Argentina passes a 'gradual descent into hell ", according to the newspaper Le Monde
The French newspaper Le Monde today published a column explaining, categorically, how Argentina reached the current "hell" despite the launch that recorded in the late nineteenth century, when it was positioned as an emerging power in the concert of nations. The excuse is, once again, the recurrent financial crises being experienced by the country, after a new default republished, "the sixth" in history, after blocking payments to bondholders restructured by Judge Thomas Griesa.
The article, entitled "Lessons Argentine" says that the republic is "unique in the world" for its initial success and subsequent decline. It was "the first agricultural power" and "star" of capital and immigrants, polo globe becoming the "ninth largest economy."
"Argentina had the same standard of living that France between 1900 and 1950," recalls the note, and said that its gross domestic product (GDP) per capita was on the 12th place in world rankings, just ahead of the French nation. That place is in contrast to his current position, which is 62, based on current dollars, or 69, in terms of purchasing power.
For the author of the editorial, the economist Jean-Pierre Petit, president of Les Cahiers de l'Economie Verts, dedicated to research in macroeconomics and investment strategy, there is a key responsible for the decline.
"Peronism has shaped the political and social life of the country and most governments have been inspired, directly or indirectly, in Peronism," said the economist, who rates the matrix of thought as the "illusion of autonomous model of state-led development "," free of the restrictions of competition and competitiveness. "
"The protectionist import substitution strategy with locally manufactured products, inspired by economist Raul Prebisch (1901-1986), made the manufacturing sector was increasingly dependent on aid and public protection and was never really competitive," marks the editorial Le Monde.
In addition, Petit notes that there is a "structural patronage", a "strong interference" of the state in the private sphere and "disrespect" of property rights. It also highlights the "deep-seated corruption" and "chronic political instability" in the country, which exemplifies the "numerous" coups.
"The hell of a gradual descent Argentina nearly seventy remember that performance differences between nations are mainly due to differences in governance, rather than the endowment of natural resources," says the economist.
With this diagnosis, the author severely punished the criolla political leadership, accusing it of settling in "myths" and "denying reality" and whose "suicidal nature, ultimately" prevents you "adapt to the outside world ".
"Today, the macroeconomic performance is similar to Argentina and Venezuela in stark contrast to the successes of other Latin American neighbors such as Chile, Colombia or Mexico," says the article.
I will now get back to bottling my Malbec
