Studies Of The Argentina Early 21st Century Financial Crisis

In the early years of the 21st century, as the degree of the financial globalization is strengthened, the remarkable Argentine debt financial crisis broke out. This ferocious crisis, affecting in a wide range of areas, made a prosperous country falling into an overall crisis. The characteristics of this crisis are as follows: Firstly, it is integrated with economic crisis, social crisis and political crisis in the same time. Argentina once is known as "granary of meat and food" and the model of economic reform, but crisis brought the fatal disaster after all. Secondly, Argentine financial crisis is rooted in internal factors. Neo-liberal economic reform had to share the most important part of the blame for this crisis. Long-term recession, the currency board system, and the failure of government functions and some other factors are all caused by Neo-liberal economic reform. The influence of this crisis lasted for so long, endangering in a wide range, which made Argentine financial crisis known as one of the most representative of economic crisis in that particular historical period at the beginning of the 21st century. To respond to the crisis, the Argentina authority made a series of measures to gradually abandon the neo-liberal path of development. The results seemed like positive, and the economy continued to grow for almost 6 years with national economic recovery. However, journey of reform is so long that need to move periodically. In addition, Argentina began to refuse IMF to intervene in its economy and policies, in the process of independence of economic policy, the political and economic relationships with the United States have deteriorated to some extent. By the end of 2007, the Argentine financial crisis broke out again. The United States and other Western countries or financial institutions have no time to take Argentina into consideration and allow it to deteriorate freely. In such circumstances, the outbreak of the global financial crisis in 2008 led Argentina inevitably fall into the quagmire of the economic crisis again. This forces us to think, as a same developing country as China, What we should learn from and how to get reference and inspiration.China is at the stage of rapid development. The global financial crisis triggered by the United States has affected the rapid growth of development to some extent. In order to stimulate the economy, China has actively taken some measures, but which also brought the side effects along with economic policies we do not expect. Issues such as RMB appreciation pressure and inflation of commodities continue to be demonstrated. In the post-crisis era, how to actively seize opportunities for economic development as well as safeguarding the economic security of developing countries becomes the focus point. The next round of economic crisis could be staged at any time. The pros and cons of financial globalization gradually penetrate into all aspects of our economy. Nevertheless the early 21st century the Argentine debt financial crisis is over for nearly a decade, the lessons are still worth learning.Argentina, the study object selected in this thesis, has many things in common with China. The analysis of the early 21st century Argentine debt financial crisis helps to figure out our country's current economic situation and prospects. With better understanding of neo-liberalism, risk research and prevention of financial crisis is highly needed as a developing country in the world economy. This thesis starts from the background of the Argentine debt financial crisis, and analyzes from three specific aspects, in economic, social and political levels. Then it describes the process of the crisis in Argentina in detail. In the second part of this thesis, deep reasons of the crisis are classified into system factors, technical factors and international factors. In three general directions, we could simply find out the root causes of the crisis, the direct cause and catalyst clearly and concisely. Finally, based on the common points of developing countries, it gives China policy recommendations in response to economic globalization combined with the current situation in China. Emphasize the role of macro-control, focus on the social security system, and improve the economic structure to adapt the evolving world economy.At present, most scholars tend to study economic reform in Latin America and the neo-liberal theory. The related literature generally starts from economic reform in Latin America and the study economic security of developing countries through relationship, between the United States and Latin American. It's very rare to research the early 21st century Argentine debt financial crisis itself. This thesis analyzes the deep reasons of the crisis with the current world economic situation, and then proposed effective and feasible policy recommendations in response to crisis. Others may emphasize more on lessons of Latin American reform. I hope that in the writing process of this thesis, with careful analysis of the Argentine financial crisis, in the perspective of developing countries, the trend of economic development could be gradually sort out in the post-crisis era. Hope that through this topic, I will be able to learn and apply the knowledge of economics and international finance theory, from the unique perspective of the crisis, re-examine and question current problems in the world economy.