State Economics
Draft
Note: This topic is a mix between personal interest and understanding warning signs. It is low priority.
Leading Questions
- How are states governed in a good way from an economic perspective?
- How can failing states be restaurated?
- Which signs of trouble should we look for?
Failed Economies
Why did Argentina fail under Macri? (2015-2019)
Macri favors market oriented policies and put's emphasis on individual responsibility and competition, the fight against corruption and rejects "messianic" characters in politics. [1] He wanted to bring Argentina back on the world stage and increase it's competitiveness and focus on innovation. He is not happy about the Mercosur trade agreement as it does not exempt Argentinian products from import taxed in most markets. [2]
Why did his policies fail?
It appears that lifted currency controls in combination with an incoming socialist government turned out to be catastrophic [3] as it allowed business and money to flee the country?
Trade Agreements
Understanding the power of trade agreements can help us predict into which direction economies are developing.
Trading Blocks
- Mercosur - Weak?
Individual Countries
- Mexico - Good trading position as a producer for U.S. and the world. [4]
- Chile - Strong trading position in South America. [2]