Mar 30, 2:35am
Argentina Sacrifices Economy to Ward Off Virus, Winning Praise
Key Factors
When Alberto Fernandez visited Mexico on his first foreign trip since winning Argentina’s presidency, he said that both countries would face the “challenge of globalization” together.
Less than five months later, the respective stances of Fernandez and Mexico’s President Andres Manuel Lopez Obrador to fighting the coronavirus pandemic couldn’t be further apart.
Whereas the Mexican leader has only now started urging citizens to stay at home -- after encouraging them to eat out to support the local economy -- Argentina shuttered social life and imposed a strict stay-at-home policy a week ago, even at the risk of disproportionately affecting the livelihoods of Fernandez’s mostly middle-to-lower class voter base.
Key to that decision was the upgrade of the virus to a pandemic and stark conversations with leaders at the heart of fighting the disease, people familiar with the strategy said.
“The choice is to take care of the economy or take care of lives,” Fernandez said Wednesday. “I chose to take care of lives.”
In Latin America, where huge numbers of people rely on the informal economy to survive, there are no good options for leaders. Fernandez’s decision to go all-in to fight Covid-19 stands out not just for its contrast with Mexico but also with Brazil, where President Jair Bolsonaro has downplayed the risks and publicly clashed with state governors who are taking stringent measures to combat the virus locally.
Key Moments
“This is a make or break moment for Alberto Fernandez to show he’s in control and leading the country,” said Jimena Blanco, head of Latin America political research at consulting firm Verisk Maplecroft. “The worst scenario is to get a disorderly response -- or no response at all -- which is what we’re seeing in Mexico and Brazil.”
Fernandez’s move to put his country into quarantine was deeply influenced by the World Health Organization’s March 11 announcement that the coronavirus was a pandemic, according to a senior government official. Dr. Maureen Birmingham, the WHO representative in Argentina, is in constant communication with the authorities and Fernandez himself.
That decision was reinforced when the president saw cases balloon rapidly in Italy and Spain -- two countries where many Argentines’ ancestors hail from. Prior to his announcement of a lockdown, Fernandez spoke with the Italian and Spanish prime ministers, Giuseppe Conte and Pedro Sanchez, to hear their experiences, the official said. Fernandez developed good relations with both men after visiting them earlier this year. Mexico’s president is by contrast famously loath to travel abroad.
Buying Time
He also wanted to buy time for Argentina’s fragile health-care system by trying to flatten the curve as soon as possible, the official said. The president speaks on a daily basis with the governor of Buenos Aires province and the city’s mayor, where most cases are concentrated.
On Thursday night, the government ordered the closing of the borders to stop even Argentines from going out and into the country until the quarantine ends. At the same time, Fernandez, who has publicly conceded his strategy will put the economy in a bigger hole, has said that he expects cases to peak in the first half of May and is willing to extend the lockdown that ends March 31 if needed.
ARGENTINA INSIGHT: Lockdown, Uncertainty to Deepen Recession
Governments worldwide are adopting their own approaches to curb the spread of the virus, with some countries like Japan that are relatively unaffected taking minimal measures, others including Spain and Italy at the heart of the epidemic in total lockdown, and a third group including Australia seeking to balance economic damage with protecting public health.
While each stance is contentious, in Argentina, a land of chronic financial crisis and fiercely divisive politics, the challenge of tackling the coronavirus is bringing an unusual sense of unity. Fernandez stood together with leaders from different ends of the political spectrum for the March 19 lockdown announcement, a rare display of consensus made all the more unlikely given that the country is enduring a third year of economic crisis and again flirting with default.
Under the Shadow
Beyond purely humanitarian motives, the show of consensus hands Fernandez an opportunity to emerge from the shadow of his vice president, Cristina Fernandez de Kirchner, the two-time former president who was instrumental in catapulting her namesake -- who is no relation -- to his election victory in October.
Source: Bloomberg
Argentina Sacrifices Economy to Ward Off Virus, Winning Praise
Key Factors
Less than five months later, the respective stances of Fernandez and Mexico’s President Andres Manuel Lopez Obrador to fighting the coronavirus pandemic couldn’t be further apart.
Whereas the Mexican leader has only now started urging citizens to stay at home -- after encouraging them to eat out to support the local economy -- Argentina shuttered social life and imposed a strict stay-at-home policy a week ago, even at the risk of disproportionately affecting the livelihoods of Fernandez’s mostly middle-to-lower class voter base.
Key to that decision was the upgrade of the virus to a pandemic and stark conversations with leaders at the heart of fighting the disease, people familiar with the strategy said.
“The choice is to take care of the economy or take care of lives,” Fernandez said Wednesday. “I chose to take care of lives.”
In Latin America, where huge numbers of people rely on the informal economy to survive, there are no good options for leaders. Fernandez’s decision to go all-in to fight Covid-19 stands out not just for its contrast with Mexico but also with Brazil, where President Jair Bolsonaro has downplayed the risks and publicly clashed with state governors who are taking stringent measures to combat the virus locally.
Key Moments
“This is a make or break moment for Alberto Fernandez to show he’s in control and leading the country,” said Jimena Blanco, head of Latin America political research at consulting firm Verisk Maplecroft. “The worst scenario is to get a disorderly response -- or no response at all -- which is what we’re seeing in Mexico and Brazil.”
Fernandez’s move to put his country into quarantine was deeply influenced by the World Health Organization’s March 11 announcement that the coronavirus was a pandemic, according to a senior government official. Dr. Maureen Birmingham, the WHO representative in Argentina, is in constant communication with the authorities and Fernandez himself.
That decision was reinforced when the president saw cases balloon rapidly in Italy and Spain -- two countries where many Argentines’ ancestors hail from. Prior to his announcement of a lockdown, Fernandez spoke with the Italian and Spanish prime ministers, Giuseppe Conte and Pedro Sanchez, to hear their experiences, the official said. Fernandez developed good relations with both men after visiting them earlier this year. Mexico’s president is by contrast famously loath to travel abroad.
Buying Time
He also wanted to buy time for Argentina’s fragile health-care system by trying to flatten the curve as soon as possible, the official said. The president speaks on a daily basis with the governor of Buenos Aires province and the city’s mayor, where most cases are concentrated.
On Thursday night, the government ordered the closing of the borders to stop even Argentines from going out and into the country until the quarantine ends. At the same time, Fernandez, who has publicly conceded his strategy will put the economy in a bigger hole, has said that he expects cases to peak in the first half of May and is willing to extend the lockdown that ends March 31 if needed.
ARGENTINA INSIGHT: Lockdown, Uncertainty to Deepen Recession
Governments worldwide are adopting their own approaches to curb the spread of the virus, with some countries like Japan that are relatively unaffected taking minimal measures, others including Spain and Italy at the heart of the epidemic in total lockdown, and a third group including Australia seeking to balance economic damage with protecting public health.
While each stance is contentious, in Argentina, a land of chronic financial crisis and fiercely divisive politics, the challenge of tackling the coronavirus is bringing an unusual sense of unity. Fernandez stood together with leaders from different ends of the political spectrum for the March 19 lockdown announcement, a rare display of consensus made all the more unlikely given that the country is enduring a third year of economic crisis and again flirting with default.
Under the Shadow
Beyond purely humanitarian motives, the show of consensus hands Fernandez an opportunity to emerge from the shadow of his vice president, Cristina Fernandez de Kirchner, the two-time former president who was instrumental in catapulting her namesake -- who is no relation -- to his election victory in October.
Source: Bloomberg