- Argentina descended into chaos as up to 12 people died
when police clashed with angry mobs looting shops and the government declared
a state of emergency to quell mounting unrest triggered by the country's
economic crisis.
The unrest unfurling on streets countrywide saw police firing tear gas
and rubber bullets at demonstrators and looters in an attempt to check
anger over a new government wave of hardship measures brought in to stop
economic collapse.
The death toll in the mayhem rose to up to 12 Thursday, while police said
that more than 150 people had been injured, including 76 police officers,
and that 551 people had been arrested during street protests.
Most of those killed died from gunfire in incidents involving the looting
of supermarkets and food stores.
The anger seething on the streets has been sparked by new economic austerity
measures designed to pull the country out of a crippling 43-month recession
and have it meet payment deadlines for a 132-billion-dollar foreign debt.
In the latest turn to the lingering crisis, labor unions announced more
general strikes and Economy Minister Domingo Cavallo -- brought in only
nine months ago to help straighten out the financial mess -- said he was
resigning the post.
It was Cavallo who as economy minister 10 years ago under former president
Carlos Menem pegged the Argentine peso to the US dollar.
Critics say the overvaluation of the peso has priced Argentine exports
out of the market, exacerbating unemployment.
The disintegrating financial situation further crumbled earlier this month
when the International Monetary Fund (IMF) delayed a crucial disbursement
of 1.264 billion dollars until the government imposed promised austerity
measures and tax reforms.
Last Friday, Argentina paid part of the 1.1 billion dollars required to
avoid default on its public debt but is still facing an uphill battle to
meet payment deadlines later this month.
The disruption on the streets of Argentina had little knock-on effect,
however, on the international markets where traders said they had seen
stormclouds brewing for some time.
Thousands of people banging pots and chanting slogans gathered outside
the presidential palace to protest the state of emergency decree and the
government's handling of the crisis.
Police fired tear gs to disperse the angry crowds.
Other groups of protesters gathered outside both houses of Congress and
the homes of Cavallo and President Fernando de la Rua, demanding the president
too step down.
The head of state called in the cabinet for talks early Thursday.
De la Rua the previous day had declared a 30-day state of emergency, assuming
special powers and suspending constitutional guarantees. Defense Minister
Horacio Jaunarena said however that the government would not call in the
military.
In a speech to the nation, de la Rua called for a meeting of all political
parties, provincial governors and lawmakers to try to end the widening
economic and political crisis.
The Telam state news agency hinted at a possible cabinet reshuffle and
said all of Argentina's 24 governors -- 14 belong to the opposition --
and leading congressmen had been called to a meeting Thursday to discuss
Argentina's troubles.
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