Roberto Lavagna
Encyclopedia
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
and politician, and was the former Minister of Economy and Production of Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
from April 27, 2002, to November 28, 2005.
Career
Lavagna was born in the SaavedraSaavedra, Buenos Aires
Saavedra is a barrio of Buenos Aires, Argentina. It is located in the Northern end of the city proper, close to Belgrano and Villa Urquiza. Its northern border is General Paz Avenue. Among the main features of the neighbourhood is Saavedra Park, which has large picnic areas and sports facilities...
section of Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
in 1942. His father, the owner of a linotype printing shop, relocated the family to the western suburb of Morón
Morón, Buenos Aires
Morón is a city in the Argentine province of Buenos Aires, capital of the Morón Partido, located in the Greater Buenos Aires metropolitan area, at...
a few years later, and Lavagna enrolled at the University of Buenos Aires
University of Buenos Aires
The University of Buenos Aires is the largest university in Argentina and the largest university by enrollment in Latin America. Founded on August 12, 1821 in the city of Buenos Aires, it consists of 13 faculties, 6 hospitals, 10 museums and is linked to 4 high schools: Colegio Nacional de Buenos...
, where he graduated with a degree in political economy
Political economy
Political economy originally was the term for studying production, buying, and selling, and their relations with law, custom, and government, as well as with the distribution of national income and wealth, including through the budget process. Political economy originated in moral philosophy...
, in 1967.
He then obtained a scholarship to study in Belgium, where he earned a graduate degree in econometrics and economic policy. At the university, he met Claudine Marechal, a student from Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
whom he married in 1970, and with whom he had three children. Lavagna also holds an honorary doctor's degree from the University of Concepcion del Uruguay.
Following the election of Peronist candidate Héctor Cámpora in 1973, Lavagna was named National Director of Price Policy in the Commerce Secretariat, and was shortly afterwards named Director of Incomes Policy by the Economy Minister, José Ber Gelbard
José Ber Gelbard
José Ber Gelbard was an Argentine activist and politician.-Career:Gelbard was born in Radomsko, Poland, in 1917. In 1930 Gelbard emigrated to Argentina with his parents and siblings. They settled in Tucumán, north of Buenos Aires. Those were tough times and Gelbard had to make a living as a...
; as such he helped oversee a key policy initiative of Gelbard's "Social Pact," which sought to involve management in efforts to control inflation while raising stagnant median wages. Gelbard's resignation in November 1974 led to Lavagna's entry into the private sector following a stint at the Ministry of Public Works, becoming a member of the board of directors of La Cantábrica, a since closed Morón steelmaker, until 1976. He also co-founded Ecolatina, a think tank
Think tank
A think tank is an organization that conducts research and engages in advocacy in areas such as social policy, political strategy, economics, military, and technology issues. Most think tanks are non-profit organizations, which some countries such as the United States and Canada provide with tax...
, in 1975, and was a member of the board of the Institute for Applied Economics and Society (IdEAS), from 1980 to 1990.
Lavagna reentered public service as President Raúl Alfonsín
Raúl Alfonsín
Raúl Ricardo Alfonsín was an Argentine lawyer, politician and statesman, who served as the President of Argentina from December 10, 1983, to July 8, 1989. Alfonsín was the first democratically-elected president of Argentina following the military government known as the National Reorganization...
's Secretary of Industry and Foreign Commerce, between 1985 and 1987, during which he helped negotiate the preliminary trade accords with Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
that later led to the establishment of the Mercosur
Mercosur
Mercosur or Mercosul is an economic and political agreement among Argentina, Brazil, Paraguay and Uruguay. Founded in 1991 by the Treaty of Asunción, which was later amended and updated by the 1994 Treaty of Ouro Preto. Its purpose is to promote free trade and the fluid movement of goods, people,...
trade region in 1991. He left the board of Ecolatina in 2000 to accept a post as Ambassador-at-large
Ambassador-at-large
An ambassador-at-large is a Diplomat of the highest rank or a Minister who is accredited to represent his country internationally.Unlike an ambassador-in-residence who is usually limited to a country and/or embassy, the ambassador-at-large is entrusted to operate in several usually neighboring...
to international economic conferences, and to the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
.
Lavagna was appointed Economy Minister by interim
Ad interim
The Latin phrase ad interim literally means "in the time between" denotes the meaning of "in the meantime", "for an intervening time" or "temporarily" in the English language...
President
President of Argentina
The President of the Argentine Nation , usually known as the President of Argentina, is the head of state of Argentina. Under the national Constitution, the President is also the chief executive of the federal government and Commander-in-Chief of the armed forces.Through Argentine history, the...
Eduardo Duhalde
Eduardo Duhalde
-External links:...
, on April 27, 2002. Taking office at the depth of the Argentine economic crisis
Argentine economic crisis (1999-2002)
The Argentine economic crisis was a financial situation, tied to poilitical unrest, that affected Argentina's economy during the late 1990s and early 2000s...
, Lavagna prioritized the planned rescision of the corralito
Corralito
Corralito was the informal name for the economic measures taken in Argentina at the end of 2001 by Minister of Economy Domingo Cavallo in order to stop a bank run, and which were fully in force for one year. The corralito almost completely froze bank accounts and forbade withdrawals from U.S...
(withdrawal limits on local bank account) over the stabilization of the Argentine peso
Argentine peso
The peso is the currency of Argentina, identified by the symbol $ preceding the amount in the same way as many countries using dollar currencies. It is subdivided into 100 centavos. Its ISO 4217 code is ARS...
, which had declined by 75% in four months. This put him at odds with the President of the Central Bank, Mario Blejer
Mario Blejer
Mario Blejer is an Argentine economist and Central Bank official.-Life and times:Blejer was born in Córdoba, Argentina, in 1948. He enrolled at the Hebrew University of Jerusalem, and graduated cum laude with degrees in Economics and Jewish History in 1970, as well as with a Master's Degree in...
, who resigned in June. The peso stabilized, however, as foreign trade
Foreign trade of Argentina
-Modern history:Agriculturally productive and thinly populated, Argentina recorded trade surpluses for most of the period between 1900 and 1948, including a cumulative US$1 billion during World War I and US$1.7 billion during World War II. Record taxes on grain exports imposed by the...
surpluses mounted, and confidence returned to the Argentine financial system. The corralito was phased out between December 2002 and March 2003, the economy began a vigorous recovery, and Lavagna was confirmed in his post by President Néstor Kirchner
Néstor Kirchner
Néstor Carlos Kirchner was an Argentine politician who served as the 54th President of Argentina from 25 May 2003 until 10 December 2007. Previously, he was Governor of Santa Cruz Province since 10 December 1991. He briefly served as Secretary General of the Union of South American Nations ...
upon his taking office in May 2003. Lavagna earned further plaudits from his handling the Argentine debt restructuring
Argentine debt restructuring
Argentina went through an economic crisis beginning in the mid-1990s, with full recession between 1999 and 2002; though it is debatable whether this crisis has ended, the situation has been more stable, and improving, since 2003....
, launched on January 14, 2005, by which more than 76% of the default
Default (finance)
In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either...
ed public debt bonds (worth about 93 billion dollar
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
s) for longer-term debt, with an important reduction in principal
Haircut (finance)
In finance, a haircut is a percentage that is subtracted from the market value of an asset that is being used as collateral. The size of the haircut reflects the perceived risk associated with holding the asset...
.
Lavagna was ousted by President Kirchner on 28 November 2005, after a week or so of persistent rumors followed by official denials. He was replaced by Felisa Miceli
Felisa Miceli
Felisa Miceli is an Argentine economist, and a former Minister of Economy and Production of Argentina...
, President of Banco de la Nación Argentina
Banco de la Nación Argentina
Banco de la Nación Argentina is a state-owned bank in Argentina, and the largest in the country's banking sector.-Overview:The bank was founded on October 18, 1891, by President Carlos Pellegrini by way of stabilizing the nation's finances following the Panic of 1890; its first director was...
(who resigned in 2007 over a money scandal, referred to by the press as toiletgate), and a former student of Lavagna's. The reasons for the forced resignation of the Minister were not made public, though speculations ranged from the failures in fighting inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
to recent Lavagna's accusations of cartel
Cartel
A cartel is a formal agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products...
ization against certain private companies involved in contracts with the government, which were seen as an indirect attack against Julio de Vido
Julio de Vido
Julio Miguel de Vido is an Argentine policy maker, currently the President's Minister of Planning and Public Works.-Biography:...
, Minister of Public Works and personally close to the President.
Lavagna only told the press that the President had decided his removal as part of a common post-election renewal. The next day, José Pampuro
José Pampuro
José Juan Bautista Pampuro is an Argentine politician. He is a member of the Justicialist Party, was formerly a Defense Minister and is currently a senator for Buenos Aires Province. He serves as the Senate provisional President and is second in line for the presidential succession.Pampuro was...
, former Minister of Defense, admitted that relations between Kirchner and Lavagna had become "complicated" since the elections, and that the situation was "tense" during the week before Lavagna's removal. Off-the-record sources also indicated that Lavagna's independence clashed with Kirchner's desire to have a homogeneous cabinet.
Lavagna formed a front, UNA (Una Nacion Avanzada, or "An Advanced Nation"), to run against the government's candidate, Cristina Fernández de Kirchner
Cristina Fernández de Kirchner
Cristina Elisabet Fernández de Kirchner , commonly known as Cristina Fernández or Cristina Kirchner is the 55th and current President of Argentina and the widow of former President Néstor Kirchner. She is Argentina's first elected female president, and the second female president ever to serve...
, in the October 2007 Presidential elections
Argentine general election, 2007
Argentina held national presidential and legislative elections on October 28, 2007, and elections for provincial governors took place on staggered dates throughout the year. For the national elections, each of the 23 provinces and the Autonomous City of Buenos Aires are considered electoral districts...
. Senior members of the Radical Civic Union
Radical Civic Union
The Radical Civic Union is a political party in Argentina. The party's positions on issues range from liberal to social democratic. The UCR is a member of the Socialist International. Founded in 1891 by radical liberals, it is the oldest political party active in Argentina...
(UCR), Socialists
Socialist Party (Argentina)
The Socialist Party is a social-democratic political party in Argentina. The history of socialism in Argentina began in the 1890s, when a group of people, notably Juan B. Justo, expressed the need for a greater social focus....
and Peronist supporters
Justicialist Front
The Justicialist Front is a Peronist political party in Argentina as a vehicle for former Presidents Eduardo Duhalde and Adolfo Rodríguez Saá. Its exact relation with the Justicialist Party is unclear....
of former President Duhalde voiced support for a coalition behind Lavagna's candidacy, although this proved controversial in all three parties. His plan for his first 100 days of government was based on improving security and employment and reducing extreme poverty. At the election, Lavagna was effectively the Radicals' official candidate, with Gerardo Morales
Gerardo Morales (Argentine politician)
Gerardo Rubén Morales is an Argentine politician, leader of the Radical Civic Union . He is a member of the Argentine Senate representing Jujuy Province, elected for the Front of Jujuy. He was a candidate for Vice President of Argentina on Roberto Lavagna's UNA ticket in the 2007...
, leader of the UCR, as his running mate (Mrs. Kirchner also had a Radical as her running mate, Mendoza
Mendoza Province
The Province of Mendoza is a province of Argentina, located in the western central part of the country in the Cuyo region. It borders to the north with San Juan, the south with La Pampa and Neuquén, the east with San Luis, and to the west with the republic of Chile; the international limit is...
Governor Julio Cobos
Julio Cobos
Julio César Cleto Cobos is an Argentine politician, currently serving as the Vice President of Argentina alongside President Cristina Fernández de Kirchner. He started his political career as member of the Radical Civic Union , becoming Governor of Mendoza in 2003...
). Lavagna and UNA came third with over 3 million votes and 17%, behind Fernández and Elisa Carrió
Elisa Carrió
Elisa María Avelina Carrió is an Argentine politician, founder of the party initially known as Alternative for a Republic of Equals , now Civic Coalition ARI ....
, and won solely in Córdoba Province.
Following the 2007 election, Lavagna reached an accord with his former rivals and held talks with Néstor Kirchner over the future of the governing Justicialist Party
Justicialist Party
The Justicialist Party , or PJ, is a Peronist political party in Argentina, and the largest component of the Peronist movement.The party was led by Néstor Kirchner, President of Argentina from 2003 to 2007, until his death on October 27, 2010. The current Argentine president, Cristina Fernández de...
(PJ). Lavagna was expected to become a vice-president of the Party, seen as a move to widen the base of the party and strengthen Mrs. Kirchner's government. Lavagna subsequently declared he would not seek a position on the PJ executive.
See also
- Economy of ArgentinaEconomy of ArgentinaThis article provides an overview of the Economic history of Argentina.-Emergence into the world economy:Prior to the 1880s, Argentina was a relatively isolated backwater, dependent on the wool, leather and hide industry for both the greater part of its foreign exchange and the generation of...
- Argentine debt restructuringArgentine debt restructuringArgentina went through an economic crisis beginning in the mid-1990s, with full recession between 1999 and 2002; though it is debatable whether this crisis has ended, the situation has been more stable, and improving, since 2003....