City Gloss

The result is an economy full of cross-subsidies and regulations so far, that grow uncontrollably and with problems of investment in key sectors such as energy, in an economic context totally favorable for the country: a situation unprecedented. According to former Argentine Vice-Chancellor Andres Cisneros, the Governments of several countries show: demonstrations of clumsiness stemmed from a political conception which has not exercised in a normal and helpful to deal with the world. They are examples of this awkwardness, to the wholesale, especially in Bolivia, Venezuela and the Argentina, and in the latter case, with the current conflict between the Government and the Argentine countryside which already has become historic. According to the Institute of international finance (IIF): not surprisingly, flows to countries with unfavourable investment climate for foreign investors – Argentina, Ecuador and Venezuela–remain anemic. Is by the unfavourable investment climate that exist in these countries that one can understand the poor flow of investments with the current international prices of agricultural commodity prices and the energy, which should generate great opportunities in those countries. Nejamkis article rescues an interesting vision of Eduardo Viola, Professor of relations international of the University of Brasilia, which identifies the main problem with these Governments in: a vision that leads to missed opportunities to weakening macroeconomic fundamentals and legal certainty. Is that these Governments: answer fundamental rules prevailing in prosperous countries, which leads them to the histrionics and the verbal voluntarism. This challenge of economic laws, has led these countries to pretend to curb inflationary pressures through the repeatedly failed, price controls. He has even made as in the case of Argentina, to the Government, believe in its effectiveness, to the point of distorting the official statistics when its results not confirmed their beliefs. Populism in these countries leads to unexpected changes in the rules of the game, causing a very bad in the business environment.