Argentina started the 20th Century as one of the richest ten country in the world. For a while its economic position in the world was comparable to that of, say, Germany today. It had a per capita income much higher than that of Japan and Italy and comparable to that of France. However, it ended the century on the eve of the largest default in history. How did this dramatic change come about? In this unusual book, not based on library research but mostly on first hand and direct observations, the author takes the reader through a fascinating ride through time. The reader is introduced to the concept of fiscal cycles and the economic landscape of this fascinating country. The book is written in a style that will make it accessible and interesting to a general reader. Praise for V. Tanzi’s Book on Argentina. Vito Tanzi has done it again. This book combines an intriguing prose, full of anecdotes and rich personal memoirs of Vito’s many trips to Argentina, with serious economic analysis from a first class economist. .Vito has come to understand very well Argentina’s idiosyncrasy, institutions and the nature of the protracted fiscal problems, and explains how these have led over time to major macroeconomic volatility, stagnation, and repeated crises. This book is particularly useful for the general public . Domingo Cavallo, Former Finance Minister of Argentina > Vito Tanzi [book] is an invaluable document . of the dramatic fall of Argentina as the leading Latin American economy. .[show] .. the complicity of the IMF and of Argentine policy makers in the design of the disastrous fiscal policies that led to its huge debt default . It should be required reading for policy makers and for all those who love that wonderful country . Francisco Gil- Diaz, Former Finance Minister of Mexico > Explaining the reversals of economic fortunes in Argentina during the 20th century is a challenge for economists and social observers in general. After being one of most dynamic and vibrant economies in the late 19th century and early 20th century, ., the country started to travel a road of economic instability, stagnant and erratic growth and collapse of democracy. In this new and lucid book Vito Tanzi, drawing on 40 years of direct personal knowledge and field experience with Argentina, ..This book, . is a must reading for anyone interested in understanding the Argentina of today and yesterday. Highly recommended. Andres Solimano Regional Advisor UN-ECLAC. Former Country Director at the World Bank and Executive Director at the Inter-American Development Bank. > Tanzi helps us understand the Argentinean crisis, but also this unique country. This is not a book written only for economists. Francesco Giavazzi, Bocconi University, Milan Author: “For 27 years, Vito Tanzi was a senior staff member of the International Monetary Fund. He was the director of the Fiscal Affairs Department of the IMF. He also was an Undersecretary for Economy and Finance in the Italian Government. A professional economist with a PhD from Harvard, he is considered a leading expert in fiscal policy. The author of many books and hundreds of articles in professional journals, he has given a named “effect” to economics, the “Tanzi Effect.” He has been a consultant to many international organizations including the United Nations, the World Bank, the European Commission, the European Central Bank, and the Inter-American Development Bank. In 1994 he was President of the International Institute of Public Finance of which he is now Honorary President.”
This book examines the causes of the economic and political crisis in Argentina in 2001 and the process of strong economic recovery. It poses the question of how a country which defaulted on its external loans and was widely criticized by international observers could have succeeded in its growth and development despite this decision in 2002. It examines this process in terms of the impact of neo-liberal policies on the economy and the role of development strategy and the state in recovering from the crisis
Argentine economic history has long presented a puzzle: how could a country that was once one of the world’s richest, now fare so poorly? What is the economic story behind such long-run divergence? And how does economic reality reflect deeper social, institutional and political forces? Not since the publication of Carlos Díaz Alejandro’s Essays on the Economic History of the Argentine Republic in 1970 has there been another standard reference for those seeking a more quantitative understanding of Argentina’s development. In the intervening years research in the ‘new economic history’ has crafted a more sophisticated interpretation of the past. This 2004 book provides the reader access to research, focusing on long-run economic change, major developments in policy making, and important shifts in institutions and ideas. The lessons from Argentina’s turbulent economic past represent the essential context for the issues that confront scholars, students, and policy-makers.
The catastrophic crisis of late 2001 and early 2002 marks the tragic end to Argentina’s initially successful, decade-long experiment with sound money and market-oriented economic reform. The IMF consistently Supported Argentina’s stabilization and reform efforts in the decade leading up to the current crisis and often pointed to many of Argentina’s policies as examples for other emerging-market economies to emulate. In this policy analysis, former IMF Chief Economist Michael Mussa addresses the obvious question: What went wrong in Argentina and what important errors did the IMF make in either supporting inappropriate policies or in failing to press for alternatives that might have avoided catastrophe? He emphasizes that the persistent inability of the Argentine authorities at all levels to run a responsible fiscal policy–even when the Argentine economy was performing very well–was the primary avoidable cause of the country’s catastrophic financial collapse. The IMF failed to press aggressively for a more responsible fiscal policy. Mussa also addresses the role of the Convertibility Plan, which linked the Argentine peso rigidly at parity with the US dollar and played a central role in both the initial success and ultimate collapse of Argentina’s stabilization and reform efforts. While the IMF accepted this plan as a basic policy choice of the Argentine authorities so long as it remained viable, it erred in the summer of 2001 by extending further massive support for unsustainable policies, rather than insisting on a new policy strategy that might have mitigated some of the damage from a crisis that had become unavoidable. Mussa lays out what needs to be done to restore economic andfinancial stability in Argentina and begin the process of recovery, including the proper role of the IMF and the international community. He also examines what the IMF can do to avoid repeating the types of mistakes it made in t
Much has been written on the Argentine dictatorship and the transitional justice movement that brought its members to justice. However there has been no study to date of the economic accomplices to this dictatorship and the recent advancements in Argentina towards holding these actors accountable. What was the role of banks, companies, and individuals in perpetuating a murderous regime? To what extent should they be held responsible? As the first academic study on economic complicity in Argentina, this book attempts to answer these questions. Renowned human rights scholars investigate the role played by such actors as Ford, Mercedes Benz, the press, foreign banks, and even the Catholic Church. Across numerous case studies, the authors make a compelling argument for the legal responsibility of economic accomplices. A groundbreaking interdisciplinary study, this book will be essential to anyone interested in transitional justice, business, and human rights.
In this work, Roberto Cortés Conde describes and explains the decline of the Argentine economy in the 20th century, its evolution, and its consequences. At the beginning of the century, the economy grew at a sustained rate, a modern transport system united the country, a massive influx of immigrants populated the land and education expanded, leading to a dramatic fall in illiteracy. However, by the second half of the century, growth not only stalled, but a dramatic reversal occurred, and the perspectives in the median and long term turned negative, and growth eventually collapsed. This work of historical analysis defines the most important problems faced by the Argentine economy. Some of these problems were fundamental, while others occurred without being properly considered, but in their entirety, Cortés Conde demonstrates how they had a deleterious effect on the country.
This book offers an in-depth analysis of the political economy of soybean production in Brazil, Argentina and Paraguay, by identifying the dominant private and public actors and control mechanisms that have given rise to a corporate-driven, vertically integrated system of regionalized agricultural production in the Southern Cone of South America. The current agricultural boom surrounding soybean production has been aided by aggressive new agro-technologies, including biotechnology, leading to massive organizational changes in the agricultural sector and a significant rise in the power of special interest groups and corporations. Despite having similar initial production conditions, the pattern of economic activity surrounding soybean production in Brazil, Argentina and Paraguay, continues to be largely determined by the needs of the multinational corporations involved, rather than national considerations of comparative advantage. The author uses these findings to argue that the new international model of agricultural production empowers chemical and trading multinational companies over national governments.
In 1890, Argentina was a wealthy nation on the brink of industrialization. Industrial Development in a Frontier Economy examines Argentina’s failure over the next forty years to develop an efficient manufacturing sector, even as countries in similar circumstancesMeiji Japan, Brazil, and Mexicosuccessfully modernized their economies. Yovanna Pineda conducts a pioneering microanalysis of 59 domestic corporations, spanning ten manufacturing sectors, to show that Argentina’s macroeconomic conditions led domestic manufacturers to concentrate on survival at the expense of innovation and growth. Her analysis reveals that the resulting risk-averse, monopolistic business practices, more than any collective action or governmental policy, forestalled the country’s industrialization.