist political party in Argentina, and the largest component of the Peronist movement.The party was led by Néstor Kirchner, President of Argentina from 2003 to 2007, until his death on October 27, 2010. The current Argentine president, Cristina Fernández de...
enjoyed victories in mid-term elections in 1991
Argentine legislative election, 1991
The Argentine legislative elections of 1991 were held between August and December, though most polls took place on 8 September. Voters chose their legislators and governors and, with a turnout of 79.9%, it produced the following results:-Argentine Congress:...
and 1993
Argentine legislative election, 1993
The Argentine legislative elections of 1993 were held on 3 October. Voters chose their legislators and, with a turnout of 80.3%, it produced the following results:-Argentine Congress:-Background:...
, as well as in his 1995 campaign for reelection. Menem's government re-established relations with the United Kingdom, suspended since the Falklands War
Falklands War
The Falklands War , also called the Falklands Conflict or Falklands Crisis, was fought in 1982 between Argentina and the United Kingdom over the disputed Falkland Islands and South Georgia and the South Sandwich Islands...
, within months of taking office. He also earned plaudits for resolving territorial disputes with neighboring Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
, and during his administration, over 20 border issues
Argentina-Chile relations
Argentina–Chile relations refers to interstate relations between the Republic of Chile and the Argentine Republic. Argentina and Chile share the world's third-longest international border, which is long and runs from north to the south along the Andes mountains...
with Chile – including the arbitration of the especially serious Laguna del Desierto dispute – were peacefully solved. In domestic policy, programs were created for improving AIDS awareness, flood prevention, vaccination, and improving child nutrition. In addition, a Social Plan was launched which increased spending on antipoverty programs, while a number of social programs executed by other government agencies targeted poor Argentines. These policies arguably had a positive impact on poverty reduction, with the percentage of Argentines estimated to living in poverty falling during Menem's first term as president.
In 1994, after a political agreement (the Olivos Pact) with the Radical Civic Union
Radical Civic Union
The Radical Civic Union is a political party in Argentina. The party's positions on issues range from liberal to social democratic. The UCR is a member of the Socialist International. Founded in 1891 by radical liberals, it is the oldest political party active in Argentina...
party leader, former president Raúl Alfonsín
Raúl Alfonsín
Raúl Ricardo Alfonsín was an Argentine lawyer, politician and statesman, who served as the President of Argentina from December 10, 1983, to July 8, 1989. Alfonsín was the first democratically-elected president of Argentina following the military government known as the National Reorganization...
, Menem succeeded in having the Constitution
Constitution of Argentina
The constitution of Argentina is one of the primary sources of existing law in Argentina. Its first version was written in 1853 by a Constitutional Assembly gathered in Santa Fe, and the doctrinal basis was taken in part from the United States Constitution...
modified
1994 reform of the Argentine Constitution
The 1994 amendment to the Constitution of Argentina was approved on 22 August by a Constitutional Assembly that met in the twin cities of Santa Fe and Paraná...
to allow presidential re-election, so that he could run for office once again in 1995. The new Constitution, however, introduced decisive checks and balances to presidential power. It made the Mayor of Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
an elective position (previously the office belonged to a presidential appointee and was in control of a huge budget), to be lost to the opposition in 1996; the president of the Central Bank and the Director of the AFIP (Federal Tax & Customs Central Agency) could only be removed with the Congress
Argentine National Congress
The Congress of the Argentine Nation is the legislative branch of the government of Argentina. Its composition is bicameral, constituted by a 72-seat Senate and a 257-seat Chamber of Deputies....
's approval. It also created the ombudsman
Ombudsman
An ombudsman is a person who acts as a trusted intermediary between an organization and some internal or external constituency while representing not only but mostly the broad scope of constituent interests...
position, as well as a board to propose new judicial candidates.
His tenure suffered, however, from local economic fallout due to the Mexican peso crisis of 1995, and became tainted with repeated accusations of corruption. His handling of the investigations of the 1992 Israeli Embassy bombing
Israeli Embassy attack in Buenos Aires
The attack on the Israeli embassy in Buenos Aires was a bomb attack on building of the Israeli embassy of Argentina located in Buenos Aires which was carried out on March 17, 1992. 29 civilians were killed in the attack and 242 additional civilians were injured.- The attack :On March 17, 1992...
and the 1994 bombing of the AMIA Jewish community center
AMIA Bombing
The AMIA bombing was an attack on the Asociación Mutual Israelita Argentina building in Buenos Aires on July 18, 1994, that killed 85 people and injured hundreds. It was Argentina's deadliest bombing...
was often criticised as being dishonest and superficial. He is suspected of diverting the investigation from the "Iranian clue", which would lead to the responsibility of that country in the attack.
One of the most criticized measures of his administration was the pardon
Pardon
Clemency means the forgiveness of a crime or the cancellation of the penalty associated with it. It is a general concept that encompasses several related procedures: pardoning, commutation, remission and reprieves...
he granted on December 29, 1990, to Jorge Videla, Emilio Massera, Leopoldo Galtieri
Leopoldo Galtieri
Leopoldo Fortunato Galtieri Castelli was an Argentine general and President of Argentina from December 22, 1981 to June 18, 1982, during the last military dictatorship . The death squad Intelligence Battalion 601 directly reported to him...
and other leaders of the 1976–83 dictatorship
National Reorganization Process
The National Reorganization Process was the name used by its leaders for the military government that ruled Argentina from 1976 to 1983. In Argentina it is often known simply as la última junta militar or la última dictadura , because several of them existed throughout its history.The Argentine...
convicted in the 1985 Trial of the Juntas, and some guerrilla leaders as well, on the grounds of "national reconciliation". This action sparked a protest of nearly 50,000 people in Buenos Aires. Former President Raúl Alfonsín
Raúl Alfonsín
Raúl Ricardo Alfonsín was an Argentine lawyer, politician and statesman, who served as the President of Argentina from December 10, 1983, to July 8, 1989. Alfonsín was the first democratically-elected president of Argentina following the military government known as the National Reorganization...
called it "the saddest day in Argentine history." His neoliberal
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...
policies were also criticized by the majority of the population and by some in the Catholic Church
Roman Catholicism in Argentina
The Catholic Church in Argentina is part of the worldwide Roman Catholic Church, under the spiritual leadership of the Pope, the Curia in Rome, and the Argentine Episcopal Conference....
, and gave rise to the Piquetero
Piquetero
A piquetero is a member of a political faction whose primary modus operandi is based in the piquete. The piquete is an action by which a group of people blocks a road or street with the purpose of demonstrating and calling attention over a particular issue or demand...
movement of unemployed workers. These mounting problems and a rise in crime rates helped lead to the president's first electoral defeat, during the 1997 mid-term elections
Argentine legislative election, 1997
Argentina held national parliamentary elections on 26 October 1997 and the results were as follows:-Background:President Carlos Menem, who successfully campaigned to have the Argentine Constitution amended in 1994 largely for the sake of being eligible for a second term in office, won the 1995...
.
With regards to the military, Menem ordered the forceful repression of a politically-motivated uprising by a far-right figure, Col. Mohamed Alí Seineldín
Mohamed Alí Seineldín
Mohamed Alí Seineldin was an Argentine army colonel who participated in two failed uprisings against the democratically elected governments of both President Raúl Alfonsín and President Carlos Menem in 1988 and 1990.Seineldín was born in Concepción del Uruguay into an Arab Argentine family...
, on December 3, 1990, and thus ended the military's involvement in the country's political life. Menem also effected drastic cuts to the military budget, and appointed Lt. Gen. Martín Balza
Martín Balza
Lieutenant General Martín Antonio Balza is an Argentine military former Chief of Staff of the Argentine Army. He is currently Argentine ambassador to the Republic of Colombia....
as the Army's General Chief of Staff (head of the military hierarchy); Balza, a man of strong democratic convictions and a vocal critic of the Falklands War
Falklands War
The Falklands War , also called the Falklands Conflict or Falklands Crisis, was fought in 1982 between Argentina and the United Kingdom over the disputed Falkland Islands and South Georgia and the South Sandwich Islands...
, had stood up for the legitimate government in every attempted coup d'état throughout his senior career, and gave the first institutional self-criticism about the Armed Forces' involvement in the 1976 coup and the ensuing reign of terror. Following the brutal death of a conscript, Menem abolished conscription
Conscription
Conscription is the compulsory enlistment of people in some sort of national service, most often military service. Conscription dates back to antiquity and continues in some countries to the present day under various names...
in 1994, decisively ending a military prerogative over society and its self-perceived role as an institution that it "made men out of boys
Coming of age
Coming of age is a young person's transition from childhood to adulthood. The age at which this transition takes place varies in society, as does the nature of the transition. It can be a simple legal convention or can be part of a ritual, as practiced by many societies...
".
Cabinet
| Office | Holder |
| President | Carlos Menem |
| Vice President | Eduardo Duhalde Eduardo Duhalde -External links:... (1989–91) Carlos Ruckauf Carlos Ruckauf Carlos Federico Ruckauf is a Peronist politician in Argentina, member of the Justicialist Party.-Biography:Carlos Federico Ruckauf was born in the western Buenos Aires suburb of Ramos Mejía. His parents separated when he was seven, and he lived in Mar del Plata, Salta, and Buenos Aires during the... (1995–99) |
| Chief of Ministers' Cabinet | Eduardo Bauzá (1995–96) Jorge Alberto Rodríguez (1996–99) |
| Ministry of the Interior | Eduardo Bauzá (1989–90) Julio Mera Figueroa (1990–91) José Luis Manzano Jose Luis Manzano José Luis Manzano is an Argentine medical doctor, politician and businessman. Born in the Mendoza’s district of Tupungato, he studied medicine in Universidad Nacional de Cuyo... (1991–92) Gustavo Béliz (1992–93) Carlos Ruckauf Carlos Ruckauf Carlos Federico Ruckauf is a Peronist politician in Argentina, member of the Justicialist Party.-Biography:Carlos Federico Ruckauf was born in the western Buenos Aires suburb of Ramos Mejía. His parents separated when he was seven, and he lived in Mar del Plata, Salta, and Buenos Aires during the... (1993–95) Carlos Corach (1995–99) |
| Ministry of Foreign Affairs | Domingo Cavallo Domingo Cavallo Domingo Felipe "Mingo" Cavallo is an Argentine economist and politician. He has a long history of public service and is known for implementing the Convertibilidad plan, which fixed the dollar-peso exchange rate at 1:1 between 1991 and 2001, which brought the Argentine inflation rate down from over... (1989–91) Guido di Tella Guido di Tella Guido di Tella was an Argentine businessman, academic and diplomat who served as Minister of Foreign Relations between 1991 and 1999.-Early career:Guido José Mario Di Tella was born in Buenos Aires, 1931... (1991–99) |
| Ministry of Defense | Ítalo Argentino Lúder Ítalo Argentino Lúder Ítalo Argentino Lúder was an Argentinian politician who served as the acting President of Argentina from September 13, 1975 until October 16, 1975, for Isabel Perón.... (1989) Humberto Romero (1989–90) Guido di Tella Guido di Tella Guido di Tella was an Argentine businessman, academic and diplomat who served as Minister of Foreign Relations between 1991 and 1999.-Early career:Guido José Mario Di Tella was born in Buenos Aires, 1931... (1990–91) Antonio Erman González (1991–93) Oscar Camilión (1993–96) Jorge Domínguez (1996–99) |
| Ministry of the Economy | Miguel Ángel Roig (1989) Néstor Rapanelli (1989) Antonio Erman González (1989–91) Domingo Cavallo Domingo Cavallo Domingo Felipe "Mingo" Cavallo is an Argentine economist and politician. He has a long history of public service and is known for implementing the Convertibilidad plan, which fixed the dollar-peso exchange rate at 1:1 between 1991 and 2001, which brought the Argentine inflation rate down from over... (1991–96) Roque Fernández Roque Fernández Roque Benjamín Fernández is an Argentine economist, former President of the Central Bank, and Economy Minister, as well as the only member of the Chicago Boys ever to have been the chief economic policy maker in Argentina.... (1996–99) |
| Ministry of Justice | Antonio Salonia (1989–91) León Arslanián León Arslanián León Arslanián is an Argentine lawyer, jurist and public official who notably served as Chief Justice in the tribunal that presided over the 1985 Trial of the Juntas.-Life and times:... (1991–92) Jorge Maiorano (1992–94) Rodolfo Barra (1994–96) Elías Jassán (1996–97) Raúl Granillo Ocampo (1997–99) |
| Ministry of Labor | Jorge Triaca (1989–91) Rodolfo Díaz (1991–92) Enrique Rodríguez (1992–93) José Armando Caro Figueroa (1993–97) Antonio Erman González (1997–99) |
| Ministry of Social Assistance and Public Health |
Julio Corzo (1989–93) Antonio Erman González (1993) Eduardo Bauzá (1993–95) Alberto Kohan (1995–96) Avelino Porto (1996–98) Julio César Aráoz (1998) Alberto Mazza (1998–99) |
| Ministry of Education and Culture | Antonio Salonia (1989–92) Jorge Alberto Rodríguez (1992–96) Susana Decibe (1996–99) |
| Ministry of Public Services | Roberto Dromi (1989–91) |
Continuing political career
Fernando de la Rúa
Fernando de la Rúa is an Argentine politician. He was president of the country from December 10, 1999 to December 21, 2001 for the Alliance for Work, Justice and Education ....
defeated Eduardo Duhalde
Eduardo Duhalde
-External links:...
, the nominee of Menem's party, and succeeded Menem as President.
Menem tried again four years later, winning the greatest number of votes, 24%, in the first round of the April 27, 2003 presidential election
Argentine general election, 2003
Argentina held presidential and parliamentary elections on Sunday, April 27, 2003. Turnout was 78.2% and the results were as follows:-Argentine Congress:-Background:...
. This was far from the 45% required for election (or 40% if the margin of victory is 10 or more percentage points), and so a second-round run-off vote between Menem and second-place finisher and fellow Peronist Néstor Kirchner
Néstor Kirchner
Néstor Carlos Kirchner was an Argentine politician who served as the 54th President of Argentina from 25 May 2003 until 10 December 2007. Previously, he was Governor of Santa Cruz Province since 10 December 1991. He briefly served as Secretary General of the Union of South American Nations ...
, who had gotten 22%, was scheduled for May 18.
However, by this time Menem had become very unpopular, and the consensus of most polls was that he faced almost certain defeat by Kirchner in the runoff. A few polls showed Menem losing by 40 points. Certain that he was about to face a humiliating electoral defeat, Menem withdrew his candidacy on May 14, effectively handing the presidency to Kirchner.
In June 2004 Menem announced that he had founded a new faction within the Justicialist Party
Justicialist Party
The Justicialist Party , or PJ, is a Peronist political party in Argentina, and the largest component of the Peronist movement.The party was led by Néstor Kirchner, President of Argentina from 2003 to 2007, until his death on October 27, 2010. The current Argentine president, Cristina Fernández de...
, called "People's Peronism," and stated his ambition to run in the 2007 election
Argentine general election, 2007
Argentina held national presidential and legislative elections on October 28, 2007, and elections for provincial governors took place on staggered dates throughout the year. For the national elections, each of the 23 provinces and the Autonomous City of Buenos Aires are considered electoral districts...
.
In 2005, the press reported that he was trying to make an alliance with his former Minister of Economy
Minister of Economy of Argentina
The Minister of Economy is the head of the Ministry of Economy and Production of Argentina, concerned with finance and monetary matters. The position within the Government of Argentina is analogous to the finance ministers of some countries and the United States Treasury Secretary...
Domingo Cavallo
Domingo Cavallo
Domingo Felipe "Mingo" Cavallo is an Argentine economist and politician. He has a long history of public service and is known for implementing the Convertibilidad plan, which fixed the dollar-peso exchange rate at 1:1 between 1991 and 2001, which brought the Argentine inflation rate down from over...
to fight in the parliamentary elections. The alliance was apparently frustrated; Menem said that there had been only preliminary conversations. In the October 23 elections, Menem won the minority seat in the Senate representing his province of birth. This was viewed as a catastrophic defeat, signaling the end of his political dominance in La Rioja, since the two senators for the majority were won by President Kirchner's faction, locally led by former Menemist governor Ángel Maza
Ángel Maza
Ángel Eduardo Maza is an Argentine Justicialist Party politician. He was the governor of La Rioja Province during several terms, until he was ousted by impeachment in 2007. His sister, Ada Maza, is a national senator....
. It was the first time in 30 years that Menem lost an election.
Menem ran for Governor of La Rioja in August 2007, but was defeated, receiving third place with about 22% of the vote. Following this defeat in his home province, he withdrew his candidacy for president. At the end of 2009 he announced that he intends to run for the presidency again in the 2011 elections.
Corruption charges
On June 7, 2001, Menem was arrested over an arms export scandal relating to exports to EcuadorEcuador
Ecuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...
and Croatia
Croatia
Croatia , officially the Republic of Croatia , is a unitary democratic parliamentary republic in Europe at the crossroads of the Mitteleuropa, the Balkans, and the Mediterranean. Its capital and largest city is Zagreb. The country is divided into 20 counties and the city of Zagreb. Croatia covers ...
in 1991 and 1996, and remained under house arrest until November. He appeared before a judge in late August 2002 and denied all charges. It was hinted that Menem held more than US$ $10 million in Swiss bank accounts. However, the Swiss banks and authorities denied these allegations.
Menem and his second wife Cecilia Bolocco, who had had a child since their marriage in 2001, moved to Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
. Argentine judicial authorities repeatedly requested Menem's extradition to face embezzlement charges, but this was rejected by the Chilean Supreme Court, as under Chilean law people cannot be extradited for questioning.
On December 22, 2004, he returned to Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
after his arrest warrants were cancelled. He still faces charges of embezzlement and failing to declare illegal funds outside of Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
.
In August 2008, it was announced Menem was under investigation for his role in the 1995 Río Tercero explosion
Río Tercero explosion
The Río Tercero explosion was a blast in Río Tercero, Córdoba, Argentina, on November 3, 1995 that happened at a munitions factory and killed seven people....
, which is alleged to have been part of the arms scandal involving Croatia and Ecuador.
In December 2008, the German multinational
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
Siemens
Siemens
Siemens may refer toSiemens, a German family name carried by generations of telecommunications industrialists, including:* Werner von Siemens , inventor, founder of Siemens AG...
agreed to pay an $800 million fine to the United States government, and approximately €700 million to the German government, to settle allegations of bribery. The settlement revealed that Menem received about US$2 million in bribes from Siemens in exchange for awarding the national ID card and passport production contract to Siemens; Menem denied the charges.
Honours and awards
- Knight Grand Cross with Gold Collar of the Order of Manuel Amador Guerrero (Panama)
- Knight Grand Cross of the Grand Order of King TomislavGrand Order of King TomislavThe Grand Order of King Tomislav , or more fully the Grand Order of King Tomislav with Sash and Great Morning Star , is the highest state order of the Republic of Croatia...
("For outstanding achievements in promoting the development of friendship and fruitful cooperation in political, cultural and economic development between the Republic of Croatia and the Republic of Argentina, and in promoting peace, democracy, stability and international cooperation in the world based on the principles of the UN Charter and the provisions of international law." – January 5, 1995 - Grand Cross of the Order of Merit of the Republic of Poland (1995)