Having had the privilege to travel to many parts of Argentina over the past few months, it is worth noting a few of the haves and have nots of the country;
* Argentina is the 8th largest country in the world.
* Argentina has a population of 46 million people, but with a population density of just 17 per km squared.
* Argentina is a trail blazer for human rights and the environment.
* Argentina has many natural resources, such as oil, gas and various foods.
* Argentina has almost 5,000km of coastline, Andes Mountains, enormous rivers and lakes, deserts and pampas regions.
*57% of people live below the poverty line (roughly being 27 million people).
* Nominal GDP per capita is just $12,000 per year.
* Annual inflation ran at 211% for the year 2023.
* The currency had depreciated against the USD from 1:1 in the year 2000, to 1,000:1 in 2024.
* Argentina has 18,000 km of paved roads, however very little maintenance or construction have occurred in the past 20 years.
Why do I list all of the above? Because it doesn’t add up.
This is a place of such natural beauty and resources, full of such wonderful open and welcoming diverse people, that is makes no sense how the country has got itself into such a mess.
On three separate occasions in the past 20 years, Argentina has defaulted on its national debt. For the Irish amongst us, I am sure we can all remember the day the Troika delegation got out of their taxi and walked into the Department of Finance in 2010. And this was just to start discussions on how they could help us. Imagine a situation where we not only proceeded to default on their money, but then repeated the process on two further occasions.
Troika is a Russian word meaning a sled drawn by three horses, or a dance. For the Argentine people, the past quarter century must have felt like being pulled in three separate directions at once, all to the tune of a well-know Madonna number from a hit movie she also starred in.
Traveling through Argentina fueled constant fire to the theory that Argentina has not managed to get past some of its historic troubles.
For example, the famous Ruta 40 is a road that travels the entire west cost of the country, from Ushuaia in the very south to La Quiaca in the far north. The constant 5,194 km that is covers makes this the 22nd longest road in the world. Pretty impressive on the face of it. The reality is a little different however. While the road does pass through many incredible places, and travels through some of the harshest terrain in the world, it is literally falling apart at the seams and becoming more of a liability than the tourist attraction it once was. Road maintenance is something consigned to history, construction projects along it were literally just halted mid-project with construction vehicles even left to rot right there on the side of the road. The financial crisis the country went through in 2000, and thereafter, has left the country short of cash, without doubt. But choosing to neglect things as basic as the road infrastructure is a sure fire way to cause much more pain, and cost a whole lot more, in the future.
Public trust in government and large public companies is extremely low. Locals have ushered in 11 new presidents since 2000, with each of the previous 10 having unceremoniously exited stage-left with their reputations in tatters. Banks will seemingly never be trusted again, after the bank “Corralito” or “Economic Measures” of 2001 which effectively robbed savers, pensioners and the rest of the country of their hard-earned money. We saw huge queues on a daily basis outside banks, where people would happily wait hours at a time just to withdraw what they could, instead of leaving it with the banks.
The Falkland Islands or “Las Islas Malvinas” as they are known locally, are another example of an unkind history still affecting decisions and thinking to this very day. Argentina, Britain, France and Spain had all claimed the remote islands at various times over the past 250 years. Britain have controlled the islands since 1833, with the more recent calamitous attempt by Argentina to retake the islands in 1982 being met with a swift annihilation by the British. Yet everywhere we went in Argentina there were signs, posters, stickers, billboards proclaiming that Las Islas Malvinas “son Argentinos”. We could not believe our eyes the first day we crossed the border into Argentina from Chile. Right there in the passport control office were said signs, posters and stickers proclaiming their claims on the far-flung islands.
So perhaps the current problems in Argentine society are purely down to the corrupt politicians who have squandered public wealth and lined their own pockets at the same time. Or maybe the finger should be pointed at the big businesses who continue to make significant profits at the expense of the person on the street. Or looking further afield, it could be argued that some of the world’s countries have not supported Argentina in a way that was required over the past 50 years.
All of the above could be absolutely true, and far be it from me to apportion blame after a brief visit through this magnificent country. However, in my experience, when a person consistently points the finger at others, its also worth taking a look at oneself for answers.
Argentina finally appears to be doing just that. The new government are addressing the bloated public service employment numbers, an endemic cultural problem in Argentina for many years. The currency has strengthen against the USD in recent months, the first such improvement in 25 years. People are also accepting the other economic measures the government have instigated with relative passiveness.
We absolutely loved each and every day we got to spend in Argentina. We hope the wonderful Argentinians we leave behind get to enjoy their unique country in a similar way for generations to come.
Click here to read the “Uruguay – A Very Pleasant Surprise (Part 1 of 2)” blog post
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