Policy in times of United States- Argentina
We must cover that in all political systems these have been affected by their forms in their policies and even more in times of crisis, in this case the great recession therefore covered the management of policies regarding the economic crisis of 2008In the United States at the head of George Bush and in Argentina at the head of Cristina Fernández de Kirchner. But first we must define these two countries according to government system and their characteristics regarding management in crisis situations.
It should be noted that both the United States and the Argentine Republic are established in the presidential system, according to Duverger, I characterize it as “by the principle of the separation of powers, the choice of the pre -gi – through the universal suffrage, the nameI lie and the removal of the ministers by that, and why they are not politically responsible for Parliament."
It is called that form of government in which, constituted a Republic, the Constitution establishes a division of powers between the Legislative, the Executive and the Judicial and in which the head of the State, in addition to holding the formal representation of the country, isAlso active part of the Executive Power, since he is the head of government, thus exercising a double function. The United States is a federal presidential republic composed of 50 states. It has a constitution that dates from 1789, which has been the subject of 26 amendments in more than 200 years. The Constitution defines three separate branches of government, which are the Executive, the Legislative and the Judicial, as well as their powers and the way in which vacancies must be filled in each of them. One of the characteristics that define the Constitution is the system of ‘controls and balances’ that is established therein, to distribute power between the three branches.
Each of these exercises some kind of power over the others. For example, the judges of the Supreme Court (Judicial Power) are appointed by the President (Executive Power), but their designation is subject to the consent of the Senate of the Nation (Legislative Power). Likewise, the Judiciary can reject laws already approved by Congress and signed by the President if they consider that they are unconstitutional.
In Argentina it is characterized by the existence of a strict separation between the legislative and executive powers. The Legislative Power is composed of two chambers and the Executive Power is in the hands of a president elected by popular suffrage. There is no parliamentary responsibility of the president and each power is sovereign in the orbit of its functions. It is bicameral and the members of both cameras are chosen on different electoral bases. The deputies are chosen directly by the town for a period of four years;Senators are chosen by provincial legislatures (two senators for each province) for a period of nine years.
Despite this base of different representation, both cameras have almost the same functions and competencies. The form of choice of senators allows significant minority representation. Minor matches, which have only most votes in a single province, have played an important role in national politics, asserting their senators when none of the majority parties reaches the absolute majority in the Senate. It has a multiparty political party system in which national parties and local parties coexist. Although until the mid-nineties there were two traditional parties- Peronism and radicalism- multiparty has been consolidated by the crisis facing the radical party. In the last presidential election, three Peronist candidates and three other candidates of radical origin were presented in addition to several candidates from other parties. The strong polarization that characterizes the presidential elections has not prevented the emergence of new parties and the legislative chambers have numerous partisan blocks. If this situation was maintained, the multiparty system would become asymmetric due.
Now with respect to the economic crisis, on October 3, 2008, the president of the United States, George W. Bush would promulgate the aforementioned emergency economic stabilization law through which 700 would be channeled.000 million dollars to the financial market. This measure sought to help strong banks so that they offer loans again, and those banking institutions that present difficulties, in order to be stabilized.
The beneficiary banks would be Citigroup, Goldman Sachs, Morgan Stanley, Wells Fargo, JPMorgan Chase, Bank of America, Merrill Lynch, State Street, Bank of New York Mellon Corp. The United States Secretary of the Treasury, Henry Paulson, would use money to buy many of the uncollectible mortgage debts. In his speech of September 28, 2008.On the other hand, in Argentina, although affected by the global economic crisis of 2008-2009, the Argentine economy has been recovered since then and has managed to register GDP growth rates of around 9% in 2010 and 2011. However, the growth rate decreased, to 2.4% per year in the first half of 2012. At the same time, inflation acceleration continues to be an area of concern. Argentina has benefited considerably of its participation in the multilateral trade system, by doubling the total exports between 2005 and 2011, which has contributed to facilitate its rapid exit from the crisis. The increase in the international price of the main products exported by the country has also contributed to the recovery of the economy. Argentina actively use commercial policy measures, as an instrument to achieve its long -term objectives, such as favoring general economic growth or promoting industrialization, development or self-sufficiency. It also resorted to commercial policy instruments to achieve short -term objectives such as containment of inflation and balance of payments. For example, to dissociate the effect of fluctuations on the international price of export goods on prices in the domestic market, internal supply agreements have been implemented with producers and export rights are applied, which constitute one of the mainFiscal Income Sources.
Mechanisms such as import licenses and compensation agreements with producers have also been used to balance the trade balance and promote national production. The use of commercial policy to achieve short -term objectives requires a constant adjustment of commercial policies that accentuates the complexity of the commercial regime, making it less predictable, and generates additional costs for the economy. In general, during the period examined, Argentina’s commercial policy has signed up for the promotion of exports and internal production, sometimes through import substitution. However, the application of this combination of policies can sometimes generate conflicting effects. On the one hand, the production and export of manufactures is promoted by means of a series of tax incentives, however, on the other hand, export rights are applied and different types of records are required to export certain products, which can undermine theexport capacity and country competitiveness. In addition, the use of import licenses and other administrative measures linked to imports can result in an additional cost to production and therefore in an increase in the cost of exportable products.
It can be concluded that despite the fact that both countries suffered to a certain degree the crisis the presidents had. In the United States the management did the fastest and most effective recovery while in Argentina clear this confidence of its policies later would be entering an economic crisis and finally the parties led by the head of government did not cover the decisions of it, positionthat a more centralized control is handled from this,
Bibliographic references
- Bouzat, g. (1990). The Argentine political-institutional system. Some distinctive notes. Retrieved from: Dialnet-the Popolitical Institutional Poplithic-1050497.PDF
- Devesa, f. (2013).THE FORM OF PRESIDENTIAL GOVERNMENT. Recovered from: https: // caumas.Org/WP-Content/Uploads/2016/01/El-System-Presidencialist.PDF
- Gambrill, m. (2008). Causes and remedies of the financial crisis. North America, 3 (2), 195-204. Recovered from http: // www.Scielo.org.MX/Scielo.PHP?script = sci_arttext & pid = s1870-355020080002009 & lng = es & tlng = is.
- Carpizo, J (2006) Essential characteristics of the presidential system and influences for its establishment in Latin America. Recovered from: http: // www.Scielo.org.mx/pdf/bmdc/v39n115/v39n115a2.PDF
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