The country still has a number of strategic, bureaucratic and cultural problems which need to be overcome
Argentina has made significant economic progress since the disastrous period which culminated in a massive IMF bailout of the country in 2003. Since then the country has seen significant year on year GDP growth, a stabilisation of the currency and rapidly improving living standards for many (not all) of the population.
By seeming to have finally put an end to decades of political and social instability, Argentinians hope for a brighter economic future for a country which has the potential to be one of the success stories of a resurgent South America.
This is not to say that developing business in Argentina will be easy. The country still has a number of strategic, bureaucratic and cultural problems which need to be overcome by any outsiders who wish to develop fruitful long-term business interests in the country.
There are probably two key issues which need to be assimilated at an early stage. Firstly, with a history of turmoil and unrest, Argentinians are happiest when focusing on ‘quick wins’ and short-term business interests. It has always been difficult to plan long-term in a country where tomorrow is uncertain. Secondly, personal relationships have always been of enormous importance in business dealings. Governments may come and go, inflation may be raging and therefore the only things that could traditionally be relied upon were the strengths inherent in good, stable long-term relationships – and this legacy persists today.
Written and Produced by Keith Warburton
This country profile has been produced to give a short overview of some of the key concepts to bear in mind when doing business with contacts in Argentina. It is intended to be an aid to business people who have commercial dealings with counterparties in the country but should not be seen as an exhaustive guide to this topic or as a substitute for more substantial research should there be a need.
With this in mind, we have covered the areas which are key to a better understanding of the cultural mindset underpinning business dealings in Argentina and which are, quite often, extremely different from the approach and thought processes associated with business in other parts of the world.
Therefore this briefing note is broken into short, bite-sized sections on the following topics: