However, a century later, Argentina's per capita GDP is far less than that of many countries in northern and western Europe, and it is also far from the United States and Japan. According to the latest ranking of per capita GDP of 20 1 1 countries in the world, Argentina's per capita GDP is 9 138, which is roughly equivalent to Mexico, which belongs to Latin America, and is only ahead of developing countries such as Kazakhstan.
Argentina has many unique natural conditions conducive to economic development. Pampas grassland accounts for 1/4 of the total area, with mild climate, fertile land and flat terrain.
Argentina is also rich in resources, among which beryllium ranks second in the world, uranium ranks first in Latin America, and oil and natural gas are also abundant.
Argentina's more than 5,000 kilometers of coastline and many excellent bays provide Argentina with many ice-free ports. Argentines are mainly descendants of European immigrants, accounting for about 97% of the total population. Therefore, there are basically no ethnic contradictions in Argentina. Argentines have higher education level and better quality of labor force.
So, how did Argentina go from a rich country to a decline? To sum up, there are the following points:
First, there is no stable political environment.
65438+In the early 1960s, Argentina ended its long-term civil war after independence, and the political situation became stable. This created favorable political conditions for the economic take-off at the end of 19 and the beginning of the 20th century. However, after nearly 70 years, it was completely changed by a coup in 1930. Argentina has since opened the prelude to frequent regime changes over the past 100 years. It is difficult for different political parties to formulate policies on behalf of different interest groups after taking office. On the one hand, it puts implementers in a dilemma, on the other hand, it also undermines the confidence of foreign investors, which will inevitably lead to stagnation or even retrogression of economic development. From 65438 to 0982, the war with Britain for sovereignty over the Malvinas Islands further intensified Argentina's internal contradictions and aggravated the economic recession.
Second, the government intervenes too much in the economy.
For a long time, the Argentine government has established a large number of key enterprises in manufacturing, finance, agriculture, national defense industry, infrastructure and other major fields by means of state intervention. By the end of 1970s, Argentina's state-owned enterprises had accounted for 20% of Argentina's total investment. Enterprises have played an important role in the economic development of Argentina. In addition, some enterprises provide a large number of cheap goods and services, creating many employment opportunities for society. It should be said that some enterprises have contributed to stabilizing society and promoting industrialization.
However, Argentina's state-owned enterprises have also faced a series of problems for a long time, the most prominent of which is that the economic benefits are generally low and many enterprises have suffered serious long-term losses. Its root lies in the lack of modern enterprise management experience of enterprise managers; Various protective measures and preferential policies given by the government to enterprises have also stifled the vitality of enterprises; It has formed a pattern that the survival and development of enterprises depend entirely on the government. Without government financial subsidies, it is difficult for enterprises to raise enough funds for technological innovation and product upgrading. In addition, the huge government organization, low efficiency and rampant bureaucracy are also one of the main reasons why the government's ability to intervene in the economy has not been improved.
Third, it failed to carry out industrial transformation in time.
Argentina is rich in agricultural resources. Before 1980s, animal husbandry was the economic pillar of Argentina. After the Great Depression in 1930s, Argentina began to attach importance to industrialization. By the early 1940s, the importance of industry in the national economy had surpassed that of agriculture. But before 1950s, Argentina's industry was mainly food processing and simple assembly. It was not until the 1950s that the government began to attach importance to the development of heavy industry, chemical industry and machinery industry. Because Argentina did not carry out industrial transformation in time, it missed the good opportunity of secondary industrialization before and during World War II. The experience of today's developed countries proves that industrialization is the only way to realize modernization. Agriculture and animal husbandry made Argentina a rich country before the beginning of the 20th century, but it also slowed down its industrialization.
In order to support the development of manufacturing industry, the Argentine government has adopted trade barriers, and its products are mainly oriented to the domestic market. Product prices are not competitive in the international market at all, and economic growth is slow.
Fourth, the influence of consumption concept.
Argentines have a strong sense of leading consumption. They spend when they have money, and spend when they have no money to borrow, often making ends meet. Therefore, it is difficult to increase the bank savings rate in Argentina. Due to the low domestic savings rate, Argentina has to rely on external funds to expand reproduction. After the debt crisis broke out in Argentina in the early 1980s, it happened again in less than 20 years.
Research shows that maintaining a high savings rate in a country can promote rapid economic growth. When the speed of economic development is accelerated, people's living standards are also rapidly improved, and savings are increased without reducing consumption. The increase of savings in turn expands investment, accelerates economic development, and finally forms a virtuous circle of savings and growth.
The debt crisis aggravated the economic recession.
There have been eight currency crises in Argentina since 1970. Just entering the year of 200 1, the domestic financial situation has been deteriorating and there have been several financial storms. The financial crisis finally broke out in July. Securities and stocks plummeted all the way, the national risk index soared, a large number of funds fled, international reserves and bank reserves continued to decline, and the accumulated debts of the country and every inflation made the domestic people miserable.
Argentina's debt crisis hit its economy hard, and GDP continued to grow negatively. The unemployment rate has exceeded 18%, the peso has depreciated by 75%, and half the population in China lives below the poverty line. Argentina's per capita annual income plummeted from $8,000 before the crisis to around $2,000, and people's income plummeted, and they began to lose confidence in the country's financial stability and security. Long-term unemployment and poverty make people no longer have expectations for Argentina's economic prospects; The government's ruling ability was questioned and its prestige was discredited. In 20001year, the total foreign debt reached 145.5 billion US dollars, accounting for more than 50% of GDP (266.7 billion US dollars), while the foreign exchange reserves decreased from 2.51billion US dollars in 2000 to145 billion US dollars in 2000. In addition, Argentina's long-standing neoliberal development model of trade liberalization, economic marketization and privatization of state-owned enterprises has been seriously questioned.
It is this unprecedented debt crisis that has plunged Argentina's economy into years of sluggishness and wandering. Argentina is a typical example of today's world from rich to poor, and it has also become synonymous with "a dying and declining capitalist country".