Argentina, one of the richest countries in the world in the first 50 years of the 20th century, is facing a new economic crisis. The Peronist government is using Covid-19 to keep the country in one of the longest and most damaging blockades in the world. It extends state control over the value of more than 2,000 customer assets, with plans to impose value freezes on televisions, cell phones, the Internet and telecommunications in general until the end of the year. “Given the restrictions imposed on us by the pandemic,” Said Argentine President Alberto Fernández, “no one deserves to give up some of their source of income to ensure the value increases of those facilities. “The government has decreed “cellular and constant telephony, Internet and pay-TV facilities as essential public facilities. “
But economic relaxation makes things worse for both consumers and foreign investors. Argentina wants more than ever to challenge free market reforms and a set of liberalizations to reopen the economy to the region and global markets.
By contrast, the current government, which supports left-wing ideology and economic nationalism, is regressing. Socialist measures such as control of periods of high inflation are not unknown methods for Argentine governments. Former centre-right president Mauricio Macri froze the value of oil products for 90 days in August 2019 in hopes of stopping maximum annual inflation by 55% and eventually re-electing it for a moment, but the period lost.
Argentina has one of the largest unionized economies not only in South America, but also in the world, all economic and productive sectors are under the command of industrial unions that blackmail governments by preventing them from implementing economic reforms since Argentina returned to democracy In 1983, flexible market reforms, liability, low taxes and deregulation have been the mandatory reforms.
According to Aguston Etchebarne, President of Freedom and Progress, an influential expert group founded in Buenos Aires, “Argentina has been in the midst of the worst economic and social crisis since the return of democracy in 1983. recovery next year, we expect a double setback and an acceleration in inflation.
Economic signs show a country with the most complex economies in the world, adding the G20 According to the Global Competitiveness Report of the World Economic Forum, Argentina ranks 83rd out of 141, while according to the Trade Barriers Index, it ranks 71st out of 86 globally and 14 out of 16 at the regional level. In terms of economic freedom, Argentina experienced a sharp decline compared to 2001-2015 basically under the presidencies of Kirchner (2003-2015). Indeed, according to the Economic Freedom Index, Argentina ranks 149th out of 180, however, slight innovations have been made with Macri’s government, which has followed moderate economic reforms that have greater freedom of investment and monetary in Argentina.
It is difficult to pin down the exact origin of the economic and political decline in Argentina even though in 1914 Argentina’s GDP was higher than that of Germany and one of the richest countries in the region. liberal philosopher, decades ago with the advent of Peronism and the beginning of a dictatorial force that led to an addition of socialism and unionization of the economy that jeopardizes the country’s herbal resources and instead generates corruption, clientelism and harder sidekick capitalism.
With its highest corporate tax in the region at 30% against the regional average of 27. 6% “Argentina is one of the least hot markets in Latin America,” says Jonas Torrico, director of the Argentine De Contriyeting Association, “not yet for nationals While the global has been making progress in reducing corporate taxes since 1980, Argentina is regressing without the goal of implementing fiscal simplification and tax cuts , as noted with the United States in 2017 when the Trump administration cut corporate taxes. 35% to 21% tax in the United States, the world’s top competitive economy in 2018, according to the World Economic Forum.
Because of this economic gap, pandemic lockout and anti-market measures, Argentina will face some other circular of complicated negotiations with the IMF in the hope of replacing a $57 billion loan agreement in 2018. Argentina will do so, between a massive reform or the installation of some other failed country such as Venezuela. Etchebarne says, “I’m convinced we’ll do it wisely. “
Argentina will have to unfreeze the economy and make it trustworthy by reducing spending and implementing an exceptional set of economic reforms to make the country competitive again.
I’m vice president of foreign affairs for Americans for tax reform, a policy studies and advocacy organization in Washington, D. C. that works for flexible tax cuts and market policies.
I’m vice president of foreign affairs for Americans for tax reform, a policy and defense studies organization founded in Washington, D. C. , that works to reduce taxes and relax market policies nationwide and abroad. I am also ceo of property rights alliance, a political advocacy organization guilty of publishing the International Property Rights Index. I discuss the crossroads of the impact of the rule of law, the economic rights of intellectuals and external relations on the global economy.