- Title: In farm-rich Argentina, hunger cries ring in leaders' ears amid crisis
- Date: 9th October 2019
- Summary: BUENOS AIRES, ARGENTINA (RECENT - SEPTEMBER 2019) (REUTERS) (SOUNDBITE) (Spanish) ECONOMIST FROM AVELLANEDA UNIVERSITY, SERGIO CHOUZA, SAYING: "It is possible that in the remaining three quarters, there will be an increase again. The jump in the exchange rate for the month of August was very considerable, it was 35%, with which one tends to think that it is difficult to break poverty and 35% down, possibly closer to 38% by the end of this year. 2019." BUENOS AIRES, ARGENTINA (RECENT - OCTOBER 4, 2019) (REUTERS) VARIOUS OF WOMAN WITH BABY IN STREET YOUNG MAN RECYCLING RUBBISH
- Embargoed: 23rd October 2019 12:11
- Keywords: Argentina economy election politics crisis food hunger
- Location: BUENOS AIRES, ARGENTINA
- City: BUENOS AIRES, ARGENTINA
- Country: Argentina
- Topics: Editors' Choice
- Reuters ID: LVA007B0DJRRB
- Aspect Ratio: 16:9
- Story Text:Soup kitchen volunteer Isabel Britez makes her way to the local Los Piletones soup kitchen to serve food to some of Buenos Aires' most needy and who scrape by from meal to meal.
Britez, 46, says that the particular soup kitchen she volunteers at feeds more than 2,000 people per day.
"In the soup kitchen, we have a place for grandparents. We have the central kitchen, this whole area. Plus an area where we have women who are victims of family violence. In total we are feeding more than 2,000 people a day, that is, in total between breakfast, lunch, snack and dinner," said Britez.
The rise in hunger and poverty creates a complex backdrop for the leaders of Latin America's no. 3 economy, who are in knife-edge talks with creditors to avoid default on billions of dollars of debt amid economic and political upheaval.
Ahead of a presidential election on Oct. 27, officials will head to Washington this month to meet with the International Monetary Fund (IMF), a major backer that struck a $57 billion funding deal with the country last year.
Those talks are likely to weigh on the current administration of President Mauricio Macri and the next one, likely led by left-leaning Peronist Alberto Fernandez, the front-runner to win the vote.
Government data shows poverty rates jumped to 35% in the first half of 2019 amid recession and steep inflation, from 27.3% a year earlier.
Around 13% of children and adolescents went hungry in 2018, according to data from the Pontificia Universidad CatÃ³lica Argentina, and rising food prices have become a regular target of popular anger in street protests around the country.
Political leaders know something must be done, but face a complex juggling act: bolstering growth and spending to ease issues such as hunger, while cutting debt and averting a damaging default that would shut off access to global markets.
"We can't live in peace with such a scourge," left-leaning Fernandez said in a speech on Monday in reference to hunger, which he described as Argentina's "greatest shame."
Fernandez, who has been buoyed by support for populist running mate Cristina Fernandez de Kirchner, blames Macri and austerity measures agreed with the International Monetary Fund for the rise in poverty and hunger.
Macri's running mate, Miguel Pichetto, meanwhile, said on Monday the way to eradicate hunger was to generate employment and attract "big global companies" to Argentina.
Both sides have said they would honor the country's debts with creditors, including the IMF, though neither has laid out a clear plan for how to do so while boosting spending at home.
Most investors expect some sort of losses.
Indeed, Moody's Investors Service anticipates holders of Argentina dollar bonds will need to write off 10% to 20% of their investments, while Fitch Ratings believes the government will write down local and dollar debt.
Hunger and poverty are not new in Argentina, but have risen abruptly over the past two years amid a series of economic shocks that have rattled the grain-exporting nation, famed for its rich arable land and cattle.
The issues have become a lightning rod for anti-government protests and marches, with the hardships of the poor brought into sharp focus as the government has been locked in talks with creditors about repayments on around $100 billion in debts.
Driving the problem is stubborn inflation, a tumbling peso and a slump in domestic production and consumption, which have hurt spending power, incomes and jobs.
"People who come from the provinces (inside the country) always complain they don't have a job," Britez said.
"They come to the capital and if they don't find a place to live and a place to eat, they stay under the bridges. They come many times to ask for blankets and mattresses and anywhere where they can stay," she added.
Macri, looking to revive his election hopes, has rolled out plans to bolster jobs, including tax cuts for employers. He also announced a freeze on some food prices earlier this year.
Sergio Chouza, an economist at the University of Avellaneda in Buenos Aires, said food prices have rocketed nearly 60% over the past year, with basics such as dairy up as much as 90%.
Poverty is a key reason for Macri's fall from grace. His economic austerity, part of the $57 billion funding deal agreed with the IMF last year, reined in deficits but hit growth and voters' wallets.
Macri was defeated heavily in a primary election in August. Since then, he has announced lower taxes for the middle class and higher subsidies for the poor along with food aid. The Senate approved an emergency food law last month.
A spokesman for the Ministry of Health and Social Development listed official measures to deal with the crisis, but declined to comment further on poverty rates.
In the meantime, even as soup kitchens flourish, some volunteers say meals are getting more meager amid tight funding conditions and as food donations dry up.
(Production: Miguel Lo Bianco, Horacio Soria)
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