Robust economy, at what cost?

University of Florida graciously agreed to let me shadow one of their Argentine business presentations coordinated by Austral Group, so that occupied most of my morning. The presentation by Southern Cross and Northia Laboratories highlighted the significant growth of biomedical/pharmaceutical industries in Argentina, driven by strong export markets (especially for injectables) across Latin America. Politics, however, play an interesting role; Northia and many others in the biomedical industry do not sell their products to Venezuela, for example, because Chávez has a history of taking and not paying. General economic stability across the region has also favored industry growth, but there are concerns that growth will slow quite markedly over the next decade. Inflation is also another serious factor: currently 20%. While wages have been steadily increasing and unemployment rates remaining relatively low, the global economic crisis has made inflation a liability, with potential retractions in foreign direct investment that are critical for the country's long-term economic viability. Some of the Brazilians I met in São Paulo also indicated that there were increasing concerns with Argentina. The accusation of corruption with President Cristina Fernández de Kirchner is also presenting a significant perception problem. In essence, it's the same old Latin American story of financially paying back the "friends" who helped get you elected.

The rest of my day was spent sight-seeing in the Microcentro with some guests from IU who joined me for the Argentina and Peru legs of my trip. The afternoon activities included walking around and seeing the Plaza de Mayo, Casa Rosada, Catedral Metropolitana, and Plaza del Congreso. The pictures below essentially illustrate the day, but there are a few observations I want to pass along.

The Catedral is a "must see" because it effectively captures the Catholic foundation of the country and highlights the various "rich" periods of the country's history. Around the Plaza de Mayo, I saw a billboard for the musical on Edith Piaf's life - merely another example of Argentina's love of all things European. And there was, of course, one of the ubiquitous demonstrations near the Plaza de Mayo, this one for what appeared to be disparate groups of socialists and anarchists quietly standing in the street with banners.

Plaza del Congreso was disappointingly unimpressive. There were broad swaths that had not been adequately maintained, and the plaza as a whole looked dirty. The allegorical statue of the Republic did, interestingly, have "JP Descamisados" spray painted on the base, a sign of the resurgence of the Peronistas. Curiously, however, there were dozens of cats sleeping on the steps of the statue's base behind the iron-gated area.










Along the way, the group stopped into Havanna for coffee and a medialuna (small croissant). Unlike the fast-paced to-go model of Starbucks, Havanna is designed for a slower-paced sit-down experience, with a mesero/mesera coming to your table to serve you. If you're in a hurry, this is not the place for you. We also had drinks and snacks at a small cafe in the Plaza del Congreso. This was my first experience with Argentina's desperately poor and homeless, countless people who approached our table attempting to sell socks and other miscellaneous items. Because of safety concerns, I do not recommend dining outside in this area.