Argentina

THE ARGENTINE REPUBLIC is the second largest country in South America. Argentina has had a long history of internal strife since winning independence from Spain in 1816. After World War II, Argentina spent years under the authoritarian control of Juan D. Perón until he was overthrown by a military coup in 1955. Thereafter, political power within Argentina changed hands frequently, including another period under Perón.

Following his death in 1974, Isabel Martinez Perón, Juan's third wife, led the country to economic ruin as the cost of living rose 355 percent. A military junta seized control in 1976, ushering in a reign of terror in which 2,300 people were murdered and tens of thousands of others vanished or were arrested. Economic and political chaos continued until 1983 when democracy was restored. During the late 1990s, the Carter Center of Emory University, founded by former president Jimmy Carter, convinced the Argentine government to agree to a two-year moratorium on the purchase of sophisticated weapons.

In addition to the fertile land of the Argentine pampas, the country's natural resources include petroleum and deposits of lead, zinc, tin, copper, uranium, manganese, and iron ore. Service industries account for 53.5 percent of Argentina's Gross Domestic Product (GDP), and a variety of industries provide an additional 35.9 percent of the GDP. The export-oriented agricultural sector accounts for the remaining 10.6 percent.

Argentina is an upper-middle-income nation with a per capita income of $12,400. Inequality flourishes, and the poorest 20 percent of the population claim only 3.1 percent of available resources. On the other hand, the richest 20 percent of Argentines share 56.4 percent of resources. Argentina is ranked 52.5 percent on the Gini Index of Human Inequality.

Since the mid-1990s, Argentina has experienced high rates of inflation, capital flight, severe external debts, and budget deficits. At the beginning of the 21st century, the Argentine economy spiraled further downward with negative growth rates, massive bank withdrawals, and eroding consumer confidence. By the middle of 2002, recovery had begun.

Nevertheless, over 43 percent of the Argentine population live in poverty, and 14.8 percent of the labor force are unemployed. Some 14.3 percent of the people live on less than $2 a day, and 3.3 percent live on less than $1 a day. The United Nations Human Development Reports rank Argentina 34 of 177 on general quality-of-life issues.

Antipoverty efforts in Argentina have focused on the Program for Unemployed Heads of Household. The program links financial assistance to school attendance of dependent children and to training and education for adults. In 2001, 67.3 percent of those receiving benefits were female, and 26 percent of that group were heading a single-parent family. Most recipients were under the age of 35. About 43 percent of recipients had not finished secondary school, and 11 percent had not completed primary school. Around 14 percent of recipients were college graduates.

While only one-fourth of poor Argentine families receive public assistance, the government determined that the employment program had reduced poverty in [Page 50]Argentina by four percent and prevented 20 percent of recipients from sliding into absolute poverty. Modifications were made to the program in 2004 when it became a feeder plan for the “Let's Get to Work” plan. While Argentina spends 18 percent of its GDP on social programs, most funds are used to provide pensions and unemployment for the segment of the population that is not poor.

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