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Debt-ridden Argentina declares state of siege amid massive civil unrest

Argentina's government declared a state of siege Dec. 19. The move was designed to control the worst civil unrest in more than a decade. At least five people have died in recent looting and rioting caused by rising poverty.

Meanwhile, Economy Minister Domingo Cavallo resigned Dec. 20. With Cavallo, whom many had regarded as president in all but name, out of the picture, Argentina is effectively without a leader.

Police fired tear gas and rubber bullets to scare off thousands of looters in Buenos Aires and northeastern Argentina

Reports said there were 20,000 looters in Buenos Aires alone. Many broke into stores and smashed shop windows, stealing items, including food, clothing and toilet paper.

The state of siege, the first since similar 1989 food riots, gives the government the power to suspend constitutional rights, arrest people and call in the military.

Argentine President Fernando De la Rua is struggling against a four-year recession, 18.3 percent unemployment and the biggest debt default ever.

Amid a worsening recession, the government has cut state pay and pensions by 13 percent and slapped restrictions on cash withdrawals to end a run on banks

Some 2,000 people a day fall below the poverty line in Argentina

Protests are likely to escalate as the government tries to cut its spending by nearly 20 percent next year to ensure it can keep servicing its massive debt.

Shukan ST: Dec. 28, 2001

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