On Sunday, October 23, 2011, Argentine President Cristina Kirchner was reelected with 54 percent of the vote due to the lift in the economy caused by the international commodity markets’ boom. But as of January 13, 2013, the economy was stagnant, and Fitch Ratings noted that a “default by Argentina [was] probable.” The mix of 25% inflation, anemic economic growth, and higher crime rates, among other problems, had taken a toll on the government’s approval rating and sparked sizable public protests. At the same time, the Kirchner administration had ignited controversy related to its policies toward the nation’s news media, energy sector, and international creditors.
Jaime Daremblum, Director of Hudson Institute’s Center for Latin American Studies, led a conversation on the implications of Argentina’s recent actions. How would a default by Buenos Aires impact the sovereign debt market? Is Argentina meeting its obligations as a full member of the G-20? What are the broader consequences for the region should Argentina continue down its current path?