Processes of Globalization in Argentina - Essay Example

?Processes of globalization in Argentina Introduction The process of modern globalization is crucial for many countries. Different countries have underlined potential risks of globalization; while many others have developed their policies in the direction of a globalized community. In 90s Argentina was positioned as a country, which perfectly fits to the conditions of a potential economic success. The economic system of the country was seriously devastated because of the following reasons: “an unbalanced public fiscal budget, high foreign debt levels, and an uncompetitive currency level increasingly strained the economic system” (Measuring Globalization, 2003). In the end of 90s globalization in Argentina was considered to be a successful tendency. There was an essential growth of GDP in the country (8.1 percent in 1997). Three years of a deep recession followed this complicated period. Governmental policy of Argentina is rather vague and it is hard to entrust money of Argentina citizens to the national banks because of bank deposit freezes, “public social protests and the resignations of the finance minister and the president” (Measuring Globalization, 2003). Therefore, it is relevant to consider the way Argentina managed to cope with the challenges connected with the process of globalization. On the example of the country’s management to deal with internal affairs and foreign policy development, the basic issues of globalization processes in Argentina are discussed further on. Different aspects of Argentina’s globalization Moreover, there is a gradual conflict in Argentina’s policy, because during the period of financial crisis, weak currency has been an intimidating factor for the nation. On the international arena Argentina should have been positioned as the country experiencing a rapid economic recovery. Still, financial crisis caused a negative impact on the country’s economy. Country’s initial life was seriously devastated and the middle class experienced financial hardships during this period of time. Thus, in spite of facilitation of crisis outcomes, Argentina’s government has put their efforts together, but it did not help to overcome drastic outcomes of economic crisis of the world. There is more conflicts in the internal affairs of the country and thus on the international level there are a lot of challenges caused by the inconsistent national and foreign policies of the country (Measuring Globalization, 2003). Moreover, it is relevant to consider foreign policy of Argentina from hyperglobalist and skeptic perspectives. The hyperglobalization paradigm is relevant to the foreign policy of Argentina, because in accordance with this policy the globalization makes a country almost powerless. With respect to Mishkin (2007) all states are influenced by globalization and the majority of them perform “a courtesan role” in serving the main interests of the global political economy of other state actors on the international arena. Therefore, hyperglobalist views of globalization processes in Argentina are the most relevant in terms of this country. Thus, for example, many Argentines claim that their own government is the one to blame for mishaps in the process of financial crisis in the country. Citizens claim that “imprudent fiscal and macroeconomic policies and persistent corruption during Carlos Menem's second mandate were at the core of Argentina's recession” (Miskin, 2007).  Moreover, gaps in neo-liberal policies implementation have also influenced on political inconsistencies of Argentine. Moreover, IMF was criticized for inconsistencies in the process of neo-liberal policies implementation. Hostile moods of citizens in Argentina are directed on their negative attitude expressed in relation to IMF and the World Bank, naming them “the pro-globalization camp” and it is evident that Argentines are dissatisfied with the processes of globalization (Guille, 2001). Unfortunately, economy of Argentina is described in terms of Outliers. The Administration of the President Kirchner is marked by economical challenges. Still, he takes such measures as “criticism about the role of the IMF, fixed price levels for supermarkets and meat producers to contain inflation” (Held and McGrew, 2002) and in such a way he gains trust of the nation. Nevertheless, there are more promises in the governmental policies than certain actions. Consequently, it is necessary to activate governmental involvement in different spheres of human activities in the country. Currently, Argentines are afraid of losing their jobs. Unfortunately, the national government is positioned as capitalists, who are fighting for better position in the global world and a lack of concern about their own people. On the other hand, GDP of the country should have been back to the level of 1998, which is up to 7 percent (Mishkin, 2007). Moreover, there is public non-acceptance of a growth of unemployment. There are always groups of people present in the streets of the country, which are also known as the piqueteros. Anti-globalist movements in the country also direct their efforts on a harsh criticism of globalization processes. Therefore, corruption and bankruptcy in the result of globalization are two main factors for these people underlying that globalization policy are not favorable for Argentina (Held and McGrew, 2002). Therefore, governmental intervention in the process of globalization does not have deep roots. On the one hand, the national government of the country is focused on its position advancement on the international arena; on the other hand, it cannot cope with the growth of unemployment in the country (Held and McGrew, 2002). Actually, there are competitive advantages of Argentina on the international arena. Domestic products of the country and international trade of national goods is one of the greatest benefits of the Argentina market. Still, Argentina occupies its own niche in the complicated international multipolar world. There are many powerful states, such as China, the EU, India, Japan and Russia. Argentina may be considered a regional power. Consequently, in the modern globalized world of a disturbed power, Argentina managed to adjust to multiple global powers of the world (Held and McGrew, 2002). For example, there is the most important trade between Argentina and Brazil and there are two interesting international markets for Argentina, these are Europe and the US (Gargiulo, 2002). Nevertheless, the international markets of the latter countries are rather challenging for potential trade relations development. Challenging relations between Brazil and Argentina prove the fact that Argentina’s economy was greatly influenced. In January 1999 Brazil devalued Argentina’s currency. Moreover, debt burden of Argentina increased and many firms have gone bankrupt. Still, the country's trade balance has improved. Nowadays, real GDP of the country is 10 percent lower in comparison with 1998, the rate of unemployment is 18 percent, there is an evident growth of poverty in the country, and there is a growing control on utility prices. Nevertheless, in accordance with IMF, there is a gradual recession in the country. In order to prove this tenbdency, it is relevant to consider the following data: 1981–91 1991–01 2000 2001 Imports (% of GDP) 7.4%* 6.1% 11.5% 10.2% Imports (average annual growth) –1.3% 9.1% –0.2% –14.0% Exports (average annual growth) 4.2% 8.8% 2.7% 2.9% Moreover, in accordance with the Index of Economic Freedom (IEF) data there is a decline of Argentina’s price control, inflation rates, and financial restrictions. Nevertheless, to sell agricultural product for Argentina is one of the main intentions on the international arena. Of course, there are challenging issues for Argentina to be solved, such as a scarce of energy and natural resources. This issue is of high importance for the country, because the most profitable sector of the country is the agricultural sector. Consequently, there are moderate optimistic ideas about potential future economic prospects of Argentina. There is an evident consequential recovery in the country, but there is a need to develop all sectors of the country in a more intensified manner (Held and McGrew, 2002). Moreover, Argentines claim: “the economic ingredients -resources, skilled labor- are present, but political mismanagement prevents the country from definitely joining the club of developed countries” (Gargiulo, 2002). Public opinion criticizes a high level of unemployment, a lack of justice, high level of corruption and a lack of national security. Conclusion Therefore, Argentina is on the way to the world’s economic crisis solution. There is a need for a greater involvement of the Argentina’s government in such areas, as education, development of competitive industrial sector and many other social spheres. Moreover, advancement in the sphere of international trade is the right way to country’s better position on the international level. Thus, there is a need to advance multi-faceted cooperation of different institutions both on local and international levels of Argentina. The country would gain from putting a stake at national product cultivating and increasing and international trade of the national products. Works cited 1. "Measuring Globalization: Who's Up, Who's Down." Foreign Policy Jan.-Feb. 2003: 60+. 2. Gargiulo, Martin. "The Limits of Convergence: Globalization and Organizational Change in Argentina, South Korea, and Spain." Administrative Science Quarterly 47.2 (2002): 395+.  3. Guille, Mauro F. The Limits of Convergence: Globalization and Organizational Change in Argentina, South Korea, and Spain. Princeton, NJ: Princeton University Press, 2001.  4. Held, D. and McGrew, A. Globalization/Anti-Globalization. Polity Press, 2002. 5. Mishkin, Frederic S. "Is Financial Globalization Beneficial?" Journal of Money, Credit & Banking 39.2-3 (2007): 259+.  Read More