What Happened to Argentina? NY Times

Thursday, October 8th 2009 - 01:18 UTC

Full article 14 comments

(*) A century ago, there were only seven countries in the world that were more prosperous than Argentina (Belgium, Switzerland, Britain and four former English colonies including the United States), according to Angus Maddison’s historic income database. Read full article

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Roman
Hi there,

I'm from Argentina, I'm 26 and I've been living in New Zealand for 2 years now. The difference between the kiwi and argentine psique is amazingly different! The main problem that ARG faces is people's mentality. We are a rich country and money shouldn't be an issue at all. Being outside my country made me realize that the way in which we perceive reality is totally incorrect. We tend to blame politicians for all of our problems but is not them, is ALL OF US. The argentine (specially the porteno, people from BA) don't respect anything and always think that they are smarter than the rest of the world.
You should go to ARG for a few months and interact with portenos and you will understand the country's economical situation. Porteno is the exacerbated version of a typical argentine. I study cinema and I'm planning to do a short film about the ''argentine psique'', it makes me sad to see that my country is so blind, I don't intend to change people's mentality but I feel that I have to do something and at least TRY to create an impact on the people that watches the movie.

Cheers!
Roman
Oct 08th, 2009 - 07:22 am - Link - Report abuse 0
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Mandy
Hi Roman,
I agree with you and I 'd like to add, that we blame politicians just because what we point on them, is just what we dislike of ourselves.
Good luck with your movie, and I hope to see it in our country and that it really helps to make think about the situation.
Regards,
Mandy.-
Oct 08th, 2009 - 07:36 pm - Link - Report abuse 0
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robertino
Prof. Glaeser's question clearly points to the puzzle of Argentina's inability to fulfill early optimistic expectations about its future. It's indeed a complex issue. A couple of points however, appear key to understand my country's “failure to launch”: 1) the strategies for economic development implemented since the 1930's (i.e., import substitution) forced industrialization across the board failing to take into account the particular comparative advantage of the country as a producer of meat and grains; and 2) the country was never able to resolve the inherent contradictions of its national political economy which resulted in periodic political instability. Today, after almost 30 years of democratic stability, the country has not found its route to prosperity vis -a-vis other countries like Chile and Brazil.
Oct 08th, 2009 - 08:55 pm - Link - Report abuse 0
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Marco Antonio
Hello:

I think that the case of Argentine is a symbol of the Latin American situation, because our contintent is plenty of natural resources but we are failing managing the most important one:human resources. If you think about the reason why the Asian economies have reached so impressive development, you will realize that they have invested in the education of their population. While our ruling classes don't understand this, Latin America will continue being a continent of lost opportunities.

Thanks.
Oct 08th, 2009 - 08:57 pm - Link - Report abuse 0
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Gabriel
To Robertino:

To rely mostly on agriculture, the country subjects itself to external factors that could be devastating to its economy… i.e. demand, price, market availability not to mention that it all depends on trickle down economics since most of the resources belong to only a handful of people and they tend to spend their gains abroad... which is illustrated in the article

I agree with you that there has to be a national economic policy that balances the elements of economic production (natural resources, manufactured goods, services etc) so when demand for one diminishes the others can fill in the gap, and it should include education, a robust legal system and social safety nets.

Weather the country can provide opportunities, welfare, safety, etc to its citizens is the real measure of a country’s prosperity… but I do not see that happening in Brazil nor in Chile now that they are going thru such economic success.

Thanks.
Oct 08th, 2009 - 11:20 pm - Link - Report abuse 0
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NITROJUAN
Roman, I Agree with you, I am a porteño living in Ushuaia, really the problem of Argentina is a problem of mind. I dont compare like Marco Antonio with Latin American, the different is we have the capacity of stand up after a Big Crisis (like 2001) any country of the region have not that posibility. Thanks President Roca and their generation, Arg & BA grow, BA was a unique city in Latam., but the corruption and bads politics (not bad lucky) put Arg in this Situation. We have the oportunity of will be like Canada, Australia cause we have the resourses that Chile, Uruguay or Venezuela dont have. BUT WE DONT HAVE TO CHANGE POLITICALS, POLITICS, WE HAVE TO CHANGE OURS MINDS, STARTING FROM ESCENCIAL THINGS IN OUR LIFE BEHAVIOR.
Oct 10th, 2009 - 01:21 am - Link - Report abuse 0
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Tim
It is puzzling that no one has mentioned what seems to be one obvious explanation for Argentina's slow but steady economic collapse, particularly post WW II. The rise of the Justicialista party and its brand of scorched earth politics. Its leaders have no concept of a loyal opposition. Once out of power, the Justicialistas do everything possible to destroy their opponents and undermine the civilian government in power...regardless of the negative impact these tactics have on the country overall. Keep in mind that not one post WW II Radical President has ever finished his full term in office. It is not necessarily that these individuals can't govern. Its that the Justicialistas do everything possible to ensure that they can not! The contrast with the more consensual post-Pinochet politics in Chile and in Brazil is striking...and so the economic progress achieved by both countries.
Oct 11th, 2009 - 09:07 am - Link - Report abuse 0
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Luis
I write from Argentina. In this article you forget to mention that after the Second World War the U.S. taking advantage that the U.K. was in a weak position expelled Argentina from the British Commonwealth (of which we were a de facto member”). The U.S. also told the british not to use the Marshall Plan funds to buy argentine products so we lost our best client. U.S. farmers don't want to compete with argentine farmers.
Best regards.
Luis Spallarossa
Oct 12th, 2009 - 11:30 pm - Link - Report abuse 0
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J.A. Roberts
Luis,

The US has never dictated who the UK can trade with.

The true fact is Argentina has caused it's own demise through corruption and mismanagement.
Oct 13th, 2009 - 06:54 pm - Link - Report abuse 0
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gabriel
To JA Roberts: lets begin by establishing that Argentina does not have a world monopoly on corruption and mismanagement... having said that, Luis is correct in his assertion that after WW2 the US dictated (directly or indirectly) who the UK and most of Europe should trade with as per the conditions of the then Marshall plan...
Canada was one of the countries that benefited since goods purchased with aid money were from there (as per the US). Which is one of the reasons Canada does so well economically (the proximity to the US also helps and its people also deserve credit)

One last point; Argentina's demise???... The country is not doing great, true, but is far from “demise” compared to other countries.

Thanks.
Oct 16th, 2009 - 12:55 am - Link - Report abuse 0
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Justin Kuntz
Argentina's demise had everything to do with the economic policies pursued by Peron, whereby protectionist “Argentina for the Argentines” policies made Argentina's industry uncompetitive, not to mention grandiose schemes like the Pulqui.

Argentina is not doing great and the current policies will only make that worse, export taxes have driven exports down, pensions have been purloined and inflation figures massaged.

But as usual when chickens come home to roost, malign foreign influences will be to blame.
Oct 16th, 2009 - 03:49 am - Link - Report abuse 0
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J.A. Roberts
Gabriel,

Perhaps demise was a poor choice of word, Argentina is still there, true, but a shadow of what is was in the past. I'll use “descent” instead.

There is precious little evidence that the US has dictated to the UK (directly or indirectly) who they could trade with (before, during and since the 2nd World War).

There is however bags of evidence that Argentina has descended from a global economic heavyweight to something teetering on the edge of a third-world country due to mismanagement and corruption.

I think Justin is correct to date the start of all this from the time of Peron, but don't forget there had been defaults and crises before that.
Oct 17th, 2009 - 09:27 pm - Link - Report abuse 0
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Roman
Gracias Roman por tu comentario, te banco a muerte...
abrazo tu tocallo
Oct 21st, 2009 - 05:45 pm - Link - Report abuse 0
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Nestor Kirchner
Argentinos y Argentinas; todos estan equivocados...
Todos ustedes estan en crisis porque yo me robe la plata !!!

Saludos desde mi nueva laptop, un besito, Nestor
Oct 21st, 2009 - 06:05 pm - Link - Report abuse 0
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