CAPITAL: Buenos Aires.

FLAG: The national flag consists of a white horizontal stripe between two light blue horizontal stripes. Centered in the white band is a radiant yellow sun with a human face.

ANTHEM: Himno Nacional, beginning "Oíd, mortales, el grito sagrado Libertad" ("Hear, O mortals, the sacred cry of Liberty").

MONETARY UNIT: The peso (a$) is a paper currency of 100 centavos. There are coins of 1, 5, 10, 25 and 50 centavos, and notes of 1, 2, 5, 10, 20, 50, and 100 pesos. As of October 1996, a$1=us$1.001 (or us$1=a$0.999).

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; Labor Day, 1 May; Anniversary of the 1810 Revolution, 25 May; Occupation of the Islas Malvinas, 10 June; Flag Day, 20 June; Independence Day, 9 July; Anniversary of San Martín, 17 August; Columbus Day, 12 October; Immaculate Conception, 8 December; Christmas, 25 December. Movable religious holidays include Carnival (two days in February or March) and Good Friday.

TIME: 9 am = noon GMT.

Source Database: Junior Worldmark Encyclopedia of the Nations

Table of Contents
AGRICULTURE | ARMED FORCES | CLIMATE | DOMESTICATED ANIMALS | ECONOMY | EDUCATION | ENERGY AND POWER | ENVIRONMENT | ETHNIC GROUPS | FAMOUS ARGENTINES | FISHING | FORESTRY | FURTHER READINGS | GOVERNMENT | HEALTH | HISTORY | HOUSING | INCOME | INDUSTRY | JUDICIAL SYSTEM | LABOR | LANGUAGES | LOCATION AND SIZE | MEDIA | MIGRATION | MINING | PLANTS AND ANIMALS | POLITICAL PARTIES | POPULATION | RELIGIONS | SOCIAL DEVELOPMENT | SOURCE CITATION | TOPOGRAPHY | TOURISM AND RECREATION | TRANSPORTATION | VIEW MULTIMEDIA FILE(S)

LOCATION AND SIZE

Shaped like a wedge with its point in the south, Argentina is the second-largest country in South America. Argentina is slightly less than three-tenths the size of the United States, with a total area of 2,766,890 square kilometers (1,068,302 square miles). It has a total boundary length of 14,654 kilometers (8,106 miles).

Argentina's capital city, Buenos Aires, is located along the eastern edge of the country on the Atlantic coast.

TOPOGRAPHY

Except for the mountainous western area, Argentina is for the most part a lowland country. It is divided into four topographical regions: the Andean region, almost 30% of the country; Patagonia, a desert-like, sparsely populated region which extends westward in a series of plateaus; the subtropical plain of the north, in the area between the Andean piedmont and the Paraná River; and the pampas, the most characteristic feature of Argentine topography. Lush, well-watered level plains, they spread in a semicircle from the Buenos Aires area to the foothills of the Andes, to the Chaco, and to Patagonia. They form the heartland of Argentina, the source of its greatest wealth, and the home of 80% of its people.

The Paraná, Uruguay, Paraguay, and Alto Paraná (located in Brazil) rivers all flow into the Río de la Plata. The highest peak in Argentina is Mt. Aconcagua (6,960 meters/22,834 feet), also the highest mountain in South America. There is a region of snow-fed lakes in the foothills of the Andes in western Patagonia.

GEOGRAPHIC PROFILE

Arable land: Land used for temporary crops, like meadows for mowing or pasture, gardens, and greenhouses. Permanent crops: Land cultivated with crops that occupy its use for long periods, such as cocoa, coffee, rubber, fruit and nut orchards, and vineyards. Permanent pastures: Land used permanently for forage crops. Forests: Land containing stands of trees. Other: Any land not specified, including built-on areas, roads, and barren land.

The measurements for precipitation and average temperature were taken at weather stations closest to the country's largest city. Precipitation and average temperature can vary significantly within a country, due to factors such as latitude, altitude, coastal proximity, and wind patterns.

CLIMATE

Argentina's climate is generally temperate, but there are many variations due to the great range in altitude and the vast extent of the country. The highest temperature, 49°c (120°f), was recorded in the extreme north, and the lowest, -16°c (3°f), in the southern tip of the country. Rainfall at Buenos Aires averages 94 centimeters (37 inches) annually, and the mean annual temperature is 16°c (61°f).

Throughout Argentina, January is the warmest month and June and July are the coldest. The pampas, despite their immensity, have an almost uniform climate, with much sunshine and adequate precipitation. The coldest winters occur not in Tierra del Fuego, which is warmed by ocean currents, but in Santa Cruz Province, where the July average is 0°c (32°f).

PLANTS AND ANIMALS

More than 10% of the world's plant varieties are found in Argentina. The magnificent grasslands have figured prominently in the development of Argentina's world-famous cattle industry. Evergreen beeches and Paraná pine are common. From yerba maté comes the national drink immortalized in folk literature, while the shade-providing ombú is a national symbol.

Many tropical animals thrive in the forests and marshes of northern Argentina. Among them are the capybara, coypu, puma, and various wildcats. In the grasslands and deserts are the guanaco, rhea, and many types of rodents. The armadillo, otter, weasel, opossum, various types of fox, and hog-nosed skunk are common. The ostrich, crested screamer, tinamou, and ovenbird are a few of the many species of birds. Pejerrey, corvina, palameta, pacu, and zurubi abound in the rivers.

ENVIRONMENT

The major environmental issues in Argentina are pollution and the loss of agricultural lands. The soil is threatened by erosion and deforestation. Air pollution is a problem due to chemical agents from industrial sources. The water supply is threatened by uncontrolled dumping of pesticides, hydrocarbons, and heavy metals.

Endangered species in Argentina include the Argentinian pampas deer and the jaguar. As of 1994, 23 species of mammals are considered endangered, as well as 53 bird species, and 159 of the nation's 9,000 plant species.

HISTORY

Before the Spaniards arrived in 1515, about 20 Amerindian groups totaling some 300,000 people lived in the region now called Argentina. Spanish colonists from Chile, Peru, and Paraguay created the first permanent settlements in Argentina, including Buenos Aires in 1580.

In 1776, Spain created the Viceroyalty of Río de la Plata from its territories in southeastern South America, with Buenos Aires as its main port and capital. During the colonial period, there was little interest in Argentina. The region had no mineral wealth, and Spaniards overlooked the fertile soil and temperate climate of the region.

In May 1810, Buenos Aires held an open town meeting (cabildo abierto), deposed the viceroy, and set up an independent government to rule the Viceroyalty. Argentina formally declared its independence on 9 July 1816. A long period of disorder followed until 1862 when Bartolomé Mitre finally unified the nation with Buenos Aires at its center. A period of rapid economic development followed, and the fertile pampas began to shift from livestock to agricultural production. During this time, the country came under the control of a powerful team of wealthy landowners and the military. Although social reforms were enacted in the 1920s, an economic crisis caused by the world depression led to a military takeover in 1930.

For the next thirteen years, Argentina was ruled by the old military-landowner alliance, which brought economic recovery, political corruption, and a worsening of social tensions. Argentina's careful neutrality in World War II (1939-45) masked strong Fascist sympathies, further dividing the nation.

THE PRESIDENCIES OF THE PERÓNS

Another military takeover in 1943 launched a new era in Argentine politics. With Argentina's war-related industrial expansion, a large blue-collar workforce had been created. This new power base supported Colonel Juan Domingo Perón in his successful 1946 bid for the presidency. His supporters also won majorities in both houses of Congress.

Perón then began sweeping political, economic, and social changes. Perón combined industrialism, nationalism, and dictatorship. His strong personal appeal was enhanced by the charm of his wife Eva ("Evita"), who captivated the masses with her work on behalf of the poor. Perón also sought to act as a protector of weaker Latin American nations against US and British "imperialists."

After reelection in 1951, Perón became more dictatorial and unpredictable, especially after the death of Evita a year later. Finally, a disillusioned military group took over in September 1955. Perón went into exile in Spain. For the next twenty years, Argentina felt the shadow of Perón, who held veto powers from exile in Spain. Under the military's watchful eye, a succession of governments attempted unsuccessfully to create a new political order.

Perón returned to Argentina in June 1973, and ran for the presidency. He won 61.9% of the vote in a special election in September. His running mate was his third wife, María Estela ("Isabel") Martínez de Perón. However, there was no magic left in the elderly Perón, and the economy continued to decline. When Perón died in July 1974, his widow, Isabel, succeeded to the presidency.

Isabel had none of Evita's appeal, and her administration plunged Argentina more deeply into chaos. In March 1976, she was arrested in a bloodless takeover, and a military group took over.

For seven years, the military attempted to "purify" Argentina by removing all traces of the influence of the Peróns, leftism, and trade unionism. During this period, the military killed over 5,000 people and jailed and tortured many others. It was also during this time that between 6,000 and 15,000 anti-government activists "disappeared." Major economic reforms included the turning of banking and industry over to private ownership. However, the military was never able to solve the problem of inflation, which remained in triple digits for most of this period.

Troubled by economic woes, the government attempted to gain the support of the people by asserting Argentina's rights to the Falkland Islands. The Falkland Islands lie about 550 kilometers (340 miles) due east of Río Gallegos and were claimed by the United Kingdom. In April 1982, Argentina invaded the Falkland Islands, claiming possession of them. In the war with the United Kingdom that followed, Argentina's armed forces were defeated, and were forced to surrender in June.

In elections for a civilian president held in October 1983, the surprise winner was a human-rights activist, Dr. Raúl Alfonsín. Alfonsín called for a new inquiry of the thousands who had "disappeared" during 1975-79 and ordered the prosecution of members of the former government. Several were convicted. However, the human rights trials of leading military officers angered the military, and in 1987 Alfonsín was forced to ease his prosecutions.

The Alfonsín administration also acted to halt runaway inflation with the "Austral Plan" of mid-1985. This plan froze wages and prices and created a new unit of currency, the austral, to replace the peso. The initial success of the plan was weakened by renewed inflation and wage demands.

With the failure of the Alfonsín administration to stabilize the economy or bring military leaders to justice, Argentines sought change from an old source: the Perónists. In May 1989, Carlos Saul Menem, running under the Perónist banner, was elected with 47% of the popular vote.

Abandoning his party's traditional support of state enterprises, Menem cut government spending, reduced the role of government in the economy, and abruptly introduced capitalist reforms. In May 1995, Menem was reelected to a second four-year term. By 1997, however, allegations of corruption started to surface, and political opposition grew. Menem's Perónist Party was defeated in congressional elections in October 1997.

MIGRATION

There is significant immigration from Paraguay, Bolivia, Chile, Uruguay, and Brazil. Some 300,000 illegal aliens were granted amnesty in 1992. In 1992, Argentina's refugee population was estimated at 11,500.

Of much greater importance to Argentina has been the migration of workers from rural areas to the cities, draining rural populations so badly that agriculture and livestock raising, the base of Argentina's wealth, suffered severely. In addition, the inability of the economy to absorb all of the new urban masses led to long-term economic and social problems.

ARMED FORCES

From 1930 through 1983, 14 of Argentina's 18 presidents were military officers. The military remained one of the most powerful political forces in Argentina until it suffered the humiliating defeat in the Falklands War in 1982.

The Argentine armed forces are being reduced and reorganized, and numbered 72,500 in 1996. The other services are the navy (which has air and marine units) of 28,000, a national police force of 17,000, a coast guard of 13,000, and an air force of 12,000. Required military service ended in 1995.

The navy has 4 submarines, 1 aircraft carrier, 7 frigates, and 6 missile-equipped destroyers. The air force has 174 combat aircraft. Defense spending has fallen from an estimated $4 billion to $700 million in the last decade.

GOVERNMENT

Argentina is a federation of 22 provinces, the federal capital of Buenos Aires, and the territories of Tierra del Fuego, a claim to part of Antarctica, and the Isla de los Estados.

There is a separation of powers among the executive, legislative, and judicial branches, but the president is powerful within this arrangement. The president can draw up and introduce his own bills in Congress and appoint cabinet members and other officials without the consent of the Senate. The president also possesses broad powers to declare a state of siege and suspend the constitution.

The president is commander-in-chief of the army, navy, and air force. The president and vice-president are elected by an electoral college for six-year terms. They must be Roman Catholics, and either they or their parents must be native-born citizens. Voting is compulsory for all citizens 18 to 70 years of age.

The constitution calls for a National Congress consisting of a 46-member Senate and a 254-member Chamber of Deputies.

JUDICIAL SYSTEM

The Supreme Court supervises and regulates all other federal courts. Other federal courts include nine appeals courts; single-judge district courts, at least one for each province; and one-judge territorial courts. Provincial courts include supreme courts, appeals courts, courts of first instance, and minor courts.

In 1994, constitutional amendments authorized the creation of the Judicial Court, which will have the power to administrate the federal court and appoint and remove judges. As of early 1997, the Judicial Court had not been set up.

POLITICAL PARTIES

Due to the frequency of military takeovers, parties have often been banned. Still, several parties were formed in the 1980s and continued be active in the 1990s.

Traditionally, the alignment of Argentine political parties has been along socioeconomic and religious lines. The landowners, the high clergy, and the more conservative lower class supporters have formed an alliance that defends the Catholic Church and the status quo. On the other side have been the advocates of change: merchants and professionals who resent the preeminence of the aristocracy and who tend also to be opposed to the influence of the Catholic Church. This second group has supported separation of church and state and decentralization (the dispersion of power and authority). However, in modern times, new parties have emerged to represent the working class, small farmers, and intellectuals.

TOURISM AND RECREATION

In 1994, 3.9 million foreign tourists visited Argentina, with 1.3 million from Uruguay. Receipts from tourism totaled us$3.9 billion. As of 1990, there were 108,812 hotel rooms with 264,804 beds.

Mar del Plata, on the South Atlantic, about 400 kilometers (250 miles) from Buenos Aires, is the most popular ocean resort. San Carlos de Bariloche, at the entrance to Nahuel Huapi National Park in the Andean lake region of western Patagonia, has become famous as a summer and winter resort, with some of the best skiing in the Southern Hemisphere. The Iguazú Falls, in the province of Misiones, on the border with Paraguay and Brazil, is a major tourist attraction.

The most popular sport is football (soccer). In 1978, the year Argentina hosted the World Cup competition, the Argentine national team won the championship. Tennis, rugby, basketball, and golf are also played.

SOCIAL DEVELOPMENT

In his early years in office, long-time leader Juan Perón took aggressive steps to enact far-reaching social legislation, although his social policies broke down in many ways after 1953. In the 1940s, new provisions established salary increases, paid holidays, sick leave, job tenure, and many other benefits. Perón's wife Eva joined him in extending legislation to working women and to the poorer classes, called the "shirtless ones" (descamisados). By 1945, a National Social Security Institute administered social insurance programs and a pension system. In the early 1950s, these measures continued and were also extended to the rural sector. Most of the social legislation enacted during the Perón years has remained in effect.

Although guaranteed equality under the Constitution, women are fighting for equal advancement and pay in the labor force. In 1993, a presidential decree set a quota that 30% of political candidates must be female. The National Council on Children and Families develops child protection programs and legislation.

ETHNIC GROUPS

Argentina's population is overwhelmingly European in origin (principally from Spain and Italy). There is little mixture of native peoples. An estimated 97% of the people are of European descent, and some 3% are Amerindian or of mixed lineage. The pure Amerindian population has been increasing slightly through immigration from Bolivia and Paraguay.

LANGUAGES

The national language of Argentina is Spanish. Argentine Spanish differs in many ways from Castilian, showing the effects of the vast influx of foreigners into Buenos Aires, as well as of Spaniards from Andalucía, Galicia, and the Basque provinces. Italians and French have added their touch to the language as well.

English has become increasingly popular as a second language, especially in cities and in the business and professional community. There are pockets of Italian and German immigrants speaking their native languages. Some Amerindian languages are still spoken.

RELIGIONS

About 90% of the population is Roman Catholic (with 20% practicing) and 2% Protestant. The remainder belonged to other religions or indicated no preference.

Argentina retains national patronage over the Roman Catholic Church. The Pope's decrees must be proclaimed by the president and sometimes must be incorporated into an act of the Congress.

The 215,000 Jews (as of 1990) constitute the third-largest Jewish concentration in the Americas.

TRANSPORTATION

Argentina has the largest railway system in South America, with 37,910 kilometers (23,556 miles) of track as of 1996. The number of passengers carried dropped from 445 million in 1976 to 300 million in 1991. The subway system in Buenos Aires consists of five lines totaling 36 kilometers (22 miles). The number of passengers in 1985 was 182.8 million.

By 1991, the nation had 208,350 kilometers (129,469 miles) of roads. The road system is still far from adequate, especially in view of Argentina's rapidly increasing automotive industry. In 1994, the total number of registered vehicles reached 5.9 million (including 4.7 million passenger cars).

The main river system of Argentina consists of the Río de la Plata and its tributaries, the Paraná, Uruguay, Paraguay, and Alto Paraná (located in Brazil) rivers. There is a total of 10,950 kilometers (6,800 miles) of navigable waterways, offering vast possibilities for efficient water transportation. The La Plata ports (Buenos Aires and La Plata) account for more than half of all maritime cargo.

The port of Buenos Aires handles about four-fifths of the country's imports and exports, and it is the focus of river traffic on the La Plata system. Other major ports are Rosario, Quequén, Bahía Blanca, Campana, and San Nicolás.

Buenos Aires is the most important air terminal in South America. Ezeiza Airport, about 40 kilometers (25 miles) from Buenos Aires, is one of the largest in the world and serviced 2.6 million passengers in 1991. Argentina has a total of 137 airports, 10 of which handle international traffic. The government line is Aerolíneas Argentinas.

FAMOUS ARGENTINES

The most famous Argentine is José de San Martín (1778-1850), known as the Protector of the South, who was principally responsible for freeing southern South America from Spanish rule.

The most famous Argentine political figures of modern times have been Juan Domingo Perón Sosa (1895-1974) and his second wife, Eva Duarte de Perón (1919-52), known as "Evita." Perón's third wife, María Estela ("Isabel") Martínez de Perón, was vice-president during 1973-74 and, after her husband's death, president from 1974 to 1976.

The leading contemporary writer of Argentina is Jorge Luis Borges (1899-1986), best known for his essays and collections of tales such as Historia universal de la infamia.

The most famous Argentine scientist, Bernardo Alberto Houssay (1887-1971), was awarded the 1947 Nobel Prize in medicine for his work on diabetes.

EDUCATION

Argentina has one of the lowest illiteracy rates in Latin America, estimated at 4%. Education is free and compulsory for all children at the primary level. Secondary education lasts for four to six years depending on the type of course.

In 1994, there were 25,448 primary schools with 286,885 teachers and 5.2 million students enrolled.

Argentina has 46 officially accredited universities with a total of 570,000 students (1988). The largest is the University of Buenos Aires with an enrollment of 187,000 in 1988.

HEALTH

In the field of health care, Argentina compares favorably with other Latin American countries. Nutritional requirements are comfortably met.

Health and medical services for workers are provided by union clinics, and employers are usually required to provide free medical and pharmaceutical care for injured workers. It is estimated that 71% of the population has access to health services. Life expectancy averages 73 years.

HOUSING

Housing in Argentina reflects the Italian and Spanish ethnic backgrounds of the population. Concrete, mortar, and brick are generally favored as the principal construction materials. Wood is generally considered less durable and feared as a fire hazard. The total number of dwellings in 1992 was 9.2 million. As of 1993, there was a housing shortage of roughly 2.5million houses in Argentina.

POPULATION

Argentina's census population was 32.6 million in 1991, and was estimated at 36.3 million in 1998. The projected population for the year 2005 was 39.6 million. Average population density was 13 persons per square kilometer (34 persons per square mile) in 1998. More than one-third of all Argentines live in or around Buenos Aires. The estimated populations of Argentina's largest metropolitan areas in 1995 were Buenos Aires, 11.8 million; Córdoba, 1.3 million; and Rosario, 1.2 million.

MEDIA

In 1995, there were 171 AM radio stations and 231 television stations. The number of radios was estimated at 22.6 million in 1995, and there were 7.3 million television sets. In 1995, there were 4.8 million telephones, over half of which were in Buenos Aires and nearby areas.

Buenos Aires is one of the principal editorial centers of the Spanish-speaking world, with more than 50 publishing houses. Two of the great dailies of Buenos Aires, La Nación and La Prensa, have international reputations, and La Prensa is probably the most famous newspaper in Latin America.

AGRICULTURE

Agriculture in Argentina focuses on the production of food grains, oil grains and seeds, sugar, fruit, wine, tea, tobacco, and cotton. Argentina is one of the greatest food-producing and food-exporting countries of the world, with an estimated 27.2 million hectares (67.2 million acres) of cropland. The principal agricultural region consists of the humid pampas, one of the world's greatest reaches of fertile land.

Wheat is the leading crop. Argentina accounted for about 67% of all wheat produced in South America in 1995 and was the world's fifth-leading wheat exporter. The area sown in 1995/96 was estimated at 6.8 million hectares (16.8 million acres), with production at 8.6 million tons. Argentina is also the fourth-largest corn-growing country in the world.

In 1995, grape production was 1.9 million tons. Argentina is one of the world's leading producers of wine, accounting for an estimated 1.64 million tons in 1995, or 6.7% of the world's total production.

DOMESTICATED ANIMALS

Argentina is one of the world's leading producers of cattle and sheep. Total meat production was 3.58 million tons in 1995, of which 2.47 million tons consisted of beef. Argentine pastures cover an estimated 142 million hectares (350.9 million acres).

The dairy industry has shown steady development. In 1996, the following quantities were produced: milk, 8.9 million tons; cheese, 410,000 tons; and butter, 50,000 tons. Egg production was 270,000 tons in 1995. In 1995, the number of poultry reached 69 million.

In sheep raising, Argentina ranks second in South America after Uruguay, with an estimated 17.3 million animals in 1997. Wool output was 92,000 tons in 1995. In 1995, production of mutton and lamb was 81,000 tons.

In 1995, Argentina had 3.3 million horses, a figure among the top five in the world. Argentine horses, especially favored as polo ponies and racehorses, have won many international prizes. Other livestock in 1995 included 4.1 million pigs and 4 million goats.

ENERGY AND POWER

Despite a shortage of energy resources, production of electric power has steadily increased since 1958. In 1994, about 40% of generating capacity was hydroelectric.

Argentina was the first country in Latin America to install nuclear-powered electric generating plants. Nuclear energy accounted for 12.3% of total electricity production in 1994. Argentina is rich in uranium. Production of uranium concentrate was 150 tons in 1994.

Oil production was 37.7 million tons in 1995. Proven reserves as of 1 January 1996 were estimated at 2.2 billion barrels. The natural gas industry has expanded rapidly. Production in 1995 was 24.4 billion cubic meters (854 billion cubic feet). In 1996, known reserves were estimated at 526 billion cubic meters (18.4 trillion cubic feet). There is a network of over 9,900 kilometers (6,150 miles) of gas pipelines. Coal production was reported at 198,000 tons in 1994.

FISHING

In a country that is among the world's leaders in meat production, fishing has not been able to develop as an industry of any significance. The most favored saltwater fish are the pejerrey, a kind of mackerel; the dorado, resembling salmon but of a golden color; and the zurubí, an immense yellow and black spotted catfish.

FORESTRY

Argentina's forests, estimated at some 50.9 million hectares (125.8 million acres), or about 18.6% of the total area, are among its greatest underused natural resources. A major reason for the industry's lack of development is the great distance of most forests from the markets and the high cost of transportation. Woods currently harvested include softwoods, such as the elm and willow; white quebracho, used as a fuel and in the refining of coal; and red quebracho, from which tannin is extracted; as well as cedar, oak, pine, cypress, and larch. Production of roundwood was 10.8 million cubic meters (14.1 million cubic yards) in 1991.

The most important tree is the red quebracho, which contains 21% tannin, the extract used for tanning. Argentina possesses four-fifths of the world's supply of this wood.

MINING

The mountainous northwest, especially the province of Jujuy (which borders Bolivia), is rich in a variety of minerals. Output of iron ore peaked at 1.04 million tons in 1988, but by 1994 had declined to 4,000 tons. In 1994, the nation's production of important metal concentrates included zinc, lead, manganese, copper, cadmium, silver, and gold.

Asphaltite, fluorspar, copper, mica, manganese, gold, silver, and antimony are found mainly in the northwest. In 1994, Argentina produced 140,000 tons of boron, ranking third in the world after the United States and Turkey.

ECONOMY

Argentina has one of the most highly developed economies and richest natural resource bases in Latin America, but political instability has kept the economy from realizing its full potential. The country has almost overcome its dependence on imported machinery and finished products, and there is a great demand for parts and raw materials that are assembled or finished within the country.

The inflation rate for 1983 was 434%, the highest in the world. It rose without interruption until it reached 1,200% in mid-1985. At that time, the government introduced the Austral Plan--a bold attempt to halt inflation by freezing wages and prices, adopting a new currency, and resolving not to finance public spending by printing more money. By the end of 1986, the inflation rate had been cut to 82%. By early 1987, however, it had begun to surge again.

In 1991, President Carlos Menem introduced an original stabilization and reform program. After three years of swift growth, the devaluation of the Mexican peso in December 1994 pushed the Argentine economy into recession, and the economy shrank by 4.4% in 1995. However, the economy began to recover by 1996, and grew by an estimated 5-6% in 1997.

INCOME

In 1995, Argentina's gross national product (GNP) was us$278.4 billion, or us$8,380 per person.

INDUSTRY

Argentina's principal industrial enterprises are heavily concentrated in and around the city of Buenos Aires. The plants are close to both the many raw materials imported by ship and the vast productive area of the pampas. The major industries in Buenos Aires are meat packing, food processing, machinery manufacturing and assembly, flour milling, tanning and leather goods manufacturing, oil refining, oilseed milling, and textile, chemical, pharmaceutical, and cement manufacturing.

Packing and processing of food products is the oldest and most important industry in Argentina. The textile industry was also developed quite early, making use of wool from the vast herds of sheep and the cotton from Chaco Province in the northeast. In addition to these traditional products, a variety of synthetic fibers are now produced.

Portland cement is the country's leading construction material, with 5.6 million tons produced in 1994. The output of crude steel totaled 3.3 million tons in 1994. Argentina's automotive industry manufactured 285,435 motor vehicles in 1995, including 226,656 passenger cars. Argentina also produces electric appliances, communications equipment--including radios and television sets--motors, watches, and numerous other items.

LABOR

In 1995, the economically active population of Argentina was estimated at 14.2 million. According to the most recent estimates, the labor force was divided as follows: 21% in industry (producing 29% of the gross national product), 53% in services (producing 64% of the gross national product), and 13% in agriculture (producing 7% of the gross national product).

Organized labor has probably had a greater effect on the modern history of Argentina than any other group. Long-time dictator Juan Perón used the labor movement as his chief vehicle in achieving and holding dictatorial power. In 1996, an estimated 30-40% of laborers were unionized.

Argentine law specifies that all workers are entitled to a minimum wage (about $200 per month); family allowances for child care, educational expenses, and special occasions; a minimum paid vacation of 14 days annually; and an annual bonus equal to one-twelfth of an employee's yearly pay.

The law prohibits young children under the age of 14 from working, except in family businesses. Young people aged 14 to 18 may work, although there are restrictions on the hours, safety and health conditions, and types of work.

FOREIGN TRADE

Exports reached $22.7 billion in 1996, while imports totaled $21.7 billion. Argentina has removed practically all non-tariff barriers to trade. The creation of North American Free Trade Association (NAFTA) is viewed as an extremely positive development. The government has remained fully committed to seeing the creation of MERCOSUR (a common market incorporating Argentina, Brazil, Uruguay, and Paraguay). It was completed on 1 January 1995.

In 1995, Argentina's leading export markets were Brazil, the US, Chile, and the Netherlands. Imports came primarily from the United States, Brazil, Italy, Germany, and France.