Tough task for Argentina's 'Hillary'

First lady Cristina Fernández de Kirchner won Argentina's presidential election Sunday, but she will soon face rising inflation and looming energy shortages.

By Sara Miller Llana | Staff writer of The Christian Science Monitor

from the October 30, 2007 edition

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Buenos Aires - First lady Cristina Fernández de Kirchner easily won Argentina's presidential race Sunday, launching a political dynasty not seen here since the days of Juan and Evita Perón.

President Néstor Kirchner is widely hailed for shepherding Argentina out of its economic crisis in 2001. Since then, he has overseen extraordinary economic expansion that has pushed poverty rates down from half the population five years ago to one-quarter today.

Voters want the same from Ms. Fernández, a veteran lawyer and senator. But analysts say the policies of her husband's administration – including price controls, energy subsidies, and generous public spending – could be the very formula that undermines hers. Already energy shortages and rising prices loom.

"She is going to have a much tougher time than Néstor," says Mark Jones, an associate political science professor at Rice University who advises the US government on Argentinean affairs. "She is not taking over at the best time. The energy crisis is real. The inflation crisis is real."

The problems that some see on the horizon were not large enough to sway many voters, who often cite security and jobs as their top concerns. On the campaign trail, Fernández barely mentioned inflation, while one of her main opponents, former economy minister Roberto Lavagna, made "Stop Inflation," his campaign slogan.

'Greater obligations'

"We have won amply," Fernández said during a victory speech Sunday night. "But this, far from putting us in a position of privilege, puts us instead in a position of greater responsibilities and obligations."

The Kirchners – dubbed the "Clintons of South America" – have moved to limit concerns about the economy, saying that inflation and energy deficits are byproducts of growth and can be solved with more investment.

Fernández has garnered attention for wooing foreign investors while revealing little about her platform other than to say she will "deepen the change" her husband spurred.

But many observers have their doubts about how strong the economy really is. The most immediate concern may be energy. Subsidies that keep energy costs low for consumers have led to shortages, and some fear brownouts, even blackouts, by next year. Fernández has said little about how she will tackle any looming energy shortages.

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