Things are starting to move - more about renationalisation

Perhaps it's obvious but I can't help but get the feeling that
Argentina is on the brink of something profound, nationally, socially
and economically. Of course, it might always seem like that and it's
only my relatively recent attention to the Argentine news that (for me
at least) is creating this sense of anticipation.

The more I find out the more I get the feeling that the changes taking
place, particularly the Peron style renationalisation of local
industries and the recent senate defeat of the proposed agricultural
export duties signify the start of something profound. A country
brought to it's knees by economic collapse has recently enjoyed
consistent growth, re-calibrated its ambition and its economy and is
now poised to redefine itself. The political rhetoric is increasingly
talking about rebuilding Argentina, taking responsibility and about
regeneration - quite reminiscent of the Peron era.

My prediction is that this process will be painful, disruptive and
dramatic but ultimately positive. The timing is right. The global
economy is in crisis (apparently) and it's appropriate that the
ruthless application of free market based ideologies are challenged.
Renationalising Aerolineas Argentinas and the recent renationalisation
of the local water industries and the postal service are hopefully
just the start of widespread economic reform. Let's hope de Kirchner's
recent defeat over the agricultural policy doesn't derail her reform

Commentators can bleat on about the fact that the airline is hugely
unprofitable, a reality that even the market was unable to address.
Under private ownership surely profitability is the only objective
that matters. But as a national company the state can offer a more
than just profitability as a reason to maintain the airline. The
airline represents Argentina and Argentina is not just about profit in
the private sector.


gracee said…
Good luck with you trip. Argentina is a land of contradictions - and it is never boring here.

When I read this I had to double check that you were actually referring to Argentina. Your take on the situation here is about 180 degrees from reality in my opinion.
About the only thing that is being built here is a second economic collapse along the lines of 2001.

You hope her planned reforms can still be carried out. What reforms are these? This will be news to everyone here.

How does nationalizing an airline with public monies make sense in a country with limited resources and poverty rate of 30% and rising? How much more money will it take to keep this afloat in the future?

With a little bit of luck the collapse will occur while you are here. I will love to see you take when that occurs.
allegra said…
I have to agree with "restless retiree"...The goal of the party in power is to line their pockets. I think the next crisis will probably hit us by 2009.

I am an American from CA living in BA since 1989. I am here by choice and very happily enjoying all the positive aspects of the country.

For Argentinians the crisis will be another bleep in history. For expats hopefully just another lesson in third world politics.

A mini vacation of 6 months just may change your opinion on what you wrote today. Learn to speak Spanish and attempt to socialize with locals. This will be an education in itself. And isn't it what living abroad at your age is all about???

Good luck
Andrew Owen said…
Thank you so much for your comments, I guess I'm going to need to wait and see a bit.

As I've said in my blog, I am idealogical and opinionated and although I'm resolutely not a supporter of free market principles in any context I do expect to learn quite a bit once I'm there.

As for it being "third world" I'm poised and excited by that. Having had quite a bit of experience with so called "third world" communities I enjoy the fact that they are not potentially (and often practically) less wedded to a particular system and opposed to change. Certainly not the case in the Western Europe or America where capitalism seems to have won.