Unemployment and Argentina
Globalization Impact Analysis
Argentina
Diana Camp
BU 526 Global Management
Seton Hill
February 7, 2013
Executive Summary
Argentina had one of the most fast growing economies at the end of the century, but the huge amount of foreign debt interest payments and other factors made the government pegged the peso to US dollar in 1991 and limit the growth of money supply. That helped to decrease the inflation and increase the growth of GDP by almost 30% in four years. But by 1999 the economy suffered the worst decline since 1930’s and Argentina entered the worst economic crisis in its history. The GDP decreased by almost 20%, unemployment drew significantly that caused many public protests and riots in the country. By 2002 the growth of GDP slowly returned and the new government taking different measurements to get the economy back on track.
The current policies, such as restrictions on import, limitation of free trade, capital control and nationalization of big firms in Argentina seriously affected economic freedom of Argentina. In the last decade the political interference in the market place economy and banking system increased significantly.
Country Analysis
Argentina is the second biggest country in South America. It borders with Paraguay, Uruguay, Brazil, Bolivia, and Chile. The political system in the country is presidential democracy, but it is relatively young, since Argentina returned to civilian government only in 1983. It is a federal country and it is made up of 24 provinces. It is overwhelmingly Catholic country, with almost 70% of population being Roman Catholics. Argentina is very rich in natural resources is one of the top producers of agricultural products in the world. The manufacturing sector of Argentina’s economy accounts for more than 20% of the country’s GDP and includes the production of chemicals, pharmaceuticals and auto parts. In 1999- 2002 Argentina suffered the
Argentina
Diana Camp
BU 526 Global Management
Seton Hill
February 7, 2013
Executive Summary
Argentina had one of the most fast growing economies at the end of the century, but the huge amount of foreign debt interest payments and other factors made the government pegged the peso to US dollar in 1991 and limit the growth of money supply. That helped to decrease the inflation and increase the growth of GDP by almost 30% in four years. But by 1999 the economy suffered the worst decline since 1930’s and Argentina entered the worst economic crisis in its history. The GDP decreased by almost 20%, unemployment drew significantly that caused many public protests and riots in the country. By 2002 the growth of GDP slowly returned and the new government taking different measurements to get the economy back on track.
The current policies, such as restrictions on import, limitation of free trade, capital control and nationalization of big firms in Argentina seriously affected economic freedom of Argentina. In the last decade the political interference in the market place economy and banking system increased significantly.
Country Analysis
Argentina is the second biggest country in South America. It borders with Paraguay, Uruguay, Brazil, Bolivia, and Chile. The political system in the country is presidential democracy, but it is relatively young, since Argentina returned to civilian government only in 1983. It is a federal country and it is made up of 24 provinces. It is overwhelmingly Catholic country, with almost 70% of population being Roman Catholics. Argentina is very rich in natural resources is one of the top producers of agricultural products in the world. The manufacturing sector of Argentina’s economy accounts for more than 20% of the country’s GDP and includes the production of chemicals, pharmaceuticals and auto parts. In 1999- 2002 Argentina suffered the