Argentine Economic Crisis - ahmad janahi - s200306271

            The economic crisis in Argentina occurred between 1999 and 2002. It commenced in 1999 with a sharp decline of the Gross Domestic Product (Taylor 67). The crisis caused numerous problems for the country. It resulted to the crumbling of the government, rise in the country’s external debt, high unemployment rates, civil unrests, and deterioration of the local currency against the dollar (Taylor 71). By the end of 2002, economic growth had returned to normal levels. This was contrary to the expectations of economic experts and analysts. Due to this recovery, the government managed to pay IMF loans (Epstein 43). The crisis was attributed to the country’s history of military dictatorship. The military rule was responsible for numerous economic hardships that were encountered by the country. During this period, the country accumulated foreign debts for non-existent projects (Epstein 46). By the end of military rule, the levels of employment were high and unprecedented. After holding democratic elections in 1983, the government embarked on implementing new economic policies with a view to change the country’s economic course (Bao 11). The new administration had to borrow funds to finance the implementation of these policies. Eventually, the country failed to finance the loans. This eroded the confidence of donors and other financiers in the international community. The economic crisis has resulted in political and economic turmoil that has had adverse effects on the image of the country (Bao 14). 

References:

Bao, Sandra. Argentina. London: Lonely Planet, 2010. Print.

Epstein, Edward. Broken Promises: The Argentine Crisis and Argentine Democracy.

London: Lexington Books, 2006. Print.

Taylor, Alan. A New Economic History of Argentina. London: Cambridge University

Press, 2003. Print.