ARGENTINA

Argentine Republic

República Argentina

CAPITAL: Buenos Aires

FLAG: The national flag consists of a white horizontal stripe between two light blue horizontal stripes. Centered in the white band is a radiant yellow sun with a human face.

ANTHEM: Himno Nacional, beginning "Oíd, mortales, el grito sagrado Libertad" ("Hear, O mortals, the sacred cry of Liberty").

MONETARY UNIT: The peso (a$) is a paper currency of 100 centavos. There are coins of 1, 5, 10, 25 and 50 centavos, and notes of 1, 2, 5, 10, 20, 50, and 100 pesos. The rate of exchange is about a$0.34722 (or us$1=a$2.88) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; Labor Day, 1 May; Anniversary of the 1810 Revolution, 25 May; Occupation of the Islas Malvinas, 10 June; Flag Day, 20 June; Independence Day, 9 July; Anniversary of San Martín, 17 August; Columbus Day, 12 October; Immaculate Conception, 8 December; Christmas, 25 December. Movable religious holidays include Carnival (two days in February or March) and Good Friday.

TIME: 9 am = noon GMT.

LOCATION, SIZE, AND EXTENT

Shaped like a wedge with its point in the south, Argentina, the second-largest country in South America, dominates the southern part of the continent. Argentina is slightly less than three-tenths the size of the United States with a total area of 2,766,890 sq km (1,068,302 sq mi); the length is about 3,650 km (2,268 mi) n–s and the width, 1,430 km (889 mi) e–w. To then Argentina is bounded by Bolivia; to the ne by Paraguay; to the e by Brazil, Uruguay, and the Atlantic Ocean; and to the s and w by Chile, with a total boundary length of 9,665 km (6,006 mi).

Argentina lays claim to a section of Antarctica of about 1,235,000 sq km (477,000 sq mi). Both Argentina and the United Kingdom claim the Falkland Islands (Islas Malvinas), with the United Kingdom exercising effective occupancy. In 1978, Argentina almost went to war over three Chilean-held islands in the Beagle Channel. The case was referred to papal mediation; on 29 November 1984, the two countries signed a treaty that confirmed Chile's sovereignty over the three islands.

Argentina's capital city, Buenos Aires, is located along the eastern edge of the country on the Atlantic coast.

TOPOGRAPHY

Except for the mountainous western area, Argentina is for the most part a lowland country. It is divided into four topographical regions: the Andean region, Patagonia, the subtropical plain of the north, and the pampas. The Andean region, almost 30% of the country, runs from the high plateau of the Bolivian border southward into western Argentina. Within the Andes there are over 1,800 volcanoes, about 28 of which are still considered to be active. Patagonia comprises all the area from the Río Negro to the southern extremity of the continent, or about 777,000 sq km (300,000 sq mi). Rising from a narrow coastal plain, it extends westward in a series of plateaus. In most places, the altitude range is 90–490 m (300–1,600 ft), although it may rise to 1,500 m (5,000 ft). Patagonia is a semiarid, sparsely populated region. It includes the barren island of Tierra del Fuego, part of which belongs to Chile. A portion of the Gran Chaco, covering the area between the Andean piedmont and the Paraná River, consists of an immense lowland plain, rain forests, and swampland, little of which is habitable.

The most characteristic feature of Argentine topography, however, is the huge expanse of lush, well-watered level plains known as the pampas. Stretching from the east coast estuary, Río de la Plata, the pampas spread in a semicircle from the Buenos Aires area to the foothills of the Andes, to the Chaco, and to Patagonia, forming the heartland of Argentina, the source of its greatest wealth, and the home of 80% of its people.

The major Argentine rivers, which originate in the Andean west or the forested north, flow eastward into the Atlantic Ocean. The Paraná, Uruguay, Paraguay, and Alto Paraná rivers all flow into the Río de la Plata, which reaches a maximum width at its mouth of 222 km (138 mi), between Uruguay and Argentina. The highest peaks in Argentina are Mt. Aconcagua (6,960 m/22,835 ft), also the highest mountain in South America; and Mt. Tupungato (6,800 m/22,310 ft). There is a region of snow-fed lakes in the foothills of the Andes in western Patagonia. Many small lakes, some of which are brackish, are found in the Buenos Aires, La Pampa, and Córdoba provinces.

CLIMATE

Argentina's climate is generally temperate, but there are great variations, from the extreme heat of the northern Chaco region, through the pleasant mild climate of the central pampas, to the subantarctic cold of the glacial regions of southern Patagonia. The highest temperature, 49°c (120°f), was recorded in the extreme north, and the lowest,–16°c (3°f), in the southern tip of the country. Rainfall diminishes from east to west. Rainfall at Buenos Aires averages 94 cm (37 in) annually, and the mean annual temperature is 16°c (61°f). Light snowfalls occur occasionally in Buenos Aires. Throughout Argentina, January is the warmest month and June and July are the coldest. North of the Río Negro, the winter months (May–August) are the driest period of the year. The wide variations of climate are due to the great range in altitude and the vast extent of the country. In the torrid zone of the extreme north, for example, the Chaco area has a mean annual temperature of about 23°c (73°f) and a rainfall of about 76 cm (30 in), whereas Puna de Atacama has a temperature average of 14°c (57°f) and a rainfall of about 5 cm (2 in). The pampas, despite their immensity, have an almost uniform climate, with much sunshine and adequate precipitation. The coldest winters occur not in Tierra del Fuego, which is warmed by ocean currents, but in Santa Cruz Province, where the July average is 0°c (32°f).

FLORA AND FAUNA

More than 10% of the world's flora varieties are found in Argentina. The magnificent grasslands have figured prominently in the development of Argentina's world-famous cattle industry. Evergreen beeches and Paraná pine are common. From yerba maté comes the national drink immortalized in gaucho literature, while the shade-providing ombú is a national symbol.

Many tropical animals thrive in the forests and marshes of northern Argentina; among them are the capybara, coypu, puma, and various wildcats. In the grasslands and deserts are the guanaco, rhea, and many types of rodents. The cavy, viscacha, tuco tuco, armadillo, pichiciago, otter, weasel, nutria, opossum, various types of fox, and hog-nosed skunk are common. The ostrich, crested screamer, tinamou, and ovenbird are a few of the many species of birds. Caimans, frogs, lizards, snakes, and turtles are present in great numbers. The dorado, a fine game fish, is found in larger streams, and the pejerrey, corvina, palameta, pacu, and zurubi abound in the rivers.

Spanish cattle on the pampas multiplied to such an extent that the role of wild cattle herds in Argentine history was the same as that of the buffalo herds in the US West. Argentina is richly endowed with fossil remains of dinosaurs and other creatures.

ENVIRONMENT

The principal environmental responsibilities are vested in the Ministry of Public Health and the Environment; the Subsecretariat of Environmental Planning in the Ministry of Transportation and Public Works; and the Subsecretariat of Renewable Natural Resources and Ecology within the Secretariat of State for Agriculture and Livestock. In 1977, the Metropolitan Area Ecological Belt State Enterprise was created to lay out a 150-km (93-mi) greenbelt around Buenos Aires, with controls on emission and effluents as well as on building density.

The major environmental issues in Argentina are pollution and the loss of agricultural lands. The soil is threatened by erosion, salinization, and deforestation. Air pollution is also a problem due to chemical agents from industrial sources. The water supply is threatened by uncontrolled dumping of pesticides, hydrocarbons, and heavy metals. Argentina has a renewable water supply of 276 cu km. In 2002, some 97% of all city dwellers and over 70% of rural dwellers had access to improved water sources.

In 2000, about 12.7% of the land area contained forest and woodland. In 2003, about 6.6% of the total land area was protected. Argentina has four natural UNESCO World Heritage Sites: Los Glaciares, Iguazu National Park, Peninsula Valdes, and Ischigualasto/Talampaya National Parks. There are 14 sites designated as Ramsar Wetlands of International Importance.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 32 types of mammals, 55 species of birds, 5 types of reptiles, 30 species of amphibian, 12 species of fish, and 42 species of plants. Endangered species in Argentina include the ruddy-headed goose, Argentinean pampas deer, South Andean huemul, Puna rhea, tundra peregrine falcon, black-fronted piping guan, glaucous macaw, spectacled caiman, the broad-nosed caiman, Lear's macaw, the guayaquil great green macaw, and the American crocodile.

POPULATION

The population of Argentina in 2005 was estimated by the United Nations (UN) at 38,592,000, which placed it at number 31 in population among the 193 nations of the world. In 2005, approximately 10% of the population was over 65 years of age, with another 27% of the population under 15 years of age. There were 96 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–2010 was expected to be 1.1%, a rate the government viewed as satisfactory, although reducing fertility among adolescents was a government priority. The projected population for the year 2025 was 46,424,000. The population density was 14 per sq km (36 per sq mi).

The UN estimated that 89% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 1.25%. More than one-third of all Argentines live in or around Buenos Aires, the capital city, which had a population of 13,047,000 in 2005. Other estimated metropolitan area populations in 2000 were Córdoba, 1,592,000; Rosario, 1,312,000; Mendoza, 988,600; La Plata, 838,600; and San Miguel de Tucumán, 837,000.

The majority of the population descends from early Spanish or Italian immigrants. Approximately 10% of the people are of indigenous Indian or mestizo descent.

MIGRATION

Migration to Argentina from Spain and Italy has been heavy in the past. Under the rule of Juan Domingo Perón (1946–1955), immigration was restricted to white persons, exceptions being made for relatives of nonwhites (Japanese and others) already resident. More recently, immigrants from across the border in Paraguay have numbered at least 600,000; Bolivia, 500,000; Chile, 400,000; Uruguay, 150,000; and Brazil, 100,000. Some 300,000 illegal aliens were granted amnesty in 1992. Foreigners, on application, may become Argentine citizens after two years' residence. A total of 16,738 were naturalized in 1991, of which 13,770 were from other American countries. In 2000, Argentina's refugee population was estimated at 2,400. Few Argentines emigrated until the 1970s, when a "brain drain" of professionals and technicians began to develop. In the mid-1980s, some 10,000 of the estimated 60,000 to 80,000 political exiles returned home.

Of much greater significance to Argentina has been the tendency for workers in rural areas to throng to the cities. This had particular political and economic overtones during the Perón regime. Perón's encouragement of workers to move to Buenos Aires and surrounding industrial areas drained rural areas of so many persons that agriculture and livestock raising, the base of Argentina's wealth, suffered severely. Moreover, the inability of the economy to absorb all of the new urban masses led to a host of economic and social problems that still besiege the nation in the 21st century. Both the federal government and provincial governments have since vainly entreated aged workers to return to rural areas.

There has been a significant increase in asylum claims in recent years, beginning in the latter half of the 1990s. As of the end of 2004, there were 3,910 refugees and asylum seekers. Of the 990 asylum seekers, 428 received counseling and assistance from the United Nations High Commissioner for Refugees (UNHCR). Most asylum seekers were from neighboring countries, but there were also more than 30 other nationalities from Latin America, Eastern Europe, Africa, and Asia. In 2005 estimates were that there were 0.4 migrants per 1,000 population.

ETHNIC GROUPS

Argentina's population is overwhelmingly European in origin (principally from Spain and Italy); there is little mixture of indigenous peoples. An estimated 97% of the people are of European extraction and 3% are mestizo, Amerindian, or of other nonwhite groups. The pure Amerindian population has been increasing slightly through immigration from Bolivia and Paraguay.

LANGUAGES

The national language of Argentina is Spanish. Argentine Spanish has diverged in many ways from Castilian, showing the effects of the vast influx of foreigners into Buenos Aires, as well as of Spaniards from Andalucía, Galicia, and the Basque provinces. First- and second-generation Italians have added their touch to the language, and French settlers have contributed many Gallicisms.

The outstanding phonetic feature of Argentine Spanish is the yeísmo, in which the ll and y are pronounced like the z in azure. The meaning of many Castilian words also has been modified. The Porteños, as the inhabitants of Buenos Aires are called, rely heavily upon a variety of intonations to express shades of meaning.

English has become increasingly popular as a second language, especially in metropolitan areas and in the business and professional community. There are pockets of Italian, French, and German immigrants speaking their native languages. Some Amerindian languages are still spoken, including a version of Tehuelche in the pampas and Patagonia, Guaraní in Misiones Province, and Quechua in some parts of the Jujuy and Salta provinces.

RELIGIONS

Statistics submitted by nongovernmental organizations in 2001 indicate that the Roman Catholics continue to claim the largest number of members, at about 88% of the population. Protestants accounted for about 7% of the population. About 1.5% of the population are Muslims and about 1% are Jewish. These statistics, however, simply refer to reported membership and do not indicate active religious practice.

Argentina retains national patronage, a form of the old Spanish royal patronage, over the Roman Catholic Church. Under this system, bishops are appointed by the president of the republic from a panel of three submitted by the Senate; papal bulls and decrees must be proclaimed by the president and sometimes must be incorporated into an act of the Congress. The government also provides the Catholic Church with certain subsidies. However, the constitution does provide for freedom of religion and the government encourages tolerance and understanding between social and religious groups.

The Secretariat of Worship in the Ministry of Foreign Affairs, International Trade, and Worship is responsible for overseeing relations between religious organizations and the government. According to the National Registry kept by the secretariat, there are about 2,800 religious organizations in the country representing about 30 different religious denominations or groups. Certain Catholic holidays are officially observed; however, the law allows for up to three days of paid leave for those observing Jewish or Islamic holidays. Associations that promote interdenominational understanding and cooperation include the Argentine Jewish-Christian Brotherhood (an affiliate of the International Council of Christians and Jews), the Argentine Council for Religious Freedom, the Foundation for Education and Peace, and the Federation of Arab Entities.

Some members of non-Catholic faiths have reported discrimination in employment through the military and the federal ministries, but these reports have not been substantially verified. Anti-Semitic and anti-Muslim attitudes have surfaced in some social circles, but a number of nongovernmental ecumenical groups are working toward greater levels of understanding and acceptance through all faiths.

TRANSPORTATION

Argentina has the largest railway system in South America, with 34,091 km (21,204 mi) of track (167 km electrified) as of 2004. Although railroads link all the provinces, the three provinces of Buenos Aires, Córdoba, and Santa Fe contain about one-half the total track and are the destinations of about two-thirds of all goods carried. The seven major railroads and all other lines belong to the state and are administered by Argentine Railways. Until 1947, when Perón bought them at a price exceeding their real value, the railroads were mainly under the control of British interests. Since then, they have been in decline and have regularly run up large deficits. A major problem is that the railway system uses three incompatible track gauges (standard: 1.435-m; broad: 1.676-m; and narrow: 1.000-m and 0.750-m), which severely restricts system interoperability, and forces virtually all interregional freight traffic to pass through Buenos Aires. The railroads' share of merchandise transported has declined steadily since 1946.

A five-year railroad modernization and rationalization plan was initiated by the military government in 1976, but the general decline of the railway system was not halted, and the number of passengers carried dropped from 445 million in 1976 to about 300 million in 1991. The subway system in Buenos Aires, completely state-owned since 1978, consists of five lines totaling 36 km (22 mi).

The continued deterioration of the railroads has resulted in a sharply increased demand for road transportation, which the present highways cannot handle. By 2001, the nation had 215,434 km (133,871 mi) of roads, of which 63,553 km (39,492 mi) were paved. In late 1969, a tunnel under the Río Paraná was opened, connecting Santa Fe with the nation's eastern region. The road system is still far from adequate, especially in view of Argentina's rapidly increasing automotive industry. In 2003, the total number of registered vehicles reached 6,873,000, including 5,380,000 passenger cars and 1,493,000 commercial vehicles.

The main river system of Argentina consists of the Río de la Plata and its tributaries, the Paraná, Uruguay, Paraguay, and Alto Paraná rivers. There is a total of 10,950 km (6,800 mi) of navigable waterways, offering vast possibilities for efficient water transportation. The river system reaches Paraguay, northeastern Argentina, and regions of Brazil and Uruguay. The La Plata estuary, with its approaches and navigation channels, is the basis of the entire river system. The La Plata ports (Buenos Aires and La Plata) account for more than half of all maritime cargo, including more than two-thirds of all cargo transported on the river system. The Paraná is easily navigable up to Rosario, but the 171-km (106-mi) stretch between Rosario and Santa Fe has considerably less depth and is less suitable for oceangoing vessels. Up-river from Santa Fe, the Paraná rapidly loses depth and is navigable only by small ships.

The port of Buenos Aires handles about four-fifths of the country's imports and exports, and it is the focus of river traffic on the La Plata system. Other major ports are Rosario, Quequén, Bahía Blanca, Campana, and San Nicolás. Most port storage facilities are owned and operated by the government. In 1961, the State Merchant Fleet and the Argentine Overseas Navigation Fleet were merged to form the Argentine Maritime Lines. This state company carries approximately one-half of all Argentine overseas freight. In 2005, the merchant marine consisted of 26 vessels with a total GRT of 149,007.

Buenos Aires is the most important air terminal in South America. The four principal airports include Aeroparque and Ezeiza, both at Buenos Aires, Catarata Iguazu at Iguazu, and El Plumerillo at Mendoza. In 2004, there were an estimated 1,334 airports and landing fields, of which only 144 had paved runways as of 2005. The government line is Aerolíneas Argentinas. However, there are other major Argentine airlines and many foreign lines operating in the country. In 2003, the total scheduled civil aviation services flew 113 million freight ton-km and carried 6.03 million passengers on domestic and international flights.

HISTORY

Before the Spaniards arrived, about 20 Amerindian groups comprising some 300,000 people lived in the region now called Argentina. They were mainly nomadic hunter-gatherers, although the Guardant practiced slash-and-burn agriculture.

Spaniards arrived in Argentina in 1516. They called the region "La Plata" (literally "silver") under the mistaken impression that it was rich in silver. Colonists from Chile, Peru, and Asunción (in present-day Paraguay) created the first permanent Spanish settlements in Argentina, including Buenos Aires in 1580. In 1776, Río de la Plata became a vice-royalty, with Buenos Aires as the main port and administrative center.

During the early colonial period, there was little interest in Argentina. The region had no mineral wealth, and Spaniards overlooked the fertile soil and temperate climate of the region. As a result, Buenos Aires had a population of only about 25,000 at the time of the viceroy's arrival. The Spaniards could not afford to ignore Buenos Aires by the late 1700s, when the city was growing rapidly thanks to illegal trade financed by British interests. Goods were smuggled to Brazil and the Caribbean Islands. Spain worried about British and Portuguese expansion and sought to control trade and collect more taxes from the growing commerce.

In May 1810, following the example set by Spanish cities after the capture of King Ferdinand VII by the French, Buenos Aires held an open town meeting (Cabildo Abierto). A junta was elected, which deposed the viceroy and declared itself in authority. On 9 July 1816, a congress of provincial delegates in San Miguel de Tucumán signed a declaration of independence, and in 1817, Gen. José de San Martín led an army across the Andes to liberate Chile and Peru.

After independence, Buenos Aires was a major force in the region, and strongmen (caudillos) from the surrounding provinces attempted to curb its power. The internal power struggle lasted until Juan Manuel de Rosas became governor of Buenos Aires Province. He imposed order and centralism from 1835 until 1852, when the forces of Gen. Justo José de Urquiza defeated him. A new constitution was adopted in 1853, and Urquiza was elected president in 1854. The struggle for power between Buenos Aires, the hub of commercial activity for the country, and the provinces that provided the raw materials, continued through the late 1800s. It was not until 1880, when the city was named the federal capital, that regional peace was achieved. By then, Argentina was becoming a modern nation, with new railroads and roads under construction. Thousands of European immigrants flocked to the country each year looking for a better life. Buenos Aires alone grew from 90,000 people in 1851 to 1.3 million by 1910, when the city was called the "Paris of South America."

Social conflicts always had been part of Argentina's history, but they intensified during the late 19th century as the gap between the wealthy classes and the poor widened. The National Party, under the leadership of Gen. Julio Roca (who served two terms as president, 1880–86 and 1898–1904) and supported by the military and landowners, dominated the nation. To combat this powerful coalition, a middle-class party called the Radical Civic Union (Unión Cívica Radical) was formed. The Radicals stressed democratic practices and attempted to expand the political system beyond its elite-restricted boundaries. The Radicals' efforts came to fruition in 1916, when Hipólito Yrigoyen was elected president for a six-year term. But little changed for the working classes. Most workers could barely afford to feed their families during this time, despite the tremendous affluence of the upper class. Workers who sought to improve their working conditions were suppressed. A violent army attack against striking metalworkers in 1919 came to be known as "La Semana Trágica" (The Tragic Week). Yrigoyen sat out for a term, and was reelected president in 1928, but he did not last long. An economic crisis precipitated by the world depression led to a military coup in 1930.

For the next 13 years, Argentina was ruled by the old conservative oligarchy. The military-landowner alliance brought both economic recovery and political corruption, as well as the exacerbation of social tensions. Particularly divisive was the matter of Argentina's foreign relations. While opening Argentina to trade with Europe improved the economic picture, many felt that the leadership had sold out to foreign interests. Argentina's careful neutrality toward the Axis powers masked considerable Fascist sympathies, further dividing the nation.

Another military coup in 1943 brought to power an even more Axis-sympathetic group but also launched a new era in Argentine politics. Argentina had undergone an industrial expansion, accelerated by the war. This expansion led to the formation of a large blue-collar workforce, which in 1943 came under the direction of the military head of the Labor Department, Col. Juan Domingo Perón. Perón used his new constituency to build a power base that allowed him in 1946 to be elected president, while his supporters won majorities in both houses of congress. Perón, it was later reported, allowed many Nazi German leaders to hide in Argentina.

Perón made sweeping political, economic, and social changes. His ideology was an unusual blend of populism, authoritarianism, industrialism, and nationalism. His strong personal appeal was buttressed by the charm of his wife Eva ("Evita"), a woman of modest upbringing who captivated the masses with her work on behalf of the poor. Peronist rhetoric stressed the rights of descamisados (literally "shirtless"), the poor of Argentina.

Perón sought to establish a foreign policy that allied Argentina with neither the West nor East, while acting as protector of weaker Latin American nations against US and British "imperialists." He coined a new word to describe his approach—justicialismo (roughly translated as "essence of justice." After reelection in 1951, Perón became increasingly dictatorial and erratic, especially after the death of Evita a year later. Economic hardship led to reversals in policy that favored the old oligarchy. Newspapers were shut down and harassed. Perón legalized divorce and prostitution, and began to incite violence against churches. Finally, a military group took over in September 1955.

For the next 20 years, Argentina felt the shadow of Perón. From exile in Spain, Perón held a separate veto power. Under the military's watchful eye, a succession of governments attempted unsuccessfully to create a new political order.

The first of these efforts came from Gen. Pedro Eugenio Aramburu, who repressed Perón's followers and declared their party illegal. After two years of provisional government, elections were held. Rival factions of the old Radical Civic Union competed in a contest won by Arturo Frondizi of the more left-leaning UCRI. With the initial support of the Peronistas, Frondizi attempted to balance that support with the military, which grew nervous at the mention of Peronism. Frondizi curbed inflation through an austerity program and increased Argentina's petroleum production by extending concessions to foreign companies. These economic measures helped increase political tensions, and in the elections of 1961 and 1962, Peronist candidates, running under the banner of the Justicialist Front (Frente Justicialista), won sweeping victories. A military junta removed Frondizi from the presidency in March 1962 and annulled the elections, thus denying governorships to the supporters of Perón. Divisions among the military leaders kept the nation in a state of tension until mid-1964, when new elections were held. Dr. Arturo Illía of the rightist UCRP won the presidency. Illía's administration was beset by rising government debt, inflation, labor unrest, and political agitation, but was most seriously threatened by the military. The chief of the armed forces, Lt. Gen. Juan Carlos Onganía resigned in November 1965, after Illía appointed a Peronist sympathizer as war minister.

In June 1966, following election victories by the Peronist faction, the military leaders installed Onganía as President. Onganía dissolved the nation's legislative bodies and suspended the constitution. Onganía announced a revolutionary program to restore economic prosperity and social stability, saying that only after this restoration would the democratic system be reestablished. Inflation was cut by means of rigid wage controls, and by the end of 1969, the economy was growing at a rate of 7% annually. His economic policies were overshadowed, however, by growing political tension. With the help of the military, strict controls were imposed on the press and all means of mass communication. Students led in denouncing these repressive policies, and in the early months of 1969, violence erupted in Córdoba and Rosario.

Dissatisfaction mounted early in 1970, and acts of terrorism increased. Several groups were active, some of which claimed to be Peronist, others Marxist, still others claiming to be both. The most serious incident was the kidnapping and killing of former President Aramburu by a Peronist group. Although President Onganía stiffened in response to the disorder, it was becoming clear that Argentina would never be stabilized without the participation of the Peronists. For his part, Perón encouraged these groups from abroad.

In June 1970, a junta of high-ranking military officers removed Onganía, and began to move toward democratic reform. Under two ensuing military governments, preparations were made for elections that would include the Peronists, now organized as the Justicialist Liberation Front (FREJULI). In general elections held in March 1973, the winner was Dr. Héctor J. Cámpora, whose un-official slogan was "Cámpora to the presidency; Perón to power." Cámpora was elected president with 49% of the vote, while FREJULI won a congressional majority and 11 of the 22 provincial governorships. However, Cámpora, who assumed office in May 1973, was no better able than his predecessors to cope with a rising tide of terrorism, much of it from extreme Peronist factions. After a consultation with Perón in Madrid, Cámpora announced his resignation, effective in July.

Perón, who had returned to Argentina in June 1973, ran for the presidency and took 61.9% of the vote in a special election in September. His running mate was his third wife, María Estela ("Isabel") Martínez de Perón, a former exotic dancer. There was no magic left in the elderly Perón. He cracked down on the very terrorist groups he had encouraged, but the economy sagged. When he died in July 1974, his widow succeeded to the presidency.

Isabel had none of Evita's appeal, and her administration plunged Argentina more deeply into chaos. The first year of Isabel Perón's regime was marked by political instability, runaway inflation, and a renewal of guerrilla violence. In September 1975, Perón vacated her office for 34 days, ostensibly because of ill health. During her absence, the military strengthened its position. In March 1976, she was arrested in a bloodless coup, and a military junta consisting of the commanders of the army, navy, and air force took over. The leading member of the junta was Army Commander Lt. Gen. Jorge Rafael Videla, who became president.

The junta dissolved congress, suspended political and trade union activity, and mounted a concerted campaign against leftist guerrillas. For seven years, the military attempted to "purify" Argentina by imprisoning, torturing, and executing leftists, Peronists, trade unionists, and members of other political parties deemed divisive. Military officers also kidnapped the babies of the "disappeared" and gave them to officers or released them to adoption agencies. Meanwhile, they attempted a complete liberalization of the economy, including the privatization of banking and industry. However, the military was never able to solve the problem of inflation, which remained in triple digits for most of this period.

In March 1981, Gen. Roberto Viola succeeded Videla as president, and in December, Lt. Gen. Leopoldo Galtieri took over. Troubled by economic woes and lacking any political support from the general populace, the military turned to foreign affairs in an attempt to gain support. In April 1982, Argentina invaded the Falkland Islands, claiming sovereignty over them, but in the ensuing war with the United Kingdom, Argentina's armed forces were routed, surrendering in June. The defeat led to Galtieri's resignation, and a new junta was formed in July under Maj. Gen. Reynaldo Benito Antonio Bignone. Liberalization measures during the remainder of 1982 led to strikes and antigovernment demonstrations, including a one-day general strike in December in which 90% of the work force reportedly took part. In addition to demands for a return to civilian rule, more and more Argentines demanded to know the fate of at least 10,000—and perhaps as many as 30,000—persons who had "disappeared" during what came to be known as the "dirty war" of 1976–83. Official government figures for the "disappeared" stand at 10,000, but human rights groups believe it is much higher.

In elections for a civilian president held in October 1983, the upset winner was a human rights activist from the People's Radical Civic Union (Unión Cívica Radical del Pueblo—UCRP), Dr. Raúl Alfonsín. After taking office in December, Alfonsín called for a new inquiry into the "disappearances" and ordered the prosecution of former junta members. In December 1985, five were convicted, including Lt. Gen. Videla. The legacy of the "dirty war" preoccupied the Alfonsín government. The president saw the need to close the 50-year cycle of military intervention and political instability by building a stable democracy. However, the political reality of Argentina could not be changed by wishes. The human rights trials of leading military officers irked the military, and in April 1987, an abortive military uprising spread to a number of bases. Although Alfonsín refused to yield to the rebels, he soon afterward retreated from his position, getting approval from congress for a law that would limit the trials to a few superior officers, thereby accepting the defense of "taking orders" for the lower-ranking officers.

The Alfonsín administration also acted to halt rampant inflation with the "Austral Plan" of mid-1985, which froze wages and prices and created a new unit of currency, the austral, to replace the beleaguered peso. The initial success of the plan was weakened by a resurgence of inflation and labor intransigence over wage demands. With the failure of the Alfonsín administration to stabilize the economy or bring military leaders to justice, Argentines sought change from an old source: the Peronists. In May 1989, Carlos Saul Menem, running under the Justicialist banner, was elected with 47% of the popular vote. Because the Alfonsín government was in such dire straits, the president resigned in July and Menem was immediately installed. This was Argentina's first transfer of power between democratically elected leaders in more than 60 years.

Menem abandoned his party's traditional support of state enterprises; he cut government spending and generally liberalized the Argentine economy. He also pardoned and released top military leaders involved in human rights violations. In May 1995 after he successfully changed the constitution, following a first term marked by economic success and political stability, Menem was reelected to a second four-year term. He weathered Argentina's 1995–96 economic recession with the aid of Domingo Cavallo, the minister of economics and architect of the anti-inflation plan. Despite the economic successes, many Argentineans grew tired of Menem and alleged corruption in his administration. Menem also could not keep his private "playboy" life apart from politics, and began showing the traits of a caudillo by pressing for changes to the constitution so he could run for a third term in 1999. His bitter party rival and critic, Eduardo Duhalde, prevailed and represented the Justicialists in the 1999 presidential election. For Duhalde, a downturn in the economy came at a bad time. In 1999, Argentina entered a recession and saw its GDP decline by 3%. Unemployment reached 14%. Menem didn't help his party's cause. He seemed more intent in undermining Duhalde, while actively campaigning for a third term in 2003.

In the meantime, Fernando de la Rúa Bruno, the mayor of Buenos Aires, had balanced the city's budget and even managed to increase and improve services. A leader of the Unión Cívica Radical, de la Rúa aligned his party with a new political movement called Front for a Country in Solidarity (FREPASO), an amalgamation of several center-left parties. De la Rúa's conservatism and successes in Buenos Aires got the attention of voters. He provided a sharp contrast to the excesses of the bon vivant Menem. A serious president would take the country's problems seriously, his aides stressed. The campaign worked. In October 1999, voters gave de la Rúa 48.5% of the vote. Duhalde received 38.1%.

After taking office, de la Rúa declared a national economic emergency. By March 2000, he had pushed through Congress a new budget that sliced in half the fiscal deficit and new laws to weaken the bargaining power of unions. While the Alianza held on to a slim majority in the lower Chamber of Deputies, the Senate remained under Justicialist control. Partially because of his inability to restrict spending by provincial governors and because he had little maneuvering space to adopt policies that could stimulate growth, de la Rúa could not overcome the economic crisis and the government was eventually forced to devalue the national currency. Social and political chaos ensued with the economy going into its worst recession in decades. After his party lost the mid-term elections in 2001, President de la Rúa popularity continued to fall and the economic situation became unbearable. After protests turned violent in Buenos Aires in December 2001, looting and chaos erupted, followed by police repression. De la Rúa was forced to resign. After a few weeks of political instability, the Senate chose Eduardo Duhalde, who had been elected to the Senate in the 2001 midterm election, as a temporary president. Duhalde governed until May 2003, when Néstor Kirchner, elected in April, was inaugurated president. Although former president Carlos Menem obtained the plurality of votes in the first round among a handful of other presidential candidates, the former president withdrew less than a week before the runoff when it became clear that Kirchner, who came in second with 22% of the vote, would win by a landslide. Kirchner was a little-known governor from the southern province of Santa Cruz, but he successfully captured the growing anti-Menem sentiment. In addition, Kirchner was widely seen as Duhalde's favorite and many expected him to carry on Duhalde's policies.

In the end, the 2003 presidential election turned out to be a contest between the two Perónist rivals, Menem and Duhalde. Although Duhalde's candidate became president, Menem's withdrawal prevented Kirchner from winning a majority of votes in the runoff election. With his legitimacy weakened and his independence of Duhalde under doubt, Kirchner became president of a country in the midst of an economic, social and political crisis. The economy shrank by 14% in 2002 and official unemployment remained at 25%. With a mounting foreign debt and financial obligations to foreign lenders difficult to meet, President Kirchner opted for a radical economic reform package. Argentina opted to default on its foreign debt and called on creditors to renegotiate on terms much more convenient to Argentina's interest. In the end, Kirchner got away with his initiative and successfully lowered Argentina's foreign debt by renegotiating it. Disappointed creditors were forced to choose partial payment or no payment at all. Although the move made Kirchner very popular domestically, Argentina's credit abroad was severely hurt. Almost no foreign investment has entered Argentina since the country defaulted on its past debt.

Yet, because Argentina's exports had been strong and because the country continued to rely on a weak national currency to make its exports more competitive, the economy grew rapidly under Kirchner's administration. The economic recovery, deemed as unsustainable in the long term by many economists, was sufficiently strong to reduce unemployment and improve the president's approval ratings. Kirchner and the Peronist Party went on to win an absolute majority in congress in the 2005 mid-term legislative elections. Kirchner's wife, Cristina Fernández (Cristina Kirchner) won a Senate seat representing the province of Buenos Aires, the most populous in the country. Her victory over Duhalde's wife highlighted the absolute control the Kirchner political machine exerted over the Peronist Party.

Although the economy continued to do well relying on strong exports, some signs of inflationary pressures emerged in early 2005. Price control schemes and a more active intervention in the economy by the central government underlined Kirchner's strong mistrust of free trade policies. The president's decision to attract foreign investment from Venezuela's Hugo Chávez government put Argentina at odds with the United States. But the strong nationalist discourse by the Argentine leader helped boost his popularity at home. Whether or not Kirchner would run for reelection or step down in favor of his wife Cristina was undecided as of mid-2006, but either way, it was felt that the Kirchners were likely to remain in power after the 2007 presidential elections.

GOVERNMENT

Argentina's government is ruled by its 1853 constitution, although that document has been suspended many times. The basic structure is federal and republican. In 1949, the Perón government adopted a new constitution, but the subsequent military government expunged that document. Some modifications in the original constitution were subsequently made by a constituent assembly that met in October 1957. In July 1962, a system of proportional representation was adopted.

The constitution provides for a federal union of provinces that retain all powers not specifically delegated to the federal government by the constitution. There is a separation of powers among the executive, legislative, and judicial branches, but the president is powerful within this arrangement. The president can draw up and introduce his own bills in Congress, appoint cabinet members and other officials without the consent of the Senate, and possesses broad powers to declare a state of siege and suspend the constitution. The president is commander-in-chief of the army, navy, and air force and appoints all major civil, military, naval, and judicial offices, with the approval of the Senate in certain cases. The president is also responsible, with the cabinet, for the acts of the executive branch and has the right of patronage (control over appointments) in regard to bishoprics. The president and vice president are directly elected for a four-year term and cannot be reelected beyond a second consecutive term. They or their parents must be native-born citizens. Voting is compulsory for all citizens 18 to 70 years of age.

The constitution calls for a National Congress consisting of a Senate and a Chamber of Deputies. The 72 senators are directly elected, 3 from each of the 23 provinces and the Federal District of Buenos Aires. The term of office is set at six years, with staggered elections every three years for one-third of the membership. The Chamber of Deputies is the result of direct elections for 257 seats. Seats are allocated to each province in proportion to its population, but less populated provinces are over-represented. The deputies' term of office is four years, with one-half of the membership being elected every two years. The Chamber of Deputies is authorized to receive the budget and initiate fiscal legislation and has the exclusive right to impeach officials before the Senate.

The most recent suspensions of the constitution were between 1966 and 1973, and then again from 1976 until 1983. During the most recent suspension, a military junta performed the executive, legislative, and judicial functions. Since the resumption of civilian government in 1983, there has been an uneasy relationship between the military and the government. The controversial trials of military leaders led to serious questions about the credibility of the judiciary and mild sentences for the accused. Revisions to the constitution were approved in August 1994. During political crisis of the late 1990s, the military was unwilling to step back into political life signaling a consolidation of democracy and civilian rule in Argentina.

POLITICAL PARTIES

Political party activity in Argentina has been sporadic, given the frequency of military takeovers and the many years during which parties have been banned. Still, several parties reformed in the 1980s and continued to be active in the 1990s and into the 21st century.

Traditionally, the alignment of Argentine political parties has been along socioeconomic and religious lines. The landowners, the high clergy, and the more conservative lower class supporters have formed an alliance that defends the church and the status quo. On the other side have been the advocates of change: merchants and professionals who resent the preeminence of the aristocracy and who tend also to be anticlerical. This second group has supported separation of church and state and decentralization. However, in modern times, new parties have emerged to represent the working class, small farmers, and intellectuals.

During the first half of the 20th century, the Radical Party in Argentina was either the governing party or the chief opposition. The Radicals were committed to the expansion of Argentine politics to the middle and lower classes, and a transformation of the nation's economic and social life. This party was as close to a mass-based party as Argentina had ever had. The core was middle class, but the party was also supported by upper- and lower-class elements. Only radical by the standards of Argentine politics, it occupied a middle ground between the Conservatives and the Socialist left. However, with a heterogeneous membership, tensions and schisms were frequent. The party split into the Radical Intransigent Civic Union (Unión Cívica Radical Intransigente—UCRI), which formed the major support for Arturo Frondizi in 1958, and the People's Radical Civic Union (Unión Cívica Radical del Pueblo—UCRP), led by Ricardo Balbín. The UCRP was somewhat more nationalistic and doctrinaire than the UCRI, but shifting policies made the differences difficult to define. Balbín's party survived into the 1980s as the Radical Civic Union (Unión Cívica Radical—UCR). After the military stepped down in 1983, that party was one of the few viable political entities in Argentina, and emerged victorious in the 1983 elections. However, with the failure of the Alfonsín administration, the UCR found itself again in its old role as loyal opposition. The UCR regained the presidency in 1999 with de la Rúa, but his dismal performance and his early departure sent the UCR into its worst crisis in history. In the 2003 presidential election, the UCR official candidate only captured 2.3% of the vote. In the 2005 mid-term elections, the UCR recovered somewhat, but it remained far below its historic strength.

The Conservatives dominated Argentine politics from about 1874 to 1916 and again from 1932 to 1945 when they were known as the National Democrats. This era of Argentine politics was known as the "Concordancia." The Conservatives were the chief spokesmen for the landed interests, from whom they drew their main support. During the Perón regime, the right lost most of its influence. In 1958, conservative parties banded together to form the National Federation of Parties of the Center (Federación Nacional de Partidos del Centro). Years of military rule in the name of conservatism yielded no mass-based conservative parties, mainly because the military professed a disdain for partisan politics. Currently, there are several small right-wing parties, the largest of which is the Union of the Democratic Center (UCD).

Although leftism in Argentina has a long tradition, it was dealt a serious blow during the 1976–83 military governments. Those governments were committed to the extermination of all leftist influences. This meant the jailing and "disappearance" of leaders of the socialist and communist movements. In addition, Peronism preempted much of the ideological appeal of these parties, as well as their traditional working-class constituencies. The earliest leftist party was the Communist Party, founded in 1918 by Juan B. Justo, who split from Yrigoyen and the Radicals. The Communists were never terribly revolutionary, but concentrated instead on the trade union movement. In the 1970s, Argentine leftism was thrown into confusion by the appearance of several substantial "urban guerrilla" movements. The Trotskyist People's Revolutionary Army (Ejército Revolucionario del Pueblo—ERP), the Montoneros, and the Peronist Armed Forces (FAP), among others, became major players on the Argentine political scene, if only because of the dramatic impact of their actions. Their presence may well have hastened the return of Perón in 1974, but their persistence became a major justification for the military repression that followed. Refusing to make any distinction between a leftist and a terrorist, the government decimated the Argentine left.

Peronism defies political classification, and it was still alive in Argentina in the early 2000s. Peronism went underground for nearly two decades after the coup of 1955. Operating under the names Popular Union Party, Populist Party, and Laborite Party, a variety of Peronist organizations put up candidates wherever possible. The movement was alternately wooed, tolerated, or repressed, depending on the degree to which the military was involved. In 1973, elections were held in which the Peronists were allowed to field a candidate, Hector J. Cámpora, representing a coalition of various Peronist factions and other smaller parties. This coalition, the Justice Liberation Front (Frente Justicialista de Liberación—FREJULI), took 49% of the vote. Under Cámpora's successors, Juan Perón and Isabel Perón, FREJULI remained the governing coalition until the March 1976 coup, after which political activity was suspended until 1980. A "reform" movement led to infighting that crippled the party in the 1983 elections.

In 1989, Carlos Menem's victory was accompanied by solid legislative majorities in both houses of the legislature. The Justicialist Party (JP) had 122 seats in the Chamber of Deputies and 27 seats in the Senate. In the elections of May 1995, the party took 132 of a total 257 seats in the Chamber of Deputies, and 38 of a total 72 Senate seats. In 1999, the JP suffered a set back in the Chamber, but retained control of the Senate. In 2001, the JP regained seats in the Chamber reaching a total of 116 and increased its hold of the Senate where it controlled 66 seats, two short of a majority. In the 2003 and 2005 parliamentary elections, the Peronistas remained the dominant party in both chambers. Yet, in 2005, Kirchner created an alternative Peronist party (the Front for Victory) that won about one-third of the seats up for election. President Kirchner commanded the loyalty of the large majority of all the Peronist factions that won seats in Congress in 2005.

Argentina's party politics have been contentious and vicious over the years, with various sides coalescing in order to defeat rivals. One notable exception was the formation in July 1981 of the Multipartidaria, an alliance among Argentina's five leading parties—FREJULI, the UCR, the Democratic Christian Federation (Federación Demócrata Cristiana), the Movement for Integration and Development (Movimiento de Integración y Desarrollo—MID), and the Intransigent Party (Partido Intransigente). Claiming the support of about 80% of the voters, this opposition alliance began to negotiate with the military concerning a return to constitutional government, and in July 1982, political parties were formally permitted to resume their activities.

In April 1994, the Front for a Country of Solidarity (Frente del País Solidario or Frepaso) was formed. A center-left group, it has won widespread middle-class support by campaigning against government corruption. It defeated the UCR for second place in the 1995 legislative elections when it gained a representation in the Chamber of Deputies of 29 members. In 1999, Frepaso joined the UCR to create the Alianza (alliance) to elect UCR candidate Fernando de la Rúa. He was elected with 48.5% and assumed the presidency in December. The Alianza has a slim majority in the lower house of Congress, but the Justicialists remain in control of the Senate. The Alianza proved to be short-lived. With the resignation of Vice President Carlos Álvarez in 2000, the Alianza fell apart. With de la Rúa resignation in 2001, a new leftwing movement emerged led by former Radical Party deputy Elisa Carrió. Her Alternative for a Republic of Equals (ARI) won 8 seats in the Senate and 17 seats in the Chamber in 2001 and Carrió placed fourth in the 2003 presidential election. It remains to be seen if ARI will remain a political party beyond the parliamentary elections scheduled for October 2003.

Despite the political and social crisis, the Peronista and Radical parties continue to dominate Argentinean politics. In the 2001 midterm election, the Peronistas regained ground in the Chamber and Senate. De la Rúa's demise dealt a severe blow to the Radical Party. In the 2003 presidential election, the Radical Party candidate obtained fewer than 3% of the vote, but two formerly Radical Party militants running as an independent and in a leftist coalition collected more than 30%. The Peronist party also faced the 2003 election in the midst of a division. The three Peronist presidential candidates obtained more than 50% of the vote combined, showing that party's continuous domination of Argentine politics.

LOCAL GOVERNMENT

Argentina is a federation of 23 provinces and the federal capital of Buenos Aires. During the 19th century there was a bitter struggle between Buenos Aires and the interior provinces, and there has long been an element of tension regarding the division of powers between the central government and provincial bodies. The federal government retains control over such matters as the regulation of commerce, customs collections, currency, civil or commercial codes, or the appointment of foreign agents. The provincial governors are elected every four years.

The constitutional "national intervention" and "state of siege" powers of the president have been invoked frequently. The first of these powers was designed to "guarantee the republican form of government in the provinces." Since the adoption of the 1853 constitution, the federal government has intervened over 200 times, mostly by presidential decree. Under this authority, provincial and municipal offices may be declared vacant, appointments annulled, and local elections supervised. Between 1966 and 1973, all local legislatures were dissolved and provincial governors were appointed by the new president. A restoration of provincial and municipal government followed the return to constitutional government in 1973. After the March 1976 coup, the federal government again intervened to remove all provincial governors and impose direct military rule over all municipalities. Since 1983, representative local government has been in force again.

Until 1996, the president appointed the mayor of Buenos Aires, and by law, the president and congress controlled any legislation that affected the city. Constitutional reforms that year led to an elected mayoral position, and a 60-member Poder Legislativo (legislative power). The members are elected by proportional representation to four-year terms.

JUDICIAL SYSTEM

Justice is administered by both federal and provincial courts. The former deal only with cases of a national character or those to which different provinces or inhabitants of different provinces are parties. The Supreme Court, which supervises and regulates all other federal courts, is composed of nine members nominated by the president and confirmed by the Senate. Other federal courts include nine appellate courts, with three judges for each; single-judge district courts, at least one for each province; and one-judge territorial courts. The federal courts may not decide political questions. Judges of the lower courts are appointed by the president.

Provincial courts include supreme courts, appellate courts, courts of first instance, and minor courts of justices of the peace (alcaldes) and of the market judges. Members of provincial courts are appointed by the provincial governors. Trial by jury was authorized by the 1853 constitution for criminal cases, but its establishment was left to the discretion of congress, resulting in sporadic use.

A 1991 law provides a fund for compensating prisoners who were illegally detained during the 1976–83 military dictatorship. In 1992, a system of oral public trials was instituted in order to speed up the judicial process while improving the protection of procedural rights of criminal defendants.

In practice, there is not a truly independent judiciary. The courts lack power to enforce orders against the executive and federal judges who actively pursue charges of police or military corruption. In 1989, President Menem, in a court-packing maneuver, expanded the number of Supreme Court justices from five to nine. In 2003, shortly after taking office, President Néstor Kirchner signaled his intention to remove some of Menem's appointees and to strengthen the judiciary by undoing some of Menem's moves that turned the Supreme Court into a political ally of the president rather than an autonomous power of the state. Formal and informal constitutional accusation against Menem-appointed Supreme Court justices between 2003 and 2005 allowed Kirchner to appoint new justices who were considered friendly to his regime. Thus, the autonomy and independence of the Supreme Court continued to be weakened by the executive's decision to influence the appointment and tenure of justices.

The constitution prohibits arbitrary interference with privacy, family, home or correspondence. The government respects these provisions. The constitution prohibits torture; however, police brutality remains a serious problem. The judicial system is subject to delays, resulting in lengthy pretrial detention.

ARMED FORCES

The Argentine armed forces in 2005 numbered 71,400 active personnel, with no formally established reserves. The Army of 41,400 was organized into 3 corps and included mechanized infantry, engineer, and artillery battalions. Equipment included 200 main battle tanks, 150 light tanks, 74 reconnaisance vehicles, 105 armored infantry fighting vehicles, 422 armored personnel carriers, and 1,701 artillery pieces. The Navy had 17,500 personnel including 2,500 Marines and 2,000 naval aviation personnel. Equipment included 3 tactical submarines, 5 destroyers, 8 frigates, and 14 patrol/coastal vessels. The naval aviation arm had 11 combat capable aircraft including 6 fighter ground attack and 5 antisubmarine warfare aircraft, in addition to 4 maritime patrol aircraft and 7 antisubmarine warfare helicopters. The Air Force numbered 12,500 personnel with 104 combat-capable aircraft that included 13 fighters and 91 fighter ground attack aircraft. Paramilitary forces included an 18,000 member gendarmerie and the 13,240 member Prefectura Naval (Coast Guard). In 2005, the defense budget totaled $1.75 billion. In that same year, Argentine military forces were deployed in five countries or regions as UN peacekeepers.

INTERNATIONAL COOPERATION

Argentina is a charter member of the United Nations, having joined on 24 October 1945; it belongs to ECLAC and all the non-regional specialized agencies, such as IAEA, FAO, IFC, UNIDO, UNESCO, WHO, ILO, and IMF. It is a member of the World Bank and joined the WTO on 1 January 1995. Argentina also belongs to the OAS and many other inter-American and intergovernmental organizations, such as the Cartagena Group (G-11), G-15, G-19, G-24, G-77, IADB, LAES, and LAIA. The country is a nonregional member of the African Development Bank and a member of the Permanent Court of Arbitration. Argentina has been an active member of Mercosur (Southern Common Market), the economic and strategic alliance formed by Brazil, Argentina, Uruguay, and Paraguay, with Chile and Bolivia allied as associate members. It is also part of the 19 member Río Group and the South American Community of Nations.

Argentina belongs to the G-6, the Australia Group, the Zangger Committee, the Organization for the Prohibition of Chemical Weapons, the Nuclear Suppliers Group (London Group), and the Agency for the Prohibition of Nuclear Weapons in Latin America and the Caribbean (OPANAL). The country also holds a seat on the UN Monitoring, Verification, and Inspection Commission (UNMOVIC), which was originally established in 1999 as the Special Commission for the Elimination of Iraq's Weapons of Mass Destruction (UNSCOM). Argentina was the only Latin American country to participate in the 1990–91 Gulf War. The United States designated Argentina as a non-NATO ally in January 1998. Argentina has participated in UN peacekeeping and administrative efforts in Kosovo (est. 1999), Western Sahara (est.1991), Cyprus (est. 1964) and Haiti (est. 2004). The country is a signatory of the 1947 Río Treaty.

In cooperation on environmental issues, Argentina is part of the Antarctic Treaty, the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, Convention of Antarctic-Marine Living Resources, the London Convention, the International Convention for the Regulation of Whaling, the Kyoto Protocol, the Montréal Protocol, MARPOL, Antarctic-Environmental Protocol, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Argentina has one of the most highly developed economies and most advantageous natural resource bases of Latin America, but political instability and conflicts among various sectors of the economy have delayed the realization of this potential. The delay has likely been lengthened by the four-year recession that turned into an acute financial crisis in 2001–02 that reduced Argentina's per capita income from $7,330 in 2001 (the highest in Latin America) to $2,700 in 2002 (the sixth-highest), and left an estimated 54.3% of the population below the poverty line. It may have set a modern record for the amount of wealth lost in the shortest period of time.

Argentina's economy had weathered repeated blows to its prospects for sustained growth during 1980–2005—deep recession and slow growth that accompanied hyperinflation in 1989 (4,924%) and 1990 (1,344%), a recession in 1995 following the devaluation of the Mexican peso, nonstop recessions from 1999 that followed the successive impacts of the Asian financial crisis in 1997, the Russian financial crisis in 1998, and the Brazilian financial crisis in 1999, all raising the question of the viability of emerging markets like Argentina's, and finally the global slowdown caused by the United States recession from the beginning of 2001, aggravated by the aftereffects of the 11 September 2001 terrorist attacks on the United States, which in particular put a chill on foreign investment flows. However, the factor that seems to have pushed the Argentine economy over the brink was a tough policy by the administration of US president George W. Bush with respect to IMF rescue packages. Public doubts were expressed by the US treasury as to Argentina's ability to repay its debts and there was public discussion about a willingness to allow an "orderly default." Unpopular steps taken by the government—tax increases (January 2000, April 2001, and August 2001), spending cuts, a "zero deficit" target, and restrictions on bank withdrawals to preserve the peso's convertibility to the dollar—proved of no avail in stopping the decline in investor and consumer confidence, evidenced in widening spreads on Argentine bonds, massive withdrawals from the banks, a halt to investment and a slowdown in production, with a consequent decline in revenues, and a hopelessly worsening debt situation. The IMF had agreed to a standby agreement in December 2000, and to its enhancement in March 2001 when it became apparent that the original targets were not going to be met, but no agreement on a third arrangement could be reached at the end of 2001, as street violence broke out and the country went through an extraordinary five presidents in two weeks. It was the third president who actually took the step of defaulting on payments due on $132 billion of bonds in late December 2001, and it was the fifth who broke the one-to-one peg of the peso to the dollar in January 2002, which plunged to a low of us$1 = ec$3.87 in June 2002. With the devalued currency, external debt jumped from 56% of GDP to over 130%. In November 2002, Argentina also defaulted on payments due to the World Bank.

Prior to 1970, Argentina suffered serious deficits in trade balance, but with increased exports, favorable trade balances were achieved during the 1970s. In 1974, increases of 7.6% were registered for agriculture, 7.5% for commerce, and 22.3% for construction. However, the average increase of annual GDP registered only 40% from 1977 to 1987. During the period between 1988 and 1999, average annual growth reached 4.4%, due largely to successful economic planning and political stability. On 23 January 2003 the government entered into a nine-month agreement with the IMF supported by loans of $6.87 billion with the explicit understanding that a longer term arrangement would be concluded following the presidential election in April 2003. The winner, Nestor Kirchner, a Peronist from Patagonia and not widely known, promised a $3-billion public works program but without deficit spending.

Twenty years earlier in 1982, the peso had so depreciated that the government decided to redenominate the currency, which it did in 1983, at 10,000: 1. Also in 1983, Argentina received a stabilization loan from the IMF to compensate for the effects of inflation and recession. As a condition for the loan, the government agreed to reduce the inflation rate to 165% in 1983. By autumn, however, inflation was running at an annual rate of over 900%; the inflation rate for the whole of 1983 was 434%, the highest in the world. Thereafter, it rose without interruption until it reached some 1,200% in mid-1985. At that time, the government introduced the Austral Plan—a bold attempt to halt inflation by freezing wages and prices, revaluing (and redenominating) the currency, and resolving to finance public spending with real assets only (not by printing money); under this plan the annual rate for 1985 was cut to 385%. By the end of 1986, the rate had been cut further to 82%; by early 1987, however, inflation had begun to surge again, and it was expected to exceed 100% by the end of the year.

In July 1989, President Carlos Menem of the Justicialista Party took office at a time when the economy was entangled in a hyperinflationary spiral. In 1991, President Menem unveiled an innovative stabilization/reform program, which was implemented successfully. The cornerstone of the stabilization/reform plan was to link the peso to the dollar at a fixed rate of 0.99 pesos per dollar (under the 1991 "Convertibility Law"), and requiring congressional approval for devaluation. In 1992, economic policy continued to focus on structural adjustment involving a strategy of cleaning up the fiscal accounts. The reforms took on a four-pronged approach: fiscal revenues were strengthened through a broadening of the VAT and an enhancement in revenue enforcement; administrative reforms included a substantial cut in public payroll and revamping of national fiscal accounting; the use of the Central Bank's rediscount window to finance deficits of provincial governments was curtailed; and public enterprises were privatized. Both revenue enhancements and expenditure cutbacks sharply reduced the inflation rate

After three years of swift growth, the devaluation of the Mexican peso on 20 December 1994 pushed the Argentine economy into a severe recession, but economy minister Domingo Cavallo took an austere line and refused to devalue the Argentine currency in 1995, even though the economy shrank by 4.4% in that year. However, the economy began to recover in 1996, and by 1998 the inflation rate held at about 1%, one of the lowest rates in the world. Even though inflation was low in 1999, a recession brought the realization that high consumer prices were not the only roadblock to economic development. Negative growth also reflected poor labor policies and a lack of capital in 2000.

The country has to a large degree overcome its dependence on imported machinery and finished products, but in their place there has grown a great external demand for parts and raw materials that are assembled or finished within the country. Basic industries, such as iron and steel, petroleum and petrochemicals, aluminum, plastics, and electrical equipment are being established, but these will continue to require extensive raw material imports for some time, or even permanently, because of the absence of certain minerals, such as bauxite (which is needed for aluminum production).

In 2004, the economy expanded by 9.0%, up from 8.8% in 2003, and from a dramatic -10.9% in 2002; in 2005, the GDP growth rate was estimated at 6.7%, while the GDP per capita (at purchasing power parity) grew to $13,600. The inflation rate was reduced to 4.4% in 2004, but was estimated to have grown again to 8.8% in 2005. The unemployment rate was on a downwards trend after 2002, and in 2005 it looked like it was brought back under control (at 11.7%). All of the provinces in Argentina achieved a consolidated fiscal surplus of 5.8% in 2004, with the tax burden growing however, to almost 28%.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Argentina's gross domestic product (GDP) was estimated at $537.2 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $13,600. The annual growth rate of GDP was estimated at 8.2%. The average inflation rate in 2005 was 11.8%. It was estimated that agriculture accounted for 10.5% of GDP, industry 35.8%, and services 53.7%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $253 million or about $7 per capita and accounted for approximately 0.2% of GDP. Foreign aid receipts amounted to $109 million or about $3 per capita and accounted for approximately 0.1% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Argentina totaled $81.2 billion or about $2,142 per capita based on a GDP of $129.6 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 0.1%. In 2001 it was estimated that approximately 30% of household consumption was spent on food, 17% on fuel, 15% on healthcare, and 15% on education. It was estimated that in 2005 about 38.5% of the population had incomes below the poverty line.

LABOR

As of 2005, Argentina's labor force was estimated at 15.34 million. According to 1996 estimates (the latest year for which data was available), the labor force was divided as follows: 18.5% in manufacturing, 2.2% in agriculture and mining, 18.1% in commerce, 10.3% in transport and communications, 9.5% in public administration and defense, and the remainder in other sectors. As of September 2005, Argentina's unemployment rate stood at 11%, down from 25% in 2001.

Unions in Argentina came into their own during the reign of Juan Perón, who used the labor movement as a vehicle to achieve and hold dictatorial power. He built the General Confederation of Labor (Confederación General del Trabajo—CGT) from a disjointed membership of about 250,000 into a highly centralized organization of 6 million workers encompassing every aspect of the Argentine economy. Although the labor unions won tremendous benefits in the form of higher wages and improved working conditions as a result of Peron's support, these advances were built on a political rather than on a sound economic foundation, and the fortunes of the CGT waxed and waned with those of Perón and his followers, as well as with successive governments. As of 2005, an estimated 35% of the workforce belonged to a union.

The national minimum wage is set at $215 per month which does not provide a living wage for a family. However, most workers earn considerably more. The average salary in the formal sector is around $550 per month. The legal workweek has a maximum of 48-hours, at 8 hours a day. Overtime hours worked in excess of those limits are subject to overtime rates of pay. Children under the age of 14 are legally prohibited from full-time work, as they are required to attend school. However, child labor continues to be a problem, particularly in the informal or underground economy. Children between the ages of 14 and 18 are allowed to work, but only for limited hours and only in a limited number of occupations, and only if they have finished compulsory schooling, which usually ends at 15. There are extensive occupational and health and safety laws but they are not fully enforced because the government has inadequate resources. Cases of very poor labor conditions are known to exist in plants employing illegal aliens.

AGRICULTURE

Agriculture and agro-industry in Argentina focus on the production of cereal, oil grains and seeds, sugar, fruit, wine, tea, tobacco, and cotton. Argentina is one of the greatest food-producing and food-exporting countries of the world, with an estimated 35,000,000 hectares (86,500,000 acres) of arable and permanent cropland, or 12.8% of the land area. Agriculture and animal husbandry have traditionally supplied the nation with 70–95% of its export earnings, and the landowners have alternated the two activities in accordance with prices on the world market. As of 2004, agriculture made up 10% of the GDP. Agricultural products also accounted for 43% of exports by value. One of the most important factors in Argentine agriculture is the advanced degree of mechanization; in 2002, an estimated 300,000 tractors and 50,000 harvester-threshers were in use.

The principal agricultural region consists of the humid pampas, one of the world's greatest reaches of arable land. Argentine agriculture is virtually coextensive with this region, although efforts have been made to spread it into other areas. Citrus fruit, tobacco, cotton, and sugarcane are cultivated outside the pampas.

Wheat is the leading crop. Argentina accounted for about 61% of all wheat produced in South America in 2004 and was the world's fifth-leading wheat exporter. The area harvested in 2004 was estimated at 5.74 million hectares (14.18 million acres), and production at 14.5 million tons. Argentina is the sixth-largest corn-growing country in the world. The area harvested in 2004 was 2.33 million hectares (5.75 million acres), and production was 15 million tons. Barley is favored as the grain of greatest yield and resistance to disease; types for feed and beer are grown in the pampas areas having soil unfavorable or a climate too rigorous for wheat. Harvests amounted to 659,000 tons per season in the early 1970s; in 2004 production was 1,004,000 tons.

Rice is a major crop, with a 2004 production of 1,060,000 tons on plantings of 169,200 hectares (418,000 acres). Argentina was once one of the world's biggest producers of flaxseed (linseed); production in 2004 was 29,000 tons (1.5% of world production), down more than 90% from the early 1990s. Most of the crop is exported in the form of linseed oil. The province of Tucumán dominates the sugar-raising industry, which dates from 1646; sugarcane production in 2004 was 19.3 million tons. To control overproduction, the government formed the National Sugar Co. in 1970 and forbade the construction of new sugar mills through the end of the decade.

Cotton growing dates from 1909 and is concentrated in Chaco province. In 2004 the production of cotton fiber was 112,000 tons, down from 432,000 tons in 1996. Sunflower seed oil is a major industrial plant product; 1.8 million hectares (4.5 million acres) of sunflowers were harvested in 2004, producing 3,100,000 tons of sunflower seeds. Tobacco is raised in several northern provinces, especially Misiones; production in 2004 was an estimated 118,000 tons. Soybean production, only 78,000 tons in 1971–72, increased to 7.1 million tons by 1985–86, and to 31.5 million tons in 2004, 15% of world production.

Fruit growing has developed rapidly since the 1940s. Estimates for 2004 fruit production (in tons) were apples, 1,262,000; oranges, 770,000; lemons and limes, 1,300,000; peaches and nectarines, 272,000; and grapefruit, 170,000. The output of bananas was 400,000 tons in 1974, 10 times the 1961–65 average; it fell to 144,000 tons in 1978 and rebounded to 280,000 tons in 1992 before declining to 180,000 tons in 2004.

The province of Mendoza is the center for the nation's vine-yards. In 2004, grape production was 2.36 million tons. Argentina is one of the world's leading producers of wine, exporting 159,826 tons in 2004, or 2% of the world's total wine exports.

ANIMAL HUSBANDRY

Argentina is one of the world's preeminent producers of cattle and sheep, possessing approximately 3% of the entire world's stock of the former and 1% of the latter. Livestock and meat exports play an essential part in the nation's international trade. Annual meat exports (including meat extracts) were 598,900 tons in 1978, but fell to 394,900 tons in 1981 and 301,390 tons in 1997 before rising to 1,183,000 tons in 2004. Because of extremely favorable natural conditions, Argentina, with about 50.8 million head of cattle in 2004, is one of the world's leading cattle-raising countries.

Cattle were introduced into Argentina by Pedro de Mendoza in 1536, and these cattle, together with those brought by other explorers, quickly became wild and began to multiply on the lush grasses of the pampas. There was no attempt to control the vast herds; when the inhabitants wanted meat and hides, they would merely kill the animals at random and take the desired parts. The most important single advance was the invention of refrigeration, which enabled ships to transport meat without spoilage. The policy followed by foreign-owned meat-packing firms of purchasing cattle by quality rather than weight led to the introduction of new breeds and selective crossbreeding, which have brought the cattle industry to its present advanced state.

Argentine pastures cover an estimated 142 million hectares (350.9 million acres) and are most productive in the provinces of Buenos Aires, Santa Fe, Córdoba, Entre Ríos, and Corrientes. The most important beef-producing breeds are Shorthorn, introduced in 1823; Hereford, 1858; Aberdeen Angus, 1879; and in recent years, zebu and Charolais.

The dairy industry has shown steady development. In 2004, the following quantities were produced: milk, 8,100,000 tons; cheese, 260,000 tons; and butter, 55,000 tons. The most important dairy breeds are Holstein-Friesian, Jersey, and Holando Argentino. Córdoba, Santa Fe, and Buenos Aires are the three major dairy provinces. Argentina's dairy sector has received the most investments in recent years, especially foreign investments. Egg production was 300,000 tons in 2004. The number of chickens in 2004 reached 95 million.

In sheep raising, Argentina ranks second in South America after Brazil, with an estimated 12.5 million animals in 2004. Before World War II (1939–45), Argentina accounted for 14% of the world's wool production, but in the 1970s, its production declined; the wool clip (greasy basis) was 60,000 tons in 2004. In 2004, production of mutton and lamb was 51,700 tons. Patagonia has approximately 40% of all the sheep in Argentina.

Total meat production was 3.9 million tons in 2004, of which 2.7 million tons consisted of beef. Beef exports for 2004 were valued at over $1 billion.

In 2004, Argentina had 3.6 million horses, placing it among the top 5 countries in the world. Argentine horses, especially favored as polo ponies and racehorses, have won many international prizes. Other livestock in 2004 included 3 million pigs and 4.2 million goats. In 2004, Argentina accounted for nearly 5% of the world's production of cow hides. Argentina is South America's largest producer of honey, with an output of 80,000 tons in 2004.

FISHING

In a country that is among the world's leaders in meat production, fishing has not been able to develop as an industry of any significance. In recent years, the government has tried with some success to induce the public to eat more fish in order to export more beef, one of the country's largest earners of foreign exchange. Since 1970, the government has offered fiscal incentives to encourage the modernization of the fishing industry. The catch has increased from 475,043 tons in 1982 to 1,256,000 tons in 1996 before falling to 916,246 tons in 2003.

The most favored saltwater fish are the pejerrey, a kind of mackerel; the dorado, resembling salmon but of a golden color; and the zurubí, an immense yellow-and-black-spotted catfish. The principal species in the 2003 catch were Argentine hake (36%), Argentine shortfin squid (15%), and grenadier (11%).

Argentina established a 322-km (200-mi) territorial sea limit in December 1966. In 1982, the government moved to protect Argentina's coastal waters from foreign exploitation, declaring that only 16 foreign vessels would be allowed in Argentine waters at any one time.

FORESTRY

Argentina's forests, estimated at some 50.9 million hectares (125.8 million acres), or about 18.6% of the total area, constitute one of its greatest underexploited natural resources. Of the 570 species of trees sold in international commerce, Argentina possesses 370, but of these it exploits only about a dozen species. A major factor in the industry's lack of development is the great distance of most forests from the markets and the resultant high cost of transportation. In the Río Paraná Delta, the woods currently exploited are softwoods, such as the elm and willow, used in the cellulose and container industries; in the Gran Chaco, white quebracho, used as a fuel and in the refining of coal, and red quebracho, from which tannin is extracted; in Misiones Province, several varieties, including cedar for furniture manufacturing; in the Salta-Tucumán region, cedar and oak; and in Patagonia, araucania, pine, cypress, larch, and oak.

The most important tree is the red quebracho, which contains 21% tannin, the extract used for tanning. Argentina possesses four-fifths of the world's supply of this wood. Many quebracho trees now being used are from 200 to 500 years old, and trees younger than 75 years are of little commercial use. Since the trees are not being replaced, it is estimated that the quebracho forests will eventually be exhausted.

Production of roundwood was 9,307,000 cu m (328,500,000 cu ft) in 2003. Exports of forest products totaled $280.7 million that year.

MINING

Argentina is an important regional producer of minerals, including primary aluminum, mine lead, copper, and zinc, and silver and gold.

In 2003 the value of nonfuel mineral production totaled $1.1 billion, of which copper concentrate alone accounted for $467 million.

Argentina was the third-largest Latin American producer of aluminum in 2003, producing 271,932 metric tons; one of six Latin American producers of mine lead and zinc, ranking second to Mexico in lead; and the fourth-largest producer of silver in Latin America.

Mine copper production in 2003 totaled 199,020 metric tons, up slightly from 2001's output of 191,566 metric tons, but down from 2002's level of 204,027 metric tons. Almost all copper production was from Minera Alumbrera, operating from the Bajo de la Alumbrera open pit mine, in Catamarca Province, since 1998.

Gold production in 2003, mostly from the Bajo de la Alumbrera and the Cerro Vanguardia mines, totaled 29,744 kg, down from 32,506 kg in 2002. The country's total silver mine output for 2003 was 133,917 kg, down from 152,802 kg, in 2001.

In 2003, zinc mine production totaled 29,839 metric tons, down from 2001's total of 39,703 metric tons. In that same year lead mine output totaled 12,079 metric tons down slightly from 12,334 metric tons in 2001.

In 2003, Argentina produced 545,304 metric tons of crude boron materials, ranking third in the world, after the United States and Turkey; the 1999 and 2000 totals were 245,450 and 512,624 metric tons, respectively. Among other industrial minerals, output in 2003 for limestone was 8,119,879 metric tons; dolomite, 320,116 metric tons; crushed quartzite, 284,503 metric tons; crushed quartz, 100,000 metric tons; talc, 1,759 metric tons; bentonite, 128,406 metric tons; diatomite, 24,946 metric tons; feldspar, 88,427 metric tons; crude gypsum, 387,936 metric tons; kaolin, 10,653 metric tons; and salt, 1,156,023 metric tons. The country also produced marble, clays, celestite, sodium carbonate, asbestos, barite, and vermiculite. Asphaltite, fluorspar, mica, manganese, and antimony are found mainly in the northwest. There are also deposits of lithium, beryllium, and columbium.

ENERGY AND POWER

Despite a shortage of energy resources, production of electric power has steadily increased since 1958, after more than a decade of neglect. In 2002, electrical energy production totaled 81.151 billion kWh (48% thermal, 44% hydropower, 6.6% nuclear and 1.4% other). In the same year, consumption of electricity was 81.270 billion kWh. Generating capacity was 27.558 million kW in 2002. The government places great emphasis on the development of hydroelectric projects and nuclear power, even though installed capacity exceeds projected demand. The final stage of the Yaciretá-Aripe project on the Paraná River, with an installed capacity of 3,200 MW, was completed in 1998.

In 1974, Argentina became the first country in Latin America to install a nuclear-powered electric generating plant. (As of 2006, the only other South American country to use nuclear power was Brazil.) The Atucha power station in Buenos Aires Province has a capacity of 357 MW; Embalse (648 MW) in Córdoba Province started up in 1983. Construction of a second 692-MW reactor at Atucha began in 1980; one reactor there was operating but a second had not yet come online as of 2006.

The modern petroleum industry dates from 1907; after 1940, it became necessary to supplement domestic production with large-scale imports of foreign fuels. In 1958, ownership of all crude oil and natural gas was taken over by the state, and petroleum was then placed under the control of the state oil corporation, Yacimientos Petrolíferos Fiscales (YPF). Production of crude oil fell from 25.6 million tons in 1982 to 22.3 million tons in 1987 but rose to 37.7 million tons in 1995. Production in 1998 totaled 847,000 barrels per day; it dropped to an estimated 756,000 barrels per day in 2004. In 1978, foreign-owned companies were allowed to drill for oil, after decades of policy changes on the role of foreign companies. In August 1985, the Alfonsín government announced more liberal rules on foreign-company participation; in 1987, YPF's influence was reduced. In July 1993, Argentina privatized YPF via the largest initial stock offering on the New York stock exchange (more than $3 billion). Large deposits have been found in the San Jorge Gulf near Comodoro Rivadavia. Production rates have exceeded the rate at which depleted reserves have been replaced by new discoveries, however. Proven reserves as of end 2003 were put at 2.7 billion barrels.

In conjunction with petroleum extraction, the significant natural gas industry, which is completely run by the private sector, has rapidly expanded. As of 2002, Argentina had the third-largest proven natural gas reserves in South America, exceeded only by Venezuela and Mexico. Production in 2004 totaled 44.9 billion cu m (1,603 billion cu ft), compared with 5.3 billion cu m (187 billion cu ft) in 1969 and 9.8 billion cu m (356 billion cu ft) in 1982. At the end of 2004, proven reserves were at 0.61 trillion cu m (21.4 trillion cu ft). Argentina has a network of over 9,900 km (6,150 mi) of gas pipelines. Since 1997 Argentina has exported natural gas to Chile, which is its major gas export customer.

A major coal deposit in Santa Cruz Province is estimated to contain 552 million tons of coal, nearly 80% of the nation's total. Production as a whole was reported at 330,000 tons in 2002, down from 505,000 tons in 1988.

INDUSTRY

Córdoba is Argentina's major industrial center. It is the center of metalworking, especially for motor vehicle production. Argentina's other principal industrial enterprises are heavily concentrated in and around the city of Buenos Aires. The plants are close to both the many raw materials imported by ship and the vast productive area of the pampas. The major industries in Buenos Aires are food processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals, printing, metallurgy, and steel. Other industrial areas include Rosario, with important steel-producing plants and oil refineries, tractor and meat-packing plants, and chemical and tanning industries; Santa Fe, with zinc- and copper-smelting plants, flour mills, and dairy industry; San Miguel de Tucumán, with sugar refineries; Mendoza and Neuquén, with wineries and fruit-processing plants; the Chaco region, with cotton gins and sawmills; and Santa Cruz, Salta, Tierra del Fuego, Chubut, and Bahía Blanca, with oil fields and refineries.

During the 1960s, the average annual growth rate of industry was 5.9%; during the 1970s, it fell to only 1.8%. In the early 1980s, industrial production went into recession, declining by 16% in 1981 and by 4.7% in 1982. The sharp cutback in imports due to the foreign debt crisis spurred local manufacturing to growth of 10.8% and 42%, in 1983 and 1984, respectively; 1985 brought a sharp plunge of 10.5%, but 1986 saw a growth of 12.8%, aided by the "Austral Plan." In all, the 1980s saw an average annual growth rate of -1.0%. From 1988 to 1998, manufacturing grew by an annual average of 3.6%, and in 1997 alone by 9.2%, but in 1998 that rate fell to 1.6%.

Industry accounted for 16% of GDP in 2001; it was 20% of GDP in 2002, and was expected to be at least 25% of GDP in 2003. Industrial goods represented approximately 31% of exports in 2002. Seasonally adjusted manufacturing production fell 6.9% from August 2001 to August 2002, and nonseasonally adjusted manufacturing production registered a 4.5% decrease.

Packing and processing of foodstuffs is the oldest and most important industry in Argentina. Beginning in the last part of the 19th century, the great frigoríficos, or meat-packing plants, were founded to prepare beef for export to Europe. In recent times, the Argentine government has entered directly into the meat-processing enterprises, which for many years were under British ownership. The textile industry was also developed quite early, making use of wool from the vast herds of sheep and the cotton from Chaco Province. In addition to these traditional products, a variety of synthetic fibers are now produced.

Portland cement is the country's leading construction material. A major chemical industry produces sulfuric, nitric, and other acids and pharmaceuticals. The most important center of this industry is San Lorenzo on the Río Paraná. The petrochemical industry is related to the increasing production of oil and has received special benefits from the government. In 1985, exports of petroleum fuels exceeded imports for the first time, and by 1999 Argentina was self-sufficient in oil and gas. Natural gas annual output growth should reach 3.4% for the next decade. Output of petroleum fuels reached 800,000 barrels per day in 1999; at the same time, new oil reserves were found in Río Negro Norte. In 2002, Argentina had 10 oil refineries with a total capacity of 639,000 barrels per day.

In 1961, a giant integrated steel mill began production at San Nicolás. Dependent on steel is the automobile industry, which experienced fairly sustained growth during the 1960s and 1970s. Production rose from 33,000 units in 1959 to 288,917 in 1980. Motor vehicle production peaked at 450,000 in 1998, falling back to around 300,000 in 1999. There were 235,577 automobiles produced in 2001, a 31% decrease from the 339,632 units produced in 2000. Tractors, motorcycles, and bicycles also are manufactured. Argentina also produces electric appliances, communications equipment—including radios and television sets—motors, watches, and numerous other items.

Industry continues to restructure to become competitive after decades of protection. Capacity utilization rates have increased substantially and companies are now focusing on modernization and expansion of their plants to meet both domestic and foreign demand. New technologies are being adopted, work forces pared, and management is focusing on just what its clients want. Output of cement, trucks, machinery, plastics, petrochemicals and other chemicals all rose, while production of basic metal goods held flat or rose off a low base in the 1990s. A recession that began in 1998 was exacerbated by the economic crisis of December 2001, with Argentina's default on its foreign debt, devaluation of the peso, and conversion of dollar debts and deposits to pesos. Industrial production began to increase in late 2002, however, and the best-performing sectors were textiles, automobile tires, and oils.

In 2004, industry made up 35.8% of the economy, and was bested by services, with 53.7%; agriculture accounted for 10.5% of the GDP. The industrial production growth rate was 7.5% in 2005, underperforming the overall economic growth rate, and signaling that targeted policies are needed for troubled industries. Some of the policies implemented by the government included import licenses for footwear, toys, washing machines, paper, bicycles, and tires. In September 2005, President Kirchner announced that the launching of the automobile free trade agreement between Argentina and Brazil was postponed until 2008 (from the predicted January 2006 date), to allow more symmetry in bilateral trade flows to be established.

SCIENCE AND TECHNOLOGY

Argentina has five scientific academies: an academy of agronomy and veterinary science (founded in 1909); an academy of exact, physical, and natural sciences (1874); an academy of medicine (1822); and the National Academies of Sciences of Córdoba (1869) and Buenos Aires (1935). Numerous agricultural, medical, scientific, and technological research institutes exist in Argentina, including, as of 1996, some 51 operated by the National Council of Scientific and Technical Research (founded in 1958) and 27 by the National Institute of Industrial Technology (founded in 1957). Research and development expenditures in 2003 amounted to 0.4% of GDP. Argentina has 47 universities and colleges offering training in basic and applied sciences. In 1987–97, science and engineering students accounted for 28% of college and university enrollments.

In 2002–03, Argentina had 715 researchers and 166 technicians per million people actively involved in research and development (R&D). Spending on R&D was approximately $1.6 million, with about 43.3% coming from government sources, 28.8% from higher education sources, 2.5% from private nonprofit organizations, and 24.2% from private business. In 2002, high technology exports amounted to $583 million or 7% of the country's manufactured exports.

DOMESTIC TRADE

Many leading mercantile firms have their head offices in Buenos Aires and branches or agents in the other large cities. Department stores, retail shops, and specialty shops in Buenos Aires are on a par with similar establishments in most world capitals. The number of supermarkets and large outlets is increasing as consumers are becoming accustomed to such establishments and are seeking the greater convenience and lower costs that these places afford. Industrial equipment and machinery is primarily sold through agents or trade fairs.

Business hours are generally from 9 am to 6 pm, Monday–Friday, with a one-hour lunch break. Stores are usually open from 9 am to 9 pm, Monday–Saturday; banks are generally open on week-days from 10 am to 3 pm. Travelers checks are not widely accepted at business establishments. Domestic demand absorbs most of the nation's industrial production.

FOREIGN TRADE

Many industrial products imported prior to 1960 are now produced in Argentina. Argentina removed virtually all nontariff barriers to trade in 1991 and reduced tariff rates. The only nontariff barrier is the tariff/quota system applicable to auto and auto parts imports. The Argentina/Brazil auto agreement establishes preferential market access treatment for both countries.

A surge in imports during 1991/92 shifted the trade balance from a large surplus to a deficit position. The strong increase in imports is explained by several factors: first, the dynamic growth of the domestic economy which resulted in greater import demand; second, the reduction of import tariffs and elimination of nontariff barriers which released pent-up demand for imports; and third, the real appreciation of the peso which made imports much less expensive since the local currency cost of these goods rose by much less than the accumulated inflation since the beginning of the Convertibility Plan. Because exports contributed only 10% to GDP, increased foreign sales had little impact on aggregate growth, skewing the balance of payments report.

The creation of NAFTA was viewed as an extremely positive development and presented Argentina with the possibility of acceding to NAFTA as either a member of Mercosur or alone. The government remained fully committed to seeing the creation of Mercosur (a common market incorporating Argentina, Brazil, Uruguay, and Paraguay) through its completion (on 1 January 1995). Argentina's exports and imports more than doubled at comparable rates in six years, between 1992 and 1998; but the de-valuation

of the Brazilian real in 1999 was expected to significantly lower export revenues.

For the last few years of the 1990s, Argentina experienced a significant recession. In late 2001, Argentina's economic meltdown came to a breaking point, and the country was forced to default on its $155 billion foreign debt, the largest such default in history. The resulting devaluation of the peso and the move from a fixed to floating exchange rate regime has proved disastrous for Argentina's trade situation. The peso, which was pegged to the dollar for most of the last decade, has fallen to trading less than two to the dollar, encouraging exports but making imports prohibitively expensive.

Agricultural products from Argentina, including animal feed, vegetable oil, oil seeds, wheat, maize, and produce, make up the majority of the country's commodity export market (31%). Other important exports are petroleum, and motor vehicles and parts. The top 10 exports for 2000 are as follows:

In 2005, exports reached $40 billion (FOB—Free on Board), while imports grew to $29 billion (FOB). In 2004, the bulk of exports went to Brazil (15.4%), Chile (10.4%), the United States (10.2%), China (8.7%), and Spain (4.4%). Imports included intermediate goods, capital goods, consumer goods, and fuels, and mainly came from Brazil (36.2%), the United States (16.6%), Germany (5.7%), and China (4.3%).

BALANCE OF PAYMENTS

Until 1952, Argentina's foreign-payments position was excellent, owing mainly to its large exports of basic commodities, principally agricultural products. In that year, however, because of widespread crop failures and unfavorable terms of trade, export value decreased sharply while imports remained high. The Argentine deficit was met by foreign credits, with dollar shortfalls partially covered by large credits from the Export-Import Bank, the IMF, and US banks. Over half of the foreign exchange earned was used

during the 1950s and 1960s to service the external debt. The strict economic controls enacted in 1967 helped curb the inflationary trend and thus stabilized the nation's economy. After a decline during the early 1970s because of the international financial crisis, Argentina registered a surplus between 1973 and 1979, but after 1981, the current account was in deficit because of heavy debtservicing costs.

The US Central Intelligence Agency (CIA) reported that in 2001 the purchasing power parity of Argentina's exports was $26.7 billion, while imports totaled $20.3 billion resulting in a trade surplus of $6.4 billion. In view of the liberalization of trade policies and the real appreciation of the peso, the current account deficit deteriorated sharply since 1990. This was more than offset by a large influx of foreign capital that was enticed by the government's new economic program. Since 1991, the decline in interest rates internationally and the lack of attractive alternatives for foreign direct investment helped to generate a massive inflow of foreign capital, much of which was actually owned by Argentines but held abroad. A debt restructuring plan in early 1993 permitted the investment of reserves by eliminating the threat of seizure. Nevertheless, Argentina's external public debt increased in 1995 to almost $80 billion, due to new borrowing in capital markets and lending from international financial institutions. In 1998, external debt reached $133 billion.

The International Monetary Fund (IMF) reported that in 2001 Argentina had exports of goods totaling $26.6 billion and imports totaling $19.2 billion. The services credit totaled $4.3 billion and debit $8.40 billion.

Exports of goods and services reached $36 billion in 2004, up from $33 billion in 2003. Imports increased from $18 billion in 2003, to $27 billion in 2004. The resource balance was consequently positive in both years, deteriorating however from $15 billion in 2003, to $9 billion in 2004. The current account balance was also positive, decreasing from $8 billion in 2003, to $1.5 billion in 2004. Foreign exchange reserves (including gold) reached $14 billion in 2003, covering more than nine months of imports.

BANKING AND SECURITIES

In 1935, the Central Bank of the Argentine Republic was established as a central reserve bank, having the sole right of note issue, with all capital held by the state. The bank acts as the fiscal agent of the state. Its board of directors is appointed by and responsible to the government. The bank administers banking laws, regulates the volume of credit and interest rates, supervises the securities market, and applies government laws and decrees regarding banking and foreign exchange. Legislation in August 1973 increased its control over the commercial banking system. The National Mortgage Bank, founded in 1886, is the most important institution for housing credit. Other institutions include the National Development Bank, the National Bank for Savings and Insurance, and the Cooperative Credit Bank.

The Central Bank took advantage of the recovery in economic activity and relatively high rate of monetary growth in the early 1990s to further the restructure the financial system, and to strengthen it so that it would be able to withstand even severe external stocks. In late 1996, a schedule was implemented gradually to raise Minimum Liquidity Requirements (MLKs) from the current (1997) 17–20% by March 1998.

In late 1996, the role of the deposit insurance system (DIS) was broadened to allow support for troubled banks before they went bankrupt. Parallel to these measures, the Central Bank continued to encourage concentration in the financial system through mergers and acquisitions. By 2000, there were 120 financial institutions left, out of a total of 300 existing in 1990. Nine banks in 2000 owned 67% of all deposits, including public sector banks Nacion and Banco de la Provincia de Buenos Aires (accounting for 28% together); foreign owned Banco Río and Banco Frances; and the privately owned Argentinian Banco Galicia. Total assets in 1999 added up to $15.6 billion, reflecting a growth of 7% from the previous year. Total deposits added up to 25% of GDP.

In 2001, after three years of debilitating recession and overspending by the government, Argentina was forced to default on its $155 billion debt, the largest such default in history. The old fixed currency regime was abandoned after years of high inflation, and the architect of that original regime, Domingo Carvallo, was brought in to construct a new one. He decided to peg the Argentine peso to the US dollar and the euro when the two currencies achieved parity. However, the Argentine people were not convinced by this new scheme, and the policy did not achieve its intended results. Political upheaval resulted, with three interim presidents holding office before Eduardo Duhalde took office. He was defeated in April 2003 in a runoff election against Néstor Kirchner.

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $15.7 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $73.2 billion. The money market rate, the rate at which financial institutions lend to one another in the short term, was 25%.

The Buenos Aires Stock Exchange is one of 23 markets that form the Buenos Aires Commercial Exchange, which has over 12,000 members and is often confused with the Stock Exchange. The Commercial Exchange, founded in 1854, established the Stock Exchange, which the government subsequently separated from it. The Commercial Exchange now includes a grain market, a foreign currency exchange, a general produce exchange, and the securities exchange. There are also stock exchanges in the cities of Córdoba, San Juan, Rosario, Mendoza, and Mar del Plata, although more than 90% of stock transactions are conducted on the Buenos Aires exchange.

Between late October and early December 1996, Argentine asset prices rose under the influence of a favorable international financial environment, evidence of a recovery in domestic economic activity, and the decision of the government to deepen labor market deregulation. Between 22 October, and 5 December 1996, the Merval Stock index rose 15%, Bocon (peso-denominated) bond prices increased by 8%, and Brady bonds surged 7% (floating rate bond), 8% (discount bond), and 12% (par bond). From 1996 to 1999, while market capitalization rose from $45 million to $115 million, average daily market turnover fell from a high of over $650 million to about $200 million. As of 2004, there were 104 companies listed on the Buenos Aires Stock Exchange. Market capitalization as of December 2004 stood at $46.432 billion. The Bolsa Indice General was up 17%, from the previous year at 56,639.1.

INSURANCE

In 1984, about 200 insurance companies were in operation in Argentina. Although various legal restrictions have been placed on foreign insurance companies, many retain offices in Buenos Aires. The insurance market is regulated by the Superintendent of Insurance of the nation, which is a branch of the Ministry of Economy.

The Argentine insurance market is characterized by a relatively large number of insurers with no single organization dominating the industry. From 1994 to 1997, there was a reduction in the number of insurers as some closed operations or were liquidated. Observers believe that there will be further reductions in the number of insurance companies as consolidation of the industry and the quest for economies of scale and critical mass continues. Observers expect the Argentine life market to develop significantly, especially under stable currency conditions. In 2003, direct premiums written totaled $3.293 billion, of which nonlife premiums accounted for $2.365 billion. Argentina's top nonlife insurer that same year was HSBC Buenos Aires with gross written nonlife premiums of $167.2 million. The country's top life insurer that year was Origenes Retiro, with gross written life premiums of $87.4 million.

PUBLIC FINANCE

Beginning in 1970, Argentina's budget picture steadily worsened. By the late 1970s, deficit spending annually ranged from 10–14% of GDP, and topped 15% in the early 1980s, when public expenditures consumed some 40% of GDP. By the late 1980s, hyperinflation and depletion of reserves necessitated a public finance reform. Since 1991, the government has considerably narrowed the deficit gap through structural reform efforts. Stricter controls on public spending and more efficient tax collection methods resulted in an overall public sector accounts deficit of only about 1% of GDP, compared to a deficit equivalent to 21.7% of GDP in 1989. The deficit grew marginally worse in the late 1990s, reaching 5% of GDP in 1998. Although tax enforcement has improved, evasion

is still a major problem. Continued heavy expenditures and low tax revenues threatened to generate a deficit in 1999 and 2000. In 2001, Argentina defaulted on its record $155 billion external debt, the largest such default in history.

The US Central Intelligence Agency (CIA) estimated that in 2005 Argentina's central government took in revenues of approximately $42.6 billion and had expenditures of $39.9 billion. Revenues minus expenditures totaled approximately $2.6 billion. Public debt in 2005 amounted to 69.7% of GDP. Total external debt was $119 billion.

The International Monetary Fund (IMF) reported that in 2002, the most recent year for which it had data, central government revenues in were a$42,826 million and expenditures were a$61,070 million. The value of revenues in US dollars was us$13,981 million and expenditures us$19,893, based on a official exchange rate for 2002 of us$1 = a$3.06326 as reported by the IMF. Government outlays by function were as follows: general public services, 38.7%; defense, 3.2%; public order and safety, 4.1%; economic affairs, 5.4%; environmental protection, 0.2%; housing and community amenities, 1.3%; health, 4.9%; recreation, culture, and religion, 0.2%; education, 4.1%; and social protection, 37.9%.

TAXATION

In 2005, the principal national taxes included personal income tax (in seven brackets ranging from 9–35%), wealth tax (0.5%), value-added tax (21%; up from 18% in 1994), and excise taxes on tobacco, alcohol, soft drinks, perfumes, jewelry, precious stones, automobile tires, insurance policies, gasoline, lubricating oils, and other items. There is no inheritance tax. Corporate taxes are levied at 30% for domestic and foreign companies. Provincial and municipal governments impose various taxes.

CUSTOMS AND DUTIES

The Perón regime abolished in large measure the traditional system of exports and imports. Through the use of multiple exchange rates and through control of Argentine agricultural exports by the Argentine Institute for the Promotion of Exchange, Perón was able to obtain goods from producers at low prices and sell them abroad at great increases, employing the difference to promote the development of industry. In 1959, this cumbersome system of import permits and multiple exchange rates was abolished.

The government employed surcharges on imports to promote the growth of Argentine industries. Special import benefits were allowed to industries and regions regarded as significant contributors to the national economy. The petrochemical, cellulose, and steel industries have shared in these benefits, which include exemption from customs duties and exchange premiums on imports of machinery, spare parts, and raw materials. A common MERCOSUR auto policy of a 20% tariff applies to automobiles, as well as a quota system that will probably be eliminated by 2006. Duties of 11% were applied to raw materials and medicines and a duty of up to 30% was applied to electronic appliances. The average Common External Tax rate is 17%, but was reduced to 2.5% in 2001. There are valued-added taxes (VAT) levied on goods delivered and services performed in Argentina as well as on imported goods and services. The standard rate is 21%. A 10.5% rate applies to public transport and capital goods, while a 27% rate is applied to some services provided by utilities and telecommunications services. There are also advanced VATs of 10% or 5.5% on goods imported for resale. A customs administration fee of 0.5% is also charged.

Argentina, Brazil, Paraguay, and Uruguay officially established a customs union (MERCOSUR) on 1 January 1995 with a common external tariff (CET) covering 85% of traded goods, but excluding capital goods, information technology, and telecommunications equipment.

The government signed the Uruguay Round Agreements in December 1993 and congress ratified the Agreements at the end of 1994. Argentina was a founding member of the World Trade Organization. In the 1990s, Argentina nominally eliminated all non-tariff trade barriers, but customs practices remain cumbersome and time consuming. Argentine beef was exported to the US market in 1997 for the first time in 50 years.

FOREIGN INVESTMENT

During the 19th century, Argentina offered a favorable climate for foreign investment and the basic development of the nation's transportation system and shipping facilities was financed with British capital. This system placed ownership of extensive properties in foreign hands, arousing the resentment of Argentine nationalists, who advocated a policy of reducing dependence on outside interests. The organization of a national petroleum agency, YPF, in 1922 was one of the first important steps in implementing that policy. The high point in the drive for nationalization came during the Perón era, when railroads were purchased from foreign owners and numerous state-owned enterprises were established. These measures led to substantially reduced foreign investment.

In 1958, President Frondizi negotiated contracts with a number of foreign companies, allowing them to join YPF in the exploitation of Argentine petroleum. He promoted a bill designed to attract foreign capital under close government supervision. As a result, foreign companies invested over us$387 million between 1959 and 1961, of which more than half came from the United States.

Between 1961 and 1966, direct foreign investment declined, with the question of foreign ownership constantly entering the political picture. After the military coup, President Onganía declared that his government would renew an "open door" policy and would provide legal guarantees to investors. Net capital inflow continued to grow through the late 1960s.

In the 1970s, government policies toward investors underwent a significant reappraisal. Foreign direct investment, according to a law enacted in 1973, required specific congressional approval if foreign capital exceeded 50% of the total in a company. Profit remittances and capital repatriation were limited and new foreign investments were prohibited in several major areas, including national defense, banking, mass media, agriculture, forestry, and fishing.

In the 1980s the economy was caught in the dynamics of the second oil shock and the third world debt crisis, fighting recurrent bouts of hyperinflation. In 1985, the austral replaced the peso at 1:1000, and then in 1991, the Menem administration replaced the austral with the new Argentine peso at 1:10,000, inaugurating the Convertibility Plan (designed by economy minister Domingo Cavallo) whereby every peso would be backed by at least one dollar in reserves. A currency board was created to maintain the peso's virtual 1:1 equivalency to the dollar.

In December 1989, the government eliminated all restrictions on the movement of capital in and out of Argentina, adopting a single foreign exchange market. By Decree 1853 of 8 September 1993, the government established an extraordinarily open foreign investment regime. Foreign companies could invest without registration or prior government approval on the same terms as national firms in virtually every sector, the few exceptions being real estate in border areas, air transportation (later lifted), ship building, nuclear energy, uranium mining, and some fishing. Foreign portfolio investment in the companies listed on the Argentine stock exchange required no government approval. The Argentinean-US Bilateral Investment Treaty (BIT), signed in 1991, came into full effect in 1994. The treaty provided for national treatment in virtually all sectors of the Argentine economy, although national treatment did not prevent numerous contentious and time-consuming investment disputes, particularly with provincial governments. Incentives were provided for investments in mining, shipbuilding, iron and steel, petrochemicals, forest industries, silo construction, wine, and maritime fishing. Corporate taxes were equal for foreign- and Argentine-owned companies. Argentine Law 24331 of 1994 authorized the federal government to create one free trade zone (FTZ) in each province and four others in border areas. FTZs, offering tax-free and duty-free importing and exporting, were located at Córdoba, La Plata (the most important, opened in 1997), Mendoza, Santa Fe, and Comodoro. Capital inflows were strong. Privatization generated a large source of US dollars. More than 60 state-owned enterprises were sold, most to foreign investors, raising about $10 billion in direct sales and more, counting cancelled debt and promised post-acquisition capital investments.

Accumulated foreign direct investment (FDI) in Argentina was an estimated $5.3 billion in 1980 rising only to $6.56 billion in 1985 and to $8.77 billion in 1989. However, under the liberalized investment regime, accumulated FDI reached $25.7 billion by 1995 and $36 billion by 1997. The rise in market capitalization on the Buenos Aires Stock Exchange (the BCBA, accounting for 95% of transactions on Argentine exchanges in equity shares, corporate bonds, and government debt instruments) was also dramatic, more than doubling from $18.6 billion in 1990 to $44 billion in 1993. Argentina does not keep records of foreign investment, but an accepted estimate is that total direct and portfolio foreign investment from 1990 to 1996 was about $49 billion

In 1997, annual foreign direct investment (FDI) inflow was over $9 billion, but fell to $6.85 billion in 1998 as the effects of the Asian financial crisis were felt. In 1999, FDI inflow soared to $24.1 billion, including about $15 billion from US investors, with most going to telecommunications, energy, petrochemicals, financial services, food processing, and motor vehicle manufacturing sectors.

In 2001–02, the Argentina economy went through the worst implosion in its history, much of it connected with the government's effort to attract foreign investment. In 2000, FDI inflow continued at a near-record total of $11.15 billion but then plummeted to $3.18 billion in the global economic slowdown in 2001. After the abolishment of the convertibility system in January 2002, FDI inflow fell $2.2 billion.

In terms of portfolio investment, the total market value of companies on the BCBA, which through the vagaries of the Mexican peso crisis in 1995 and the Asian financial crisis in 1997 was only 3% ahead of the 1993 value in 1998 ($45.3 billion), jumped to $83.9 billion in 1999, then to $165.8 billion in 2000, peaking at $203.5 billion in January 2001, a 4.5% increase since 1998 and an 11-fold increase since 1990. A rough estimate is that about half of the transactions on the BCBA are by foreigners. In 2001, average daily trading was $200 million (up from $11 million in 1990), 70% in government bonds, 20% in equities, and 10% in corporate bonds. In 2001, portfolio investment in Argentina by US investors amounted to $4.5 billion, 83.5% in debt instruments ($3.2 billion in long-term debt bonds and $344 million in short-term debt) and 16.5% in equity ($744 million). In 2002, although in pesos the market value of companies on the BCBA had risen to 250 million pesos, with the fall of the value of the peso to more than three to a dollar, total market capitalization of listed companies was only $75 million, of which all but $15 million was accounted for by three Spanish companies.

Argentina's economy, at first benefiting from the tie to the US dollar in quelling hyperinflation and attracting records levels of direct and portfolio investment, was then hurt by the tie, first when interest rates were raised in the United States in the late 1990s, making Argentina's borrowing costs and export prices uncompetitive, and then from 2001, when the dollar tie served a means of importing the US recession into Argentina's already contracting and heavily indebted economy. Government efforts to stem capital flight and shore up investor confidence in 2001 were caught between violent popular protests and a hardening of IMF policy. After five presidents in two weeks in December 2001 (the third one carried out the default and the fifth one abandoned the convertibility system on 7 January 2002, allowing the peso to float), with widespread bankruptcies and debt repayments far outpacing new loans, the economy became even more dependent on foreign investment as a means of economic recovery.

The largest sources of FDI in Argentina have been the United States (36%, 1994–2000) and Spain (11.9%). Other important sources of FDI have been France (11%), Chile (9.8%), Italy (7.1%), the United Kingdom (6.2%), Canada, and Japan. The major destinations for FDI from 1999 to 2002 were the oil industry, telecommunications, supermarkets, the automotive industry, energy, construction, banks, insurance, chemicals, and the food industry.

Although Argentina remains a net recipient of FDI, Argentinean firms have recently begun making substantial outward investments regionally, in Brazil, Paraguay, and Uruguay. The peak year for the outward flow FDI was 1997, $3.65 billion up from $1.6 billion in 1996. In the recession that gripped the economy from 1998, outward FDI fell to $2.3 billion in 1998, to $1.3 billion in 1999, and $1.1 billion in 2000, according to the latest available UNCTAD estimates

The United States and Spain remain the largest investors in the Argentinean economy, but the pace of investment is dwindling as compared to other years. Thus, the stock of US foreign direct investments decreased from $11.2 billion in 2002, to $11.0 billion in 2003. In 2003 and 2004, five US power companies abandoned the Argentinean market due to continued losses. Other US firms have substantially written down the value of their investments. On the other hand, public and private companies from China have signed letters of intent to invest almost $20 billion over the next coming decade, in transportation, mining, construction, telecommunications, and tourism.

ECONOMIC DEVELOPMENT

Argentine economic policy has undergone several cycles of change since the 1940s. During World War II (1939–45), the demand for Argentine beef and wheat boosted the country's exchange reserves to their highest point in history. Under the Perón regime (1950s), however, declining terms of trade and increasing state benefits and subsidies, as well as Perón's attempt to industrialize Argentina at the expense of the agrarian sector, disrupted the nation's economic system. Although inherently a wealthy country, Argentina, with a crushing foreign debt and a shattered economy, was nearly bankrupt.

When Perón fell in 1955, steps were taken to fund foreign obligations with long-term provisions for Argentine repayment and to create a climate favorable to private investment. Complicated multiple exchange rates were abolished, and massive financial assistance was extended by the International Monetary Fund (IMF) and other foreign agencies. Staggering deficits in the railroads and other state enterprises were a constant problem. The government sought to turn over some of these to private hands, and it also encouraged livestock raising and agricultural production, the chief earners of foreign exchange.

The government abolished many of the state subsidies and at the same time tried to hold wages steady. The austerity program fell hardest on the workers, who saw wages increase sluggishly while prices skyrocketed. They sought political solutions to the economic problems through crippling strikes, which in turn robbed the government of the increased production on which it was relying for a solution to the economic crisis. Between 1960 and 1966, the problems continued, with the government fluctuating between economic nationalism and liberal policies designed to seek foreign investment. Inflation, unemployment, and commercial failures reached new highs. Economic strife formed the backdrop for the military coup of 1966 and the suspension of the constitutional government. Despite widespread opposition, steps were taken in the late 1960s to turn over some state enterprises to private owners; other measures sought to put state-owned businesses on a paying basis.

The 1970s brought a resurgence of economic and political instability. The return to constitutional government—and especially the return of the Perónists to power in the late 1960s—brought a period of increased labor influence, extraordinary wage demands, accelerating inflation, and huge government deficits, largely financed through short-term borrowing. The government's Three-Year Plan for Reconstruction and Liberation, announced in December 1973 during Juan Perón's presidency, called for more equitable distribution of income, elimination of unemployment and underemployment, better regional distribution of wealth, and extension of government housing, health, welfare, and education programs and services.

Perón's death in July 1974 and the subsequent political instability aborted this program and led to an economic crisis. In 1978, a medium-term economic adjustment plan, based on free-market principles, was announced. It included regular devaluations of the peso, cuts in public investment, and return of some state enterprises to private ownership; but instead of improving the nation's economic performance, the new policies led to triple-digit inflation and increasing unemployment. In the fall of 1982, the government began to negotiate with the IMF for a standby loan and committed itself to an austerity program, consisting of cuts in government spending, higher interest rates on bank loans to the private sector, and continuing regular devaluations. Additional financial controls, including a temporary ban on the issuance of new import licenses, were imposed the following autumn.

The "Austral Plan," launched in June 1985, was an attempt by the government of President Raúl Alfonsín to break out of the stagflation that characterized the economy since 1982. The combination of a wage-price freeze, a new currency pegged to the dollar, and a commitment to austerity in public spending was initially successful in curbing inflation, although somewhat at the expense of development. Since then, the government has attempted to manage price and wage increases and has offered several public corporations for sale. Multilateral assistance to Argentina totaled $6.3 billion between 1962 and 1986, of which 51% came from the IDB and 41% from the IBRD.

In the 1990s, the industrial sector's performance was excellent, in particular the food processing, construction, and automotive industries. Demand for consumer durable goods was strong as a result of ample credit availability. Construction activity was boosted by infrastructure projects associated with the privatization. Sweeping privatization and a wave of investment, both foreign and local, modernized old industries and nourished new ones. Farmers started to plant more profitable products, such as garlic, fruit, and olives. A new mining code brought foreign investment to a long-neglected sector. Oil and gas output doubled, attracting investment in petrochemicals, while Mercosur encouraged a boom of car exports. A recession in 1999 caused capital flight and high interest rates. Consumption was slow to pick up, and unemployment remained at around 12%. It was estimated that nearly 40% of the workforce was employed in the black market.

A combination of Argentina's fixed exchange rate, which made its currency uncompetitive, and continuing fiscal deficits led to the country's economic collapse and default on the bulk of its $141 billion in foreign debt in December 2001. The IMF at that time refused to grant Argentina an emergency $1.3 billion loan. By 2003, the government had suspended the last remaining controls on bank savings, and eased capital controls. The 2002 devaluation of the peso by 2003 had led to growth in exports and a rise in local products being substituted for imported ones. There was a good harvest that year, industry revived, and tourism rebounded as increasing numbers of foreign tourists visited Argentina's resorts. A standby agreement with the IMF that began in January 2003 was reviewed in June, and resulted in the release of $320 million.

2005 was expected to be the third year of continued growth, following the deep 2002 recession. This economic expansion was expected to moderate by 2006 and 2007, as the gap between actual and potential output was narrowing. Consumption, driven by higher real incomes, was one of the main growth engines. Investments were projected to be another big contributor, although they were expected to slow after 2007. Export and import values were expected to even out as the economy fell back into its prerecession tracks.

SOCIAL DEVELOPMENT

The election of Hipólito Yrigoyen as president of Argentina in 1916 initiated a series of profound changes in the nation's social structure. The Radical-controlled legislature enacted a series of economic and social measures, including a measure to establish retirement funds. Despite differences between Radical leadership and labor, limited social welfare measures were continued until 1930, when Yrigoyen was expelled from office. The Conservative regime in power for the next 13 years took little cognizance of demands for social benefits.

The next major advance in the creation of social and economic benefits was made during the government of Juan Perón, who assumed power in 1946. The 44-hour workweek that had been enacted in 1933 was for the first time put into effect. New provisions established salary increases, paid holidays, sick leave, job tenure, and many other benefits. By 1945, a National Social Security Institute administered social insurance programs and the pension system. In the early 1950s, these measures continued and were extended also to the rural sector. The failure of the Argentine welfare system to live up to Perón's promises helped to bring about his overthrow in 1955. During the 1960s, the pension funds were often diverted for other purposes, and there was a general breakdown in the system. By 1970, many of the persons eligible for welfare payments received none at all, and the secretary of social welfare under the Levingston administration, charged former government authorities with misappropriating millions of pesos.

Most of the social legislation enacted during the Perón years has remained on the statute books. The pension laws, updated in 1993, mandates that workers pay 11% of their wages into a pension fund, and this amount was supplemented by an 16% contribution from the employer. Work injury coverage is funded solely by the employer. Unemployment benefits were introduced for construction workers in 1967 and were expanded to include all employed persons in 1991. Both public and private sector employees are covered by workers' compensation, which is being expanded to cover domestic workers and others previously excluded from the system. There is also a prenatal allowance, and grants for marriage, birth, and adoption.

Although guaranteed equality under the constitution, women are fighting for equal advancement and pay in the labor force. Despite the government's efforts, discrimination against women in the workplace and sexual harassment continue to be important social problems. Women are more likely to work in unskilled, low paying jobs, even though, on average, they are more highly educated. Although prohibited by law, women earn less than men for similar work. Domestic abuse and violence against women are recognized as serious social problems. It was estimated in 2004 that one-fourth of the women in Argentina were victims of domestic abuse. A battered women's shelter and 24-hour hotline are operated by the city of Buenos Aires.

The National Council on Children and Families is working to develop child protection programs and legislation. Handicapped access to public places is specified by law aimed at eliminating barriers to the disabled, and a constitutional amendment recognizes the ethnic and cultural identities of Argentina's indigenous people. Reports of torture and brutality by police persist.

HEALTH

In the field of health and medical care, Argentina compares favorably with other Latin American countries. National health policy is determined by the Department of Public Health, an agency of the Ministry of Social Welfare. In 2004 Argentina had an estimated 301 physicians, 80 dentists, 42 pharmacists, and 239 nurses per 100,000 people. Nutritional requirements are comfortably met and, in 2000, 79% of the population had access to safe drinking water and 85% had adequate sanitation. Health and medical services for workers are provided by clinics of unions, and employers are usually required to provide free medical and pharmaceutical care for injured workers. Total health care expenditure was estimated at 8.4% of GDP. In Argentina the private sector plays a role in the provision of health services, ensuring social security through organizations called Obras Sociales. Funding for health services comes from employee payroll taxes and contributions.

In 2005, the infant mortality rate was 15.18 per 1,000 live births. As of 1999, an estimated 7% of all births were classified as low birth weight. As of 1998 maternal mortality was estimated at 38 per 100,000 live births. The overall death rate in 1999 was 7.6 per 1,000 people. Approximately, 74% of married women (ages 15–49) used contraception.

Of the major infectious diseases, smallpox, malaria, and diphtheria have been virtually eliminated and poliomyelitis has been greatly reduced. The incidence of tuberculosis in 1999 was 55 per 100,000 people, down 47% from 20 years earlier. In the same year, one-year-old children were immunized against the following diseases: diphtheria, pertussis, and tetanus, 88%; and measles, 99%. Life expectancy averaged 75.91 years in 2005.

The HIV/AIDS prevalence was 0.70 per 100 adults in 2003. As of 2004, there were approximately 130,000 people living with HIV/AIDS in the country. There were an estimated 1,500 deaths from AIDS in 2003. Argentina reported the second-highest incidence of AIDS cases (41 per million) in South America during the mid-1990s. HIV spread rapidly throughout Argentina via intravenous drug use soon after the first cases of HIV infection were reported.

HOUSING

Economic collapse in late 2001 left at least 50% of the population below the poverty line. In early 2001, it was estimated that about 17.7% of all households lived in substandard housing units. In 2005, it was estimated that 30% of the population lived in inadequate housing.

Houses in Argentina reflect the Italian and Spanish ethnic backgrounds of the population. Except for marginal rural dwellings and urban shanty towns, concrete, mortar, and brick are favored as the principal construction materials. Wood is generally considered less durable and feared as a fire hazard.

EDUCATION

Education is free, secular, and compulsory for all children at the primary level (ages 5–14). In 1993 Argentina switched from seven years of primary and five years of secondary education to a system known as EGB, consisting of nine compulsory years divided into three-year stages. This is followed by a three-year "multimodal" course of study offering either general or specialized training. In 2003, about 60% of children ages three to five were enrolled in preprimary school programs. At last estimates, primary school enrollment was about 94% (1991) while secondary school enrollment stood at about 81% (2002). The academic year runs from March to November.

Private, foreign, and religious schools are permitted, but they must conform to a nationally prescribed pattern of teaching in the Spanish language.

The Ministry of Education supervises the National Council on Technical Education and the National Administration of Middle and Higher Education. The Consejo Nacional de Evaluación y Acreditación Universitaria (CONEAU), established in 1997, oversees the external evaluations of all universities. In 2003 public expenditure on education totaled about 4% of GDP.

Traditionally, university students have played an active role in campus policy, based in part on the concept of university autonomy established in the Córdoba reform movement of 1918. Student organizations have also been outspoken in national politics, denouncing the policies of the military government in the late 1970s and early 1980s. Argentina has over 46 officially accredited universities. The largest is the University of Buenos Aires. All institutions of higher learning had a combined total enrollment of 1.9 million students as of the 2001. The adult literacy rate for 2003 was estimated at about 97%, with an even distribution between men and women.

LIBRARIES AND MUSEUMS

The National Library was founded in 1810 and has occupied its present site in Buenos Aires since 1902; in 2002 it had about 1.9 million volumes. The libraries of the University of Buenos Aires have combined holdings of over 2.5 million volumes, while the library of the National Congress has two million volumes. The Catholic University of Argentina, with five campuses, has a combined collection of 90,000 volumes. The National Academy of Medicine has a library with 50,000 volumes in Buenos Aires and the Museum of Ethnography in Buenos Aires has a specialized collection of 100,000 volumes. The Buenos Aires Stock Exchange Library has a collection of 12,000 books, along with more than 200 periodicals, CD-ROMs and videotapes, covering the topics of the stock market, finances, and economics. The National Teachers Library is an initiative of the Ministry of Education, Science and Technology, designed to serve as a national reference center for knowledge and data management within the education system. There are thousands of public and school libraries and innumerable private libraries.

The National Museum of Fine Arts in Buenos Aires contains modern Argentine, American, and European works, as well as paintings attributed to old masters, paintings of the conquest of Mexico executed 300–400 years ago, and wooden carvings from the Argentine interior. Also in Buenos Aires are the National Historical Museum; the Isaac Fernández Blanco Museum of Hispanic-American Art, which contains an interesting and valuable collection of colonial art; the Mitre Museum and Library, containing the manuscripts, documents, printed works, and household objects of Gen. Bartolomé Mitre, which constitute a unique record of Argentine political development; the Natural Science Museum; and the Municipal Museum. There are several important historical museums in the provinces, including the Colonial and Historical Museum at Luján and the Natural History Museum of the University of La Plata, which is world-famous for its important collections of the skeletons of extinct pre-Pliocene reptiles (for which the Argentine pampas form one of the richest burial grounds).

MEDIA

In 2003, there were an estimated 219 mainline telephones for every 1,000 people. The same year, there were approximately 178 mobile phones in use for every 1,000 people. Internal telegraph facilities and some international circuits to nearby countries are wholly government operated.

As of 1999 there were 260 AM and an unspecified number of unlicensed FM radio stations. There were 42 television stations the same year stations. Many of the stations are privately owned. In 2003, there were an estimated 697 radios and 326 television sets for every 1,000 people. The same year, there were 82 personal computers for every 1,000 people and 112 of every 1,000 people had access to the Internet. The number of secure Internet servers in 2004 was about 386.

Buenos Aires is one of the principal editorial centers of the Spanish-speaking world, with more than 50 publishing houses. Numerous literary magazines and reviews, as well as books, are published. Press coverage in Argentina is one of the most thorough in the hemisphere, with over 150 daily newspapers published throughout the country. At least three news agencies were operating in 2005: Noticias Argentinas, coordinated by a group of privately owned newspapers; TELAM, run by the state; and Diarios y Noticias, owned in part by Grupo Clarin. The major international news services were also represented.

La Prensa is probably the most famous newspaper in Latin America. Throughout the early days of the Perón regime, La Prensa battled the dictatorship, but it was finally taken over forcibly by Perón and given to the CGT, the dictator's central labor organization. The provisional government of Gen. Eduardo Lonardi returned La Prensa to its rightful owner, Alberto Gainza Paz, and it resumed publication in February 1956. In 1969, the Onganía government imposed siege regulations on the press, and in August of that year, two weekly papers were closed down. After the 1976 coup, no formal censorship was introduced, but some journalists were arrested for "subversive" articles. With the restoration of democratic government, harassment of the media stopped.

The largest dailies, with their estimated daily circulation figures in 2004, included: La Nación, 250,000 (down from 630,000 in 2002); Clarín, 300,000 (down from 560,000 in 2002); Diario Popular, 140,000; El Cronista, 65,000; La Voz del Interior, 100,000; La Gaceta,55,000; El Día (La Plata), 55,000; and El Litoral, 37,000. The Sunday edition of Clarin had a circulation of about 300,000, down from the one million copies reported in 2002.

ORGANIZATIONS

Argentine organizations fall into the following main categories: agricultural, business and industrial, social and cultural, and political and humanitarian action. The Argentine Agricultural Association, established in 1866, with a membership predominantly of owners of large ranches (estancias), occupies itself mainly with the improvement of agricultural and livestock production. The Argentine Association of Cooperatives and the Argentine Agrarian Federation also represent rural interests. The Milk Industry Center and the Argentine Meat Industry Union are based in Buenos Aires.

Social and leisure organizations are found in almost every community of any size. The Athletic and Fencing Club in Parque Palermo, a suburb of Buenos Aires, has extensive recreational facilities. The Argentine capital also sponsors numerous clubs in the delta region. At the other social extreme is the exclusive Jockey Club of Buenos Aires, with a wealthy membership. There are several yacht clubs. The Automobile Club operates a chain of service and rest stations throughout the country, giving travel information and selling gasoline at a slight discount.

Many intellectuals belong to the Argentine Writers' Society. The Academia Nacional de Bellas Artes, Argentine Academy of Letters, the National Academy of History, and the National Arts Foundation support and encourage activities in the arts and humanities.

Industrialists and business leaders participate in the Argentine Industrial Union, which originated in 1887 and was reestablished in 1977 through the merger of the Argentine Industrial Confederation and the General Confederation of Industry. The leading chambers of commerce in 1993 were the Argentine Chamber of Commerce; the Chamber of Commerce, Industry, and Production of the Argentine Republic; the Chamber of Foreign Trade of the Federation of Trade and Industry; and the Chamber of Exporters of the Argentine Republic. Argentina also has a committee with the International Chamber of Commerce. There are three national consumers organizations and a regional office for the Consumers Association of Mercosur is in the capital. There are professional associations representing a wide variety of fields, including dozens of medical and health associations.

Youth organizations supporting a variety of political and social interests include: the Federation of Argentine University Students (FUA, founded in 1918), the Argentine Youth Hostel Federation, Argentine Student Tourism Association, Youth of the Popular Socialist Party, Youth of the Radical Civic Union, Communist Youth Federation of Argentina (FJCA), the Latin American Youth for Democracy (JULAD), Scouts de Argentina, and Associación Guías Argentianas (Girl Guides). There are also organizations representing the Special Olympics and both the YMCA and YWCA. Organizations focusing on the rights and role of women include Equal Rights for Argentine Women, the Foundation for Women's Equality, and the Foundation for Women's Research and Studies.

Greenpeace, Amnesty International, Caritas, Friends of the Earth, and the Red Cross have organizations within the country.

TOURISM, TRAVEL, AND RECREATION

The government promotes tourism through the National Tourist Bureau, with headquarters in Buenos Aires. Visitors from all countries are required to have a passport to enter Argentina, although Australians and New Zealanders must also have a visa. There are no required vaccines to enter Argentina.

Mar del Plata, on the southern Atlantic coast about 400 km (250 mi) from Buenos Aires, is the most popular ocean resort. The delta of the Río Paraná, forming a series of inland waterways, is a center for pleasure boats and launches. Córdoba, with its fine colonial cathedral, and nearby Alta Gracia attracts many visitors. San Carlos de Bariloche, at the entrance to Nahuel Huapi National Park in the Andean lake region of western Patagonia, has become famous as a summer and winter resort, with some of the best skiing in the Southern Hemisphere. The Iguazú Falls, in the province of Misiones, on the border of Argentina and Brazil, is a major tourist attraction. Mendoza, situated in a fertile oasis below the towering Andes, offers such historical attractions as the Cerro de la Gloria, with its monument to San Martín, and the Historical Museum, with its collection on San Martín.

The most popular sport is football (soccer). Tennis, rugby, basketball, and golf are also played. Opportunities for gambling include a weekly lottery, football pools, horse racing at the Palermo and San Isidro tracks (in Buenos Aires), and the casino at Mar del Plata, whose profits go to the Ministry of Social Welfare.

In 2003, about 2,995,000 foreign tourists visited Argentina, 65% of whom came from other countries in South America. Receipts from tourism were estimated at $2.4 billion. As of that year, there were 174,629 hotel rooms with 417,995 beds.

The US Department of State estimated the daily cost of staying in Buenos Aires in 2005 at $228 per day. Expenditures at other locations averaged $175 per day.

FAMOUS ARGENTINES

The most famous Argentine is José de San Martín (1778–1850), known as the Protector of the South, who was principally responsible for freeing southern South America from the Spanish yoke.

The tyrannical dictator Juan Manuel de Rosas (1793–1877) ruled Argentina from 1829 to 1852. The political tactics and the pen of the statesman and essayist Domingo Faustino Sarmiento (1811–88) did much to undermine him. While in exile, Sarmiento wrote some of his best works, including Facundo, the story of a rival caudillo. The most literary of Argentina's statesmen was Gen. Bartolomé Mitre (1821–1906), who was president from 1862 to 1868. Mitre, the founder and owner of the newspaper La Nación, wrote several important historical works and biographies. The most famous Argentine political figures of modern times have been Juan Domingo Perón Sosa (1895–1974) and his second wife, Eva Duarte de Perón (1919–52), known as "Evita." Perón's third wife, María Estela ("Isabel") Martínez de Perón, was vice-president during 1973–74 and, after her husband's death, president from 1974 to 1976.

José Hernández (1834–86), one of the first Argentine literary figures to use the uncultured language of the gaucho in his writings, is the author of Martín Fierro, considered the greatest of gaucho poems. Ricardo Güiraldes (1886–1927) kept the "gauchesco" spirit alive in his novel Don Segundo Sombra, a spiritual study of an Argentine gaucho. A less romantic view of these hardy horsemen of the pampas appears in the writings of Benito Lynch (1885–1951). The works of the poet Leopoldo Lugones (1874–1938) form a panorama of all Argentine life and landscape. José Mármol (1817–71) gave a good description of life in Buenos Aires under the tyrant Rosas in his novel Amalia, and Enrique Rodríguez Larreta (1875–1961) wrote the first Latin American novel to win international fame, La gloria de Don Ramiro, a reconstruction of Spanish life during the reign of Philip II. The leading contemporary writer of Argentina is Jorge Luis Borges (1899–1986), best known for his essays and collections of tales such as Historia universal de la infamia. Other world-famous writers are Julio Cortázar (1914–84) and Adolfo Bioy Casares (1914–1999). Outstanding in the visual arts are the sculptor Rogelio Irurtia (1879–1950) and the painters Miguel Carlos Victorica (1884–1955) and Emilio Pettoruti (1892–1971). Argentina's foremost composers are Alberto Williams (1862–1952), founder of the Buenos Aires Conservatory; Juan José Castro (1895–1968); Juan Carlos Paz (1901–72); and Alberto Ginastera (1916–83). Ástor Piazolla (1921–92), is regarded as the world's foremost composer of modern tango music. A bandoneon player, his compositions incorporated jazz and classical music with the traditional tango in a style called nuevo tango. In Argentina, he is regarded as "El Gran Ástor" ("The Great Ástor"). Piazolla is credited with having redefined the music of tango singer Carlos Gardel (1890–1935). Another important Argentine musician is pianist Martha Argerich (b.1941), who avoids the limelight but is recognized as one of the great piano virtuosos of the 21st century. Pianist and composer Lalo Schifrin (b.1932) composes music for film, television, and video games. He has won numerous Grammy Awards and Oscar nominations.

The most famous Argentine scientist, Bernardo Alberto Houssay (1887–1971), was awarded the 1947 Nobel Prize in medicine for his work on diabetes; French-born Luis Federico Leloir (1906–87) won the Nobel Prize for chemistry in 1970. Notable philosophers include Alejandro Korn (1860–1936), whose work marked a reaction against positivism, and Francisco Romero (1891–1962). Carlos Saavedra Lamas (1878–1959), an authority on international law, received the Nobel Prize for peace in 1936. Adolfo Pérez Esquivel (b.1931), a sculptor and professor of architecture, received the Nobel Peace Prize in 1980 for his work in the Argentine human-rights movement.

DEPENDENCIES

Argentina continues to claim the Falkland Islands (Islas Malvinas), held by the United Kingdom, and a sector of Antarctica as dependencies.

BIBLIOGRAPHY

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