Latin American Nightmare for IMF: Axis of Independence

… the $9.8 billion payment is an important symbolic milestone and just one of several recent signs that President Néstor Kirchner appears to be concentrating more power in his own hands and steering his government to the left.

… many Argentines believe that the I.M.F. is responsible for the policies that led to the economic crisis of 2001

… But an inflationary surge is now threatening, and Mr. Kirchner has responded in statist fashion, trying to impose price controls on certain essential products. He first used that weapon in March….

… The election this month of Evo Morales, a Chávez acolyte, as the president of neighboring Bolivia complicates matters [for foreign investors] even further.

… Economically, [bond sales and the IMF payment offer] no advantages for Argentina,….

…Roberto Lavagna…was the main architect of Argentina's stunning emergence from the 2001 financial crisis, had consistently urged a more cautious [international financial institution-friendly] course regarding both the recent inflationary surge and the fund. But he was ousted in late November….

… “What Kirchner likes is to be absolutely in charge, so he has become his own economy minister [taking the place of the IMF],” said Joaquín Morales Solá, chief political columnist for the conservative daily La Nación. “Even more than moving left, there's a turn towards a personalistic style of governing, with a dose of authoritarianism and hegemony and an aggressive style of permanent rupture and confrontation.”

Larry Rohter, “Dwindling Debt Boosts Argentine Leader,” New York Times, 1/03/05.