Argentina are back at it again. The Latin American country is in a deep economic crisis, something which has become a familiar sight during the past decades. It takes regular intervals of more or less ten 10 years for the Argentinian economy to bust. The sad part is that it does not matter who is in charge, the economics seems to be an achilles tendon for both leftists and market-friendly governments.
Argentina has seen the worst in political and economic meltdowns. The question that needs to be asked is: How come Argentinian economic woes appear to be too regular compared to other countries, say United States, South Korea or Estonia?
Is bad economic management or there could be than what meets the eye? The response to these questions always gets simplistic by pointing to the obvious and conventional economic arguments. Not that I wish to rattle the cage but economists tend to misdiagnose what troubles Argentina so much.
With this experience, it is unsurprising that many people, not just in Argentina, but in the whole Latin America tend to blame open-market economic policies for what they now consider their permanent dilemma. And politicians alike understand this disgruntlement and use it to win elections.
They implemented people-friendly policies and programmes, which are now criticised for the present economic woes. Reasonably, nobody can fault the Argentinians and their neighbours for their faith in socialist policies. With this and other injustices in mind, governments in Argentina took a tougher stance by nationalising companies such as YPF national oil company and rolled out people-friendly economic policies.
