The Silver River

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 dram...

UPDATE : Here is a bit more on the renationalisation from BBC News. Even though I know next to nothing about national and or global economic models it has never stopped me from having an opinion. I am always excited when I hear stories that challenge what seems to be a formidable and irreversible move towards free market economies. Menem's heavy handed privatisation policy during the 80's paved the way for the loss of a significant portion of Argentine industry to foreign investors. Admittedly this saw an influx of foreign investment, but when the economy collapsed in 2001 this offered little protection. This combined with the peso-dollar pegging meant local industries suffered. Production moving overseas to cheaper countries and stagnant local economies. Then I spotted this little story in the FT: Argentina to buy back state airline In 1990 Iberia took a 83.5% stake in Aerolíneas Argentinas . The airline continued to under perform and was taken over by Marsans in 2001. Rising ...