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In 2001, a political, economic and debt crisis devastated Argentina. The peso lost three
quarters of its value; half the country’s people were reduced to poverty. Unemployment
spiked at 32 percent.
In the worst days of the crisis, 40,000 people scavenged the streets of Buenos Aires for
cardboard to sell for a few pesos. The “cartoneros” became the symbol of Argentina’s economic
casualties.
(Ester Collados) It is hard when it’s cold, you cover yourself
with whatever you have, and when it rains the cardboard gets wet, and we get less money.
In 2001, one of the most important steps taken by the Argentine government was to provide
a measure of social protection to those hardest hit: a modest sum, 50 US dollars a month,
was paid out to two million unemployed families. It worked.
(Enrique Deibe) The process of recovery for the poorest sectors,
those facing the most difficulties, helped us to overcome a period of much deterioration
in Argentina. It stimulated consumer demand in the poorest sectors which boosted the domestic
and local economy.
Argentina subsidized salaries, providing money directly to employees, both protecting jobs
and helping employers.
(Angel Vazquez) It has allowed us to get over it without laying
off people, which would have been very upsetting.
Factories and businesses reopened, creating four million jobs. According to the ILO’s
World Social Security Report, Argentina’s response in 2001 meant it was better positioned
to weather the recent global economic crisis.
(Michael Cichon) Argentina, in 2000…2001, had an unemployment
benefits scheme in place, but it was only covering the formal sector…but it had the
knowledge, it had the people, and it had the methods to actually introduce a redistributive
system that reached out to the informal sector very quickly. And it has that system called
“jefes y jefas” in place now, and it can automatically expand to whenever the need
arises again. And so it did in 2009.
(Ignacio Nelson Gallo) The global economic crisis in 2009 affected
us. Our sales decreased by 40 or 45 per cent.
The “productive recovery programme” that was started during the earlier crisis has
so far saved 140,000 jobs that would have been lost in the current crisis.
Re-training and cash transfer programs to support young people hardest hit by the crisis
have helped 100,000 or more.
Lucas Vilte got a job in a meat factory. He now makes 150 dollars a month.
(Lucas Vilte) The programme has given me the chance to get
a job here today, and to acquire skills. I like it.
Argentina believes the focus on job protection means the country is better prepared to handle
the effects of the global economic crisis, and that other countries can learn from their
experience.
(Dr. Carlos A. Tomada) We believe that only by protecting employment
and maintaining the level of salaries, will we manage to maintain an active economy.
Even the lives of the “cartoneros” have changed for the better. They no lobger scavenge
to survive, but instead run a recycling cooperative. After signing a five year deal with the city,
they have job security, as well as social and health benefits.
(Roberto Gomez) Our dream is the same as any other workers,
to have an income, sustain our families, send our kids to school, the dream… the dream
of all workers.