Jan Mike T.

Mandawe

BSA-1

Econ 1N, C201B

I. Main problem of the Study

- The main problem of the case is the economic collapse or recession that Argentina has experienced
throughout the years which runs counter to the growth idea. In comparison to Korea, their economy is
the complete opposite. Furthermore, it is demonstrated in the case that the four developmental
paradigms served as justification for Argentina and have raised questions about their universal
significance, as shown by the fact that, in Linear stages, while Korea is in the "drive to maturity phase"
and swiftly transitioning to the "high mass consumption phase," Argentina, on the other hand, incurred
a significant debt load in 2002 before experiencing a modest recovery. While Korea didn't ignore
agriculture and has an increasing rate of agricultural productivity and still has GNI growth even during
the Asian Crisis, Argentina relied excessively on selected data points in terms of structural patterns
without the aid of guiding theory on how patterns fit together. In terms of dependence revolution,
Argentina relied heavily on exporting goods with real export prices falling in comparison to imports and
had lost out. Lastly, the Government in Argentina has a policy which supports the rich interest rather
than development and the whole being of the society.

II. 3 Alternative Courses of Actions

1. Combine short term and long term export growth policies and the creation of viable manufacturing
exports

- The combination of short and long term policies, along with the exploitation of the complementarities
between EPPs and other domestic policies and building of viable manufacturing exports , will likely
stimulate the growth of export in an economy; in short, it can promote export expansion and even free
trade in Argentina

2. Reform Government Policy

- The government policies of Argentina need to be reformed in a way that they will support broad goals
of development rather than the interest of the privileged; they can also form coherent cross- sectoral
policies with respect to environment, agriculture, energy , economy, trade and foreign affairs.

3. Implement and enforce the use of higher non tariff barrier

- The use of higher non- tariff barrier will further the economic and political goals of Argentina in a way
that it will help the regulation of imports and exports more efficiently into the said country.
Furthermore, the use of higher non tariff barriers will further strengthen the protection of local
industries against foreign competition.

III. The best Alternative that can solve the Main problem

- Combine short term and long term export growth policies and the creation of viable manufacturing
exports

I think the solution to the primary issue addressed in the case lies in the mix of short- and long-term
export growth policies and the development of their own profitable manufacturing exports. This option
could improve the technology content and productivity of domestic products. Additionally,
manufacturing export industries will be present to oversee and regulate the nation's exports in order to
help them from once more succumbing to the economic interests of developed nations. Combining
short- and long-term effective trade and export growth policies, which in turn will lead to an increase in
investment, technological advancement, and import expansion; and will also result to an increase in
revenues, jobs, foreign currency, and liquidity for Argentina, can be the key to ending their economic
downturn of Argentina.

IV. Recommendations

Prevent excessive imports over an extended period of time without domestic savings and adopt South
Korea's new export and import styles in order to meet the requirement of economic integration with the
global market. In order to achieve rapid increases in agricultural productivity, a shift of labor from
agriculture to industry, steady growth of the capital stock, and growth in education and skill levels,
similar to what Korea did is what Argentina should practice. Additionally, Argentina should not rely too
heavily on particular data points without the aid of guiding theory. This will enable Argentina to see a
good percentage increase in their income. Also, Argentina should not rely heavily on exporting its major
products and should instead implement effective export and trade regulations to prevent a decline in
the pricing of these products relative to imports. They should ought to establish their own
manufacturing export sectors as well, so they may increase the output of their factories and other
industrial facilities and, like Korea, advance to the status of developed nations. Last but not least,
Argentina's government policies need to be changed in a way that would support the growth and well-
being of the entire society, because doing otherwise could lead to government failure, which is
considered to be worse than market failure in a nation.

V. Conclusion

This case gave me the opportunity to recognize that, just as it is done while researching the cases of
South Korea and Argentina, the four broad classic approaches to development offer crucial insights into
the development process and policy. The idea that development progress is not irreversible and that
sustained growth can halt, as in the case of Argentina drive me to conclude that consistency is crucial,
and all aspects of development—including how to implement effective government programs and
diversify exports—must be carefully studied.