Friday, 21 December, 2001, 09:34 GMT

The events that triggered Argentina's crisis

De la Rua - Cavallo

The people of Argentina have seen their pensions taken away, unemployment soar, inflation jump and their industries decimated.

Nine months after being brought in to save the Argentine economy, economy minister Domingo Cavallo has resigned leaving the economy in worse shape than ever.

The news that President Fernando de la Rua has also resigned will add to the uncertainty surrounding the Argentine economy.

After failing to lift the country out of four years of recession, the new government may have to abandon a ten year old currency peg that values one peso to one dollar.

A devaluation would also lead to a default on Argentina's $132bn foreign debt, the biggest of any country in the world.

While the roots of the crisis lie back in the Eighties, President Fernando de la Rua's took office on a platform of economic revival just over two years ago.

These now appear to have failed.

Former economy minister Domingo Cavallo
Cavallo failed to improve the economy

Struggles in Argentina | www.agp.org