Argentina will one day be able to repay the U.S. more than $130 billion of foreign debt it owes and has defaulted on (Hopkins 1).
The crisis in Brazil had a profound impact on the Argentine economy, particularly with respect to imports and exports. Suddenly, Argentine goods were no longer affordable in Brazil, and exports declined dramatically. At the same time Brazilian imports became much cheaper than buying local goods. This is what cratered the Argentine economy. The current financial and economic crisis is very much a real crisis, having dramatic effects on both the politics and policies of Argentina. There are many who blame Argentina’s economic and financial crisis on capitalism, International Monetary Fund (IMF) policies and other external factors ranging from Brazil’s problems to aftereffects of the Asian crisis. The Russian crisis and pegged currency are also blamed for the problem. Eiras and Schaefer take a different view, “The key factor underlying recent financial crises is not a failure of capitalism, but an absence of capitalism” (1).
There are many other reasons contributing to the financial and economic crisis in Argentina where the standard of living continues to decline. Currently more than 15% of the population is unemployed, crime is at record levels, and the disparity between rich and poor widens (Hopkins 1). A sound financial and economic system requires sound policies and sound leadership to put them in place and enforce them. Many blame the crisis in Argentina on ineffective and corrupt leadership. One blue collar worker in Argentina had this to offer, “The problem is not economic, it’s political. This is a rich country. Look at all the land we have, all the resources. It’s a shame. Everybody steals. The politicians are all corrupt. There’s no leadership” (Hopkins 2). This worker is not alone among Argentineans in his beliefs, particularly among the unemployed whose rio...