Most of those factors were simply a reversal of a chain of events which
began battering Argentina in 1997 when Asian economies went into meltdown.
Although the country initially withstood the successive shock waves that
spread to Russia and then Brazil, eventually it succumbed to a bruising
recession and the economy contracted 3.5 percent during 1997. Nonetheless,
as the year drew to a close, the country began turning the corner
The Menem government responded with a firm policy response by maintaining
the course of the reforms inaugurated through the Convertibility Plan.
It is also worked out various financial adjustments that it allowed it
to receive support from the IMF, other multilateral organizations and from
private banks. During 1995 and 1996, the Argentine financial system undertook
a dramatic restructuring, with many smaller banks acquired and most of
the provincial banks privatized. By year-end 1996, total deposits had recovered,
and even exceeded the level that existed prior to the crisis.
The economy as a whole had also continued to recover and inflation has remained quite
low. It is important to note, however, that along with this economic plan
the country is paying a high social cost, and unemployment is still
high (13.80% Jan. 2000).
In 1999 the candidate of the oposition (Frepaso Aliance), Mr. Fernando de la Rúa, was elected as president. Being this a very important moment in the country´s history as he became the third president elected under the Argentinean Democracy after Raúl Alfonsín (1983-1989) and Carlos Saúl Menem (1989-1985 & 1985-1999).
In december 199 a new president: Mr. De la Rúa took ofice, awared about this issues and
started to implement new laws and programs to avoid the negative side of the Argentinean
After two years in office Mr. Fernando de la Rúa had to resign as people took the streets to demonstrate against him,
his Economy Minister ( Mr. Domingo Felipe Cavallo ) and all the Argentinean politicians because of their inability to
find a solution to the economy and social crisis of the country. The Legislative Assembly voted Mr. Rodríguez Saa
( San Luis province Governor ) to rule the country for 3 months. One of his first announceed the entering of Argentina in default as the country could not continue to pay
the foreing debt. After 10 days he had to resign as a result
of lack of support by his own party ( Peronist Party ) and demonstrations against some of the member of his cabinet.
Some days later the Legislative Assembly chose Mr. Eduardo Duhalde, former Vice-President and Governor of Buenos Aires Province as the new President to rule the country for a period of 2 years until holding new elections. He took office the 2nd. of January 2002.
His election in one of the most difficult periods in the Argentinean history reaffirmed the willing of Argentineans to live in democracy.
His first step as entering the government was to devaluate the Peso against the Dollar in 30 % finishing with ten years of the "Convertibility Plan".