Argentina at the Crossroads; R. Cooper

For approximately 90 years, from 1853 to 1943, the classical liberal system of constitutional gov ernment, private property, and free trade held sway in Argentina. The country prospered. But not all Argentines were satisfied. Many of the ur ban masses felt cheated by the system. As time went by, their feelings of resentment and nation alism grew and merged. Different groups and leaders came and went, speaking for the disaf fected Argentines. Then, in 1943, while Commu nism and Fascism menaced Europe, came the man whose legacy still haunts Argentina-Juan Per6n. Peronism as a doctrine is very vague, although Per6n wrote many books and speeches. In essence, it is statist, protectionist, nationalist, and corporatist. Per6n himself admired Franco and Mussolini. In 1949, Per6n promulgated a consti tution modeled after Fascist Italy, which en hanced presidential powers, increased central control, and contained corporatist features, espe ciallyregarding unions.

The Peronist system resembles that of PRI dominated Mexico, seeking to integrate business and labor unions into a network of state-depenMr. Cooper is an export/import managerin New York. He visitedArgentina in November 1988. dent and politically connected parts of a statist political machine. Although Peronism directs its appeal to the masses with heavy doses of envy, it does not ignore businessmen, whom it supports with protectionist trade policies and state subsi dies. Thus, there were and are Peronist business men. Unlike Mexico, however, Peronism relies on the charismatic personality of the leader to whip up enthusiasm against foreign and domestic enemies, especially Britain. After the disgrace of the military junta in their failed 1982 invasion of the Falkland Islands, Ar gentina returned to democracy.The Radicals sur prisingly defeated the Peronists and elected Raul Alfonsin, barred from re-election by the Consti tution. The Radicals talked about privatization, but did little about it. The country has continued its slide, and the military is restive because of low pay and the trials of officers for their role in the "dirty war" of 1976-1983in which thousands of leftists disappeared.

Argentina's economic malaise is plain for all to see. While the country's standard of living was comparable to Canada before World War II, Ar gentina is now slipping into the ranks of the Third World. Inflation is so high that advertise ments for houses and cars quote prices in Ameri can dollars. What went wrong? Per6n and his successors, military or civilian,Peronist or Radical, built up a massive state apparatus and a private industrial sector sheltered by a rigidly protectionist system. There are 353 state enterprises, including those owned by_ the military. One such enterprise is LAD E, offering airline service to civilians, but owned by the armed forces.

When Argentina was rich, it built railroads, subways, and phone systems. Since statism took control, these have deteriorated. The Argentines have public services that don't serve. Three mil lion dollars a day are lost on a rail system which should be visited by antique railroad buffs. YPF, the state oil monopoly, manages to lose money. Worst of all is the phone system, ENTEL, which has more employees than Nippon Telephone and Telegraph in a country with less than one-third the people. Twentyyear waits for phones are nor mal. Journalist Bernardo Neustadt, a convert to the free market philosophy, proposed privatizing the phone system. Two hundred ENTEL union ists came to the radio station to physicallyattack him. Pervasive state control and corruption go hand in hand. In frontier San Juan province, the for mer governor Leopoldo Bravo purged some in dependent-minded legislators from his Bloquista party. The newspaper El Diario de Hoy support ed the legislators and their corruption charges.

The newspaper's owners soon found themselves being pressured by the provincial tax bureau and other state agencies. The paper, however, still survives. Who speaks out against the statism that has ru ined Argentina? The liberales (liberals) repre sent the individualist, free market alternative to the dominant statist ideologies. Argentina pos sesses an individualist movement that is impres sive in its activism and dedication. Like their American counterparts in the libertarian move ment, the Argentines have pursued three paths: political, academic, and popular education. Argentine individualists point to many nation al heroes as their forerunners, just as Americans do to the Revolutionary War heroes. Manuel Belgrano (1770-1820) and Mariano Moreno (1778-1811)fought to gain independence from Spain. Juan Bautista Alberdi (1810-1884) and Domingo R Sarmiento (1811-1888) were admir ers of the British classicalliberals and the United States. They helped to overthrow the Rosas dic tatorship in 1852. Alberdi drafted the 1853 Con stitution, modeled after that of the United States.

More recently, there was the writer Jorge Luis Borges (1899-1986). Borges declared himself an individualist and "an anarchist in the Spencerian sense." Borges vigorously denounced Per6n as a Fascist, and 489 strongly opposed nationalism and Communism. I had the pleasure of seeing a talk by Borges taped at ESEADE (a postgraduate business school emphasizing Austrian economic principles). Borges was asked by an unidentified American why he did not write more on politics and indi vidualism. Borges replied, "I am a mere story teller, not a politician." UCeDe The Argentine individualists take political ac tion principally through the Union del Centro Democnitico (Union of the Democratic Center, usually referred to as UCeDe), which together with other "liberal" parties, regionalist parties, and some conservatives form the Alianza de Centro (Alliance of the Center). The UCeDe was founded by Alvaro Alsogaray, who was the Alianza's candidate for president in 1989. The UCeDe's strength is growing, and although AI sogaray received only 6 percent of the popular vote in the May 1989 elections, the party did in crease its seats in the Congress.

The UCeDe actively seeks new supporters. Literature tables sellingthe magazine Tiempo de Acci6n Liberal ("Time of Liberal Action") and campaign paraphernalia attract passersby in Calle Florida and elsewhere. The UCeDe and its partners organize "Centros Civicos" (civic cen ters) to promote individualism and democracy.A cook named Carlos Villalba formed the Centro Civico "Obrero Liberal" (Liberal Worker) in a slum neighborhood and signed up 630 families out of 1200for the.UCeDe. Villalba is one of the many converts to classical liberalism won by Adelina de Viola, the successful UCeDe candi date for Congresswoman from the federal district of Buenos Aires. The Argentines are fond of clubs and social gatherings. Tiempo de Acci6n Liberal runs a col umn by Susana Herrera reporting on local UCeDe activities,such as the pasta parties ("No quis Liberales"-"Noquis" means "gnocchi") of the Movimiento de Acci6n Liberal (Movement of Liberal Action). These pasta parties feature political leaders, dancing, food, drink, and even a raffle. Two popular education groups of individu alists, the Escuela de Educaci6n Econ6mica y Filosoffade la Libertad (School of Economic Ed ucation and Philosophy of Liberty) and the Cir490 THE FREEMAN • DECEMBER 1989 culo de la Libertad (Circle of Liberty, a sort of in dividualist social club), both meet at the head quarters of the Movimiento de Acci6n Liberal in Buenos Aires.

The Argentine classicalliberals/libertarians at tract noticeably more women to their ranks of ac tivists than seems common in the United States. Women participate actively in the Centros Cfvi cos and the youth arm of the UCeDe, Juventud Ucedeista (Young UCeDe's). The UCeDe's can didate for Senator from Buenos Aires was Maria Julia Alsogaray, a Congresswoman and daughter of Alvaro Alsogaray. And there is the highly pop ular Congresswoman Adelina de Viola. The Argentine liberales rally to defend the 1853 Constitution against the changes proposed by the Peronists and Radicals, who seek to ex pand the government's (and their own) power. Although imperfect, the 1853 charter (which was brought back into force in 1957) is a brake on statism, according to Enrique Cerda Omiste of the Fundaci6n Carlos Pellegrini (Carlos Pellegri ni Foundation, named after the President who re stored Argentina to solvency in the 1890s). Fun daci6n Carlos Pellegrini is an educational group concerned with foreign affairs, values, and educa tion, trying to combat the debasement of civiclife inherent in statism.

The Centro de Estudios Sobre la Libertad (Center for Studies on Liberty) works diligently to propagate the ideals of individual liberty, pri vate property, and free markets in Argentina. Founded by Alberto Benegas Lynch Sr. and some friends in 1957 under the name "Centro de Di fusi6n de la Economfa Libre," the Centro is per haps the most important single classical liberalllibertarian organization in Argentina. Still headed by Dr. Benegas Lynch, the Centro de Estudios Sobre la Libertad is modeled after the Foundation for Economic Education. Like FEE, the Centro publishes pamphlets, books, and a magazine like The Freeman named Ideas Sobre La Libertad (Ideas on Liberty). Dr. Bene gas Lynch brought Ludwig von Mises, Friedrich Hayek, Leonard Read, and other free market lu minaries to lecture in Argentina. The Mises lec tures are now available in print, in both English and Spanish. (English title: Economic Policy: Thoughtsfor Todayand Tomorrow) Alberto Benegas Lynch graciously received me in his home in Buenos Aires. Dr. Benegas Lynch expressed high hopes for the future as the com peting brands of statism have all been discredit ed. He is cheered that young people are turning to free market individualism. Some of this shift can be attributed to Dr. Benegas Lynch and the Centro de Estudios Sobre la Libertad program of scholarships for study in the United States for many of the key professors of law and social sci ences who are contributing to Argentine individ ualism today. Their efforts show in student elec tions at the University of Buenos Aires (UBA) where the liberales won in the faculty of law and three others.

The Centro de Estudios Sobre la Libertad pre sents seminars and lectures on free markets and individual liberty throughout Argentina. This program is directed by Dr. Eduardo Marty, pro fessor of law and economics at UBA, with help from UBA law and accounting student, Alejan dra Rojo. ESEADE:An Emphasison AustrianEconomics The Escuela Superior de Economia y Admin istraci6n de Empresas (ESEADE, meaning Higher· School of Economics and Business Ad ministration) is a graduate business school em phasizing the Austrian school of economics. It publishes the journal Libertas,conducts a pro gram of lectures taped on video (such as the one with Borges), and runs short seminars on eco nomics and liberty for the general public. The president is Dr. Alberto Benegas Lynch Jr., one of the first students that the Centro de Estudios Sobre la Libertad sent to the United States. The Instituto de la Economfa Social de Merca do (Institute of the Social Market Economy) was founded by UCeDe leader Alvaro Alsogaray. Dr.

Martin Krause, their Director of Programs, ex plained to me that they focus on human rights (including human rights violations in Cuba), pri vatization, and free trade. They publish a maga zine and run essay contests for students with prizes of study in the United States. Their most recent winner, Dr. Alfredo A. A. Solari, professor of law at the University of Buenos Aires, studied at FEE in June and July of 1989. The Instituto de Estudios Contemponineos (Institute of Contemporary Studies) was founded by Marcos Victorica as a think tank like the Cato ARGENTINA AT THE CROSSROADS 491 Centro de Estudios Sobre III Libertad: From I-r: Rogelio Marty, Alejandra Rojo, Senora Marty, and Eduardo Marty. a:: If § o ~oa: Institute in Washington, D.C., with a public poli cy focus. It studies the informal economy,deregu lation, and privatization. Most notably, it spon sored the book, EI Estado y Yo por Juan Garcia (taxista) (The State and Me by Juan Garcia, taxi-driver), written by Faustino A. Fernandez Sasso.

I attended the presentation of the book at EI Ateneo bookstore in Buenos Aires. About 160 people came to hear about a book they had never seen. People stood about 20 deep in the rear to listen to the four panelists (Sasso, Adelina de Vi ola, Marcos Victorica, and journalist Bernardo Neustadt) discussthe book. EI Estado y Yo presents a forceful and funny case for limiting the state in the interests of the people. Sasso writes in a popular style with familiar stereotypes (the Japanese laundryman and the Galician Spanish bar owner). Juan Garcia, the story's taxi-driver, is Everyman, struggling to get by and lead his family to a better life. With facts and figures, Garcia shows the elephantine size of the state and its mammoth inefficiency. One memorable remark was "The country is full of functionaries, but nothing functions." The Argentine classical liberal/libertarian movement is gaining ground. Over 50 percent of the public favor some privatization. Monica Mat urano of the Instituto de Estudios Contemponi neos stresses how Argentines of her genera tion-in their 20s and 30s-have been disillusioned with statism, which simply doesn't work. The Argentine movement for liberty, like the nation itself, stands at a crossroads. D 492 A REVIEWER1S NOTEBOOK The Survival of the Adversary Culture by John Chamberlain P aul Hollander was Hungarian-born, but educated in sociology in a "somewhat ca sual and unpremeditated manner" in Eng land, in Illinois,and at Princeton. He is less interested, he says in The Survival of the Adversary Culture (New Brunswick, N.J.: Transaction Books, 299 pp., $27.95), in exploring the injus tices and defects of American society than he is in studying the injustices and deformities of other political systems,namely,those of the Soviet vari ety. He still manages to retain over the years "a naive astonishment and occasional indignation over the fact that Western intellectuals, including perhaps most American social scientists, show so little appreciation of or support for the institu tions which sustain them."