UrAmerica

ABOUT ARGENTINA

At a glance

Geography

Argentina stretches 4,000 km from its sub-tropical north to the sub-antarctic south. Its terrain includes part of the Andes mo untain range, swamps, the plains of the Pampas and a long coastline.

Politics

Outgoing President Kirchner, a Peronist, has enjoyed high approval ratings

Economy

The economy has rebounded after hitting rock bottom in 2001, but poverty remains a challenge

International

A row over Uruguayan paper mills sours neighbourly relations; Argentina claims sovereignty over the Falklands, a UK overseas territory

Facts

Full name: Argentine Republic
Population: 39.5 million
Capital: Buenos Aires
Area: 2.8 million sq km (1.1 million sq miles)
Major language: Spanish
Major religion: Christianity
Life expectancy: 72 years (men), 79 years (women)
Monetary unit: 1 peso = 100 centavos
Main exports: Food and live animals, mineral fuels, cereals, machinery
GNI per capita: US $4,470
Internet domain: .com.ar
International dialling code: +54

History

In 1816, the United Provinces of the Rio Plata declared their independence from Spain. After Bolivia, Paraguay, and Uruguay went their separate ways, the area that remained became Argentina.

The country's population and culture were heavily shaped by immigrants from throughout Europe, but most particularly Italy and Spain, which provided the largest percentage of newcomers from 1860 to 1930.

Up until about the mid-20th century, much of Argentina's history was dominated by periods of internal political conflict between Federalists and Unitarians and between civilian and military factions.

After World War II, an era of Peronist authoritarian rule and interference in subsequent governments was followed by a military junta that took power in 1976.

Democracy returned in 1983, and has persisted despite numerous challenges, the most formidable of which was a severe economic crisis in 2001-02 that led to violent public protests and the resignation of several interim presidents.

The economy has recovered strongly since bottoming out in 2002.

Political Structure

Democracy was restored to Argentina in 1983 after 50 years of instability and military regimes. A strong presidential system is in theory checked by a bicameral Congress, comprising a 257-member Chamber of Deputies and a 72-member directly elected Senate, but in practice the presidency dominates.

The presidential term is four years. There are 23 provinces and the Buenos Aires federal district, each with their own government.

The Current president is Ms Cristina Fernandez de Kirchner.

Economy

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 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.

Foreign Trade

High commodity prices helped boost merchandise export earnings by 20%, to an estimated US$55.9m in 2007, while import spending (cif) grew by 32% year on year to US$43.1bn, leading to a trade surplus of US$12.8bn.