Analysis Of International Relations Of The Argentine Crisis

Argentina has kept enviable economic growth for many other developing countries during 1990s, which is regarded as a successful model to put Neoliberalism in practice for western developed countries. However, from the end of 2001 to 2002, Argentina has run into a comprehensively economic, social and political crisis. Current researches mostly focus on economic factors or faults of domestic policies, even on external factors, most relate to condemning the mistakes by International Monetary Fund (IMF) about supervision and assistance. I consider the Argentina's crisis as the result of both international and domestic factors. From the perspective of Neoliberalism policies taken by Argentina, international factors are more obvious.In the first chapter, I outline the theoretical framework for my analysis which is twofold: firstly, I introduce theoretical development of international system and development pattern of developing countries to explain the transformation of development pattern of Argentina. Secondly, I introduce the Gourevitch's concept of "the second-image reversed" and it's development to show that the Argentina's crisis is the example of domestic crisis brought by international factors.In the second chapter, I retrospect the Argentina's crisis. In this chapter, I try to evaluate the currency-boards system comprehensively which is deemed as the root of the Argentina's crisis. My view is: compared with other domestic political, economic and social policies, the opinion that views currency-boards system as the root of crisis is irresponsible. Those domestic factors which lead to the crisis include: strategy of development on large-scale debt which isn't suitable for currency-boards system, irresponsible financial policy and taking up Neoliberalism development pattern as a whole but not paying attention to the serious effects because of inconsistency of the pattern with domestic social structure. As a result, Argentina's economy grows in 1990s, which at the same time foreshows the crisis.In the Third Chapter, I analyze from the perspective of international economy. Firstly, I talk about effects by international financial system and financial globalization, that is, government has lost it's control of domestic financial system for financial liberalization. Secondly, Argentina has made mistakes on making use of foreign capital which include just a small quantity of foreign direct investment(FDI) and a large quantity of foreign debt. Thirdly, in the process of trade liberalization, Argentina has not adjusted industry structure properly but under the guidance of traditional theory of relative advantages and been under the way of deindustrialization and increased technical dependence on developed countries. fourthly, I analyze the role that Neoliberalism has played.In the fourth chapter, I set forth the impact by the change of international politics. On the one side, I emphasize that because the rise of non-state actors in the last 20 years has undermined traditional sovereignty, some non-state actors, such as IMF and transnational corporations have played an important roles in the crisis, on the other side, I focus on the impact on Argentina of American policy.In the last chapter, I try to sum up some experience. Under the situation of economic globalization, it is for the interest of developed countries that they export Neoliberalism development pattern to developing countries. With strengthening interdependence, developing countries should understand that interdependence is asymmetric and powerful international factors will result in some severe negative effect. Facing the impact of international factors on domestic development, countries must resolve the problem of relationship between state (government) and market and relationship between international and domestic factors.