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Covid-19 President

Covid-19: the only candidate who can pull Argentina out of decay. Will we be able to seize the opportunity?

Politics and Economics
Covid-19 Presidente

Every time “intellectuals” argue about when and why Argentina entered into a process of decay and economic deterioration, the same answers arise. For some,  the arrival of Perón  to power in  the 1940s  'and the establishment of theoacute; n populist policies are to blame for all ills. For others, it is precisely the opposite, the  liberal policies  pursued by different governments led Argentina into a spiral of  debt, crisis and poverty  from which we cannot recover. However, the political dynamic from that moment has developed under the logic that for both sides its adversary wants and can return to continue to harm the country. as a country or  as a society  and only benefits those seeking to alternate  in power. 

Argentina power

Who would have doubted that by  1945 Argentina  was in a better position than most countries to join the world order that emerged after the  World War II ? However, we decided to be contestants of that new order, without realizing that we were de facto integrated. We take the position of a rebellious teenager who argues with his father but needs to be given money to go out and have fun. From that moment the idea of  “not integrating” into the world  was raised about a false dichotomy, there was no such option and therefore we integrated without objectives and without the intention of being lt...iacute; deres in this global context.

For a few years, Russia and countries with great potential such as  China  were presented as an option of political and economic system, there was an ideological discussion that would remain settled over the years. However, while those countries managed to separate political and economic aspects, generating further development linked to their  policy shift capitalists,  in Argentina we are imprisoned by a political logic that is based on the idea of immorality of the market and not on its ability to obtain results.

China and Asian tigers emerged from poverty

Let's imagine that in China of the 80's or the countries of Southeast Asia, its  political leaders  would have thought that the best measure to remove 90% of their population from the rural poverty was to enact a law requiring companies and industries to pay  $100  a working hour. Surely the development process that transformed China and allowed the emergence of the “Asian Tigers” would not have happened. On the contrary, while those countries did not take the democratic political form of the West, even in China the process  of rural-to-city  migration was in many cases”forced”, if they adopted market economic measures that were based on the existence of differentiated geographical areas that attracted industrial capital because of their low costs and the ability to generate large profits. Market morality was not a problem in these countries, and over time the conditions of the population improved because capitalism creates conditions of  equality  if it is allowed to compete for profits.

Covid-19, the only candidate who can pay the political cost

But why can't Argentina take that path? Simply because  economic development  is a process, not an immediate desire, and no politician can recognize the real level of  poverty  in our country and to initiate a process that takes 70 years late. Hence  Mauricio Macri  assumed his rule with the original sin of trying to measure his success as he managed to reduce poverty and achieve intelligent integration into the world. Nothing further than Argentina needed. Without reforms, integration into the world assumes a predatory logic, since the only certainty about the Argentine economy is that it has cycles of crises and rebounds. With no long-term horizon or strategic objectives, investments seek extraordinary profits as quickly as possible to minimize your commitment to permanence.

On the other hand, President  Alberto Fernández  said a few days ago that the economic crisis is the cause of the pandemic, detaching the measures taken from economic results, and only focusing on the idea that the solution lies in better distributing (state function) rather than  generating greater wealth  (market function).

Both cases show that governments may vary politically but none are willing to carry out the necessary reforms because in the short term no one can pay the cost.  Politics  perpetuates a perverse cycle, exactly the opposite of what countries did that brought many citizens out of poverty.

In Argentina, the economy is hostage to the need to remain in power in the political sectors. Political power fails to emancipate itself from the economic conditions that sustain it, leaving the country trapped in  stagnation . We live in the convenience of a “photo” while the world experiences the dynamism of a “film”. But that photo is not free, keeping that image of a country static is increasingly cost in economic terms, and we can hardly face a development process if we are content with “maintaining” poverty fictitiously by 30% to 35% on the basis of permanent social assistance.

The current pandemic  crisis  can provide the context and opportunity for our political system to abandon the idea of being a “Free Rider”  adolescent  of the world economic system and to initiate a reform process aimed at generating economic market conditions to grow, improve the standard of living of the population and to reduce poverty rates in real way.

 We suggest you continue reading the following notes: 

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La edad de los paísesBrief explanation of the infinite Argentine adolescence
Sobre llovidoAbout raining, wet!

Publication Date: 06/06/2020

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