Highlights of the
first goverment of
Carlos Menem
Faced with a critical
social and
economical situation in
Argentina, back in
1989, the president Raul
Alfonsin decided to forward the
transition of power. That way,
Carlos Menem got the president's chair, six months before schedule.
Carlos Menem carried out a
substancial change in the
socioeconomic alliances of the
peronismo. Since economy was oriented towards
liberalism (it is wise to remember
peronismo was
historically a
conservative party), many exponents of
political parties with that tendency ocuppied charges in the
gabinet, while
sindical power, once powerful enough to
overthrow presidents, faded to a second plane.
As
external affairs, he
reinforced the link with the
USA and other occidental countries, and resumed the
diplomatic relations with
Britain (
UK). The country also participated in peace missions with the
blue helmets of the
United Nations, in the
Gulf War and the ex-
Yugoslavia conflict.
He dictated a
decree to
pardon the
military chiefs condemned for
violations of
human rights, and suppressed the Obligatory
Military Service creating instead the
Voluntary and Professional Military Service.
Again, in
1991, the "Plan de Convertibilidad" (Convertibility Plan] was applied, wich stablished a fixed parity between
Peso (Argentina's
currency) and
Dollar, with the objective of reduc the
inflation plaguing the country. He also approved he "Ley de Reforma del Estado" (
Law of
State Reform), that included the
privatization of most production and service companies in state's hand.
He stablished the voluntary "
private retirement", eliminated the "Junta Nacional de Carnes y Granos" (National Joint of Meat and Grains), and reformed the "Ley de Coparticipacion Federal" (Law of
Federal Coparticipation)
A so called "Pacto de Olivos" (Olivos's Pact) was signed between the
Carlos Menem and the ex-president Raul
Alfonsin, it was decided in the agreement to summon a "Convencion Nacional Constituyente" (National Constituyent Convention) with the objective of
reforming the Contitution and so, obtain the posibility for president
reelection (before 1994,
Argentina's
Constitution did
not allow presidential
reelection). The Convention, reunited in
Santa Fe, in
august of
1994 sanctioned the New
Constitution wich included
substancial reforms, including the forementioned presidential
reelection.