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Impuesto de Sociedades Legislación vigente

CAPÍTULO IV. CUESTIONES LEGALES

IV.2. Impuesto de Sociedades Legislación vigente

Several lessons can be obtained from this study. First, among the conventional approaches used to explain the growth and consolidation of social movements, an analysis based on rational choice foundations is particularly well-suited to explain the growth and endurance of the piquetero movement. The material interests of the members of the

piquetero social movement and the importance of the relationship between the piquetero

movement and some of the Argentine institutional arrangements -- in this case, the ruling party and the labor unions -- are most accurately reflected through this type of approach.

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Menem’s government usually used its discretionary power to discipline confrontational unions and reward supportive ones. These strategies diminished unions’ power and enabled Menem’s government to privatize several public enterprises (Levitzky & Way, 1998).

Second, because the purposes of the piquetero social movement are mainly clientelist (i.e., to obtain material benefits for members and political autonomy for the leaders of the movement), the development of this movement has followed a different pattern from most other traditional Latin American social movements. Other scholars such as Jean Cohen and Andrew Arato (1992), Gideon Baker (2002), Judith Hellman (1992), and Sonia Alvarez & Arturo Escobar (1992) have already alerted us to the emergence and growth of this wave of “new social movements” in Latin America, which in several cases are more interested in demanding economic and social concessions from the state than from the capitalist employers.

Third, the development of the piquetero social movement is connected to the political structures of the Argentine ruling party and the rules of the Argentine federalism. For this movement, I find clear causal relationships: when the ruling party is more decentralized and divided into two competing political heads, the piquetero associations become correspondingly stronger and more consolidated. The more intense the competition is between the two main leaders, the stronger the piquetero movement becomes. This is a case in which the combination of this particular institutional arrangement with a high unemployment rate could create a distinct social movement of unemployed people like the

piquetero movement. The Argentine economic crisis, the co-optation of the unemployed as an opportunity to avoid popular dissatisfaction, the Argentine electoral rules, and the connections of Argentine labor unions with the piquetero associations also triggered this political phenomenon.

Fourth, these findings and correlations again place in question the traditional conception of civil society as the purveyor of democracy in Latin America. There has clearly

been a bias among many scholars to focus exclusively on the contributions of a mobilized civil society when it is involved in attempting to bring about or strengthen liberal democracy (Baker, 2002). However, this tendency is seriously challenged by new empirical findings. These empirical contributions have shown that civil society does not necessarily support democracy, and has in some cases pushed for alternative forms of government (Berman, 1997). As a result, one should be cautious from believing wholesale in the “myth” of a virtuous civil society that is always on the side of good governance (Salazar, 1999; Rucht, 2003).

Within the Latin American context, in Argentina, there has been a dual interaction between the piquetero social movement and the two heads of the ruling party (“caudillos”). The final result has been more clientelism, increasing conflict and disunity within the main political party in Argentina (the Peronist party), and the strengthening of the power of the “caudillos” in the Argentine polity. Venezuela offers a similar example. In this country, the present-day conflict also defies traditional assumption about the role of social movements in democratization. The 1999 Bolivarian Constitution legitimized civil society’s insertion into the political sphere through plebiscitary measures and citizen-initiated processes. However, the “institutionalization” of Venezuelan civil society did not lead to the building of a common collective interest. On the contrary, this form of “participatory democracy” - coupled with the discredit of the traditional Venezuelan political parties - has increased political conflicts and might weaken democracy (García-Guadilla, Mallén & Guillén, 2004).

Both the recent Argentine and Venezuelan experiences raise relevant questions for further discussion and research. First, civil society can be easily co-opted by state actors through the offering of subsidies and material help. Building this assumption into my

analysis, I have shown that sectors of the executive branch can easily calculate and set a small enough “allowance” per individual in order to accumulate a substantial level of political support from civil society. However, unlike the Argentine case, political leaders in most other countries prefer to grant subsidies and buy votes without the costs of supporting a distinct social movement. For example, in the absence of a division and competition within the Venezuelan ruling “party,” the executive branch prefers to grant subsidies and buy votes without supporting a distinct social movement, which could produce more political autonomy for the movement’s leaders and reinforce a potentially troublesome distinct identity.

Because the members of the target groups are usually poor or unemployed people (high marginal utility for a small “allowance”), the Argentine experience teaches us that the structure of preferences and their limited budgets of these individuals facilitates their cooptation. Second, the impact of civil society on the performance of the Latin American democracies directly depends on how civil society interacts with the political system, the design of institutions, and the incentives that institutions generate in a polity.

Finally, due to the similar economic and social conditions among the Latin American countries, I could generalize the central explanation developed in this paper for Argentina to predict the growth and endurance of this kind of social movement in other Latin American countries. After relaxing the assumption related to the division and competition within the ruling party, a distinct social movement -- with a mutually beneficial relationship with the state -- is not an outcome under this scenario. Thus, leaders might prefer to practice clientelism without supporting the growth of a social movement with greater political autonomy and a distinct identity.

In a first test, for example, this analysis could explain the recent failure of the

piqueteros to develop new networks in Uruguay. This Southern Cone country shares many of the features of the Argentine context: economic crisis, high rates of unemployment, and a relatively inflexible labor market. However, without the clear division of power into two competing parts within the ruling party, the growth of a new piquetero social movement has been unsuccessful. The piquetero leaders also tried unsuccessfully to expand the movement to other Latin American countries such as Paraguay and Bolivia. All these failed attempts also provide the necessary basis for comparison and for testing the empirical validity of this model.

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Appendix

Table 1. Unemployment rates in Latin American countries

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