Textos de Economia (Jan 2007)

The change in the Argentine economy

  • Claudio Katz

Journal volume & issue
Vol. 10, no. 1
pp. 100 – 132

Abstract

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Although the economic plan implemented by the President Nestor Kirchner has been admired from several countries, the program recoups the focus on both the agrarian export sector and on the process of industrialization based on import substitution. Besides, the economic plan has also accepted the social policy from the neoliberalism. It should be stressed that the increase of the labor productivity has not been transfer to wages and the informal market is still high. Besides there are several contradictions in the economic plan: a) the increase in primary exports is higher than the increase in the imports with high aggregate value; b) the high level of indebtedness has damaged the country competitiveness; c) the financial concentration is increasing; d) the denationalization hás advanced; and e) even more important, the capitalism in Argentina hás displayed the same external vulnerability from others countries in Latin America. The heterodoxy perspective is too of a conformist to catch these disequilibria and the orthodoxy perspective has only aggravated them. Only a left-wing program is able to include an anti-capitalist alternative.

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