Argentina: would the Peronists consider privatization?

Article Abstract:

The Argentine government failed in attempts to sell 40% of the Argentine national airline Aerolineas Argentinas (AA) to Scandinavian Airline Systems (SAS) and 40% of the Argentine telephone system Entel to Spain's national phone company, Telefonica. The SAS deal was opposed by the opposition Peronists, due to a combination of nationalism, xenophobia, and political interest. The Entel-Telefonica deal was more politically acceptable to the opposition due to: a history of cultural and treaty relations with Spain; Entel's monopoly status that threatened no other business interests; and the gross inefficiency and corruption of Entel. The government privatization attempts failed due to: a lack of Congressional lobbying; a lack of concern for companies that were threatened by the SAS deal; and a concentration of resources on the championing of the less politically-acceptable AA-SAS deal.

Mergers, acquisitions and divestments, Economic policy, Telefonica S.A., Privatization, Privatization (Business), Scandinavian Airlines System, Aerolineas Argentinas S.A., Peronism, Empresa Nacional de Telecomunicaciones (Argentina)

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Latin America's black economies

Article Abstract:

Peruvian economist and businessman Hernan de Soto published a study sponsored by the US State Department and the Agency for Interamerican Development that put forth the idea that most Latin American countries are poor because their governments block efforts for business development through over-regulation. As a result, black market economies have flourished in Peru, Argentina, and Brazil. Statistics indicate that 40-50% of Peruvians take part in the informal economy, that Argentina's informal economy represents 72% of the nation's gross domestic product (GDP), and that Brazil's informal sector exceeds official GDP estimates by between 50-100%. Politicians in all three countries increasingly are advocating liberalizing their economies by fostering market mechanisms and privatizing state industries.

Research, Economic aspects, Brazil, Peru, United States. Department of State, Black market, de Soto, Hernan

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