New hope for Argentina’s economy

It is too early for clinking glasses but former Argentine president Nestor Kirchner (RIP 2010)  will turn over in his grave if he is following current talks to IMF – Please yourself Nestor! Talks are for the sake of Argentine people.

In my last blogpost I informed about the dismal monetary situation in Argentina. Things may light up for the country by allowing the IMF to function as “technical assisctance” (Fincancial Times Deutschland 25-11-2010). Argentina states an inflation rate of 11%. Foreign crtics believe in more than double so IMF’s task is to evaluate a realistic value.

Because Argentina is not considered creditworty in the financial market, it has a tough time in getting new cash to support its economy. By allowing the IMF they are showing good faith for foreign investors, in order to regain creditworthyness.

This step has its opponents. Deceased Nestor Kirchner being one of them, objectors to rules and mechanisms of capitalism the other ones. Most of them consider IMF and its “partisans” as traitors to the “free world”. This Irish blog follows every of IMF’s steps and notes that IMF has done harm to poor countries for the sake of the first world.

Don’t forget one critical aspect here my dear socialists: We live in a financial world. Fish and camels are yesterday’s commodity of exchange. MONEY is today’s. If you want to survive, you need cash. This means letting in the IMF and Paris Club because you failed in setting up financial stabiltiy in your country.

Economic situation is still one of the best in the region, thanks to national consumption and production level as this article explains. Still: lots of work ahead.

Above all, people will get back living quality. If I have a toast tonight it will be to Nestor, moving in his grave. Cheers.


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2 Responses to New hope for Argentina’s economy

  1. In the past two decades, the IMF has tried to help other economies around the world – but by putting pressure on their government and freedom to do business in their own way.
    Most times, The IMF used to implement nearly the same program on each of these countries (e.g. Tiger States such as Malaysia). In the end, these countries collapsed due to the massive cuts that the IMF imposed on them.

    For more information, I suggest you to read the book “Globalization and Its Discontents“. It is brilliant!

  2. vivipre says:

    Thank you for raising attention to that topic. Another interesting post “Argentina: goodbye, Néstor; hello, IMF” in the financial times blog gives further information on Argentina’s situation and IMF talks.

    To point out the controversy of IMF interventions I found a nice cartoon.

    @Kizzel_Keller: Thanks for the book recommendation. I will check it out!

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