Geography boasts beautiful extremes but doesn’t hide country’s past economic woes

Geography boasts beautiful extremes but doesn’t hide country’s past economic woes

As the second largest country in South America and one of the most geographically diverse regions in the world, Argentina is a nation seeking to overcome a painful past by focusing on the potential of its people and resources.

With a land area of more than 1.1 million square miles, Argentina is the world’s eighth largest country. It’s also one of the longest—stretching approximately 2,000 miles from its subtropical northern border to the southern border near Antarctica.

Between these borders spread the plains of the Pampas region, the lakes and forests of Patagonia and the Andes mountain range, all highlighting the diversity of the land.

Well-educated and highly literate, the people of Argentina are diverse as well. Originally colonized by the Spanish, Argentina saw an influx of immigrants from across Europe during the late 19th and early 20th century. Though the country’s population is nearly 70 percent Catholic, it also has the largest Jewish population in Latin America.

Argentina’s European influences are evident in the country’s art, architecture, literature and lifestyle. This blend of influence is also responsible for the Argentine tango, one of the country’s most popular cultural exports.

The tango originated in the lower-class districts of Buenos Aires, and in many ways, the evolution of the dance has reflected the changes of the country itself. As the country emerged from its colonial period, penniless immigrants who failed to find their fortunes in agriculture returned to the cities. The tango developed from this melting pot of cultures gathering in the slums of Buenos Aires.

When economic depression hit Argentina in the 1920s, tango music lyrics “reflected the renewed poverty and social divisions in the country,” according to the Web site “El Mundo del Tango.” During the country’s Golden Age of the 1940s and 1950s, however, the dance experienced “the period of its greatest development and expression.”

It was also during this time that one of Argentina’s most well-known leaders, Juan Peron, was elected pres​ident.
Peron and his wife, Eva (known as “Evita”), worked to expand social and educational programs for the working class.

However, after Evita’s death from cervical cancer at age 33, the growing economic problems under Peron’s administration led to his overthrow in 1955. Over the next two decades, the government alternated between military rule and free elections.

During a dark period from 1976 to 1983, known as the “dirty war,” tens of thousands of people disappeared, many of whom were never found. The tango suffered as well.

“From the 1960s to the 1980s, (the tango) was only danced and played by a few of the older generation and enthusiasts,” according to “El Mundo del Tango.”

Democracy returned to Argentina in 1983, but the country’s economic situation was precarious and hyperinflation contributed to a steady decline over the next two decades.

Though reforms implemented during this time, including strict parity of the Argentine peso with the U.S. dollar, led to increases in investment and growth with stable prices, the country’s foreign debt increased tremendously.

While some Argentinians enjoyed prosperity during this time, most were experiencing an increase in both poverty and unemployment. As 2000 approached, the country slipped into economic crisis. In 2001, plans to cut pensions and government wages led to strikes and street protests by trade unions and angry government workers.

For a time, bank accounts were frozen, buses and trains stopped running and hospitals treated only emergency patients. By the end of 2001, the Argentine economy had collapsed.

The BBC reported that roughly half of Argentina’s 36 million people were living in poverty and unemployment had risen to more than 16 percent. Suspicions of political corruption along with a failure to reverse the economic crisis finally resulted in the resignation of President Fernando de la Rua.

In January 2002, Eduardo Duhalde was appointed interim president by the Legislative Assembly. Argentina defaulted on its international debt obligations, in what the BBC called the “biggest sovereign default in modern history.”

The link between the Argentine peso and the dollar was halted, bringing a spike in inflation. The country’s economy slowly began to recover, however, as the government implemented new policies to increase exports and rebuild industry. By the end of 2002, the economy began to stabilize.

Nestor Kirchner was elected president in 2003, and during his tenure, Argentina’s economy gained more ground. Kirchner called the government’s work “the best debt renegotiation in history.”

In October 2007, Kirchner’s wife, Christina Fernandez de Kirchner, became the first woman elected president of Argentina, due in part to her husband’s popularity and economic policy success. She took office in December 2007.

Though U.S. officials expect Argentina’s economy to continue to perform well, the country still faces concerns about energy prices and availability, the need for investment in infrastructure, the increasing scarcity of skilled labor and inflation worries.

Kirchner angered farmers earlier this year over export taxes on commodities, including soybeans. Protests over the taxes led to food shortages and violence in the country, according to CNN’s Web site. The proposed taxes were voted down in the Senate in July, but Kirchner’s popularity has plummeted to below 20 percent.

Kirchner also has continued to support her commerce secretary, who is widely accused of misrepresenting inflation data. Argentina’s inflation rate was officially 8.5 percent in 2007, but independent analysts and the general public say it is much higher — perhaps as much as three times that number.

Still, Argentina achieved a trade surplus of $11.2 billion in 2007, and the production of grains, cattle and other agricultural goods continues to be the backbone of Argentina’s export economy, according to the U.S. State Department. Exports of energy products, high technology goods and services are growing as well.

More than 450 U.S. companies are currently operating in Argentina and employ more than 150,000 Argentine workers. Poverty and unemployment are still high, however, and many people in Argentina have not seen the benefits of the country’s economic progress.

Nevertheless, the people of Argentina push forward, continuing the dance and changing the music as they go along.