How Did Argentina Gain Power In The 18th Century

Argentina used to one of the most country rich and powerful in 18th century. However, their economy has collapsed. They suffered a huge national debt to foreign creditors, massive privatization, the economic decline of the middle class, hyperinflation, international indebtedness, increasing unemployment and poverty, and corrupt politicians in the 1980s.
The first reason is the corruption of the government. Their government in early 1980s was dictatorships, and they were corrupted. Against dictatorship, Argentineans prised the authoritarians from power and established new administrations. However, the new government also has been corrupted. Their economy was ruined by repeated corruption. The new government has given special powers to ministries. Legal protection always favored the conglomerates. State-owned businesses were privatized, and the government betrayed the national properties. The opposition party was powerless. Both politicians and the media were corrupt, so they made a fool of people with lies. …show more content…
This policy managed to stop inflation, but it left their industries defenseless. The minister at the time hoped that the policy would lead to a good result, but in reality, foreign investors and buyers bought more of their money. Thus, foreign investment and exports in Argentina were exhausted. With zero inflation rate, the credit outfits and banks lent at usurious rates of 50% per year while in the U.S. and Europe rate were 7% per year. Because of peso/dollar policy, the tradesmen and small businesses unable to competed, and bankrupted. Also, the citizens of Argentina could have get more by buying goods from neighboring countries at the same price than purchasing goods from their