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The State of Poverty in Argentina

poverty in argentinaArgentina is a presidential republic that achieved its independence from Spain in 1816. Starting with the election of President Mauricio Macri in November of 2015, a promise of reform and international reintegration was on the minds of many Argentinians. The current president, Alberto Fernandez promised further reform and economic improvement in Argentina. However, poverty is an issue that the country must overcome in order to realize the dream of a better country. Here is some information about the current state of poverty in Argentina as well as the measures that some are taking to alleviate the issue.

Poverty Levels in Argentina

The poverty rate in Argentina is on the rise. In 2017, the CIA estimated that 25.7% of Argentina’s population lived below the poverty line. This poverty rate increased to 35.4% in 2019 and in the same year, it rose again to 40.8%. This is also reflected in Argentina’s GDP which declined from $643.6 billion in 2017 to $451.9 billion in 2019.

Many attribute the current state of poverty in Argentina to the unregulated spending of the Argentinian government. Additionally, many critics of the government’s economic policies claim that by spending more than what they have, the government created a public deficit. This increasing fiscal deficit led to inflation which is at the root of Argentina’s poverty.

Reasons for Poverty in Argentina

As mentioned, inflation resulted from the increasing fiscal deficit of the Argentinian government. However, this was also a consequence of the continuous printing of pesos to pay off debts. Consequently,  Argentina’s consumer prices rose 53.8% in 2019. The lack of affordability of food, for example, had drastic effects on Argentinian citizens’ lives. In addition, the Central Bank of Argentina rapidly sold its reserve of foreign currency in order to counterbalance the rapid depreciation of the peso. During the same time period, the Central Bank also increased interest rates to 45%. All of these factors further contributed to the additional inflation in the Argentinian economy.

The Alleviation of Poverty in Argentina

There are many people and organizations who are trying to alleviate poverty in Argentina. One aspect of poverty is homelessness. In 2019, there were an estimated 198,000 homeless in Buenos Aires alone. Tadeo Donegana, an 18-year-old Argentinian student, developed a map app called Ayumapp to help the homeless of Argentina. Ayumapp allows its users to add locations of the homeless in their respective cities. Users can also add comments about what kind of specific help the homeless need.

UNDP is also working with the Argentinian government to reduce poverty in the country. By furthering the Sustainable Development Goals (SDGs), UNDP has made progress in alleviating poverty. Some of UNDP’s outcomes include guaranteed food security for 198,000 people, providing health care to 15 million people without health insurance and training 7,500 youth to join the labor market.

Poverty in Argentina has its roots in the Argentinian government’s unrestrained spending. The huge fiscal deficit that resulted from this government spending and failed attempts to revitalize the Argentinian economy led to massive inflation. This inflation resulted in a lack of food affordability and homelessness in Argentina. However, there are those who are working tirelessly to better the current situation in Argentina. With this continuous support, many hope that a brighter future lies ahead for the country.

– YongJin Yi
Photo: Flickr

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10 Facts About Corruption in Argentina

Corruption in Argentina
Political corruption has long plagued Argentina’s government, dating all the way back to the 1800s. In the country’s modern history, there has rarely been a decade where some sort of political scandal has not occurred. However, the country has been steadily improving over the past decade. Here are 10 facts about political corruption in Argentina.

10 Facts About Corruption in Argentina

  1. Corruption Index Rating: The country had a Corruption Index rating of 40 in 2018, which was its best rating since 1995. This rating is based on the level of perceived corruption in a country’s public sector. The rating reached its lowest in the early 2000s during the tenure of former Argentine President Fernando de la Rua but has steadily risen in the following years, reaching higher numbers in the late 2010s. Its 2018 corruption index of 40 is fairly high if one compares it to other Latin American countries, although it is well below more developed countries.
  2. Police Corruption: Several Argentine businesses have reported that the police are among the most corrupt government agencies in the country and that Argentinians cannot rely on the police force to enforce the law. The Economist reported in 2014 that the police were reforming their systems, however. This started with giving policemen a higher salary, which is still increasing to this day, to reduce the risk of metropolitan police officers accepting bribes in exchange for their silence. While many issues remain with high ranking federal officials, Argentina is taking more action to reduce the amount of crime happening on the streets.
  3. Political Corruption: Political corruption often plagues businesses in Argentina due to excessive taxes and expensive, difficult customs process, with much of this revenue going to Argentina’s elite. In 2018, Forbes reported that people siphoned nearly $36 billion and put it into the pockets of wealthy businessmen in a corrupt public-private ring. Reports have determined that legislators have also taken bribes, leading to a messy lawmaking and enforcement process.
  4. Human Rights: The constitution of Argentina guarantees freedom of the press and speech, although journalists do receive threats. Because the government lacks federal legislation pertaining to access to information for the public, the government is able to manipulate economic statistics. There remain some problems pertaining to the safety of the press, but the government highly respects freedom of speech and it has taken reports of human rights violations very seriously. Argentina is also the first country in Latin America to pass laws protecting LGBT rights.
  5. The Justice 2020 Initiative: According to Anti-Corruption Digest, in response to issues revolving around legal loopholes and lack of criminal convictions, Argentine President Mauricio Macri enacted the Justice 2020 Initiative. This plan seriously overhauled Argentina’s court systems, which are in need of legal upgrades, along with fixing several legal loopholes. ACD cites that the changes from this act have doubled the court system’s productivity and helped clear the prior backlog of people waiting for prosecution.
  6. Prison Conditions: Prison conditions in Argentina are very poor. Prisons in the country tend to suffer overcrowding and violence between inmates; police abuse and bad upkeep of prison facilities are also very common. Under the Justice 2020 Initiative, President Macri made a commitment to prevent these abuses from happening further, and in 2011, members of the police made a commitment that it would only use force when absolutely necessary.
  7. Judicial Corruption: High ranking officials in Argentina are among the largest problems in regards to corruption in Argentina, with many of them accepting or demanding bribes for political favors such as pardoning crimes. High court judges are especially at risk of corruption; since 2003, with the approval of the senate, the president can handpick people for the courts, leading to poor separation of power between the executive and judicial branches. There are a president, vice president and three justices that currently preside over Argentina’s supreme court, making the policing of high ranking officials challenging to do. The federal court system is small, understaffed and underutilized, making the trial and removal of high ranking officials a long and difficult process.
  8. Quality of Life: Despite government corruption in Argentina, it remains one of the best countries in Latin America in terms of education. Nearly everyone in the country also has access to a reliable source of water and sanitation, with only around 1 percent not having access to water and less than 4 percent not having sanitation. Part of this could be due to Argentina’s abundant natural resources and booming economy, but one should also credit the country’s increasing focus on human rights enforcement.
  9. Abortion: While Argentina is a Latin American pioneer when it comes to human rights, women’s rights still remain an issue in the country. Abortion is illegal in Argentina unless the pregnancy is a danger to the mother’s health. The Catholic Church, which is the faith of the vast majority in Argentina, condemns abortion. Women’s rights groups have lobbied for legal abortion, including in 2018 when the country held a vote on the status of it.
  10. The Fundacion Banco de Alimentos: There are many nonprofits in Argentina that dedicate themselves to helping improve the quality of life for those who live in poverty. In the wake of severe socio-economic issues, the Fundacion Banco de Alimentos, a nonprofit food bank that emerged in 2000, acts as a channel for citizens to give food to Argentina’s most impoverished inhabitants. The vast majority of donors are local companies, farmers and supermarkets that donate food that would have otherwise gone to waste. Considering the country’s most recent economic issues, this is a great way for businesses to give back to the less fortunate in Argentina and reduce poverty without going through the government; over 1,000 communities participate, and people have donated over 5,000,000 food products with the food bank reaching over 143,000 people.

Political corruption in Argentina has plagued the country for centuries and one can trace much of this corruption back to issues with federal officials. There is not enough separation between the executive and judicial branches, which has led to the country’s continual issues with properly handling crime and enforcing justice. More citizen lobbying and human rights groups will be necessary to end government corruption and further push for the protection of human rights in Argentina’s near future.

– Andrew Lueker
Photo: Flickr
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How the Media Misrepresents Argentina

How the Media Misrepresents Argentina
Most of the media coverage surrounding Argentina has dealt with the country’s economic struggles, its crime rate, and, following the recent World Cup, its soccer team. The misrepresentation of Argentina by the media is evident due to the fact that negative coverage far outweighs the positive, giving the public a one-dimensional perception of this South American country.

More than a Soccer Nation

Beyond the financial crisis, much of the recent media coverage regarding Argentina has centered around the country’s World Cup run. Soccer is an immense source of national pride and a beacon of hope for many Argentinian fans, particularly during hard economic times. But soccer, while deeply engrained within the national fabric and heavily covered by the media, represents just one aspect of the diverse nation.

Portraying Economic Crisis in the Country

Argentina’s economy has far from met the expectations associated with market-friendly President Mauricio Macri. The value of the Argentine peso plummeted in April, resulting in a $50 billion loan from the International Monetary Fund. This, coupled with high inflation, has brought persistent economic hardship to the country and poses a serious threat to Macri’s “zero poverty” campaign promise.

Much of the media coverage surrounding Argentina has focused heavily on the economic crisis and the crime associated with it. While the crisis is prevalent and a resolution is much needed, the rampant and disproportionate coverage of the crisis goes to show just how the media misrepresents Argentina. In doing so, the media taint the perception of the country and fails to portray the true image of Argentina, one of an improving economic and social condition.

Economic and Social Progress

In 2017, poverty in Argentina decreased by 4.6 percent and is currently at 25.7 percent, according to official estimates. Prior to the Macri presidency, transparency about Argentina’s poverty was scarce. The publishing of official statistics only began in 2016, after being halted by the former populist government in 2013. Macri has not only strived for zero poverty, but he has established the proper balances to hold his administration accountable, something that was not the case for Argentina’s recent past.

Macri has faced the delicate task of reducing Argentina’s poverty rate while also working to alleviate a large budget deficit incurred by prior administrations. Macri’s administration has focused on reducing this deficit with the help of the International Monetary Fund and the implementation of public-private partnerships. With private companies financing long-term infrastructure contracts, Argentina expects to attract $26.5 billion in investment by 2022, reducing pressure on the budget but also contributing to the fall in poverty through the creation of thousands of steady jobs.

The citizens of Argentina have also exhibited a strong commitment to social progress, pushing landmark legislation to the floor of Congress, the Senate and the offices of President Macri. However, media coverage of these events is brief if existing at all, failing to show a highly positive dimension of Argentina.

Justina’s Law

News that the Chamber of Deputies (lower house of National Congress) passed a grassroots piece of legislation that makes 44 million citizens organ donors was seldom reported. The official increase in donors will depend on how many citizens choose to opt out, but this legislation will undoubtedly ensure the survival of thousands of patients that are in need of organ transplantation. With the approval of this law, also called the Justina’s Law, Argentina would join the ranks of France and Netherlands in this landmark legislation.

While it is typical to hear for the negative aspects of Argentina’s economy and crime, the work being done to solve these issues or the positive impacts that the Argentine people themselves are having on their country is rarely discussed.

Though it may seem that the misrepresentation of Argentina in the media has little effect on the country’s economic and social outlook, this is far from the truth. Macri’s plan for foreign investment depends heavily on the perception of Argentina as a viable place for growth. The current administration’s commitment to accountability and poverty reduction, as well as social progress, show the world that the country is trending in the right direction.

– Julius Long

Photo: Flickr

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Argentina’s Poverty Status After Three-Year Gap

Argentina's Poverty Status
In 2013, Argentina’s President Cristina Fernández de Kirchner came under intense scrutiny when she announced that the country’s poverty rate was 4.7%. However, a recent report by the Instituto Nacional de Estadística y Censos (INDEC) closed the three-year gap revealing that close to a third of the population is living below the poverty line.

Argentina’s Poverty Status Based on Statistics

With a vibrant Spanish culture and colossal landscape, Argentina’s population sits just shy of 44 million. However, this nation is faced with severe poverty rates and economic inflation. During the reveal of the 2016 second quarter statistics; 32.2% of the population is currently experiencing household poverty at 23.1%, 4.8% below the household poverty line. Unemployment within the population also remains a threat with the open unemployment rate reaching 9.3% meanwhile the underemployment rate was 11.2%.

Homelessness a Possible Threat

With the population being plagued with Argentina’s poverty status, homelessness becomes a threat to the nation’s indigent. The total urban population of Argentina is 27.2 million and consists of 8.7 million households. Statistics of the second quarter reveal that 2 million households, including 8.7 million people are below the poverty line. Within the group, 45,000 households are living in poverty inclusive of 1.7 million homeless individuals.

Reaching Zero Poverty

There will be difficulty in reaching President Mauricio Macri’s zero poverty goal. The inflation rate in Argentina has risen to 40.5% since April 2016 following the three-year non-disclosure. The government intends to transfer the control of economic factors to the private sector from the public sector. Policies are aiming for a laissez-faire approach that allows for transactions between private parties devoid of government intervention.

One Forbes magazine contributor presents President Macri’s revelation of Argentina’s poverty statistics as heroic and the basis for the return of neoliberalism. “What we are starting to have in Argentina are real statistics. What we had until a few months ago was a fiction with no reality. It was a manipulation,” said Macri.

Progress in Process

Ban Ki-moon, the U.N. secretary-general, commended the Argentine Government Council for their support in international affairs and their commitment to sustainable development. The country has made great strides in tackling gender inequality as well as maintaining its commitment to the Paris Agreement.

President Macri acknowledges the present conditions of the country and moves in hopes that he would be appraised on his efforts to reduce the current figures. “This is our reality and I want to be evaluated on whether or not I was able to reduce poverty from now on,” said Macri.

– Shanique Wright

Photo: Flickr