Argentine Economy

Universidad de Belgrano

Course Description

  • Course Name

    Argentine Economy

  • Host University

    Universidad de Belgrano

  • Location

    Buenos Aires, Argentina

  • Area of Study

    Economics, International Economics, International Studies, Latin American Studies

  • Language Level

    Taught In English

  • Course Level Recommendations

    Upper

    ISA offers course level recommendations in an effort to facilitate the determination of course levels by credential evaluators.We advice each institution to have their own credentials evaluator make the final decision regrading course levels.

    Hours & Credits

  • Recommended U.S. Semester Credits
    3
  • Recommended U.S. Quarter Units
    5
  • Overview

    Course Description
    Once one of the richest and fastest growing economies in the world, Argentina
    is now entrenched in the rankings of the less developed countries.
    Nevertheless, in the last decade it has grown at a fast pace, one that was hard
    to predict in the days of the 2001-2002 crisis. That a country that was viewed
    as a pariah, effectively shut out of the international financial markets, could
    recover from its worst crisis, is the topic of recent academic and political
    discussions. The course will provide a truly comprehensive perspective that will
    enable the students to analyze and understand the process experienced by the
    Argentine economy from the late 19th Century until the present days, focusing
    on the processes that led to the economic crisis at the turn of this century and
    the measures implemented to overcome it. In the current world crisis scenario,
    Argentina can thus serve as a case study of sorts.
    Course Requirements
    Class attendance is required of all students at UB. A 75% attendance to
    classes is mandatory to keep the regular student status. An electronic system
    keeps track of attendance. Students have to slide an electronic card every
    class to comply with the attendance policy. Class participation is very
    important; there will be several class discussions, which will rely heavily on
    student participation. Students are expected to conduct research for the final
    paper and consult the digital library (EBSCO) for that purpose. UB holds to
    the view that plagiarism constitutes intellectual theft and is a serious breach
    of acceptable conduct. Any student caught plagiarizing will immediately be
    given a “no credit” for all courses taken in the semester. There will be no
    make ups for classes falling on public holidays.
    *For a better understanding of the comparable table for grading check online
    http://www.ub.edu.ar/studies-abroad/palas.php
    (PALAS 310) Argentine Economy 2
    Grading Policy
    Participation 10 %
    Paper presentation (oral & written) 30 %
    Midterm 25 %
    Final Exam 35 %
    Passing the final exam is mandatory in order to promote the course.
    Required Textbooks and Materials
    Luis Argüero, ed. Course Reader
    Academic Calendar
    Week 1
    Monday March 6
    Introduction. Presentation of the course. Objectives. Regions of Argentina.
    History, autonomy and the federal system. Income and employment
    disparities.
    Wednesday March 8
    Brief description of Argentine economic performance in the long run, trends,
    cycles and current situation. Its socioeconomic performance compared to other
    Latin American countries.
    Week 2
    Monday March 13
    Brief explanation of development economics’ fundamentals. Capital
    accumulation, growth and structural transformation.
    Wednesday March 15
    Economic growth vs. Economic development. The savings – investment
    balance . Social capital. Institutions.
    Week 3
    Monday March 20
    The economy before independence. The sources of growth of the Argentine
    economy 1870-1914. Changes in Land, Labor & Capital accumulation.
    Wednesday March 22
    Agriculture in Argentina. Production and land ownership.
    Week 4
    Monday March 27
    The early interwar period. The downturn in the terms of trade. Causes of the
    decrease in the rate of capital accumulation.
    Wednesday March 29
    Argentina from 1930 to 1946.Changes in economic policy: import substitution
    industrialization. Democracy, coup d’état and internal migration.
    Week 5
    Monday April 3
    (PALAS 310) Argentine Economy 3
    The new world’s economic scenario and its impact on Argentina. Neutrality and
    trade surplus during WWII.
    Wednesday April 5
    Argentina from 1946 to 1955. The Peronist decade. Populism and government
    intervention. Different approaches to economic policy: 1946-1952 , 1952-
    1955. Shift from an outward orientation to an inward orientation. Success and
    failure of the Peronist economic policy.
    Week 6
    Monday April 10
    Political instability and economic failures. The armed forces and Marxism in
    Latin America: The spread of the Cuban revolution. The School of the Americas
    and involvement of the USA in Latin American politics.
    Wednesday April 12
    Argentina from Peron to the early 80’s. Lack of a sustained growth. Oil shocks
    and debt crisis. Financial speculation, destruction of the local industry and
    surge of poverty and unemployment. 80’s: political tensions. Peronismo
    without Perón. Union strikes and de-industrialization. Hyperinflation. Economic
    and social costs of the Argentine development strategies. LatAm cooperation:
    the road to Mercosur.
    Week 7
    Monday April 17
    Argentina in the 90’s. Menem's economic policy. The Convertibility Plan. Fiscal
    policies. Privatization of public firms. The dependence of foreign capital flows.
    The Washington Consensus.
    Wednesday April 19
    Economic performance 1992-1995 . The impact of the Mexican crisis. The
    impact of the Brazilian devaluation. Economic performance and external
    shocks. Evaluation of structural reforms. Employment behavior in the 90’s.
    Review for the midterm exam.
    Week 8
    Monday April 24
    Midterm exam
    Wednesday April 26
    Results of the exam
    Week 9
    Monday May 1 National holiday
    Wednesday May 3
    The path to Argentine crisis (1999 to 2001). The schedule for oral
    presentations will be assigned.
    New government and social unrest. The Vice President’s resignation. Migration.
    Week 10
    Monday May 8
    (PALAS 310) Argentine Economy 4
    Debt, tax increases and the IMF. Peso’s rigidity and lack of a “competitive
    currency”. “Corralón” and “corralito”. Five presidents in ten days.
    Wednesday May 10
    Local currencies and bartering system. Destruction of the financial system.
    Government finances. Central government-Provinces relationships. Debt
    default and devaluation. Consultations about written paper.
    Week 11
    Monday May 15
    Nominal and real salary reduction. Social unrest, subsidies and “Plan trabajar.
    The Kirchner era (2003- ). The foundations of the Argentine recovery.
    Agroindustrial exports as the key of Argentina turnaround. Brazil, emerging
    markets and Foreign Direct Investment (FDI).
    Wednesday May 17
    Renegotiation of the external debt. What does a country own? Free Trade
    Agreements in Argentina and South America. Relations with IMF, World Bank,
    Interamerican Development Bank and the Paris Club.
    Week 12
    Monday May 22
    Oral presentations (25’ each)
    Wednesday May 24
    Oral presentations (25’ each)
    Week 13
    Monday May 29
    Change of government and continuity. The economic crisis of 2008 and its
    impact on Argentina. The external and fiscal situation in Cristina Kirchner
    government. Evolution of the twin surpluses.
    Wednesday May 31
    Argentinean economy in perspective: Production-exports-imports. From
    untrustworthy to case study: miracle, “tailwind” or sound policy? Inflation. The
    Argentine dilemma: capital flight vs. FDI. The “Dollar culture” and restrictions.
    Week 14
    Monday June 5
    Vaca Muerta and Argentina’s shale oil and gas sector. Open discussion:
    Argentine economy in the 21st Century: Opportunities, threats and projections.
    Review for Final Exam
    Wednesday June 7
    Review for the final exam.
    Week 15
    "Students holding a tourist visa will not be allowed to take final exams, they
    have to go to the 17 Floor to clear the hold"
    Monday June 12
    Final exam
    Wednesday June 14
    (PALAS 310) Argentine Economy 5
    Final Grade Sheet and signature of “Hoja de situación” (attendance is
    mandatory).
    Bibliography
    Argüero, L.I. “Argentina 2003-2015: A review of the Kirchner era”, UB.
    Bethell , L. Argentina since independence, Cambridge University Press.
    Cavallo, D.F. and Cottani, J. (2001), “Argentina’s convertibility plan and the IMF”, IMF
    journal, Vol. 87, No.2, pp. 17-22.
    Della Paolera, G. and Taylor, A. (2003), The new economic history of
    Argentina, Cambridge University Press.
    Della Paolera G. and Taylor A. (2000) “Economic recovery from the
    Argentine Great Depression: Institutions , expectations and the change of
    macroeconomic regime.” NBER Working paper 6767.
    Frenkel, R. (2002), “Argentina: A decade of the convertibility regime”, Challenge, Vol.
    45, No.4, pp.41-59.
    Hornbeck, J.F. (2013), “Argentina’s Defaulted Sovereign Debt: Dealing with the
    “Holdouts”, CRS R41029.
    Kiguel, M. (2002) “Structural reforms in Argentina: Success or failure?”, Comparative
    Economic Studies, Vol. 44, No. 2, pp.83-102.
    Levitsky, S. and Murillo, M.V.. “Argentina: From Kirchner to Kirchner. Journal of
    Democracy Vol. 19, No. 2, pp.16-30.
    Lopez Murphy, R., Artana, D. and Navajas, F. (2003), “The Argentine economic
    crisis”, Cato Journal, Vol. 23, No. 1, pp. 23-28.
    Neto, A. y Vernengo M. (2002), “Globalization a dangerous obsession. Latin
    America in the Post Washington Consensus era”, International Journal of
    Political Economy, Vol. 32, No. 4, pp. 4-21.
    O’Connell, A. (2005) “The recent crisis and recovery of the Argentine Economy: some
    elements and background”, in Epstein, G. (ed.) Financialization and the World
    Economy, Political Economy Research Institute.
    Richardson, N. P. (2009), “Export-oriented populism: commodities and coalitions in
    Argentina”, Studies in Comparative International Development 44 (3), pp. 228-
    55.
    Schuler, K. (2002), “Fixing Argentina”, Cato Institute Working Paper.
    http://cdi.mecon.gov.ar/biblio/docelec/mu1901.pdf
    Taylor , A. (1994) “Three phases of Argentine Economic growth”, National Bureau of
    Economic Research, NBER Historical Paper #60.
    Taylor A. (1999), “Latin America and Foreign Capital in the twentieth Century:
    Economics, politics and Institutional change”, NBER Working Paper 7394.
    Weisbrot, M. and Cibils, A. (2002), “Argentina’s crisis: The costs and consequences of
    default to the international financial institutions”, Center for Economic and
    Policy Research Research Brief, Nov. 19, 2002.
    Wylde, C. (2011), “State, Society and markets in Argentina: The political economy of
    neo-desarrollismo under Néstor Kirchner, 2003-2007”, Bulletin of Latin
    American Research, Vol. 30, No. 4, pp. 436-452.