Is President Kirchner Improving The Lives Of Argentinos?

[Dublin2BuenosAires]

Its a complicated issue. IMHO industry needs the support of government but not to the levels of what we are seeing here. Its sad to see so much ownership disappear from countries like the UK. Even though the UK is 10th biggest exporter in the world many of the most famous companies are foreign, Mini, Jaguar, Land Rover, Cadburys, O2... FFS we invented trains and only have one factory making them left, and that is Canadian.

So I guess there has to be a balance between completely free trade and a protectionism like in Argentina.

In simpleton terms my advice would be:
'If I woz the government, like, I wuld do wot those Germans av done, cause they like make stuff good and that'

You would need to create a free market (eu) create an fundamentally unbalanced currency (in your favour of course) and flood said free market with cheap money to sell your stuff into....That's another story ! Get your nearest and biggest neighbours on board am you are off to the races.

 

[Fredd]

Some say She is wonderfull !!!
The " Yuyo" soybean pays almost all her expenses.
Argentina has no savings !!!
Argentina has no credit, but chavez, ( almost gone)about 50% more expensivre than the IMF
lowest exportation of meet and milkery industry
no energy! power ligth , gas and fuel
trains are deplorable
roads are broken as never before
insecurity is minute to minute seen on the street
the police is gone, the costagards ( prefectura) in the streets, the national, guard not in frontiers but in the streets, they criticize major for operating a new police ( the other one is not htere)
not even a plan for tigtening the justice for jailing the theefs or killers
" she is perfect to acomplish the " upsidedown country"
unbelievable

 

[ItsyBits]

During the K "regime" (how ridiculous), Argentina has imported much more than it ever did under previous governments.

But they have also made sure that those imports don't outnumber the exports. Balanced trade, imagine that!

The Ks support freer trade, but they do not support free trade. A brilliant idea. Someone should tell Greece, France, Spain, and Italy about it.

The only country that can get away with imports galore is the U.S., and that's because it has a dollar printer. It's pretty easy to be for free trade when you hold the exclusive rights to print the money used to pay for imports.

It would be interesting to know how much of these high imports are oil and energy.

About free trade you are using some really bad examples. Greece, Spain, Italy and France. The main countries to stop agricultural products to flow in more freely to the EU. These are the countries that Argentina should get along with to create more free trade.

And the U.S is not exactly on top when it comes to free trade. Ranked 23 in the Globe enabling report last year. http://www3.weforum.org/docs/GETR/2012/GlobalEnablingTrade_Report.pdf

Actually some of the most free trading countries in the world now and for the last 50 years are the Nordics. Sweden, Denmark, Finland and Norway are often considered the model for social inclusion, free healthcare, public education systems and strong unions.

 

[Voiceofreason]

What many fail to grasp is that our ability to export depends on imports due to the lack of developed industrial and high tech sectors. Most if not all agricultural machinery is imported. So by making imports more expensive and by denying their entry you are making exports more expensive and hence less attractive. This does not encourage the substitution of imports and hurts our local industry in the long run (as history shows us).

Look at Chile, they have free trade with the US and are experiencing sustained growth and wealth distribution even with large natural disasters and what not. It is part of the reason many friends are looking for work there instead of Argentina.

 

[sesamosinsal]

It would be interesting to know how much of these high imports are oil and energy.

About free trade you are using some really bad examples. Greece, Spain, Italy and France. The main countries to stop agricultural products to flow in more freely to the EU. These are the countries that Argentina should get along with to create more free trade.

And the U.S is not exactly on top when it comes to free trade. Ranked 23 in the Globe enabling report last year. http://www3.weforum....rade_Report.pdf

Actually some of the most free trading countries in the world now and for the last 50 years are the Nordics. Sweden, Denmark, Finland and Norway are often considered the model for social inclusion, free healthcare, public education systems and strong unions.

The U.S. may not be ranked one way or another, but the U.S. has to run trade imbalances and current account deficits in order to ensure that the rest of the world has it's supply of dollars. Yes, there are some barriers, but the U.S. runs the most ATROCIOUS trade imbalance in the world because it has to.

Re: Europe. They are not bad examples. Even when you take out fuel, most countries have imported considerably more than they export for years, since 2000 in most cases.

Denmark, Sweden, Finland and Norway have all maintained mostly positive trade balance for most of the past 10 years. They provide all of these benefits because their economic policies make them money. Compare Spain vs. the countries you listed:

You curiously left out Iceland. Iceland, of course, suffered a major economic collapse in 2008. It looks like they learned a thing or two:

I'm not against trade. Quite the contrary. I agree that it has numerous benefits. But like everything, it has limits.

(All images courtesy of TradingEconomics.com)

 

[PhilipDT]

Is el queso or fifs out there? I'm curious to hear how you guys would weigh in.

 

[Crema Americana]

I think it's pretty obvious that the goal of any country should be to have balanced trade or even a trade surplus. Exporting raw goods so that other countries can manufacture and sell them to you at a higher price is a path to 3rd world status.

But that doesn't mean that the solution is to block trade. The goal of the government should be foremost to explore which industries the country can compete in, and invest in education, infrastructure, and materials (including supply lines) to make that happen. Sometimes protectionist policies are necessary to get the ball rolling, but only temporarily. What Argentina is doing is treading water until it won't be able to tread anymore... there is little lasting forward progress towards development. Where is Argentina's global presence? Aside from soy beans, wine, and olive oil... which isn't going to save it.

The domestic/national "industry" that Argentina does have is often seeped in corruption - owned and operated with political motives rather than economic ones. But it sounds good to say 80% of refrigerators sold in Argentina are made in Argentina - aside from the fact that parts are imported or the fact that they only make them for themselves or that the country is getting poorer while political friends make a killing.

Corruption and instilling a sense of trust and honesty (both globally and within Argentina) is actually Argentina's biggest challenge, in my opinion. There needs to be more economic integrity. I don't think it's any coincidence that often it's the most honest countries that tend to be the most successful. Intelligent planning helps, too.

 

[sesamosinsal]

But that doesn't mean that the solution is to block trade. The goal of the government should be foremost to explore which industries the country can compete in, and invest in education, infrastructure, and materials (including supply lines) to make that happen. Sometimes protectionist policies are necessary to get the ball rolling, but only temporarily. What Argentina is doing is treading water until it won't be able to tread anymore... there is little lasting forward progress towards development. Where is Argentina's global presence? Aside from soy beans, wine, and olive oil... which isn't going to save it..

I think you hit the nail on the head here. In my opinion, the Ks have it right that maintaining a trade surplus overall is the key to long-term success. The Ks--and the country in general--fail miserably when it comes to the corruption at all levels, the bureaucracy, and the overall nightmare that it is to do business here. Citygirl generally describes it better than I can.

There's simply no incentive to do business here, unless one is glutton for punishment.

 

[Rich One]

Postings of more that one paragraph should contain an Abstract....

 

[lovinit]

Argentina is an Orwellian/Kafkaesque joke to everyone except the K Koolaid drinkers.