Argentina's Downfall: Bread and Circuses ... But No Change!

A short while ago the election of Cristina Fernandezstrike.
de Kirchner elevated her to the presidency ofWhether the archaic social custom of closing
Argentina. Despite the overwhelming result that sweptbusinesses or schools for two to four hours at midday,
the first elected woman into office following heror utility or other regular bills are invariably paid in
husband’s term as president, the country remainsperson by cash, these and other customs may be
at a political crossroads. The politics and economicsquaint for the tourist, but they are inefficiencies that
and self-interest of Argentina are hedged betweenabound throughout the country.
leftist president Hugo Chavez of Venezuela andPerhaps some of these inefficiencies are designed
George Bush.purposely to maintain and increase employment.
More evenly dispersed wealth and prosperity forPerhaps some are reminiscent of an older, more
Argentina does not have to be elusive. The country ispersonable way of doing business. Some, perhaps, are
rich in resources and there exists substantial demandsteeped in traditions where efficiency counts much
for its goods. However, increased and more equalless than relaxation and which have resulted in the
education seems indicated and overdue. A generalclassic Latin “manana” epithet. Whatever the
pause by the country as a whole to assess thereason does not stand the country in good stead for
willingness to absorb the tradeoffs required to achieveits competitive position in a global economy against the
a universal better state of living is more than overdue.materialistic leaders of the world.
Perhaps the new leader of Argentina will take thatDespite rampant inefficiency and visible poverty, many
pause and properly act on that reflection..visitors or potential expatriates to Argentina expound
After having spent nearly six months prior to theat length on its inexpensive and perceived more
election in Argentina, one thing is certain. No matterrelaxed, cultural way of life. Often, daily problems with
how hard a new president may try to change matters,infrastructure or the local population are dismissed by
the facts seem to imply that the majority is toovisitors with a shrugged shoulder. Many have to deal
complacent to welcome any major change from thewith neither. For a few Argentine pesos, hotel or
status quo, vociferous noises from a vocal minorityshort-term apartment staff can generally
notwithstanding. One young person was overheard toaccommodate the transient visitor by shielding him
say in seeming jest, “What this country needs is afrom crime, corruption or inefficiency.
good war!” With the history of violence of several“Inexpensive” is certainly true of Argentina when
past governments, a wide gap between rich and poor,compared to Europe or the United States or even
as well as ingrained cultural patterns spanning centuries,many competing places in South America. This is most
such complacency should not be unexpected.definitely true after the currency devaluation less than
Nonetheless, from an outsiders’ perspective, certaina decade ago. Spending Euros or American dollars at
basics spell renewed disaster for the once-prosperousthe official exchange rate easily permits one to
nation.overlook many of the vagaries of life in Argentina.
In a recent conversation with a bright, educatedCheaper black market rates, readily obtained from
Argentine student, the young fellow seemed to thinkmobile sellers on street corners, can make life even
nothing of leaving his country. In his early twenties, heless expensive. Focusing on the natural beauty of
intends to live, study, work and earn overseas andBariloche, the colonial architecture of Salta or the night
save or invest his money in a country “thatlife and its tango in Buenos Aires is a simple process
works.” Little thought was expressed as to thefor a transient visitor. Life in Argentina, however, is
wide and growing gap between the prosperous andcertainly not inexpensive for full-time residents, trying to
impoverished denizens of the Argentine landscape. Heeke out a living, even with a fairly decent job, any
provided a perfectly good example that the dwindlingmore than it would be in Lima or Santiago or Caracas.
middle class aspires only to join the “rich” as longNeither is life in this land of natural beauty any more or
as it can avoid sinking to the morass of “theless “cultural” or more relaxed than in London, or
poor.” The fact that Argentina’s problems haveParis or New York for the permanent denizen of
been even further exacerbated by more impoverishedArgentina. From a tourist perspective, the quaint, small
immigrants from Bolivia, Peru and other Southstreets of Salta, bustling with humanity and traffic, may
American nations was explained away by suggestingseem to be like a picturesque Hollywood movie film
that, in his view, “Argentina needs a labor pool willingset. For the single mother of four, working as a
to accomplish unskilled labor others are not willing topart-time maid, however, everyday life is no easier
do.”than it is in Santa Fe, New Mexico, a cultural mecca in
Whether one agrees with the young student’sthe United States.
perspective is somewhat irrelevant. One can agree orFew except those with disposable income in Argentina
disagree with his philosophy and potential course ofneither know of an opera, been to an art exhibit, nor
action. Missing from the entire discussion, however, isheard a live symphony concert. Many have not even
the fact that only a miniscule “middle class”made the lengthy trip to Buenos Aires from their
exists in Argentina. As in other cultures, the termparticular village in the vast country. Much the same
“middle class” is vague and imprecise. Yet, it iscan be said, of course, of other nationalities who have
precisely the “middle class” and a functioning,never seen an art exhibit at the Louvre or Tate
private and governmental infrastructure that are twomuseums in France or London, attended a concert at
key elements that produced success in most of thethe Konzerthaus in Vienna, nor seen a dance recital at
world’s advanced nations. Despite relative growththe Bolshoi in Russia although they may have lived in
in Gross Domestic Product, progress has often beenthe respective countries all their lives.
stunted in nations replete with a large, wealthyMuch of Argentina’s mystique has been carefully
land-owning class, especially in Latin or South America.and skillfully cultivated by the tourist boards. The image
Although often disparagingly referred to as ais, in turn, mindlessly nurtured and perpetuated by the
“nation of shopkeepers,” England prosperedcasual traveler. Inefficiency becomes a more
from the times of Elizabeth I. It expanded most“relaxed” way of life, while a simple dance in the
noticeably following the times of Adam Smith andtown square becomes “culture.”
other notable thinkers of the eighteenth century. It wasMore than simply dazzling the tourist with a
the formation and expansion of the middle classes, itsbroad-strokes display of natural beauty and a
manufacturing base, and its financial acumen coupledseemingly contented populace, Argentina seems more
with powerful colonial resources and inexpensive laborto cater to its well-to-do, short-term transients rather
that propelled England through the centuries.Wealththan to its own people. Fortunately, the transient visitor
filtered to the growing middle classes and a workinghardly ever sees the seething resentment boiling just
infrastructure in England, as elsewhere in Europe, thebelow the surface veneer of smiles and politeness, nor
United States and now in China and India. Thethe petty crime and bribery lurking at the next street
phenomenon is evident world-wide.corner or with the sales clerk at a local business.
A working country’s civil infrastructure does notBefore its collapse, the ancient Roman Empire was
have to be limited to roads and highways and otherknown for its policy of “Bread and Circuses.”
facilities, although the lack of these significantly impactsCertainly, Argentina seems to subscribe to that maxim.
any nation in past or present centuries. InfrastructureWhile the price of bread and other staples continues to
can be expanded to include a society’s ability andescalate in local shops or supermarkets, Argentina
willingness to provide communications and education, totries to keep its citizens entertained by its
banking or medical care, and to a general freedom“circuses” through its extensive television
from governmental bureaucracy to impedechannels. There is no dearth of television offerings on
entrepreneurship and the production and distribution ofits many cable channels, from chat programs to quiz
goods and services.shows, to sports and movies to keep the populace
Argentina may reasonably boast of a classicentertained.
infrastructure. It certainly has thousands of kilometersInteresting, though, one can legitimately ask for whom
of maintained roads and highways, developed airportsthe telecasts are intended. Certainly, soccer matches
and docks, and public utilities. It has been in theand other competitions draw great local viewing
forefront of South American communications, bankingaudiences whether on off-the-air stations or the Latin
and medical care. Many of those services are ownedversion of ESPN. So do various movie channels.
by foreign entities. Why? Because there does notYet, while nearly ninety percent of films aired are of
exist a strong middle class to undertakeAmerican or British origin, most of these are in spoken
entrepreneurial risks. The wealthy prefer to keep theirin English, subtitled in Spanish. That may be wonderful
capital outside the country, while the poor are toofor tourists or other foreigners whose first language is
uneducated and have little, if any, capital.English and who choose to take the pose of a couch
In addition, Argentina’s general production andpotato at night. Unfortunately, it does little for native
distribution of goods and services, domestically andCastellano speakers, let alone the local indigenous
internationally, are predominantly hampered by a vastpopulation whose command of Spanish is hazardous
and powerful bureaucracy that strives not forat best. Reading rapidly changing subtitles can hardly
efficiency, but rather for patronage and continuedbe conducive to learning English when it is far more
employment.interesting to see the action developing on the screen.
Beyond infrastructure, a country’s perception andMoreover, much of the population can ill afford the
self-perception are equally as important. These factorsrelatively modest charges for a television set or a
may have even more influence on the state of acable hookup.
nation’s life than even the most advancedMaybe it is necessary to entertain the masses to
infrastructure. This self-perception and resultantkeep them from exploding into chaos. Maybe such
philosophy may be often more responsible than theentertainment can offer a necessary respite to the
lack of certain economic amenities. It breeds a lack ofeveryday worker in whatever occupation. Maybe it
concern and indifference on the part of the population,allows a vicarious view of other cultures. Unfortunately,
rather than active and positive work and competitionit may also breed envy and, worse, emulation of the
and accomplishment.violence so readily broadcast, especially by the
Despite the brave political words and a rebound frommodern fare of Hollywood’s output.
the worst of economic shocks, default on its economicAmerican television offerings of violence are hardly
debt, Argentina still suffers from a markedlyconducive to the youth of Argentina that easily
decreased optimism and a widening gap in confidencesuccumbs to the greed or envy generated by the
in government. Although Argentina has spent the lastsilver screen. Worse, it only underscores the lack of
two decades free from civilian or military dictatorship,education in the classrooms. While Argentina may
people’s attitudes change slowly. Partly, this lack ofhave the highest literacy rate in Latin and South
optimism and confidence stems from Argentina’sAmerica, according to most studies more than fifty
continuing practice of turning a largely blind eye to graftpercent of students fail to continue their education
and corruption inside and outside of government.beyond the age of fourteen, the legal mandatory age
One simple but painful indictor of festering problemsfor leaving school. Since education, including the college
stems from the fact that the Argentine governmentlevel, is free for students attending government-run
continually runs short of ordinary coins in circulation.schools and colleges, one may properly ask why such
This shortage does not stem from lack of materialsa large dropout rate exists.
from which to shape coins. Rather, it derives from aOnce again, the overall picture of Argentina is
combination of a lack of confidence and graft.misleading. Despite the high literacy rate, the high
Recently, very small denominations starting with thedropout rate at an early age tells a different story. A
peso coins were actually hoarded by the population.recent Interamerican Development Bank report
Incorrect as it may be, there is apparently more faith inshowed that the causes for a highly unequal outcome
coins than in paper money, not simply the opportunitybetween Buenos Aires students and those of rural
to make three to five percent profit on hoarding andareas results from both lack of high quality of school
reselling small change. Taxi drivers and small kiosksfacilities and lack of skilled teachers and instructors in
repeatedly fail to have change available for therural areas. Moreover, even Buenos Aires, the capital
smallest of purchases for these reasons, as docity known for its university with nearly 140,000
government institutions like the post office or publicstudents, is even more renowned for the more rapid
utilities.growth and enrolment of students in private, rather
In an economy based largely on cash transactions,than public schools.
rather than checks, debit or credit cards or electronicSince education is but one all-important factor in
banking, this attitude foreshadows only the tip of theArgentina’s development in the twenty-first century,
iceberg of problems confronting the country. Argentinaone must clearly ask if the recent governments –
certainly has most of the necessary computereven after the devaluation – are inclined to
availability. Most large banks are well interconnectedperpetuate the growing disparity between rich and
across the country.poor, spelling certain doom for the nation as a whole.
However, “most of the people would not knowYet that disparity is likely to increase if government
how to deal with automated banking, like payinglacks the will to change quality public education versus
bills,” one source offered. While that lack may beprivate education, such as in Buenos Aires and
ascribed in part to a poor educational system, it leavesCordoba or Mendoza.
wide open the door to engage in tax evasion andQuality and success of education also derives from a
other forms of corruption. Inefficiency aside, long linesmyriad of social factors, many of which result from the
inside a bank branch ironically seem to be positivedisparity of income and the lack of a “middle
indicators of solvency, increases in cash andclass” in the historic sense. Argentina would be well
employment to the general populace. That image ofwarned by the young man’s quip that the country
illusory prosperity may persist if one ignores the“needs a good war.” While no war from the
beggars, including very young children, lining the streetsFalklands to Iraq can ever be termed a “good
asking for pesos. It does nothing for improving personalwar,” no matter who the perpetrators, a growing
or national efficiency.disparity between rich and poor in Argentina makes
Remarkably, the majority of the population appears tojust such an exercise a probability, whether as an
tolerate the long lines and general inefficiency in theoutright war or a disguised dictatorship. Bread and
infrastructure with barely a sniffle. “Oh, it’s onlycircuses or a lack of change are only preliminary
Argentina,” one property-owning person suggested,indicators. Only the will and perception of the
trying to explain away whatever daily problemscountry’s people can make the difference.
occurred, whether simple plumbing or a citywide taxi