Cry For Argentina Essay

2292 words - 9 pages

Ricardo Domingo is a middle class Argentinean citizen from Catamara. During twenty-seven years, he was fixing automobiles' engines. During that time period, he bought an automobile and a house also he went holidays every summer. But all of his life was changed last four years. Now, he has not any job. He will retire when he is seventy but he is already sixty-three. Only way to survive is exchanging his goods with food. He cannot see his future; moreover nobody in Argentina can hope anything and nobody can plan their future.It is sure that Domingo is not the only the one. Argentina, whose economy was the tenth biggest in the world and who were the seventh biggest exporter, with an economy twice as big as Mexico's and twenty five times bigger than Brazil's during 1910-1930, was as rich as any West European country in the 1950s. But now it can't maintain its connections with the world anymore.Although Argentina holds an area of 2,766,890 square kilometers, its population is 38,740,807 million. Its neighbors are Bolivia, Brazil, Chile, Paraguay and Uruguay. The official language of the country is Spanish. 97% of the population consists of Italians, Spaniards, Germans, British and French. The remaining 3% consists of Amerindians (natives of Middle and South America) and non-whites. Most of the population is Catholic. 2% of the population is Jewish. The country consists of provinces. Titse are 23 provinces and an independent city; Buenos Aires, the capital. (cia-factbook, 2003)Even though Argentina has a long history of political instability, financial crises and decline in relative economic level, at the beginning of the 20th century, Argentina's economic situation, measured by GDP per capita, was not far behind Europe, Australia or Canada. Moreover, "Rich as an Argentine" was common epithet in Europe before the First World War. Also, the public and investors in Europe viewed Argentina as a land of opportunity. However, after a long period of economic mismanagement, Argentina's position in the world economy was fall.The importance of the Argentinean economic fallout is that not only it affects the country and its peoples, but also other economies in the region. Countries are now tied together more than in the past because of trade, international corporations, and the large amount of capital flowing. When one country falls because of economic problems it is certain that others in the region will fall. This is exactly the case with Argentina and her neighbors Brazil, Uruguay, and Ecuador who have economic problems.Since the mid nineties the economy in Argentina became worse rapidly. Speculations of economic troubles first began to take flight after Mexico's Tequila Crisis in 1995 and in October of 1997 after the Russian economic crisis. The Argentinean government made the decision in 1991 to peg the Argentinean peso to the US dollar. This move at first affects better the economy, giving people confidence in their money. Around 1995, the fiscal policies...

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