Travel Reference
In-Depth Information
Menem & the Boom Years
Under the guidance of his shrewd economic minister, Domingo Cavallo, the skillfully slick
Carlos Menem introduced free-market reforms to stall Argentina's economic slide. Many
of the state-run industries were privatized and, most importantly, the peso was fixed by law
at an equal rate to the American dollar. Foreign investment poured into the country. Buenos
Aires began to thrive again: buildings were restored and new businesses boomed. The cap-
ital's Puerto Madero docks were redeveloped into an upscale leisure district, tourism in-
creased and optimism was in the air. People in Buenos Aires bought new cars, talked on
cell phones and took international vacations.
Although the Argentine economy seemed robust to the casual observer, by Menem's
second term (1995-99) some things were already amiss. The inflexibility imposed by the
economic reforms made it difficult for the country to respond to foreign competition, and
Mexico's 1995 currency collapse jolted a number of banks in Buenos Aires. Not only did
Menem fail to reform public spending but corruption was so widespread that it dominated
daily newspaper headlines.
The Falklands War is still a somewhat touchy subject in Argentina. If the subject comes up, try
to call the islands the Malvinas instead of the Falklands, as many Argentines have been taught
from a young age that they have always belonged to Argentina.
 
Search WWH ::




Custom Search