Capitalism in Argentina
12 Pages Posted: 6 Jan 2016
Date Written: January 6, 2016
Since the fall of the Berlin Wall, capitalism is the social system which exists in almost all countries of the world. This paper is devoted to the analysis of capitalism in Argentina.
Argentina was known as the "granary of the world". But when the rest of the world closed its economic borders after the crisis of 1930, the condition of open economy ceased to be an advantage and became a handicap for Argentina.
An alternative economic model was implemented with the purpose of replacing all those imports which could no longer be purchased abroad as well as to generate jobs to reduce the high rates of unemployment that this crisis left. The high level of state interventionism allowed the development of crony capitalism.
In Argentina coexists a hard core of modern corporate capitalism formed by multinational companies, a few of them of Argentine origin with an extended underground economy that represents almost 40% of total employment.
Keywords: Capitalism, Argentina, State, crony capitalism, political cycle
JEL Classification: P16
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