The Political-Economy of Argentina's Debacle

39 Pages Posted: 21 Aug 2003  

Marcos Buscaglia

University of San Andres

Date Written: April 2003


In this paper I argue that political-economy considerations - and in particular the identity of the reformers - are central to understanding the Argentine crisis. During the 90's the main political parties remained attached to populism, and no strong party emerged at the center of the political spectrum. This had two effects in the reform process. First, it severely deteriorated it (efficiency, corruption), reducing the support of the population. Second, when a series of shocks hit the economy the anti-reform camp tried to undo most reforms, and
thus convey a message to the population about the "right" model of the world.

Keywords: Argentina, Currency Crisis, Political Economy of Reform

JEL Classification: F31, E60

Suggested Citation

Buscaglia, Marcos, The Political-Economy of Argentina's Debacle (April 2003). William Davidson Institute Working Paper No. 594. Available at SSRN: or

Marcos Buscaglia (Contact Author)

University of San Andres ( email )

Vita Dumas 284
(1644) Victoria, Pcia
Buenos Aires, Buenos Aires 1644

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