Rural Argentina

Rural Argentina

As explained in his blog at IE Business School professor, Rafael Pampillon, Argentina has grown very rapidly, more than 8% per year since 2003, mainly as a result of higher world prices for raw materials. “The government wanted kill the goose laying the golden eggs very high taxes on exports of soybeans, “he writes. As never before, the four organizations representing people engaged in rural activities (Agrarian Federation, Argentine Rural Confederation, Sociedad Rural Argentina and Coninagro), came together to raise their voices in protest by about 300 stretches of road across the country. But despite the economy minister resigned, and there were various meetings of the farming groups, the president and his cabinet, the government flatly refused to change their position. According to Carlos Malamud, chief Latin American researcher at the Real Instituto Elcano, “the issue is the Government’s desire to increase the fiscal surplus, increasing control of what they call the box, ie the money they raise spend directly and without any control by the parliament and other international bodies. This has led to a conflict that already has almost half of the mandate Cristina Kirchner’s presidency. ” Malamud says that it is “a very strange situation in which the Government rather than negotiate with the parties involved have chosen to double the bet and does not settle in institutional and political terms, but as a matter of pure power.” It surprised as the national government has not sought a better alternative to this situation that has been generated and that can cause serious fractures in his administration, unhappy, conflict can arise and attack the weak economy that is already threatened its inflation. .

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