MercoPress. South Atlantic News Agency
Macri at G20 to represent the “new” Argentina and after crucial investments
Argentine president Mauricio Macri is off to Hangzhou, China for this first G20 summit where he is expected to hold bilateral talks with the host Xi Jinping, Russia's Vladimir Putin, Germany's Merkel and probably UK prime minister Theresa May. Read full article
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Disclaimer & comment rulesThe New Argentina, lyrics by The Who
Aug 31st, 2016 - 01:31 pm - Link - Report abuse 0There's nothing in the streets
Looks any different to me
And the slogans are replaced, by-the-bye
And the parting on the left
Are now parting on the right
And the beards have all grown longer overnight
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On October 17, 1945, Juan Peron addressed 300000 people from the balcony of the presidential palace, promising a “New Argentina”.....
And the world looks just the same
And history ain't changed
Meet the new boss
Same as the old boss
- lyrics, “Won't Get Fooled Again”
New Argentina, my donkey.
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At least Macri has a little more class than the cartoon CFK, and is less likely to insult the Chinese:
2015: “During a visit to China this week, Argentina’s President Cristina Fernández de Kirchner paused from her effort to attract Chinese investment to her country, in order to set what may be a new record in racially offensive efficiency: she managed to insult a fifth of humanity in less than a hundred and forty characters. Noting that hundreds of Chinese visitors had shown up to see her at an event in Beijing, she tweeted, “Más de 1.000 asistentes al evento… ¿Serán todos de ‘La Cámpola’ y vinieron sólo por el aloz y el petlóleo?” In other words, she replaced R’s with L’s in “el arroz y el petróleo”—rice and petroleum—and asked, “They came just for rice and oil?” as if speaking with a cartoonish Chinese accent. ”
http://www.newyorker.com/news/daily-comment/cristina-kirchner-misadventure-china
Yes, CFK did indeed correctly and insultingly present Argentina to the world as the Cartoon Country
Argentina is unlikely to attract serious overseas investors, other than banks who buffer their losses by overcharging customers, due to the 15M Peronistas who still infest the fabric of society.
Aug 31st, 2016 - 05:56 pm - Link - Report abuse 0Until they are effectively neutralised the country is screwed.
Article: -- explaining why investors avoid Argentina --
Aug 31st, 2016 - 07:17 pm - Link - Report abuse 0“ La Argentina, un país...con muchos aplazos y sin atractivo para invertir
” Los malos resultados en varios indicadores, como la inflación, el crédito y el ritmo de las exportaciones, hacen que las empresas decidan no volcar su dinero en el mercado local; es la peor performance de la región.....“
---
Another article ” “Una empresa extranjera no invierte porque no se puede llevar sus ganancias”
http://www.infobae.com/2015/09/01/1752221-una-empresa-extranjera-no-invierte-porque-no-se-puede-llevar-sus-ganancias/
Article: Why Argentina doesn't invest in the electrical energy sector:
http://www.infobae.com/2015/09/01/1752221-una-empresa-extranjera-no-invierte-porque-no-se-puede-llevar-sus-ganancias/
Argentine governments also have the bad habit of beating up (or outright stealing) existing companies (with a presence in Argentina) that don't make the sort of investments that the government would like to see. And that bad habit exists even today:
http://www.infobae.com/2015/09/01/1752221-una-empresa-extranjera-no-invierte-porque-no-se-puede-llevar-sus-ganancias/
Other than spending a lot of money on public relations, the Macri government has really done very little to make substantial changes that might actually some day put Argentina on an investor's radar. Serious investors who might otherwise consider long term commitments tend to have long memories, and anyone with such a memory knows that Argentina jumps quickly from one profit-destroying policy to another, and from one debilitating economic crisis to the next, and in doing so inevitably causes enormous losses to foreign investors.
There are different levels and types of investment. Many companies would see Argentina as a new or growing market that they's want to move in to. There's no need to invest in new manufacturing capacity in Argentina to do that, you set up a distribution system so all you might need would be a warehouse and offices which you could lease. You ship your product in and your local staff sell and distribute it. You increase demand for your product with zero risk to your manufacturing capability. Meanwhile, the local distribution system is providing employment both for its own staff and providing business to local transport and service industries. It is a low risk win-win that many companies would find easier to develop once restrictions to trade such as tariffs, taxes, clamps and corruption are progressively removed.
Sep 01st, 2016 - 05:43 pm - Link - Report abuse 0The fact that Reekie complains about there now being such a range of foreign product now being available in Argentine supermarkets implies that this process is already occurring.
What reekie is crying about is this: many Argentine producers of foodstuffs are (1) comparatively inefficient, (2) offering lower quality, and (3) expecting outlandish prices for their products. The rapidly increasing costs for domestically produced foods have contributed significantly to the very high rates of inflation here. This places a considerable burden on consumers, who have been paying more and more for or less and less. But neighbouring countries can and do produce higher quality foods more efficiently, since they have not been saddled with Peronist governments that feature protectionism for overpriced, inefficient, poor-quality, non-competitive industries. (Peronism posits that employers' obligtations are to provide jobs, not to produce goods). So the present condition allows somewhat greater market competition and the chance that Argentine consumers might be able to afford to eat better. This is something that terrifies reekie, since he favours the conditions that keep Argentine producers from innovation, modernisation, and competitive practices.
Sep 01st, 2016 - 08:06 pm - Link - Report abuse 0Your (@4) suggestion that getting involved in Argentine commerce (“.... set up a distribution system so all you might need would be a warehouse and offices which you could lease....” ) misses the realities of setting up a business in Argentina, which for all intents and purposes is designed to prevent new businesses and competition. It is an insanely time-consuming, Byzantine, and expensive effort discouraged by a corrupt bureaucracy, featuring every sort of delay and obstacle. So Argentina has been justly awarded the title of the worst place in Latin America to establish a business. Skeptical? Check the results of the report “Comparing Business Regulations for Domestic Firms in 185 Economies” by the World Bank and the International Financial Corporation (IFC). (Hint: It's “worst” for domestic companies, and “worst of the worst” for a foreign enterprise here. )
#5 Marti
Sep 02nd, 2016 - 04:20 pm - Link - Report abuse 0Supposedly, there is now a business-friendly government in place in Argentina and has been for almost nine months now.
In spite of its legislative minority, the Macri government has received enough support to pass all the laws it has presented. Macri vetoed one law approved by the opposition. All of this means Macri has been able to govern without obstacles, with the exception of the energy tariffs increases.
As time goes by, the hypocrisy of blaming the CFK government for the failures of the current one will become more and more evident.
“Supposedly.....”
Sep 02nd, 2016 - 06:45 pm - Link - Report abuse 0Nothing of any substance has changed. It's still considered the worst country in the region in which to start a business and that perception is not going to change any time soon. The infrastructure that was decaying before is still decaying. The crime rates are still off the chart. Inflation is the same old inflation. The latest iPhone that costs US$700 at the Apple Store in the US costs US$2000 in Argenzuela. Government agency payrolls here are still bloated with excess non-workers. The populacho is still claiming that the Falklands belong to them. Industria Argentina is still producing expensive junk that people are now bypassing because it's expensive junk and they're looking for something better, like what they can get from China. Nor did we expect very much to change.
No good Argentina talking to May, she has already told Argentina that their will be no talks,
Sep 02nd, 2016 - 08:04 pm - Link - Report abuse 0May -may well become the new Iron lady,
No to Argentina , no to Spain , no to the EU, no to China,
Seems this may well turn out to be an interesting G20.
so they say.
#7 Marti
Sep 03rd, 2016 - 03:47 am - Link - Report abuse 0Good!
At least you are being consistent with your prejudiced statement “Argentine will be in bad shape as long as it's governed by Argentines.”
You are not alone being disenchanted with the Macri administration.
@9 At least I am being consistent in my observations.
Sep 03rd, 2016 - 06:11 am - Link - Report abuse 0Why don't you let the Finns run Argentina for the next 40 years? Couldn't do worse than the mess the Argentines have made of it.
@8
Sep 05th, 2016 - 06:21 am - Link - Report abuse 0Yes, please keep saying, no, and more no. Resile yourselves into irrelevancy and oblivion, it is best for all, after all.
http://money.cnn.com/2016/09/04/news/economy/japan-uk-brexit-warning/index.html
Resile yourselves into irrelevancy and oblivion, it is best for all, after all.
Sep 05th, 2016 - 07:46 pm - Link - Report abuse 0Your opinion only, and rightly so, but why should we depend on the Japanese
to have influence over us,
would japan allow free movement into japan , Single market and rules by an unelectable government,
you worry to much on what they want,
To many like you just want to pander to others rather than doing it yourselves.
the British people will survive,
don't know abt your chances..
@12 Briton
Sep 05th, 2016 - 08:57 pm - Link - Report abuse 0“would japan allow free movement into japan , Single market and rules by an unelectable government”
Hell no, the Japanese are some of the most xenophobic people in the world. They'd rather have a perpetually ailing economy than allow any immigration, and they treat asylum seekers even worse than Australia.
“No to Argentina , no to Spain , no to the EU, no to China,”
Didn't the Brexiters tell us we could trade with the rest of the world if we left the EU? Now you don't want to trade with anyone? How is that supposed to work?
Everything has its place,
Sep 06th, 2016 - 06:56 pm - Link - Report abuse 0according to David Davis yesterday on the parliament site, sky 304,
who was asked this question amongst many,
he stated that the uk government will talk to all abt trade, trade is a two way street and its suits both partners,
if at the end of the day one cannot agree, then japan will do what japan will do, but we hope that they and others will continue to invest in the uk,
[ along these lines,
but you cannot have a particular country dictating policy,
besides japan could have gone to the EU but it did not,
and japan stated it may, withdraw, not that it will,
Japanese car manufacturing companies have significantly invested in the uk,
I don't think they will throw all this away, just to spite us and to join the unmighty Eu,
still,
I could be wrong, but time will tell on this particular subject,
personally I hope they will continue to stay.
@14 Briton
Sep 07th, 2016 - 10:39 pm - Link - Report abuse 0Of course Japan aren't going to do anything just to spite Britain. If Japanese companies leave Britain it will be because they can do better for themselves elsewhere.
What one country does affects others. The Brexit already had an adverse effect on Japan, as investors rushed to sell pounds and many bought Yen instead. This was bad for Japan's already fragile economy since it relies on exports, so of course they are not going to be happy about the whole thing.
There you go,
Sep 08th, 2016 - 06:35 pm - Link - Report abuse 0it may not suit everyone, but soon we will be out, and a new future will begin,
as they say, Britain has now made its bed, and Britain will now lay in this new bed.
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