WASHINGTON — The ten-year cycle continues in Argentina. In the decade since the debilitating economic recession and collapse of 2001-2002, Argentina is seeing investors flee the country with their money and capital.
This does not bode well for Argentina, which is struggling to keep money and cash within its borders. Reuters reports that companies across the board, big and small, are fleeing Argentina.
Argentina’s left-leaning and socialist President Cristina Fernandez has imposed policies that are driving away business and investors, such as her “hostile treatment of the private sector” (per Reuters) is leaving Argentinians out to dry. Her socialist and leftist policies have isolated capitalism in Latin America’s third-largest economy and is undermining the progress the country has made since the 2001 economic collapse.
Roberto Lavagna, a former economy minister in Argentina and well-respected in financial circles, put in his two cents and said that “the end of this story has already been written, and it ends in crisis”. His takeover between 2002 and 2005 jump-started the Argentine economy and gained him respect and prestige.
Many Argentines are wary of the 2001 crisis, which saw two presidents resign, widespread riots across the country and the Argentine economy shrink by 1/5. But, some remain optimistic that Fernandez could turn things around.
Lavagna warned that this will make things worse and that “you can’t have growth without investment”. Lavanga fell out with Fernandez and her late husband (and her predecessor) Nestor Kirchner over their anti-business policies toward the end of Kirchner’s term.