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Argentina |
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Last Reviewed: 20 August 2009 |
Country information
ARGENTINA TODAY
Country Facts
Full country name: Argentine Republic
Area: 1.08 million sq miles (second largest country in South America after Brazil)
Population: 36.2 million (2001 official figures), 1.5 million currently overseas
Life expectancy: 70 years (male); 77.5 years (female)
Capital city: Buenos Aires (population 3.04 million; approx. 12 million live in the greater Buenos Aires metropolitan area)
People: Most Argentines are of European origin, especially Spanish and Italian. Substantial numbers also came from France, Poland, Russia and Germany. The Jewish community is the seventh largest in the world outside Israel. There are also more than 1 million people of Arab descent. Around 1% of the population are indigenous people living mainly in the north and west.
Language: The official language is Spanish.
Religion(s): Roman Catholic (90%); Protestant (2%); others include Judaism and Islam.
Currency: Peso
Major Political parties: Frente para la Victoria, Partido Justicialista (PJ): Peronist Party; Union Cívica Radical (UCR): Radical Party; Alternativa por una Republica de Iguales (ARI); Republican Party; Coalición Cívica: Civic Coalition; Una Nación Avanzada (UNA): An Advanced Nation, PRO
Government: Argentina is a constitutional republic. The President is directly elected for a 4-year term, which can be renewed once. The legislature consists of a bicameral National Congress, made up of an Upper House Senate (72 members, 3 for each province) and a Lower House Chamber of Deputies (257 deputies).
Head of State: President Cristina Fernandez de Kirchner (since 10 December 2007).
Foreign Minister: Jorge Taiana
ECONOMY
Throughout the 1990s, the Argentine Government pursued a policy of trade liberalisation, deregulation and privatisation. The peso was pegged one-to-one with the US Dollar ('convertibility'), which helped bring inflation down from the high levels of the 1980s. For much of the decade, Argentina enjoyed growth with low inflation. But fundamental rigidities and fiscal imbalances were not tackled, external economic conditions worsened, and in 1998 Argentina entered a recession which, despite an IMF-led rescue package in 2001 worth almost US$40 billion, culminated in a collapse at the end of that year. Strict controls on bank withdrawals were imposed amid widespread public protests and in early January 2002, Argentina officially defaulted on its external debt of around US$100 billion. Convertibility was abandoned and the currency was allowed to float, with an immediate steep devaluation. 2002 saw the economy shrink by 10.9%, and the social impact of the crisis was huge, leaving over 50% of Argentines below the official poverty line and well over 20% unemployed. But inflation was controlled and the country managed to return to fragile growth in late 2002, led by import substitution and a rise in export prices. In 2003 banking restrictions and most currency controls were lifted and the economy returned to normality. Since 2003 Argentina started a process of strong growth that has averaged nearly 9% in the last 5 years. For 2008, the economy is expected to cool down to around 5% with a further decelaration in 2009. The steep rise of inflation has smoothed consumption spending, as workers incomes are not adjusted as fast as prices. Also inflation is the main culprit to a slight rise of poverty standards.
After 3 years in default, the sovereign debt restructuring was completed in March 2005 with 76.15% of creditors accepting Argentina’s proposal. Most of the holdouts were Italian retail bondholders and investment funds. In September 2008 Argentina said it would re-open the debt exchange in a complex financial deal managed by Barclays and other banks but the international turmoil could delay such a deal. In December 2005, following the Brazilian example, Argentina decided to pay off all its IMF debts in full and immediately. This was done on 2 January 2006.
In spite of a freeze in utility tariffs and price controls on key goods, inflation is in 2-digit territory as measured by a number of indicators. Consumers are starting to be concerned. Food prices have suffered the most with annualised increases of 30% in 2007 and more during the first half of 2008. As the economy is cooling down inflation has stopped growing. The Argentine government faces further challenges ahead, including the renegotiation of contracts with privatised companies, tax reform and long-term stability in the credit and investment climate. Energy is another delicate topic, as firms and to a lesser extent households, are often rationed from the market, given the bottlenecks in the electricity and gas systems. Marginal tariff increases and better planning are soothing these shortages a bit but the fundamental weakness persists.
HISTORY
Argentina is thought to have been one of the last countries in Latin America to be settled. Its earliest inhabitants are believed to have arrived from the north some 25,000 years ago.
1516 Juan Diaz de Solis explores Rio de la Plata estuary but is repelled by indigenous people
1536 First foundation of Buenos Aires by Pedro de Mendoza but settlers are struck by famine and most starve or return to Spain
1550-1600 Colonisation of Argentina's interior by the Spanish based in Peru and Paraguay
1810 On 25 May, Buenos Aires revolutionary council declares freedom from Spain
1816 On 9 July, formal declaration of Argentine independence
1853 Argentine Constitution is agreed
1880 Buenos Aires becomes capital of Argentina
1916 First universal male suffrage in Presidential elections; Hipolito Yrigoyen (UCR) is elected
1930 Hipolito Yrigoyen ousted from his second presidency by the first military coup in the 20th century (lasted 2 years)
1946 General Juan Peron elected President
1951 General Peron re-elected President
1952 Death of General Peron's wife Eva Duarte (Evita)
1955 General Peron ousted in military coup (lasting 3 years) and went into exile. Peronism banned.
1973 General Peron returned from exile and elected President for the third time
1974 General Peron dies; succeeded as President by widow Isabel
1976 Military government takes over amid political chaos and internal terrorism
1982 General Galtieri sends troops to invade Falkland Islands; British task force liberates them 2 months later
1983 Military government falls: Raul Alfonsin elected President
1989 Alfonsin resigns amid economic chaos and hyper-inflation and hands over to President-elect Carlos Menem
1994 Pacto de Olivos: New constitution approved, allowing President to serve 2 consecutive terms
1995 President Menem re-elected for second term
1999 Fernando De La Rua elected President
2001 President De La Rua resigns in December following widespread civic unrest and protests against his economic policies. Adolfo Rodriguez Saa chosen as President by Congress but resigns a week later
2002 Eduardo Duhalde is selected as interim President by Congress in January with a mandate to finish De La Rua's term.
2003 Nestor Kirchner elected President in April and inaugurated on 25 May.
2007 Cristina Kirchner elected President in October and inaugurated on 10 December.
INTERNATIONAL RELATIONS
Relations with Neighbours
Argentina is a member of the regional common market bloc Mercosur, established in 1991, which seeks to remove barriers to trade between its members. Mercosur is the world's fourth biggest integrated market and the second largest in the Americas after the North American Free Trade Area (NAFTA) with a combined population of about 200 million people. Trade flows between Argentina and the other members (Brazil, Uruguay, Paraguay and Venezuela) have increased significantly during the last 5 years. The dispute over the settlement of 2 pulp mills in Uruguay has caused the relationship between the 2 countries to deteriorate somewhat.
Relations with the International Community
Argentina plays an active role on the international stage on human rights, sustainable development, counter proliferation and trade. It was elected to the Human Rights Council in May 2008. It was a non-permanent member of the UN Security Council until end 2006. Argentine troops have been deployed on UN peacekeeping operations in Cyprus, Kosovo, the Middle East and Haiti, amongst other regions. It has a police contingent in Darfur. Argentina is a member of the key non-proliferation arrangements and is also a member of the Rio Group, World Health Organisation, International Labour Organisation, International Maritime Organisation, Intelsat and Inmarsat. It is a party to many international environmental agreements, including the Antarctic Treaty (whose Secretariat is in Buenos Aires), Biodiversity, Climate Change, Endangered Species, Hazardous Wastes, Law of the Sea, Nuclear Test Ban, Ozone Layer Protection and Whaling. It played host to the tenth Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in December 2004. It hosted an informal dialogue on climate change in El Calafate in September 2008.
Relations with the UK
Argentina has long historic links with the UK. British companies played a vital role in Argentina's commercial development during the 19th century. The railways, food processing plant and many of the financial services were developed and managed by British firms. A wide range of UK manufactured goods was exported to Argentina and the UK in turn was a major destination for Argentine products.
Diplomatic relations were restored in 1990 after an 8-year gap following the Falklands conflict. In 2007, the 25th anniversary of the conflict was commemorated with events in London and Stanley as well as in Argentina. Since 1990, South Atlantic issues have been discussed with the Argentine Government under a 'sovereignty umbrella' arrangement, which allows the UK and Argentina to protect their respective positions on sovereignty while seeking to make progress on practical matters of common interest such as fisheries and de-mining. The British Government's position is that there will be no negotiations over sovereignty unless and until that is the wish of the Islanders themselves. We remain committed to the right of the Falkland Islanders to determine their own future. The islands will be British for as long as their inhabitants wish to remain so.
Further details on UK/Argentine relations regarding the Falkland Islands can be found on the Falkland Islands Country Profile.
Cultural Relations with the UK
There is a strong British cultural influence in Argentina and a large Argentine-British community around Buenos Aires. There is also a strong Welsh-speaking Argentine-Welsh community in Chubut, Patagonia. Argentines made around 37,000 visits to the UK in 2008 with visits having increased by 16% in the last five years from 32,000 back in 2003.
Recent Inward Visits
- President Kirchner visited the UK in July 2003 to attend the Progressive Governance Summit.
- Mario Das Neves, Governor of Chubut, visited Wales in March 2007.
Recent Outward Visits
- Phil Woolas, Minister for Climate Change (DEFRA) visited to participate in the El Calafate Dialogue in September 2008
- John Mann MP, Chair of the All Party Parliamentary Group on Anti-Semitism, visited in August 2008.
- Baroness Vivien Stern visited Buenos Aires in June 2008 as part of a British Embassy Human Rights project supporting the implementation of the UN Optional Protocol Against Torture.
- The Duchess of Gloucester visited in February 2008 in her capacity as President of the Lawn Tennis Association, during the Davis Cup tie between Argentina and Britain.
- Sir Philip Robinson, President of Financial Action Task Force (FATF) visited in December 2007 under the UK Presidency.
- Sir Ronnie Flanagan, the UK's Chief Inspector of Constabularies, visited in September 2007.
- A cross-party group of MPs visited in September 2006.
- The First Minister for Wales, Rhodri Morgan, visited Buenos Aires in October 2005. Mr Morgan travelled to Trelew in the Patagonian province of Chubut to visit the annual Eisteddfod held by the Welsh community.
- Bill Rammell, former Parliamentary Under-Secretary for Foreign and Commonwealth Affairs with responsibility for Latin America, visited Buenos Aires in February 2004.
Strategic Programme Fund
Argentina is a priority country under the Foreign and Commonwealth Office’s Strategic Programm Fund (SPF), through the 'Economic Reform' programme. SPF also funds several projects under the Human Rights programmes and 'Sustainable Development' programme. These programmes support projects which contribute towards improving economic and political governance, primarily in emerging markets and environmental democracy.
The Argentina programme represented an investment of some £600,000 in 2006/07. The fund is administered in Argentina through the British Embassy in Buenos Aires.
GEOGRAPHY
Argentina is the second largest country in Latin America after Brazil (almost all the countries of Western Europe and Scandinavia could fit inside Argentina's land mass). The country is diverse and includes rain forest in the north, vast areas of fertile farming land in the centre, the Andean mountain range to the west and the desolate plains of Patagonia in the south, leading down to glaciers at the southern tip. Argentina has the world's southernmost city (Ushuaia).
TRADE AND INVESTMENT
Trade and Investment with the UK
The UK is the sixth largest investor in Argentina. UK companies continue to have an important stake in certain sectors such as pharmaceuticals (GlaxoSmithKline, AstraZeneca), banking (HSBC), mining (Rio Tinto, Anglo Gold) and energy (BG Group, BP and Shell). UK exports are now recovering after having halved following the 2002 economic crisis and Argentine currency devaluation. UK exports during 2007 were worth £227m (compared to £216m in 2006). Similarly UK imports from Argentina were £425m in 2007, up from £359m in 2006. UK exports are diverse, but they principally include medical & pharmaceutical products, non-ferrous metals, inorganic chemicals, electrical machinery, road vehicles and power generation machinery. Argentine exports to the UK are mainly animal foodstuffs, meat, vegetables and fruit, beverages and iron and steel. The UK is Argentina's top export market for bottled wine.
UK Trade & Investment Country Profile: Argentina
POLITICS
Argentina has a system of presidential democracy. There is universal suffrage and voting is compulsory for those aged 16-70. The Argentine constitution provides for a separation of powers between the executive (the President and government), the legislature (Congress and Senate) and the judiciary (the Supreme Court). It also establishes full civilian control over the military. On 12 June 2006, President Kirchner signed into law a decree setting up a joint Chiefs of Staff system. Argentina is moving towards a defence model used by most Western countries.
Since the return to civilian government in 1983, Argentines have elected 5 Presidents: Raul Alfonsin, Carlos Menem, Fernando De La Rua Nestor Kirchner and Cristina Kirchner.
Presidential elections took place on 28 October 2007. Cristina Kirchner (Frente para la Victoria/Partido Justicialista) was elected with a lead of over 20 points over the second-placed candidate Elisa Carrio (Coalición Cívica). Cristina Kirchner succeeded her husband Nestor on 10 December 2007. Argentines also voted for half of the national Chamber of Deputies and one third of the Senate. The results give Cristina Kirchner a majority in both chambers.
Argentina is a federal country made up of 24 provinces. Provincial elections for governor, deputies and senators also took place throughout 2007 in all provinces except Corrientes and Santiago del Estero, which held elections in 2005.
HUMAN RIGHTS
Argentina has signed and ratified all the core international human rights treaties. Argentina is also a member of the UN Human Rights Council.
The Argentine Constitution provides for freedom of speech and of the press; freedom of assembly; equal treatment of all citizens; the right to form 'free and democratic labour unions'. Argentine law prohibits forced or compulsory labour, and forced or bonded labour by children. Education is compulsory, free and universal for children up to the age of 15. Whilst Argentina continues to suffer from its 'Dirty War' legacy (the detentions, torture and disappearances committed during the military dictatorship), after over 20 years of democratic government, the human rights situation has greatly improved. Trials for those charged with human rights abuses during the Dirty War have begun.
President Nestor Kirchner pledged to make the effective protection of human rights a cornerstone of his government’s agenda. Amongst the highlights of this human rights agenda are the annulment of laws and decrees preventing legal action against people who committed human rights violations during the military regime, the introduction of transparent nomination procedures (Supreme Court) and the removal of members of the police forces (including top officers) allegedly involved in human rights violations and corruption practices.
However, some human rights organisations argue that there is not a comprehensive approach in this area in terms of policy on current issues. Concrete measures are still needed in specific areas, especially with regard to abuses committed by the security forces, prison conditions and discrimination against women.
The UK is closely involved in projects supporting the fulfilment of international human rights standards, as well as the modernisation and reform of law enforcement agencies.
