Argentum`s country in South America: Argentina
Argentina's name is 'Argentum'. This means silver. Argentina is the second largest land in South America with its land size. It is the 8th largest land in the world. It borders Chile, Bolivia, Paraguay, Brazil, and Uruguay. The Eastern shores of Argentina stretch across the Atlantic Ocean. Chile is in the west, Bolivia, and Paraguay in the north and Brazil and Uruguay in the northeast. There is a rainforest climate in the north of the country. In the south, the desert climate is dominant. The Bariloche region is covered with mountains and lakes like Switzerland. The North East region is dry and terrestrial. A wide variety of products can be grown in Argentina.
Forestry is generally done on the soil and trees are planted in the country for investment. The largest mountain in the country is Aconcagua in the Andes. These mountain ranges also form borders with Chile. Pampa Plain is located to the west of these mountains. This plan covers 25% of the country and consists of meadows in general. So it is very lucky in terms of climate. This plain is the country's livestock and agriculture basin. Also, Argentina consists of 23 provinces and a federal district
Political and administrative structure
Argentina is a federal republic. Nothing changed until the Constitution of 1853 and the 1994 Reform. The administrative structure of Argentina was created based on the USA. The principle of separation of the forces prevails. The executive power is the head of state. In the 1994 constitution, the President can be elected no more than 2 times for a period of 4 years. The President has very wide powers. It can appoint the head of the country's Cabinet of Ministers and members of the government. The legislative power consists of parliament, senate, and council of representatives. The current number of senators is 72. The House of Representatives has 257 members.
Senate members are elected for 6 years. Each province has a separate constitution. Therefore, the federal government has historically been dominant in Argentina. However, the provinces have important authority and power.
The highest authority of the judiciary, the Constitutional Court, was established in 1854. Judges are appointed on the recommendation of the President.
The 23 states of Argentina are: AtlanticoSur and Tucuman Buenos Aires, Federal, Catamarca, Chaco, Chubut, Cordoba, Corrientes, entre Rios, Formosa, Jujuy, La Pampa, La Rioja, Mendoza, Misiones, Aug 12, Rio Negro, Salta, San Juan , San Luis, Santa Cruz, Santa Fe, Santiago del Estero, Tierra del Fuego, Antarctica and islands.
Main economy sources of Argentina
Argentina is a strong country in the region. It is service and production-oriented. Although agriculture and the farm prevailed throughout the country's history, it is now focused on service and production. But Argentina still produces more grains than other countries in Latin America. It is second only to cattle breeding compared to Brazil. Gross national product is among the highest in the region. Argentina's high inflation and unemployment in the late 20th century entered a major financial crisis in the early 21st century. In the years after the establishment of the esperanza agricultural colony in 1856, the basis of Argentinian agriculture changed from animal husbandry to agriculture. The spread of wheat, corn, and flax cultivation are roughly possible in the Pampa region. Even though agriculture was not as intensive as in North America, the land was good and the land was abundant. The Argentine industry has become important, mainly as foreign-dominated producers have started exporting processed foods. Meat and grains were exported to European markets in exchange for fuel and manufactured products. Argentina became the world's leading exporter of corn, flax, and meat. However, the great depression of the 1930s reduced foreign trade, significantly damaging the Argentine economy. Between 1930 and 1980, Argentina fell into rankings with less-developed nations than being one of the richest countries in the world. It followed an import substitution strategy designed to turn Argentina into a self-sufficient country in industry and agriculture. It was carried out by applying high tariffs in imports, thereby protecting Argentine textile, leather, and home appliance manufacturers from foreign competition. However, the government's encouragement of industrial growth has driven investment away from agriculture, and agricultural production has dropped significantly. Oilseeds such as fruits, vegetables, soybeans, and sunflowers, and industrial crops such as sugarcane and cotton increased their total agricultural production shares at the expense of dominant grain crops. But overall, Argentina remained one of the largest agricultural producers in the world. ,
Argentina dominates economic instability, political instability, and financial crises have a long history. The economic development level of Argentina at the beginning of the 20th century was far from the developed countries (European countries, Canada, Australia) at that time in the world economy of Argentina as a result of unsuccessful economic administrations. its relative position has declined significantly. Before the First World War, in the economy of Argentina and the living conditions of the people To express the good situation available, the people and investors in Europe are as rich. During this period, Argentina is a country of opportunities for everyone has become the position. However, with the advent of World War I, the Argentine economy started to face problems. Decreased international demand for Argentina products international trade and agricultural exports decreased during the war period. With the end of the war. Despite the reopening of the international markets, the economic growth of Argentina again it has not reached pre-war levels. Argentina especially after 1980, applied for economic instability, and the purpose of eliminating these instabilities found in stability programs. Thus, against many economic crisis experiences, Argentina is also an important lesson for policymakers as a model country that can be removed.
Independence and Economic Growth Period
When Argentina achieved independence in 1816, it was one of the poorest colonies in Spain. Political and economic instability was extreme. The civil war had peaked in the country in the late 1850s and early 1860s. This bad trend of the Argentine economy started to change in the last quarter of the 19th century. Two major technological innovations have helped this. The first is the advances in the storage and preservation of agricultural products, and the second is the developments in transportation technology. Cheaper transportation opportunities and better storage conditions have increased the demand for exports to Argentina products from very distant markets. As a result, the poor and underdeveloped Spanish colony became a rapidly developing economy.
Argentina became one of the richest countries in the world in the early 1900s. The favorable economic climate in the country has attracted both workforce and foreign capital. As a result of immigration to the country, while the population was 3.3 million in 1890, it reached 7.5 million in 1913. Capital stock increased by 4.8% annually for the same period. In this period, the standard of living within the country has increased to a very high level. In 1913, per capita income in Argentina was $ 4519. In that period, per capita income in the USA was $ 6308, $ 5290 in Canada, $ 6800 in Australia, $ 6130 in New Zealand,
Germany is $ 4341, France $ 4147, Austria $ 4123, Denmark $ 4479, Finland $ 2512, Sweden $ 3684, Italy $ 3050 and Spain $ 2682. These figures show that the living conditions of the people in Argentina were higher or closer than many European countries in those years. To express this good situation in the Argentine economy and the living conditions of the people, before the First World War, the people and investors in Europe said, 'As much as an Argentina rich ”statement. In this period, Argentina has become a country of opportunities for everyone. One thing that has been overlooked in this positive trend in the Argentine economy is that it is financed by foreign capital because the pre-war economic growth and the domestic finance structure of the industry are not mature enough.
Great Depression and the Argentine economy
The Great Depression began on October 24, 1929, with the fall in the value of Chirre stocks on the New York Stock Exchange in the United States and rapidly industrialized Western European countries spread out, it lasted until 1933. After the crisis, all the world's economies, except Soviet Russia, faced the crisis. The crisis affected Argentina significantly, as did many countries that joined the world economy as exporters of raw materials and importers of industrial products and as a rule within free trade regimes. The global economic crisis has produced different results in Argentina. International demand for Argentine products has declined due to the contraction in economic activity. At the same time, already low prices of agricultural products have declined further. For example, the prices of wheat, maize, and flax seed, which are the main exports of Argentina, between 1929-1933 among them declined by about 43%. The rapid decline in Argentine exports has also significantly affected the national economy. The first effect of the Great Depression in Argentina was a significant deterioration in the balance of foreign trade and the 40% devaluing of the peso between 1931 and 1932 and the implementation of foreign exchange controls.,
Government monitoring after the negative effects of the Great Depression he changed strategy. Due to the impact of the Great Depression, a completely closed economy was started and an industrialization strategy based on import substitution was followed. Controls including capital outflows and import restrictions to protect national products have been increased, and the rapid gold standard system was abandoned and the national currency devalued. Despite these downsides, the effects of the Great Depression in Argentina have been more moderate and shorter-term by international standards. To be seen from Table 2 as such, from 1929 to 1932 Argentina's national real production decreased by only 14%. In 1935 the production level was reached again in 1929. Deflation for the same periods it has been at about 6%. In terms of comparison, the decrease in real production in North American gold standard countries the USA and Canada was more than 30%. Deflation for these countries has been around 20%. For the same period, Mexico's production was about 19%, Chile's real production was about 27% and Brazil's was about 28 % has decreased. There has been a noticeable blockage and decline in the Argentine economy since 1930. In the 1930s, real growth lagged behind the rate of population growth, and with the effect of the Great Depression, Argentina began to move away from its pre-1930 golden age. However, since the Depression was international and heavily affected all other developed countries, Argentina he maintained the relative position he had internationally. In 1938, Argentina's GDP per capita was 57% of the GDP per capita of the three most developed countries (the United States, Australia, and Switzerland) at the time. With the Great Depression, Argentina also began to isolate itself from the international economy. From 33% in the 1920s, the openness level of the economy declined to 25% in the 1930s. and the economy is highly dependent on foreign trade and foreign capital inflows.
Peron period and populist policies
Juan, who was minister of labor in the previous military government, held elections in 1946 Domingo Peron wins. Peron's populist policies in Argentina it has exacerbated instability. Peron has nationalized many enterprises, foreign despite its competition, it has increased the protection of many products and expanded state intervention, which is already high in the economy. Peron is also a distribution of income in favor of employees he followed the policy. Rapid wage increases as a policy tool to achieve this policy he must have used it. The consequences of this policy in the economy are very devastating. has been. Moreover, the losses of nationalized enterprises have risen rapidly and as a result, fiscal deficits have increased. The way to print money to cover these deficits, as a result, inflation accelerated. After a military coup in 1955, Juan Perón was demoted from the administration. But 1973 he won re-election in the year but died sometime later and was replaced by his wife Isabel Peron is the past. The same populist and protectionist policies were pursued during this period. These policies as a result, not only did the economic situation deteriorate, but also the political instability and terrorist attacks have also increased. As a result of this, the military government in 1976 started again is started. Argentina in the middle of an economic and financial crisis in the late 1970s has been. Inflation increased and the national currency rapidly depreciated. The period 1976-1981, the fixed exchange rate system was abandoned and the economy started to open up. has been studied. In this context, towards the end of the period, the exchange rate between 1979-1981 an orthodox policy based on ‘tablita ' was implemented. With the liberalization of the trade regime two and a half months beginning in 1982, during which capital escape to the outside accelerated the ongoing Falklands War and the ensuing debt crisis in Mexico all over Latin America it has negatively affected Argentina as well as their country. Each other during 1982-1985 due to subsequent high-rate devaluations and unchecked budget deficits the inflation rate jumped from 165% in 1982 to 672% in 1985. As a result of this instability in the economy, a new stabilization program and put into practice.
Conclusions
Despite the improvements in the past 15 years Argentina needs to move to concrete achievements by opening up the economy and putting in place the conditions for private sector-led growth. For the change to a new economic model to endure growth will have to translate to better quality jobs and the progress made on reducing poverty will need to continue. Furthermore, integrating all of Argentina (and not just the richer areas) into the world economy will be important to expand the gains from opening up and making the economy more productive. Finally, protecting the environment and harnessing the value of nature for development will be essential to ensure the sustainability of economic growth.
