| BUSINESSWEEK ONLINE : AUGUST 16, 1999 ISSUE | ||||||||
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| INTERNATIONAL -- LATIN AMERICAN COVER STORY
Argentina's Partial Transformation WHAT MENEM ACCOMPLISHED PRICE STABILITY Currency board adopted in 1991 fixed peso to U.S. dollar, slashed five-figure hyperinflation to zero, and ushered in four years of GDP growth averaging 7.5% annually. PRIVATIZATION Sale of state assets including the phone company, railways, oil producer YPF, and the social-security system raised productivity and pumped $18 billion into government coffers. OPEN MARKETS Falling trade tariffs and elimination of restrictions on foreign investment opened market to flood of foreign goods and spurred competition in industry. WHAT REMAINS TO BE DONE LABOR REFORM Antiquated restrictions on hiring and firing discourage companies from contracting new employees and prevent drop in unemployment rate, currently 14.5%. TAX OVERHAUL High taxes, including 21% value-added levy, burden local business and multinationals. Authorities must take measures to reduce 40% tax-evasion rate. ANTICORRUPTION CAMPAIGN Frontal attack needed to reduce widespread corruption in government, judicial system, and police forces that drains public coffers and weakens institutions. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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 RELATED ITEMS Argentina: The Unfinished Revolution (int'l edition) COVER IMAGE: Argentina: The Unfinished Revolution CHART: Argentina's Inflation Is under Control...But the Economy Is Turning Downward TABLE: Argentina's Partial Transformation ONLINE ORIGINAL: The Taxman Looks High and Low--but Mostly High--for Cheats (int'l edition) INTERACT E-Mail to Business Week Online | |||
