Economic Overview
Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. although one of the world's wealthiest countries 100 years ago, argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight. a severe depression, growing public and external indebtedness, and a bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. interim president adolfo rodriguez saa declared a default - the largest in history - on the government's foreign debt in december of that year, and abruptly resigned only a few days after taking office. his successor, eduardo duhalde, announced an end to the peso's decade-long 1-to-1 peg to the us dollar in early 2002. the economy bottomed out that year, with real gdp 18% smaller than in 1998 and almost 60% of argentines under the poverty line. real gdp rebounded to grow by an average 9% annually over the subsequent five years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. inflation, however, reached double-digit levels in 2006 and the government of president nestor kirchner responded with "voluntary" price agreements with businesses, as well as export taxes and restraints. multi-year price freezes on electricity and natural gas rates for residential users stoked consumption and kept private investment away, leading to restrictions on industrial use and blackouts in 2007.
Environmental Issues
Environmental problems (urban and rural) typical of an industrializing economy such as deforestation, soil degradation, desertification, air pollution, and water pollution
note: argentina is a world leader in setting voluntary greenhouse gas targets
Government Type
Republic
Population
40.482 million (july 2008 est.)
Location
Southern south america, bordering the south atlantic ocean, between chile and uruguay
Area
Total: 2,766,890 sq km
land: 2,736,690 sq km
water: 30,200 sq km
Slightly less than three-tenths the size of the us
Country Aliases
Conventional long form: argentine republic
conventional short form: argentina
local long form: republica argentina
local short form: argentina
Capital
Name: buenos aires
geographic coordinates: 34 36 s, 58 40 w
time difference: utc-3 (2 hours ahead of washington, dc during standard time)
daylight saving time: +1hr, begins first sunday in october; ends third saturday in march; note - a new policy of daylight saving time was initiated by the government on 30 december 2007
Military Service
18-24 years of age for voluntary military service (18-21 requires parental permission); no conscription (2001)
International Disputes
Argentina continues to assert its claims to the uk-administered falkland islands (islas malvinas), south georgia, and the south sandwich islands in its constitution, forcibly occupying the falklands in 1982, but in 1995 agreed no longer to seek settlement by force; territorial claim in antarctica partially overlaps uk and chilean claims; unruly region at convergence of argentina-brazil-paraguay borders is locus of money laundering, smuggling, arms and illegal narcotics trafficking, and fundraising for extremist organizations; uncontested dispute between brazil and uruguay over braziliera/brasiliera island in the quarai/cuareim river leaves the tripoint with argentina in question; in 2006, argentina went to the icj to protest, on environmental grounds, the construction of two pulp mills in uruguay on the uruguay river, which forms the boundary; both parties presented their pleadings in 2007 with argentina's reply in january and uruguay's rejoinder in july 2008; the joint boundary commission, established by chile and argentina in 2001 has yet to map and demarcate the delimited boundary in the inhospitable andean southern ice field (campo de hielo sur)
Sources: Central Intelligence Agency (CIA)
