Argentina urgently needs several reforms, but they may not happen under Cristina Fernandez, experts say.
BY CHRONICLE STAFF
Foreign investors are anxious for change in Argentina, but they may not see much with president-elect Cristina Fernandez, experts warn.
"Dont expect anything radical," says Jerry Haar, a professor of management and international business, Florida International University. "She has no intention of throwing out the economic policies of the man she sleeps with."
Claudio Loser, an Argentine native who formerly headed the Western Hemisphere division of the International Monetary Fund, agrees. "Ms. Fernandez Kirchner is supported by the same power base as President Kirchner, and thus has currently limited room to change policies, particularly as her relation with labor unions is tenuous," he says.
Since Fernandez intends to further reduce poverty and improve social conditions, she will also keep up high public spending, predicts Peter Rösler, deputy general manager of Ibero-Amerika Verein, a Hamburg-based organization that includes major German companies doing business in Latin America. She will also continue keeping the peso and interest rates low, taxing export revenues and accumulating currency reserves, he says.
However, Riordan Roett, director of the Latin American Studies Program at the Johns Hopkins Universitys School of Advanced International Studies, believes Fernandez simply has no choice but to change policies: "I do not think she will have any choice but to do so," he says. "Inflation, freezing...
Keywords: Inflation, debt, energy, Germany