Argentina
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San Miguel de Tucuman and Mendoza areas in the Andes subject to earthquakes; pamperos are violent windstorms that can strike the pampas and northeast; heavy flooding. Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. A severe depression, growing public and external indebtedness, and a bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - the largest in history - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 9% annually over the subsequent five years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation, however, reached double-digit levels in 2006 and the government of President Nestor KIRCHNER responded with "voluntary" price agreements with businesses, as well as export taxes and restraints. Multi-year price freezes on electricity and natural gas rates for residential users stoked consumption and kept private investment away, leading to restrictions on industrial use and blackouts in 2007 . Source: The World Factbook, CIA. |
In
1816, the United Provinces of the Rio Plata declared their independence from
Spain. After Bolivia, Paraguay, and Uruguay went their separate ways, the area
that remained became Argentina. The country's population and culture were
heavily shaped by immigrants from throughout Europe, but most particularly Italy
and Spain, which provided the largest percentage of newcomers from 1860 to 1930.
Up until about the mid-20th century, much of Argentina's history was dominated
by periods of internal political conflict between Federalists and Unitarians and
between civilian and military factions. After World War II, an era of Peronist
authoritarian rule and interference in subsequent governments was followed by a
military junta that took power in 1976. Democracy returned in 1983, and has
persisted despite numerous challenges, the most formidable of which was a severe
economic crisis in 2001-02 that led to violent public protests and the
resignation of several interim presidents. The economy has recovered strongly
since bottoming out in 2002.