Attention: Please, if you are going to participate, you must be realistic and take into account many aspects of PR (such as economic spending, intervention, faction and history of NS Argentina). This is a canon RP, so your decisions will be part of NS Argentina, you are warned.
Previous events...
The Argentine industry has experienced a favorable growth since Agustina Neumann assumed the position of president. Agustina Neumann's measures consisted (initially) of a neoliberal model to export raw material to several countries of the world and it was the agricultural industry that suffered the first "great impulse" of the rest of the Argentine industries. The agricultural industries would have suffered a major drop since Perón industrialized the country and, as if this fall was not enough, after the 2 presidencies of Carlos Menem in the decade of the 90s, the heavy Argentine industry that Perón built was totally privatized, leaving to Argentina in the hands of private industries and foreign capital. Even public services were privatized, which improved the quality of these services but reduced the gain of the Argentine state and its control over services. The measures of Carlos Menem made Argentina revert to the agricultural industry, but this industry was practically destroyed and weakened, so Argentina experienced the biggest crisis in its history in 2001.
During the presidency of Agustina Neumann, inflation increased by 35% due to the large expenditures of the state. The state increased the export of raw materials and agricultural products, positioning Argentina as one of the largest exporters of raw materials in the world. Also the oil industry was strongly affected, government funds were destined to buy (in full) YPF (in English: Fiscal Oilfields), which caused a reduction in the quality of the oil and the amount of oil exported but increase (from parallel form) the profits of the Argentine republic because the company was totally state. With these profits, the Ministry of economy began to launch a plan (secretly) to reduce imports and increase exports, there were fewer "Coca~Cola" drinks, fewer "Adidas" brand clothing, fewer service stations "Shell". Accelerated and discreet, foreign industries were disappearing due to the large taxes imposed by the Argentine Republic to be within the country. Without foreign competitors, the national industries saw the way open to develop without difficulties and gradually, Argentine brands sold more products, increased their profits, their reach and the quality of their products.
Argentina was going back in time; retreating to good times, to 1950. Agustina Neumann's dream was to transform Argentina into a "self-sufficient" country that should not depend on foreigners to live, so and only then, Argentina could progress. Argentina had to produce for its own consumption, the Argentines had to produce for the Argentineans. Gradually, inflation was reduced and getting closer and closer to the US dollar. The economy seems to be stable at present. The national industries are at an optimal time, they have the capacity to supply a large part of the country and the state owns most of these companies.
The actions of Agustina Neumann caused several countries (especially the United States and the United Kingdom) to oppose their measures out of jealousy that Argentina take a status of "world power", since Argentina was benefited by the fertility of its soils, availability of immense reserves of natural resources and now had the ability to exploit them on their own.
April 11, 2019.
Argentina hits economic relations.
Axel Kicillof, one of the Argentine economy ministers.
The Ministry of Economy of Argentina, together with the national congress and the presidency of the nation, has signed a decree to expel most of the foreign industries from Argentina. This aggressive economic measure consists of "destroying" trade agreements with foreign private companies and establishing a date for their departure from the country. This measure will deprive Argentina of internationally recognized products such as Apple cell phones, Sony televisions or "Ford" vehicles. International economic analysts estimate that this measure would reduce the import of products by 75%. The companies of digital communication and internet are the only companies that (for now) are saved from this economic measure.
The companies will be slightly compensated and from today they have 30 days to close their factories, trade posts and establishments. The left sectors of Argentina fiercely support this drastic economic measure and for the first time in the history of Argentina, the right sectors coincide with the sectors of the left. The lower, middle and higher nationalist classes have also shown themselves in favor of this measure, while the less nationalist sectors make strong protests and repudios against this decision, classifying Agustina Neumann as a "corrupt Communist".
Agustina Neumann wearing her presidential costume with the
"Argentine Cockroach" (symbol of the Argentine homeland)
These measures have had an impact especially on private and public companies in Europe and North America, since these are the ones that have been most affected, however, Asian companies are not left behind either; these also had strong expectations with the economic relations of Argentina. This economic measure could be compared with the British "Brexit" but in a much more extreme way. These economic measures can make Argentina drastically compromise Latin American economic blocs such as Mercosur, ALADI and UNASUR. This policy reduces Argentina's purchases to the foreign market, causing imports and foreign products in the country to be drastically reduced, affecting the economic interests of several world powers and many powerful private capitals.
The dissatisfaction of foreign companies is at a maximum point because they are losing a highly consumer market and growing because Argentina has the highest HDI of Latin America and one of the most likely to progress throughout the Americas. Now that Argentina will reduce its imports, many of the developed countries worldwide will suffer this great loss of money, which will cause a reduction of their monetary reserves and financial income. But these countries are not the only ones affected, the country most affected in this decision is Argentina. This dangerous bet for the national industry can result in two endings: The first is based on Argentina increasing the national workforce, national industries produce more, include more workers, the government intervenes in the local economy (ignoring the neoliberal model and old liberal) and Argentina reduces its dependence on foreign capital and products. The second is based on the fact that the national industry could produce for a part of the population and not for the whole country, the government will not be able to contribute to the national industry due to the scarcity of monetary funds (it must be remembered that Argentina must pay several foreign debts) and the country enters a crisis that (according to forecasts of economists) will be the largest in its history, since the external debt will consume part of the country's monetary funds and the government will not be able to pay all public employees and keep public companies in optimal condition.
According to the current president of Argentina; "Argentina will produce for domestic consumption and what will go to reserves and foreign trade." This comment refers to the agricultural production of Argentina, which (it is estimated) lowers its price within the country and its internal consumption will increase. But the question that many ask is the following; If Argentina does not buy foreign products, where will the machinery to produce its own products?, According to the economic plans of the Ministry of Labor, Argentina will start producing its own production models and (probably) it will be its own creations or models based in those of other countries but with slight modifications and being of national manufacture. As is the case in China, these products will have a lower quality but they will be of national production. But here there is a difference, China has an immense population that can include such a national manufacture, Argentina has only 50 million inhabitants. Also drugs and private chemicals will no longer be required in the country and will be opted for nationally manufactured medicines. Argentina will reduce 75% of its imports and the imports that are still in force are communication services, network, vehicles of Japanese brands, vehicles of German brands and some specialized machinery.
Symbol of the Argentine Industrial Alliance and seal of the
national production of Argentina.
Today, the "Argentine Industrial Alliance" has been created, a state corporation that encompasses all state or private industries of Argentine origin and that are producing within Argentina. This alliance has the purpose of generating a "common fund" in order to empower the national industries and control them. State companies of great importance such as YPF (producer of state oil) or Compañia Rioplatense (giant refrigerator and a huge distributor of high quality caner) are part of the Argentine industrial alliance. The Argentine state must now invest its money in improving the infrastructure of the country's industry with the hope that it will progress and increase national production and consumption.
The profits of this corporation will also be used to pay Argentina's foreign debt. Agustina Neumann has surprised many economists of the world with this sudden turn of ideas, many wonder if she has changed her economic opinion or was simply waiting to develop the Argentine national industry until it is able to replace foreign industries. Agustina Neumann proposed a neoliberal economic model, accepting the task of having an agro-export economic model and satisfying the economic demands of several countries of the world, however now it seems to "betray" her initial ideas, proposing these national measures that, according to her, would increase the Domestic consumption of Argentina, will increase work, decrease inflation and industrialize the country.
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