Comments for a sparkling mess http://sparklingmess.wordpress.com issues in development and human rights Wed, 29 Oct 2008 15:26:26 +0000 http://wordpress.com/ hourly 1 Comment on The Happy Couple? Argentina & The World Bank by sparklingmess http://sparklingmess.wordpress.com/2008/10/01/the-happy-couple-argentina-the-world-bank/#comment-5 sparklingmess Wed, 29 Oct 2008 15:26:26 +0000 http://sparklingmess.wordpress.com/?p=21#comment-5 There's a pattern in situations of international credit crunch where investors pull out funds from the developing world. This is a huge problem for those nations' stability, and actually was a major factor in the economic crisis for Argentina in 2001--capital flight was the major catalyst of that crisis. Banks will and can move their funds to markets that appear more secure, and the developing world is not an enticing destination for investors at this particular moment. If currency is an indicator of anything, look at the the AR peso; it's at the lowest level since 2002. The Argentine government is currently deliberating nationalizing private pension plans, which would be a reversal of a portion of the deregulation that took place before the 2001 crisis. But with Argentina we've been wrong before, so it will be interesting to watch as these things continue to unfold. There’s a pattern in situations of international credit crunch where investors pull out funds from the developing world. This is a huge problem for those nations’ stability, and actually was a major factor in the economic crisis for Argentina in 2001–capital flight was the major catalyst of that crisis. Banks will and can move their funds to markets that appear more secure, and the developing world is not an enticing destination for investors at this particular moment.

If currency is an indicator of anything, look at the the AR peso; it’s at the lowest level since 2002.

The Argentine government is currently deliberating nationalizing private pension plans, which would be a reversal of a portion of the deregulation that took place before the 2001 crisis.

But with Argentina we’ve been wrong before, so it will be interesting to watch as these things continue to unfold.

]]> Comment on The Happy Couple? Argentina & The World Bank by Matt http://sparklingmess.wordpress.com/2008/10/01/the-happy-couple-argentina-the-world-bank/#comment-4 Matt Wed, 29 Oct 2008 02:53:59 +0000 http://sparklingmess.wordpress.com/?p=21#comment-4 How have our economic woes affected Argentina? Or have they not? How have our economic woes affected Argentina? Or have they not?

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