Were Carlos Menem's economic policies the reason Argentina's economy collapsed?
- 7 years agoFavorite Answer
Although his time in office is remembered by some as a period of stability, Mr Menem's economic policies are blamed by many Argentines for the country's current economic crisis. A 2003 poll suggested 60% of Argentines would never vote for him under any circumstances.
There were certainly flaws in Menem's policies which led to an economic downturn following earlier successes. The early success of linking the value of the Argentine peso to the us dollar (when the dollar was falling) was followed by increasing economic difficulties when the dollar began to rise from 1995 onwards in international markets. High external debt also caused increasing problems.
However, Argentina's economy was also affected by external events. Financial crises affecting other countries (the Tequila Crisis in Mexico, the East Asian financial crisis, the Russian financial crisis in 1998) led to higher interest rates for Argentina thus resulting in higher levels of government debt.Source(s): http://news.bbc.co.uk/1/hi/world/americas/1376100.... http://en.m.wikipedia.org/wiki/Carlos_Menem
- epistemologyLv 57 years ago
The collapse of a country is too big an event to be caused by one person or one group. That is not to say that he was innocent, but there were also many others involved.