Argentina: Moving Away from a Transitional Archetype (*)
The completion of the first year of macroeconomic change in Argentina allows thinking that there is a true possibility for initiating a new stage that might leave behind clientelism which is the natural democratic model of cultures where strongmen (caudillos) have a significant role and recognition in the society. It is a long road that demands decades as you can observe by studying the history of Sweden and Spain.
Any change of a culture begins by developing an economic change. This is the law of social evolution. And the active function of economic growth in the micro-economy in a capitalist country, while the macroeconomy provides the security framework that fosters microeconomic expansion.
The social scenario defines the purpose of a country, which is strongly conditioned by the cultural archetype and evolves driven by the economic scenario. The economy is the active function of the functionality of a country and is sustained by the political scenario that sustains the purpose of the culture.
Argentina has been in a transitional archetype due to multiple factors among them the social recognition of strongmen (caudillos) is one of the most influential, which naturally develops a clientelist model that hinders the introduction of representative democracy.
The lack of institutionalization is a natural consequence of the action of strongmen (caudillos) The basic characteristics of transitional archetypes are the lack of growth, the disregard of consensus, the decline of justice, and the acceptance of corruption.
The Lack of Growth was the Trigger for Inflation
The systematic use of inflation as a redistribution model was the natural approach in a culture that has still not decided to develop as a representative democracy in a capitalist world. There has never been a true intention of developing a national capitalism that coexists with international investments and allows driving the growth of a culture.
Inflation through monetary emission as a tool for immediate growth highlights a strategic choice that prioritizes short-term gains over sustainable, long-term economic development.
This approach in Argentina has led to structural imbalances that threaten future stability, as governments have relied on increasing money supply to stimulate economic activity rather than fostering genuine, underlying growth.
The Binary Actions of the Long-Term Goal
The long-term goal of transitioning to a non-transitional archetype with a representative democracy in a capitalist context involves orchestrating two foundational binary actions that harmonize the social, economic, and political scenarios of a country. They work as catalysts because social evolution cannot be driven, just catalyzed. This approach fosters sustainable growth and evolution, moving beyond the limitations of transitional archetypes.
- Integrating Social and Economic Scenarios: This binary action emphasizes the fusion between local capitalism and international investments. The purpose here is to catalyze the building of an economic framework that encourages industrial growth while being open to international capital. Participation in stock exchanges gives the broader society access to capitalism’s benefits, creating opportunities for wealth distribution.
- Integrating Social and Political Scenarios: The second binary action in a capitalist, representative democracy is ensuring the possibility of political alternation. Integrating these scenarios is crucial for stability, as it ensures that political changes do not disrupt the country’s structural foundations. The goal is to enable political alternation that reflects evolutionary needs and societal progress, rather than causing erratic shifts.
By adopting these catalyzing binary actions, Argentina can align short-term and long-term planning to consistently improve standards, thus moving away from the culture of facileness. People need to be able to see the horizon to address the challenges of a transition.
(*) Developed with the Unicist Social & Economic Lab.
The Unicist Research Institute