Averting Disaster in Argentina: The Case for Economic Freedom

The irresponsible economic policies pursued by the government of Argentina in the wake of its sovereign debt default in 2001, and its debt-restructuring offer in 2005, provide a vivid case study of the root causes of Argentina’s steadily declining scores in the annual Index of Economic Freedom published by The Heritage Foundation and The Wall Street Journal. The Kirchners should take note of and implement the steps needed to correct all of the deficiencies described in the 2008 Index of Economic Freedom, for the good not only of their own citizens but of all South America. The government must also be honest about the true rate of inflation and cease efforts to manipulate the value of the peso. The government of Argentina has an obligation to its citizens to reach some sort of agreement with all external creditors so that it can regain full access to world financial markets.

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