Argentina Pestel

Country Analysis Report: Argentina, In-depth PESTLE Insights


PESTLE ANALYSIS











































REFERENCE CODE: ML00002-001
PUBLICATION DATE: Aug 2011
WWW.MARKETLINEINFO.COM

© MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

PESTLE ANALYSIS








PESTLE ANALYSIS


SummaryThe incumbent Argentine government has restructured the general laws and regulations of the country. President Fernandez de Kirchner’s government has taken steps to strengthen the existing investment regulatory body. Fernandez de Kirchner announced her intention to stand in the October 2011 presidential elections; her victory would ensure the continuation of the current government’s policies,including its claim over the Falkland Islands. Most sectors have been opened for private sector participation. The government has also undertaken infrastructure development to attract prospective foreign investors. The Argentine economy has achieved robust recovery after the global financial crisis, growing by more than 9% in 2010. The trade surplus averaged $11bn during 2005–09, with externaltrade increasing from $105bn in 2009 to $119bn in 2010. However, high inflationary pressures, public debt, and unemployment have stalled growth.


Argentina, primarily an urban country, has healthcare and educational facilities of international standard. According to the World Health Organization, in 2009 the country’s total healthcare expenditure as a percentage of GDP was an impressive 9.5%, withper capita expenditure at $1,387. However, the country’s rural belts are largely insulated from such amenities, resulting in the large-scale migration of individuals from rural regions to urban settlements. Regional disparities, crime, drug abuse among the young population, and inequalities in the employment market have traditionally acted as stumbling blocks for the equitable development of thecountry.


Argentina has an impressive technological infrastructure with a considerable landline and mobile telephony base. The IT, e-commerce and biotechnology markets are strong. The government has collaborated with prominent IT companies to disseminate services to the country's underserved segments, and initiatives have been undertaken to encourage research and development (R&D) activitiesin various sectors, with international co-operation become more prominent. However, weak implementation of intellectual property rights and a failure to protect the copyrights, patents, and trademarks of US producers from the threat of piracy could affect its technology markets.


Argentina has a comprehensive legal and regulatory framework, and has initiated many reform measures with a view toincreasing flexibility in the labor market. The government has recently approved Law 24,942, which created a new mechanism to promote investment. However, judicial delays and slow procedures have reduced the overall effectiveness of the country's legal system.


The country is rich in biodiversity, and has undertaken numerous conservation initiatives and supported major internationalenvironmental conventions. However, a high level of greenhouse gas emissions is a cause for concern. The total amount of CO2 emissions in 2010 was 182.5 million metric tons, compared to 121 million metric tons in 2002.The country’s agricultural sector has been affected by climate change.


Political analysis


Overview


Since the restoration of democracy in 1983, successive governments have takenseveral experimental measures to bring about economic and political stability; however, these attempts have largely proven inadequate, instead causing political and social strife. The government has a strong democratic setup, and has forged regional partnerships that have helped its external trade. It has been successful in introducing economic reforms, primarily meant to relax trade and...