How can Argentina avoid the problems that occurred with the “shock therapy” in the former Soviet bloc?
Argentina has a capitalistic economy. Badly wounded by governments, but it's still there, and it can recover if it gets abused less.
The Soviet bloc had centrally controlled plan economies. That's a whole other animal. It won't become a capitalistic economy if you stop planning.
Russia was in a very different situation of one-party rule collapsing into gangsterism. The earliest usage of the term "shock therapy" was actually in South American countries with hyperinflation, and it worked out there.
So can the government regulate the privatization it seeks? What occurred in Russia was greed and seems perfectly capable of happening elsewhere.
The regulation you need are rule of law including (but not limited to) respect for property an contracts. The Russian state tried to develop that.
Argentina might.
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How can Argentina avoid the problems that occurred with the “shock therapy” in the former Soviet bloc?
Argentina has a capitalistic economy. Badly wounded by governments, but it's still there, and it can recover if it gets abused less.
The Soviet bloc had centrally controlled plan economies. That's a whole other animal. It won't become a capitalistic economy if you stop planning.
Russia was in a very different situation of one-party rule collapsing into gangsterism. The earliest usage of the term "shock therapy" was actually in South American countries with hyperinflation, and it worked out there.
So can the government regulate the privatization it seeks? What occurred in Russia was greed and seems perfectly capable of happening elsewhere.
The regulation you need are rule of law including (but not limited to) respect for property an contracts. The Russian state tried to develop that.
Argentina might.