Privatization and Stabilisation in Argentina

Argentina had to endure serious economic challenges in the late 1990s which resulted in a near macroeconomic collapse in the years 2001 / 2002. However, it was possible for this nation to stabilize and to restructure its economy which had seen periods of inflation as high as 5000 %. Very high levels of sovereign debt with an overvalued peso that had been pegged to the United States dollar and high levels of state spending have been mentioned as being the reasons behind the Argentine collapse. Privatization had kept the country going, with proceeds from a massive privatization program assisting with the repayment of sovereign debt and state spending, until Argentina ran out of assets to privatize. This brief essay presents a discussion about the stabilization and privatization efforts in Argentina, a nation which, despite the huge economic challenges that it had faced, was able to sustain and to improve upon a social security program for its people.