Argentina is still enjoying the tail-end of the post-crisis economic boom, aided by a drastic exchange-rate devaluation that has dramatically, if artificially, enhanced competitiveness in international markets. It also enjoys competitive markets at home, as measured by relative movements in the ratio of consumer and wholesale prices. Nevertheless, growth has been severely constrained recently as the economic boost has dissipated, leaving many of the economy’s weaknesses evident.
Argentina does not suffer notably from commodity dependence, despite its history as an agricultural exporter. Value-added products, such as wine, have increased in importance in the last decade and have been one of the country’s successes. Argentina has been less successful than many of its peers in capitalizing on technology and innovation. However, the country scores well in terms of mass education, especially by Latin American standards, and this may provide the basis for an improvement in these areas in the future.
The deep-rooted informal processes of political negotiation in Argentina and the volatility of the economic environment have inhibited the capacity of policy makers to undertake long-term planning. This leads to poor control over many issues, such as the quality of regulation, leaving Argentina scoring poorly on the effectiveness of its governance. The high costs of starting a business also reflect much-needed and long-delayed issues of institutional and policy reform.
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The Argentinean population reports one of the highest Comparative Liveability scores in Latin America, second only to Costa Rica and Chile. Historically Argentina was one of the richest countries on earth and today incomes are still relatively good; however, recent poor economic performance is taking its toll. Unemployment rates, which exceed 10%, have a significant impact on the individuals affected.
Argentina is notable for its equality of opportunity and consolidated political liberties, which are important traits in a country and region characterized by recurrent political disruptions. This is reflected in the election of a female president in 2007: this was only the second time a female national leader had been appointed in the region, and it is emblematic of the high level of female representation in Argentina’s parliament. However, the female share of national income lags behind.
The importance of religion in Argentina comes across strongly in the Index, although it is just over the average for the region. This may be in part responsible for the high rates of charitable giving. There is also a robust sense of optimism: Argentines in general consider that they have the ability to get ahead through hard work, and satisfaction with personal health is also high, at 86%g, according to the Gallup World Poll. On a more negative note, satisfaction with environmental preservation is low, and this will need to be tackled if liveability is not to become a casualty of economic development.
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