Argentina was the epicenter of one of the biggest economic crises suffered in recent years by a single nation. The neoliberal proposal started in the 1990s, characterized by the dollarization of the economy and greater freedom of action for capital The private sector failed to achieve its goals, being responsible even for the deterioration of the population's quality of life. Argentina. In total opposition to the neoliberal model, in 2003 President Nestor Kirchner started a nationalist government, seeking mechanisms to protect the country's economy at any cost.
The economic reconstruction of Argentina represented, in practice, a kind of deconstruction, as the downfall of the neoliberal project was accompanied by an enormous process of deindustrialization and an increase in the production of raw materials, such as soy, corn, beef and wheat. The reprimarization of the Argentine economy prioritized recovering the country's economic growth, which actually happened at first.
On the other hand, dependence on the primary sector, whose products have a lower added value, entails a series of risks for the economic structure of a country. One of the biggest challenges lies in reducing investments and generating technology, as an economy based on the primary sector ends up restricting the investments of national productive capital and International. Activities corresponding to the primary sector have another complicating factor, which is the low capacity to generate jobs, which can fuel a social crisis.
The concept of government instituted by Nestor Kirchner was also supported by strong populism, recovering Peronist values, referring to former president Juan Domingo Perón, who governed the country between 1946 and 1952, and for a short period between 1973 and 1974. In his first passage, Perón was responsible for the social ascension of the working class in Argentina, introducing a series of social benefits, with a strong nationalization of the economy. Recovering these values was essential for making a kind of pact with the Argentine population, used to claiming her rights and trying to persuade her politicians to change the course of their strategies.
Nestor Kirchner was a great enthusiast of the UNASUR organization (South American Union of Nations). UNASUR is an economic bloc in the process of being constituted, seeking to bring together MERCOSUR and the Andean Pact together with Guyana and Suriname. The bloc's pretensions overlap with economic issues, contemplating social and security programs. Kirchner even assumed the bloc's rotating presidency and contributed to the resolution of diplomatic differences between Venezuela and Colombia.
If on the one hand UNASUR was encouraged by Kirchner, MERCOSUR had a series of obstacles due to protectionist policies carried out by Argentina in recent years, such as the imposition of tariffs, inspections and other bureaucracies against products Brazilians. For this feat, the argument used by the Kirchner government was the protection of the productive structure and jobs in its country.
Contrary to the vision shared by many people, usually fueled by sports disputes, such as in football, the two countries should not be seen as rivals. The fluctuations in Argentina's economy are harmful to Brazil, which represents the main destination for Argentine exports. Brazil is also Argentina's largest supplier of products and, for this very reason, greater harmony in policy decisions is needed. between the countries, as the differences are only weakening their economies, harming the entire region and detracting from the integration project of the MERCOSUR.
* Venezuela was suspended from Mercosur for an indefinite period in December 2016.
Julio César Lázaro da Silva
Brazil School Collaborator
Graduated in Geography from Universidade Estadual Paulista - UNESP
Master in Human Geography from Universidade Estadual Paulista - UNESP
Source: Brazil School - https://brasilescola.uol.com.br/geografia/as-dificuldades-enfrentadas-pela-economia-argentina-medidas-economicas.htm
