MercoPress. South Atlantic News Agency

Investors' confidence in Argentina “will take time”

The absence of a strong Judiciary branch upholding the law together with the lack of consolidated political parties unable to free themselves from permanent internal bickering is Argentina's main problem argues Professor Victor Bulmer-Thomas.

Member of the Royal Institute of International Affairs and foreign policy advisor to Prime Minister Tony Blair, Sir Bulmer Thomas predicts that the lack of investors confidence in Argentina is going to take "several years to overcome", even when having left behind the default and negotiating with creditors is a first significant step.

"Not even the Argentines expect foreign investors to come running in immediately", added Sir Bulmer-Thomas in an interview with the Buenos Aires newspaper La Nación.

He added that Argentine President Nestor Kirchner's "aggressive and controversial" attitude during his first trip to Europe, which was considerably smoothed in the following, does not influence foreign perception of Argentina as much as does the absence of a strong Judiciary upholding the law and the lack of consolidated political parties.

"It will take years to recover confidence in Argentina", insists Sir Bulmer Thomas recalling that in the last elections only Peronists participated, "which is not healthy. The absence of political parties is a real problem, in spite of the fact that there are opposition leaders".

As to the new Latinamerican leaderships, Professor Bulmer Thomas who has written several books on the region argues that President Kirchner "does not necessarily have to be a populist". However he chooses to do so with a "rhetoric and aggressive style" which is a good weapon to attack the International Monetary Fund or the Spanish corporations.

Uruguay's recently arrived President Tabare Vazquez on the other hand "acts differently". "Mr. Vázquez became president with a relative business and economic calm and actually runs the show in another way".