Argentina: Economic and Political Outline

Economic Overview

After the severe recession, which lead to the Argentinian bankruptcy in 2001-2002, the economy saw a rapid and stable growth, before being hit by the global financial crisis. In 2009 the economy contracted sharply as an effect of the fall in demand (0.9% of growth) but in 2010 it experienced a quick and vigorous recovery, together with the rest of the South-American continent. The 2010 growth, estimated at 7.5% and driven by household consumption, public spending good performance of the agricultural sector and dynamic trade with Brazil, should nevertheless slow down in 2011.

In the context of the coming 2011 elections, the government of Cristina Fernandez de Kirchner is likely to continue the expansionist policy to stimulate domestic demand. Controlling the increasing inflantion also remains a priority. In addition, the Argentinian economy is suffering from structural faults: the financial system remains fragile and the country needs to deal with an energy crisis dues to lack of investment in this sector.

The social situation of the country is sensitive: unemployment and malnutrition persist, with
25% of the population living under the poverty line.

Main Sectors of Industry

Having lost the position of a superpower it occupied at the beginning of the 20th century, Argentina remains an important world economy, namely due to its agricultural production. The agricultural sector, which is based livestock farming, cultivation of cereals (wheat, corn, soy) and citrus fruit, represents around 10% of the country’s GDP.

Rich in energy resources, Argentina is the world’s fourth largest oil producer and first largest natural gas producer in Latin America.

The industry sector has vastly expanded over these last few years. It contributes to more than one third of the GDP. Food packaging (in particular meat packing, flour grinding, and canning) and flour-milling are the country's main industries.

The services sector followed the same trend as the industry sector. Today, it contributes to more than half of the GDP. Argentina has specialized in areas of high-tech services and offers excellent value for money specifically in software development, call centers and nuclear energy.

Source: World Bank - Last Available Data.

Indicator of Economic Freedom

Score:

51.7/100

Position:

Mostly unfree

World Rank:

132/179

Regional Rank:

21/26

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Sources of General Economic Information

Ministries

State Portal
Ministry of the Economy
Secretariat of Agriculture, breeding, fishing and food (Sagpya)
Ministry of Foreign Relations, International Trade and Religion

Statistical Office

Instituto Nacional de Estadística y Censos (INDEC)

Central Bank

Banco Central de la República Argentina

Stock Exchange

Bolsa de Comercio de Buenos Aires

Other Useful Resources

Asociación de Importadores y Exportadores de la República Argentina (AIERA)

Main Online Newspapers

La Nación
Clarin
Infobae Profesional
Cronista

Economic Portals

Portal of Argentina, Economic Section

Political Outline

Type of State

The official name of Argentina is the Republic of Argentina. It is a federal republic based on parliamentary democracy.

Executive Power

Executive power is held by the President of the Argentine nation. It is his/her responsibility to respond to national interests.
The President is the supreme head of the country, head of government, the politician responsible for the general administration of the country and commander-in-chief of the armed forces. The president is elected by universal suffrage for four years and can be re-elected for two consecutive terms of office. The vice-president is elected with him/her. The president appoints the Council of Ministers.
Argentina has 23 provinces and 1 autonomous federal district, which have retained some powers which do not belong to the federal government. They elect their own legislators and provincial governors.

Legislative Power

The legislative power is composed of a two-chamber parliament: a lower chamber, the Chamber of Deputies elected for 4 years by direct universal suffrage, and an upper chamber, the Senate elected for 6 years also by direct universal suffrage.
The parliament is called Congreso Nacional (National Congress).

Main Political Parties

The country has two large political parties: the PJ (Partido Justicialista, also called the Peronist Party) and the UCR (Civic Radical Union). Traditionally, the UCR has a more middle class, urban electorate, and the PJ an electorate of workers. But today both parties have a wider electoral base. The smaller parties, like the center-right PRO (Republican Initiative for Alliance) and, further left, the ARI (Argentina for an Egalitarian Republic) occupy different positions in the political spectrum, and some are only active in a few provinces.

Current Political Leaders

President : Cristina FERNANDEZ de KIRCHNER (since 2007)
Vice President : Julio COBOS

Next Election Dates

Presidential elections:october  2011
Chamber of Deputies and Senate:october 2011

Indicator of Freedom of the Press

World Rank:

48/179

Evolution:

7 places up compared to 2010

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

Indicator of Political Freedom

Ranking:

Free

Political Freedom:

2/7

Civil Liberties:

2/7

Map of freedom 2010
Source: Freedom House