Known as the “Queen of Argentine Politics”, and the second female president in the country’s history, Cristina Fernandez de Kirchner is one of the most influential and polarizing figures Argentina has ever experienced. During her presidency, Kirchner’s policies often rallied the less privileged members of the country, while alienating the wealthy and powerful elite. Notably, her populist policies — particularly her strict currency controls and the nationalization of private companies — triggered both strong support, and strong divide within the Argentine society.
Along with her economic policies, Kirchner’s approach to political processes questioned public faith in the Argentine system, seen by some as an attempt to protect her allies and her legacy. This article will explore the populist legacy, the resulting polarization, and the ongoing legacy of Cristina Fernández de Kirchner.
The Populist Legacy
At the heart of Cristina Fernández de Kirchner’s strategy was a populist ideology, which sought to prioritize the needs of the working class over the interests of the wealthy and powerful. Kirchner aligned herself with the supporters of her late husband, former President Nestor Carlos Kirchner, and the pair’s coalition, the Constituent Workers Party (CGT). She also pursued a program of strong economic interventionism, government-led investment and generous social entitlements. A hallmark of Kirchner’s policy was increasing taxes on the wealthy, and increasing support for poor households.
Indeed, after taking office in 2007, one of Kirchner’s first moves was to increase the minimum wage and implement public pension reforms. She also used the revenues generated by these policies to finance large public works and welfare programs. As a result of these policies, the country saw a rapid expansion in the demand for consumer goods and services.
At the same time, Kirchner’s government also tightened restrictions on foreign capital, strengthening the country’s currency control policies, and nationalizing a number of industries. While some of these measures had the intended effect of harm reduction, others, like the targeting of independent media outlets and the suppression of civil liberties, were seen as autocratic tools.
Currency Controls
Kirchner’s most criticized policies pertained to the Argentine peso, which she sought to protect from the impact of international markets. To this end, she imposed a series of currency controls that made it difficult for foreign investors to invest in the country. Kirchner also sought to strengthen the peso by deterring Argentines from stashing their money offshore.
Initially, in 2011, Kirchner imposed a requirement that 60 percent of all foreign currency sales be converted back into pesos. One year later, she raised this requirement to 70 percent. In 2013, Kirchner further limited the purchase of foreign currency by capping purchases of pesos at $10,000 per month, prohibiting the repatriation of capital, and imposing a 35 percent tax on all foreign currency purchases.
The Polarization
Kirchner’s economic and social policies, particularly the stringent currency controls and the nationalization of private companies, quickly created an atmosphere of polarization that affected the whole of Argentina. The country’s middle and upper classes were, understandably, highly critical of Kirchner’s measures, feeling that the government was out of touch with the needs of Argentines and that its policies were alienating investors, who kept their money away from Argentina.
At the same time, Kirchner was popular among the working class and poor. Many felt that the country’s economy had been neglected and felt that Kirchner’s policies provided them with economic security and ensure their basic rights. To many, both sides of the political spectrum had become increasingly distant — with the five years of Kirchner’s rule emphasizing the divide.
Political Incompetence
Besides her focus on economic policies, Kirchner was also criticized for her handling of political processes, which some saw as an attempt to protect her allies and establish her own legacy. This approach had a detrimental effect on many of her highest-ranking supporters, as the legislative and judiciary branches of government — both of which were in close alliance with Kirchner’s administration — began to suffer from rampant corruption and incompetence.
Kirchner’s most controversial move was her attempt to replace the Supreme Court in 2013 with the Peronista (the political ideology of the late Nestor Carlos Kirchner and his successor, Cristina Fernández de Kirchner) loyalists in order to protect her government allies. This attempt was seen as an affront to the independence of the judicial branch and generated widespread outrage throughout the country.
The Kirchner Legacy
In spite of the many criticisms against Cristina Fernández de Kirchner, she still holds a place of prominence in Argentine politics. She continues to have a significant support base among whom many view her as an effective and resolute leader who represented the interests of the working class.
The positives that could be attributed to the Kirchner years include:
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An Increase in the Minimum Wage: Under Kirchner’s rule, the minimum wage increased substantially — from about $400 to $640 a month in 2008.
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Expansion of Economic Freedom: The Argentine economy enjoyed increased economic freedom as a result of Kirchner’s decision to float the Argentine peso and remove most currency controls.
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An Increase in Exchange Rates: With the floatation of the exchange rate, the peso was no longer overvalued, which made Argentine goods more affordable to foreign investors.
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Expansion of Social Programs: Kirchner introduced new programs designed to improve the standard of living of the poorest citizens, such as the Universal Child Allowance and the Universal Child Allowance Works Program.
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Strengthening of Governmental Institutions: As a result of the reforms, the rule of law and the capabilities of governmental institutions underwent substantial improvement.
At the same time, there are also downsides that can be attributed to the Kirchner legacy. These include:
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Mismanagement of the Economy: Despite higher welfare payments and public spending, the economy fell into a recession during Kirchner’s last two years in office.
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Hostile Relationship with the Business Community: Businesses perceive Kirchner’s policies as hostile and restrictive.
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Loss of Competitiveness: Argentina lost its edge on the international market as a result of Kirchner’s overly-restrictive currency controls.
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Rampant Corruption: Kirchner’s approach to government alienated many of her supporters, as numerous cases of corruption and mismanagement were made public during her tenure.
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This Widened Divide between the Rich and the Poor: The polarization between Kirchner’s supporters and opponents found its apex during her rule, further aggravating the divide between Argentines of different social classes.
Cristina Fernández de Kirchner’s time in office as the president of Argentina saw a rise in populist policies and political polarization. Her attempts to appeal to the less privileged citizens, including her strict currency control policies and the nationalization of private institutions, received both widespread criticism and strong support. However, the resulting economic downturn, distrust in the government and high levels of corruption threatened to undo the progress made during her years in office. While her legacy is mixed, there is no doubt that Kirchner was a transformational leader who changed the course of Argentinian history.
