Better yet you only invest in the 10-15 best athletes and get 5 medals out of them, that's the way most countries do it.
And the competition argument just doesn't hold true, most of the athletes Argentina send to the Olympics aren't even the best of there region or even from there border countries. Pretty worthless to go train with the best then. It's like training with Bolt if he runs the 200 meter in the same time as you do the 100 meter.
Athletes in Argentina can go to the Pamamerican games and that level is pretty decent or they can try to qualify for the World's in there sport, most of the time they have to do less to qualfy just because they don't have the high level of competition to qualify.
I don't have time now but I don't think that many of the athletes Argentina send made any kind of impact at the PanAmerican games or world championship, they mostly have been average at best
Just read a bit about the career of David Nalbandian, he and his family was quite poor but still he made it to the top 10 in his sport.