The Economist November 20th 2021 The Americas 51
after Mr Piñera’s trip Chile’s government
tightened requirements for issuing tourist
visas to Venezuelans. Earlier it had applied
the same measure to keep out Haitians.
Now citizens of both countries must apply
for visas at the Chilean consulate in the
country from which they set off. Venezue
lans must show that they can spend at least
$50 a day. With legal routes to entry nearly
closed, partly because of covid, illegal im
migration is rising.
Chile has increased deportations of mi
grants, often without reviewing their cas
es. Chile’s Supreme Court says the expul
sions deny migrants due process and the
United Nations has denounced them. Co
lombia has been far more welcoming to
Venezuelans, giving temporary protected
status to nearly 2m.
The pandemic, visa restrictions and
racism have made it especially hard for
Haitians to find work and regularise their
status. Since 2019 more have left Chile than
have arrived. Some are heading overland to
the United States, straining bordersecuri
ty forces throughout the region. In a survey
of Haitians crossing into Colombia, carried
out by the International Organisation for
Migration, 43% of respondents said they
had come from Chile. Nearly 100,000 mi
grants, mostly Haitians, have tried this
year to cross the dangerous Darien Gap be
tween Colombia and Panama. Some who
made it to the United States in September
were promptly deported to Haiti.
As Venezuelans, Ms Rodríguez and her
family face less discrimination. But life in
Iquique has become intolerable. The fam
ily plan to move to Santiago, Chile’s capi
tal. “We have friends there whocanhelp us
find jobs,” says Ms Rodríguez. Unless,that
is, the government deports them.n
O
n the nightof a midterm legisla
tive election on November 14th the
mood in the opposition’s campaign
headquarters was oddly flat. Across
Buenos Aires the governing Peronists
were euphoric. President Alberto Fernán
dez called for a rally this week in the
Plaza de Mayo, scene of the movement’s
past triumphs, “to celebrate victory”. In
fact, the opposition won 42% of the
national vote against only 34% for the
Peronists. The celebration was because
they had expected worse. That was not
the only oddity: while defeat heralds two
difficult years for Mr Fernández’s govern
ment, it may also make it easier for him
to take some tough decisions, such as
coming to terms with the imf.
Mr Fernández, who calls himself a
social democrat, governs in a loveless
political marriage with his vicepresi
dent, Cristina Fernández de Kirchner (no
relation). She is a leftist populist who
offered him the top place on the Peronist
slate for the presidential election in 2019.
In some ways it was she who was the big
loser this time. The Peronists lost their
majority in the Senate for the first time
since democracy was restored in Argenti
na in 1983. Although they remain the
largest party, Ms Fernández, who as
vicepresident chairs the upper chamber,
can no longer dictate its agenda. Humili
atingly, the Peronists came third in Santa
Cruz, her adopted home province in
Patagonia, long a family fief.
The election may mark the beginning
of the end of kirchnerismo, the politically
ductile but economically intransigent
grouping that Ms Fernández, who was
president for eight years after succeeding
her husband in 2007, turned into the
dominant force within the Peronist
movement. She has thwarted Mr Fernán
dez’s inclination to deal with the imf, to
which Argentina owes $43bn. Her re
sponse to Peronism’s crushing defeat in
primary elections in September—in Ar
gentina these function as a dress rehears
al, since all parties must hold them on the
same day—was to order more government
spending on subsidies and handouts.
“They copied the worst practices in
Argentine politics,” says Sergio Beren
sztein, a political analyst. The government
funnelled money into the conurbanoof
Buenos Aires province, the mainly poor
suburbs that are home to one in four
Argentines and are Ms Fernández’s politi
cal heartland. This went not just on hand
outs but also on paving roads in muddy
settlements that still lack sewers and
piped water. One poll found that those
who received government aid were more
likely to have voted for the Peronists. The
result was that they gained 460,000 more
votes in the province than in September.
But that was still 2m fewer than in 2019,
and the opposition won, albeit narrowly.
This relationship with poorer voters
has been Peronist practice ever since Eva
Perón held court in the 1950s, handing out
publicsector jobs. The scope for it is
narrowing. Some 17m people (four out of
ten) depend on the state for their in
come, through benefits, pensions or
public employment. The result is persis
tent fiscal deficits. Since the imfsus
pended disbursements to Argentina in
2019 these are financed mainly by print
ing money, stoking inflation.
Unless it negotiates a new loan, the
government must repay $21bn to the imf
over the next 13 months. The Central
Bank’s reserves do not come close to that.
So the government faces a stark choice:
default, triggering yet another flight
from the peso, or make a deal. “It’s time
to resolve the problem,” Mr Fernández
said in a prerecorded announcement on
election night, adding that he would
send an economic programme to the new
Congress in early December, something
he had previously claimed was unneces
sary. He said the government would seek
the opposition’s support.
The imfis likely to accept a lessthan
rigorous programme, but it will have to
include some reduction of the deficit.
That has hitherto been anathema to Ms
Fernández. The proposed programme is
“a political decision that has the full
backing” of his whole coalition, the
president said pointedly. He can prob
ably count on the support of Peronist
provincial governors and the main trade
union confederation. But Ms Fernández
still has “influence and veto power”,
according to Mr Berensztein.
In 2001 a nonPeronist government
was toppled by rioting after it imposed
austerity and lost a midterm election.
The Peronists still control the streets,
and can probably muddle through until
the next election in 2023. But they have
no project for the future. That is Argenti
na’s biggest problem.
Will electoral defeat favour moderation in Argentina?
BelloThe ambiguities of Peronism