Argentina's President-Elect Seeks Allies

May 17, 2003 - 0:0
BUENOS AIRES, Argentina -- Argentina's new president-elect Nestor Kirchner searched on Thursday for allies to help rebuild Latin America's third largest economy after two years of political and economic chaos, as he began his short 10-day transition period.

Kirchner became president-elect abruptly on Wednesday after ex-president Carlos Menem dropped out of the race, depriving Kirchner, a little-known governor from Patagonia, of his expected landslide victory in a runoff on Sunday.

Polls showed Kirchner would have won up to 78 percent, thanks to "anti-Menem" feelings stemming from corruption scandals in the ex-president's 1989-1999 government.

Instead, Kirchner will take office May 25 having won just 22 percent of votes in the first round on April 27.

He must make up for his lack of a mandate by quickly building consensus for his center-left platform.

Kirchner has promised to play tough in debt negotiations with foreign creditors after a record sovereign debt default and wants Argentina to fight what is widely perceived as U.S. dominance in Latin America on issues such as free trade.

"He is in the position of any European parliamentary government which normally has few votes, a minority in Congress and has to form coalitions," said Manuel Mora Y Araujo, president of polling company Ipsos-Mora Y Araujo.

However Kirchner met early resistance from leftist anti-graft legislator Elisa Carrio, who won 14 percent of the vote in the first round and closed the door to any possible alliances. "Under no circumstances will we join the government, but we won't create problems either," Carrio told Reuters. "He needs to be helped ... the vote was against Menem, not in favor of Kirchner."

Apart from sewing up support in Congress, analysts say Kirchner will have to invest heavily in the provincial governors, who wield enormous amounts of power in Argentina.

And he will have to contend with deep dissent in his own Peronist Party after the election pitted three peronists, including Menem, against each other.

One of his biggest challenges will be to show independence from his main political backer, caretaker President Eduardo Duhalde.

The Argentine peso and leading shares both fell on Thursday, as investors awaited Kirchner's economic policies. ---`Ordinary People' ---

Kirchner, 53, also has to win over Argentines skeptical of their leaders after economic mismanagement and devaluation. There was little celebration of his victory.

"People aren't celebrating because there's no real political change," said Leandro Chamorro, a 28-year-old lawyer reading in a cafe.

Kirchner and his senator wife Cristina Kirchner started by appearing with the Doyenne of day-time television, Mirtha Legrand, believed to bring luck to her guests.

"We just want to continue to be ordinary people who have important responsibilities," said Kirchner, who brightened up his drab wardrobe with a bright pink tie.

The Kirchners flew to the capital of the oil-rich Santa Cruz Province, Rio Gallegos, late on Thursday to prepare to hand over the running of his province to his deputy and he is expected to announce his cabinet early next week.

The only sure name is Roberto Lavagna, who stays in the Economy Ministry to manage two difficult issues: Securing new aid from the International Monetary Fund and repaying part of $60 billion in debt in default since 2002.

Neighboring Brazil's government welcomed his election win, and U.S. Treasury Undersecretary for International Affairs John Taylor said "good things" were happening in Argentina but that tough reforms were still needed.