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Argantina Country Case Report Argentina Research Proposal

The working conditions gradually improved and the labor market eventually came to a situation in which the income inequalities became less obvious. Today, the Argentinean labor force is composed of 16.38 million individuals (only considering the population in the urban areas) -- the 37th largest market place in the world. In terms of distribution, most of the people are employed within the services sector (76% to be precise), 23% are employed in the industry sector and only the remaining 1% are employed in the agricultural sector. In 2009, the unemployment rate was of 9.6%, having registered an estimated 2.5% increase since its values at the end of the 1980s decade.

While the income per capita remains low in comparison to that in the United States or in other developed nations, it does still sustain itself above the global average of $10,500. The income per capita in the twenty-first century has maintained a relative positive growth trend, with the exception of 2009, when the income per capita decreased from $14,400 to $13,800. Today, Argentineans are the recipients of the 81st largest income per capita at the international level (Central Intelligence Agency).

Rates and monetary policy

Argentina's monetary policy has undergone several processes of change, all with the scope of making the country's economy more stable. Starting in the middle of the 1970s decade, inflation in Argentina followed an ascendant trend. In response, the authorities implemented the convertibility regime in early 1990s. Its declared scope was that of increasing the fiscal stability of the state, and the objective would be achieved through the pegging of the pesos to the dollar, the granting of more autonomy to the central bank or the restriction of borrowings.

The central bank still interferes to regulate the exchange rate, but it mostly does this through the purchasing or the issuing of currency. Today's rate and monetary policies are centered on a combination of free market regulations and protectionism. The International Monetary Fund has helped the Argentinean authorities develop and implement new fiscal measures. An important aid from the IMF has been constituted by the support offered in the restructuring of the country's amounting federal debt.
Recommendation

Argentina has undergone a series of changes in its approach to economic operations, including everything from income inequality, labor force market creation and consolidation, to fiscal policies and federal debt restructuring. In all of its efforts, the country has proven its resilience and its commitment to overcoming the difficulties. Therefore, it constitutes a worthwhile investment destination. The country should continue the free trade reforms, increase investments in technology and infrastructure and encourage capital inflows.

Sources used in this document:
References:

The World Factbook, Central Intelligence Agency, 2010, last accessed on February 25, 2010

Argentina -- Foreign Trade, Encyclopedia of Nations, 2010, http://www.nationsencyclopedia.com/Americas/Argentina-FOREIGN-TRADE.html last accessed on February 25, 2010

Argentina's Monetary and Exchange Rate Policies after the Convertibility Regime Collapse, Center for Economic and Policy Research, 2007, http://www.cepr.net/documents/publications/argentina_2007_04.pdf last accessed on February 25, 2010
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