In The South America Continent Is The Argentine Republic

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In the South America continent is the Argentine Republic


In the continent South America is the Argentine Republic, this is the official denomination that the country receives in the National Constitution validated in 1853. Argentina is characterized by being a melting pot that defines the essence of Argentinity. Naturally, like any other country through Argentine history in the mid -1970s, it was losing the benefactor state profile that had characterized since the middle of the century;Direct intervention in the economy and the development of social protection policies were becoming weaker having an economic breakdown . This allowed a massive import of goods, which largely affected national industries that could not compete with cheaper imported goods.


In August 1989, an important privatization process in Argentina caused by the rapant hyperinflation and lunch of food. In charge of the issuance of two laws in Congress, the law known as the State Reform Law is authorized by the National Executive Power to intervene pubic companies, suppress existing directories, eliminate control bodies, divide companies and privatize them asSecond Economic Emergency Law that centrally repeals the norms that differentiated the foreign capital of the national. Where the privatization of more than sixty state companies arose. 

Privatization encompasses public assets The supply of water, gas, electricity, transport, oil reserves, telecommunications to regulation and social control activities such as the issuance of identity documents. The privatization of public services was one of the measures prescribed by international credit organizations such as the International Monetary Fund (IMF) and the World Bank (BM) in the late 80s having as a premise the benefit for external creditors for whom they would opennew market investment areas.

The Argentine Republic had four arguments in favor to pass public companies to be privatized. The first had to do with the need to reduce the fiscal deficit. The second argument was intimately linked to the previous point, in turn revolving around the need for stability for the Republic. The third place was argued that the State did not have the ability to finance investments in technology which privatization would ensure an improvement to the system. Finally Argentina was incapable to administer efficiently supporting bureaucracy and corruption accordingly not to provide good services. They were considered priority for three public sectors: energy, communications and transportation.

The first privatization in Argentina was the National Telecommunications Company known as Entel founded in 1946 culminating privatization in 1990. To face the process, companies were created by the Northern Licenious Society. A and South Degree Society.Lego turned into Argentine Telecom and Telefónica de Argentina, creating services in competition. Entel continued to exist for a few more years as a residual company, to fulfill previous commitments and procedures typical of the privatization process. Emerging the National Communications Commission (CNC) as a control agency to comply with some regulation tasks such as assigning the national numbering plan, interconnection agreements, setting rates among others. 

As a second privatization was the electricity known as Electrical Services of Greater Buenos Aires (SEGBA). privatized between 1991 and 1992 during the government of Carlos Saúl Menem. The electricity distribution was divided into three areas, one belonging to Edenor, another to Edesur and the last to Eden. Companies such as Central Costaneras, Central Puerto and Central Dock Sud were created, being the first thermoelectric plant. 

In 1992 during the Government of Carlos Menem, the official mail of the Argentine Republic was privatized being one of the first countries to privatize emails. Later, the Fiscal Oilfields (YPF) an Argentine company dedicated to the exploration, exploitation, distillation and sale of oil created in 1922 under the government of Hipólito Yrigoyen. It was privatized in 1999 during the Menem government marking a neoliberal economic policy being privatized and sold to the Spanish in 1999. 

These state agencies were one of the first in the privatization process. Subsequently there are several private institutions in Argentina. The following are: General Ports Administration, Aerolineas Argentinas, National Mortgage Bank, National Box Savings and Insurance among others. The privatizations was carried out in the 1990-1999.

Like any change, it has its positive and negative aspects. The consequences of the privatization process in Argentina had four major consequences in different areas. One of the main areas was on the property producing large structural changes, concentrated and consolidating the presence of large economic groups. On the other hand, the company’s conversion had a great direct impact on workers where they lost the rights they had as public workers such as stability in office. 


There was a strong reduction of the campuses through the so -called volunteer retreats for which companies allocated enormous sums of money. The importance of strategy that companies granted to the reduction of personnel was accompanied by a process of replacing the staff with more seniority in the company. A very significant point was the deregulation at this point, the central thing was to introduce the concept of competition in the sector. It was sought to eliminate the monopolistic provision of the service creating a wholesale market and another retail for sale of fluid. Deregulation enables competition between companies and leads to a cost reduction search. The strategy consisted of rapidly earnings without reinvestment.

Despite the privatization impulse, Argentina, made sales of state companies for values greater than 10% of their GDP. The Republic did not keep any important company in the State, with the exception of some national and provincial banks and some provincial health companies. Privatization not only released taxpayers from covering strong losses. In many cases I also improve efficiency and service. But privatization also brought problems. In the fixed line telephony to privatized firms, a monopoly was granted for nine years. His rates raised four times what is paid in the United States. Electric privatization was well thought out;Rate for industrial users fell.  

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