Social Unrest in the Bicentennial Year in Argentina

Dr. Hector Sandler

[December 2010]

Among the papers of Bernardino Rivadavia - strong advocate for the social principles of the May Revolution of 1810 - there is one that contains this thought: "No one can make use of the land so as to prevent others to use it too." The principle of equal rights of access to land for all men without exception was the funding moral basis for the new country that, with the name of Argentina, emerged in the world in the early Nineteenth Century.

Founded on this principle, Congress in 1826 enacted the Law of Emphyteusis. This law tried to ensure all former inhabitants - and those who in the future would populate our country - equal rights to access the land they needed to live and work. But this right of property was not free. The owner of a tract of land was required to pay an annual fee called "canon." This fee was a percentage of the value of occupied land. The money collected by the Government would be used to enlarge public funds.

Nevertheless all the imperfections that can be identified in that Law, Argentina was the first country in the modern world who tried to solve the ancient problem of legal access to land through this legal system.

But one thing is the letter of the law and another its observance. Emphyteusis Act of 1826 was in force until 1857. But the very diverse governments that followed President Rivadavia's administration neglected the moral and social sense of the law. They used it so some hundreds of families would monopolize the huge newly born country.

Once the immoral appropriation of the best land was effected, Emphyteusis Act was abolished on September 16th, 1857. Congressmen alleged it was "communist" (sic). In 1869, Congress passed the Civil Code that is still in use. By this Code it was established a different system for accessing to land. Its author - Don Dalmacio Velez Sarsfield - in paragraph 5 of the note to article 2503, explained the principle with these clear words: "We preferred the pure Roman Law of Property." Seed for internal dissension on land property was planted. However, thanks to Argentina's vast territory, sparse population in those times, and low taxes, during the following fifty years the poisonous effects of the new legal system were not perceived. But in Argentina of the Bicentennial - 2010 - the same heinous effects that had appeared in ancient Rome because of unrestricted rights to law possesion can no longer be hidden.

Growing social unrest was building when Argentina reached the Centennial in 1910. But it was since 1930 that Argentina began to suffer more serious social turmoil. The effects of Roman "pure law" started surfacing in Argentina. Though Argentina in those days could be perceived as a highly civilized society - as ancient Rome was- "marginalized people from civilization" began to surface. The great efforts to promote education in the nineteenth century and social policy in the twentieth century (through Peronismo) were useless to restore a peaceful order. The basis of a "Roman law of land property" started to fracture our society.

Today, reaching the bicentenary of the May Revolution, in Argentina social pustules abound: slums, shantytowns, and urban overcrowding are common occurrences. There are legions of poor, homeless people and squatters in public and private lands. Untill a few years ago, homeless put out their hands asking for charity. Today those hands and arms carry lighted torches in the main cities of the country. As in ancient Rome, "barbarians" who destroy civilization reproduce. As they destroyed Roman civilization. Government pieces out the picture with "Panen et circenses": Crude television programs, free football broadcasting and welfare subsidies. It includes the obscene show of wealth of people close to Government circles.

On last December 9th, landless people burned their torches in Villa Soldati, a neighbourhood of Buenos Aires City. Government officials ignore that the root of the riots lies in the laws of land ownership and taxation laws. The leading politicians mutually accuse or, jointly, accuse political activists. These statements, like fireworks, only distract the public.

Deep silence prevails among the leaders of society. They are in perplexity and disorientation. Chain social explosions were of consequence, but the official declarations are superficial. There are much garbling but few explanations. Enlightened men, natural guides of society, such as teachers, politicians, union leaders, religious and social leaders keep silence. This can be interpreted as an act of prudence. But the source of this silence is general ignorance of the problem. The smoke of daily eventes prevents seeing the fire that roars underneath.

Is there a remedy to avoid this kind of calamity? Yes! There is a remedy. The Civil Code system can be maintained, even with benefit to all. The correction of its negative effects is what is needed. The most negative effect is the legal sanction that allows the owner of land to own also the land rent. If this is not rectified, new and worse social explosions will unavoidably take place.

When landowners keep the income, land prizes grow and other men - mainly wage earning workers - cannot access the land. No human being can live without land. Is it any wonder that millions of "landless", distressed and without guides, - or with blind guides - try to put and end to the evils that this legal system causes them?

The events of Villa Soldati have been another step towards ruin. However, they could have a positive effect, if it can call attention to the bad legal foundation of Argentinian economy. Capable men may study this bad juridical basis and put their goodwill and knowledge to the service of the people so to amend it. They don't need to invent a remedy. It was already invented by the heroes of the May Revolution.

Our economic potential is useless with the current laws. We need laws with which everyone, without distinction, can enjoy human rights. Those of individuals and those of society, because society certainly shares them. The first individual human right is that each and every one of the inhabitants have an equal right to access to land. This includes the obligation of every citizen to pay the rent of the land he occupies.

The human right of society is to collect the land rent from those who occuppies it. There must be a law that ensures that Governet charges land rent to every occupier. This is essential because land rent has to be by law the main financial resource of the State to meet public expenditure (security, education, health) without raising taxes.

If governments collect land rent, taxes must be eliminated. Take an example: In 1999 the 200 km2 (area of the Buenos Aires City) were priced at about 110,000 million dollars. If the Government had taken no more than 1% of that value, they would have had an income of $ 1,100 million. Taxes by an equivalent amount could have been eliminated. By not doing so they punished the real economic agents charging 1,100 million and increased with the same amount the pockets of landowners. So simple, so clear.

The elimination of taxes and their replacement by the rent of land is the basis of democracy, individual liberty, fraternity and general prosperity.