Argentina is doing the opposite of most countries, and it's working
12 replies, posted
[b]Argentina is doing the opposite of most countries, and it's working[/b]
Via [url=http://www.businessinsider.com/argentina-is-doing-the-opposite-of-most-countries-and-its-working-2016-8]Business Insider[/url]
_________________________
[quote][img]http://i.imgur.com/Zedz3qY.jpg[/img]
[i]Argentina's President Mauricio Macri waves after being sworn-in to office at the Argentine Congress in Buenos Aires, Argentina, December 10, 2015.[/i]
- - -
At a time when populist politics are driving many countries away from investment-friendly policies, Argentina is quickly moving in the opposite direction. Latin America’s fourth-largest economy is starting to reopen for business. In trips we at KKR have made this year, we’ve seen small things — like not needing a fistful of U.S. dollars to manage a dual exchange rate, running into U.S. President Barack Obama’s entourage on the street in Buenos Aires and seeing the evident optimism in local businessmen — that indicate how much change is afoot.
It is still early days in President Mauricio Macri’s tenure. So far we have been impressed by his team’s clear focus on normalizing Argentina’s economy and reintegrating into the global system. Prior to the country’s general election last October and runoff in November, people were wondering whether meaningful reform would happen at all. That question has been answered: Macri has decisively turned away from the economic policies of former president Cristina Fernández de Kirchner. Now the questions are how deep the reforms will be and whether they will provoke a popular backlash.
Achieving normality is an ambitious vision for Argentina’s economy. The Macri government and the country will undoubtedly have setbacks, and there is no guarantee of success. Nonetheless, we believe the door is now open for long-term investors to consider Argentina.
The core economic policy challenge facing the Macri government is to instill macroeconomic discipline while delivering on private sector–led job creation and improving productivity. These are no small tasks for an administration that inherited a state-led, closed economy in recession, with a 30 percent poverty rate and woeful productivity, and at a time of economic havoc in its largest trading partner, Brazil.
Soon after taking office in December, Macri swept away barriers to entry for private investors, such as capital controls and trade restrictions. Early fiscal adjustments to reduce the comparatively high tax burden and adjust subsidies were put in motion. On monetary policy, the peso printing presses finally slowed, and the currency was floated. Early shock therapy was unexpectedly successful: Exports responded quickly, showing a 25 percent year-over-year increase in February.[/quote]
After 12 years shitty populism, things are slowly but surely looking better. Great news.
People over here go crazy on how everything is increasing in price, from normal household items to food and whatever, but the general population don't even know how economy works and they just expect a miracle, it's the reason why former president Cristina K. still has a buttload of supporters, even after all the exposing that she and her party got from opposing local media.
I think Macri can do some work in these forthcoming years but he has to shake off all the hate that's coming from uneducated people and leftist media, but I don't think that's very hard to do being a president
He's being so successful in no small part due to Cristinita being a god damn walking talking economic disaster. But, I love seeing that this "pink tide" shit is dying out. Who knows? Maybe the next decade we'll see a whole new paradigm for South America, a new era of prosperity.
Or, 10 more years of drug trade, populism and corruption. God only knows.
one weird trick
[QUOTE=Big Bang;50853397]He's being so successful in no small part due to Cristinita being a god damn walking talking economic disaster. But, I love seeing that this "pink tide" shit is dying out. Who knows? Maybe the next decade we'll see a whole new paradigm for South America, a new era of prosperity.
Or, 10 more years of drug trade, populism and corruption. God only knows.[/QUOTE]
Perhaps it's naive but I believe that South America can turn it around, and I believe in years to come they'll have a lot more sway and power in the world, especially if they pair up with India. I think new powers have the chance to do a lot of good in the world and act as a counterbalance to Western power.
But it can also do a lot of bad, and South America isn't there yet. Have to hope to the future and push on.
It's quite amusing reading the comments on that article, coming from people still infatuated with our previous (absolutely shitty) government.
I swear, 12 years of relentless brainwashing are hard to get rid of, for some people.
[editline]9th August 2016[/editline]
[QUOTE=Big Bang;50853397]He's being so successful in no small part due to Cristinita being a god damn walking talking economic disaster. But, I love seeing that this "pink tide" shit is dying out. Who knows? Maybe the next decade we'll see a whole new paradigm for South America, a new era of prosperity.
Or, 10 more years of drug trade, populism and corruption. God only knows.[/QUOTE]
Oh absolutely. Even a dickless monkey could do a better job than her. And now she's *this* close to end up in jail, what a time to be alive. :v:
[editline]9th August 2016[/editline]
[QUOTE=BlackMageMari;50853405]Perhaps it's naive but I believe that South America can turn it around, and I believe in years to come they'll have a lot more sway and power in the world, especially if they pair up with India. I think new powers have the chance to do a lot of good in the world and act as a counterbalance to Western power.
But it can also do a lot of bad, and South America isn't there yet. Have to hope to the future and push on.[/QUOTE]
Something I've read a few weeks ago, is that since our economy is showing big signs of recovery and Brazil's is not in the best shape ever (I'm talking to you, Dilma), we're turning into the most "attractive" South American country for foreign investors, specially since we're being so thorough in getting rid of all traces of our previous (completely undesirable for investors) government.
These next 4 years should be pretty interesting.
[QUOTE=Hamsterjuice;50853403]one weird trick[/QUOTE]
politicians hate him
Could someone give me a quick rundown of Cristinita? All I know is that she whined about the Falklands a lot
the countries in south america (and the world) that pursued free trade have turned out far better than those who oppose it
and when you live in south america, just take a look at venezuela and do exactly the opposite of them and chances are its gonna be better
[QUOTE=Zillamaster55;50853866]Could someone give me a quick rundown of Cristinita? All I know is that she whined about the Falklands a lot[/QUOTE]
The Economist has written a lot of great articles about [URL="http://www.economist.com/search/gcs?ss=cristina%20kirchner#masthead&gsc.tab=0&gsc.q=cristina%20kirchner&gsc.page=1"]her[/URL] and the transition to our new prez. Bread-and-circus politics using [I]muh falklands[/I] / [I]muh debt[/I] / [I]muh national industry[/I] to keep terrible policies afloat, and insane inflation of every possible form of public spending without that being reflected in public services improving. Jury's out on her, but I'm thinking power got to her head and she (along with her many number twos and scapegoats) went full megalomaniac, secretly doing [I]tons[/I] of corrupt shit.
I mean, yeah things are better now but I cant help but notice that things like water, electricity and gas increased a lot. But its way better than before though.
[QUOTE=Zender Troop;50854980]I mean, yeah things are better now but I cant help but notice that things like water, electricity and gas increased a lot. But its way better than before though.[/QUOTE]
did the government control or subsidise the prices? it's kind of a thing to drive down the prices of basic necessities in hardcore socialist countries (or just countries with populist governments, russia has a price cap on vodka for example). it's just that it can be unhealthy and hard to maintain in the long run because producers will still need to get a fair price and the difference must be paid from somewhere unless you start controlling the producers which poses a new set of problems.
Sorry, you need to Log In to post a reply to this thread.