Argentina is rich in natural resources and human capital, but its economic progress has been hobbled by the ineptitude and corruption of its political leaders. Over the past decade, the policies of Argentina’s ruling duo, Néstor and Cristina Fernández de Kirchner, led to rampant inflation, falling currency value and capital flight. The result was the 2015 election of the reformist Mauricio Macri.
Macri has removed Argentina’s currency controls, allowing more freedom for trade. He has pledged to reintegrate Argentina into the global economy, seeking private investment from abroad. And he has taken action to end the 15-year default that has kept the country in economic exile since 2001. Macri still has important tasks ahead of him, including taming inflation. But if he lives up to his promise, Argentina may finally do the same.
Singer, the founder and president of Elliott Management Corp., a hedge fund, has been involved in debt negotiations with the Argentine government for several years