Economic globalization of Argentina Essay Example | Topics and Well Written Essays - 1500 words

Economic globalization of Argentina - Essay Example ublic sector reforms, capital movement, and trade liberalization along the 90s, which projected the nation’s progress as the globalization model of economic success. Fortunately, despite the Mexican crisis in the mid of the 90’s, Argentina experienced high GDP growth and income level, but its economy could not avoid the increasing inequality and unemployment levels, and later billions of public debt and uncompetitive currency level. Thesis: This document brings out and elaborates the consequences of the economic globalization of Argentina’s finance, trade and labor since the 1990s. It argues that poorly controlled economic integration with the global economy contributed to the financial strain, collapse of fixed exchange rate system, high unemployment, labor market disruption, and weak currency that affected households and domestic activities. During the 1990s decade, Argentina was an example of many emerging countries that applied the multiple policies to reform its economy. The set of policies called the Washington consensus and implemented through the IMF and World Bank, changed the exchange rates, foreign direct investment and the financial liberalization of Argentina (WHO who.int). First of all, the IMF cannot escape the role it played in contributing to the 2001 financial crisis in Argentina, after a decade’s involvement in advising and financing Argentine’s economic programs. Second, the Argentine government made serious mistakes in its fiscal policies, which all ended up in high sovereign debt and bankruptcy, after a period of pegging the peso to the US dollar and excessive borrowing. Argentina later entered the debt trap in 2001 with no rescue from the IMF, which affected the jobs in the service and banking sector the most. With the previous economic growth, Argentina had an increasing number of mid dle class working populations. Despite the persistent increasing unemployment over the decade, the nation experience of job loss was intolerable for