A life of boom and bust: Can Argentina break the cycle?

34

A century ago, Argentina was one of the ten richest countries in the world. But crisis after crisis has earned it the dubious distinction of being the only nation ever to regress to developing country status.
With hyperinflation, devaluations and IMF bailouts now facts of life, we meet the people who have lived through a major economic crisis roughly once every decade – including a taxi driver who lost everything in the 2001 crisis and now earns more money selling antiques. We also travel to some of the worst-hit places, where sermons from slum priest “Padre Toto” give people hope.

But 2018 has once again tested Argentines’ patience. Inflation has topped 40% and the peso’s value has halved compared to the US dollar. Mauricio Macri’s government has tried to stem another crisis by signing up to the biggest bailout package in the IMF’s history.

With the country’s future in limbo, the FT provides a glimpse into life in constant economic turmoil and asks: Can Argentina finally break the cycle of boom and bust?

► Try the Financial Times for 4 weeks for just £1. Start your trial now – http://bit.ly/2ry7Tkz

► Subscribe to the Financial Times on YouTube: http://bit.ly/FTimeSubs

Get the best curated news on Twitter: https://twitter.com/financialtimes and on Facebook: https://www.facebook.com/financialtimes

source

RELATED ARTICLESMORE FROM AUTHOR

34 COMMENTS

  9. Argentina can increase exports and boost tourism.they should open their domestic markets to foreign countries to start business.they can also seek the Non resident Argentinians who are employed abroad.they should advertise more about their country in foreign countries to attract more tourists from other countries .some tourists are not coming to Argentina because of language problem .most of the tourists know only English.Argentina should be taught English language.

  10. I hope Argentina will overcome this crisis .If Argentina people learn English ,they can seek job abroad.in schools and colleges ,Skiling in nursing and IT should be given.small scale industries and Startups should be encouraged.

  11. Este video, ya es viejo y algo parcial diría, porque se entrevista solo a algunos ciudadanos, que estan del mismo lado de la grieta. El gobierno de Macri nos endeudó de nuevo con el FMI y toda esa deuda, la dejo en el país y los dolares fueron fugados por esos gobernantes, incluido el ministro de hacienda que habla tan tranquilo al hablar de los 57000 U$s. Asi que habria que hacer una versión posterior, porque las cosas se compicaron aun mas despues del 2018. Y como dicen por ahi, hay que buscar en cada uno, para no terminar echando culpas. Se quejan de los impuestos, pero nadie los termina pagando. Cuando pueden te cobran en negro, ASi que no se quejen. Los unicos que pagan sus impuestos, son los empleados, el resto evade. hasta las empresas tienen toda una ingeniería para fugar la plata que ganan y llevarla fuera del pais. El problema de Argentina, es que seguimos teniendo Corsarios en los lugares de poder (Medios, Justicia, Establishment en gral).

  13. The only way out of this is to work as hard as Asian people. When there is financial/economic crisis, the only solution is to work more and spend less. That is it.

  14. As a Central American from Nicaragua, the best solution was to unite Latin American countries, in such a way to support and help each other but still maintaining each ones independence. Political turmoil, indifference, boarders, lack of unity destroyed these possibilities. All latin american countries undergo these rollercoaster waves of poor economies. If Latin America doesn't humble in uniting , they will continue to be doomed to such crisis for centuries to come. The first step is to create responsible governments that are held accountable for their actions, and removal of corruption.

  15. Argentina has too many people that don't want to do hard agricultural work. All the unemployed in the cities could be employed in agriculture in rural areas.

  20. I am American from New Mexico. Argentina and Uruguay are my top two favorite countries of all time. I hope to visit some day and experience these beautiful cultures. I am always praying for these people and hoping them good fortune and prosperity. 🇦🇷 🇺🇾 forever in my heart.❤️

  23. The boom and bust cycle is a problem of capitalism. Yes, the economy might rise to a high but it has a chance of plummeting tremedously due to rising prices, shortages, and many more factors. Under socialism, where the government plan the economy without the people who make the prices themselves for profits, the economy is stable. The Soviet Union for example was one of the nations that actually didn't suffer any economical recessions.

  26. In this video the finance minister said that the combination of high Argentinian budget deficits and a small financial system makes the country dependent on foreign funding. “A small financial system” means that rich Argentinians keep their wealth in banks overseas because they do not trust the stability of Argentina. When elites do not invest in Argentina, the country is in deep, long term social and economic trouble, likely to last for generations.

  28. Democracy doesn't work if the country is not stable when passing down the baton.

    The majority do not know best. The majority will kill the country if it benefits their 'party'.

  31. Socialism was very well implemented in Argentina, 97% of people has nothi g to eat. In the meantime Christina Kuchners son imported a brand new Porsche worth about200 K

  32. Having read a lot of critical comments about Argentina posted here, I ask one question: which country unleashed a virus which has contaminated every country of the world, lied about it and continues to lie about it? Not Argentina. So if you want to look at a really rotten society, look at China.

Comments are closed.