The first decades of the 20th century saw increasingly weak civilian rule, economic failure, continuing resentment of the landed elite and distrust of British interests, leading to a military coup in 1943 which paved the way for the rise of dictator Juan Perón. An obscure colonel with a minor post in the labour ministry, he won the presidency in 1946 and again in 1952. With his equally popular and charismatic wife Eva at his side, he instituted a stringent economic program which stressed domestic industrialisation and self-determination, appealing to both the conservative nationalist and working-class factions. His party was squashed by a military coup in 1955, leading to Perón's banishment to Spain and initiating 30 years of disastrous military rule, interspersed by only brief periods of civilian rule. Perón returned to rule briefly in 1973, dying in office in 1974 and bequeathing power to his third wife, Isabel. Increasing economic problems and political instability led to strikes, political kidnappings and guerrilla warfare. Isabel's government fell in 1976, and the new military government instituted a reign of terror.

The years 1976 to 1983 have been described as the years of the Dirty War. Opposition and criticism were eradicated by paramilitary death squads that operated with the state's complicity, bringing about the 'disappearance' of between 10,000 and 30,000 citizens. The most famous victims of this period were the Madres de la Plaza de Mayo, women who bravely kept an open, public vigil for the 'disappeared' members of their families.

This internal conflict ironically came to an end only with the emergence of a 'real' war in the south Atlantic: the battle for the Malvinas/Falklands. General Leopold Galtieri seized the Malvinas from the British to distract attention from Argentina's appalling political corruption and economic mismanagement. Surges of nationalistic hysteria in both countries resulted in a British flotilla sailing across the world to save one of the few remaining pink bits on the map. Britain was the eventual 'victor' in what was a mutually shameful and costly episode. Ownership of the Malvinas, however, remains disputed. In June 1995, the Argentine foreign minister offered to buy the islands, offering each of the 2000 islanders 800000.00 for their nationality. The matter has been further complicated by Britain's belief that oilfields lie offshore, and further bickering seems likely.

Ignominious failure at home and abroad finally sealed the fate of Argentina's military rule, and the country returned to the constitution of 1853. Former Perónist president Carlos Menem instituted major economic changes - selling off nationalised industries, opening the economy to foreign investment and pegging the peso one-to-one to the US dollar in 1991, which reduced inflation from 5000% in 1989 to an astonishing 1% in 1997. But while these changes tamed inflation, they also led to rising unemployment and a prolonged recession.

President Fernando de la Rua of the UCR centre-left Alliance, elected to a four-year term in 1999, promised a crackdown on corruption and tough fiscal measures to balance Argentina's budget. But after four years of recession and with an unemployment rate of more than 20%, the Argentine people had had enough. De la Rua's austerity plans prompted nationwide strikes and demonstrations, which grew violent after the government instituted harsh restrictions on bank withdrawals. Argentina plunged into economic and political turmoil in December 2001 when it defaulted on a 132000000000.00 loan repayment - the largest default in history. De la Rua and many of his government ministers resigned amid rioting, looting and widespread civil chaos in which 27 people were killed.

On January 1, 2002, Eduardo Duhalde became Argentina's fifth president in two weeks. A staunch Perónist, Duhalde took a populist and protectionist stance, though his background was mired in rumours of corruption. To achieve a more realistic economy (and to secure assistance from the International Monetary Fund) Duhalde unpegged the peso from the dollar, which caused the peso to lose almost 70% of its value.

In 2003 Néstor Kirchner - a little-known governor of a Patagonian province - became president with only 22% of the vote. His hard-nosed fighting suspended Argentina's debt to the IMF in 2004 and led to better terms; in 2006 the country paid off its entire IMF debt (its debts to private investors, however, still run to the billions of dollars). Kirchner's popularity rating soared. In the last three years Argentina's economy has made an astounding comeback and is growing 8% annually. Foreign investment is slowly returning, exports are surging and poverty is being reduced, though inflation continues to hang in the background.

Although social unrest has for the most part eased, Argentina's journey out of this financial pit is long and perilous. However, it's off to a promising start, and knowing the adaptability and resilience of the Argentine people, the future is looking brighter every day.