Argentina's Structural Reforms of the 1990s

Finance & Developement MagazineNbr. 37-1, March 2000Latin America and the Caribbean

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Summary


Trade liberalization, tax reforms. Financial system reforms. Banking regulations. Payment system reforms. Ongoing reforms. Some concerns remain.

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Argentina's Structural Reforms of the 1990s

Argentina experienced serious economic and financial difficulties in the 1980s. Hyperinflation in 1989-90 finally elicited the necessary political consensus for reform. Despite areas of concern, structural reforms implemented in the 1990s have set Argentina on the path to sustained growth.

The Argentine economy fared badly during the 1980s when the first debt crisis was in full swing. Growth of real output stagnated, financial markets collapsed, prices rose as the currency steadily depreciated, and capital fled the country in pursuit of safer havens. Most public enterprises were running large deficits, and the external debt kept mounting. The central government, hampered by low tax collections and desperate for revenues, turned...

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