Argentina, A Country With A Rich History And A Past Of Prosperity, Is Facing One Of The Most Severe Economic Crises Of The 21st Century

Written by Bruno Teles

Published on 06/12/2023 at 18:32

Crise econômica na Argentina, devido a alta inflação (Imagem / Divulgação)

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Despite Being the Fourth Largest Country in America and Being One of the Richest on the Continent, the South American Nation Struggles Against Alarming Inflation That Nears 140% Since 2020.

The economic fragility of Argentina has been exacerbated by global events such as the COVID-19 pandemic and the war between Russia and Ukraine, which impacted the global supply chain. However, Argentine inflation far exceeds the global average, highlighted in major portals such as G1, Folha de São Paulo, and Portal 360.

In a more detailed analysis, the channel Capital Finance explores the origins and consequences of the Argentine economic crisis. The history of Argentina is marked by an economy initially based on agricultural exploitation, benefited by the fertility of the Río de la Plata region and the Pampas. However, the Great Depression of 1929 and subsequent economic policies, especially under the leadership of Juan Domingo Perón, began to shape the country’s current economic landscape.

Perón Implemented a Populist Economic Model, with a Significant Increase in State Control and a Focus on Nationalized Industries

These policies isolated Argentina from the international market and inflated the size of the state. Government subsidies for goods and services, such as electricity, and a bloated public sector, where one-third of formal employees work for the state, are reflections of these policies.

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The crisis intensified in 2018, under the presidency of Mauricio Macri, who tried to attract dollar investments but ended up generating more inflation and devaluation of the Argentine peso, as highlighted in a report by BBC. The situation worsened with the COVID-19 pandemic, when the government of Alberto Fernández froze prices and printed more money, leading to a historic devaluation of the peso.

The history of Argentina reveals a series of poor economic decisions that have accumulated over the years, culminating in the current crisis. The out-of-control inflation and the devaluation of the currency are just the tip of the iceberg of a deep economic crisis, rooted in history and exacerbated by poorly directed government policies.

Argentina, A Country With A Rich History And A Past Of Prosperity, Is Facing One Of The Most Severe Economic Crises Of The 21st Century

Despite Being the Fourth Largest Country in America and Being One of the Richest on the Continent, the South American Nation Struggles Against Alarming Inflation That Nears 140% Since 2020.

Perón Implemented a Populist Economic Model, with a Significant Increase in State Control and a Focus on Nationalized Industries

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Argentina, A Country With A Rich History And A Past Of Prosperity, Is Facing One Of The Most Severe Economic Crises Of The 21st Century

Despite Being the Fourth Largest Country in America and Being One of the Richest on the Continent, the South American Nation Struggles Against Alarming Inflation That Nears 140% Since 2020.

Perón Implemented a Populist Economic Model, with a Significant Increase in State Control and a Focus on Nationalized Industries

With billions in loans, China is rebuilding Nigeria’s railway network from scratch, abandoning the British colonial tracks that have turned to scrap and creating a corridor of over 1,300 km to take the load off the roads of Africa’s largest economy.

A British company has installed in the middle of the ocean the world’s first floating platform that generates electricity 24 hours a day from the temperature difference between the surface and the depths of the Atlantic, without relying on wind or sun.

China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

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In China, even those who beg on the street already have a QR Code, paper money has practically disappeared from daily life in just ten years, and the entire country has come to live on invisible payments via mobile phones.

Brazil will harvest a record crop of up to 357 million tons of grains, but it does not have the capacity to store a large part of it. The storage deficit has reached the highest level in history and is equivalent to almost the entire production of Argentina.

Scientists considered detonating 213 nuclear bombs in the Sahara to create an artificial sea the size of El Salvador, with each explosion being a hundred times more powerful than the Hiroshima bomb, and the goal was to generate more energy than Egypt’s largest hydroelectric plant.