Argentina and Brazil Grow Together

Comment SharePrint
Brazil, Argentina, stagnant growth, corruption, high expectations, Mauricio Macri, reforms, trade, global supply chains, South America, Michel Temer

Hundreds of cars stand in the port of Rio de Janeiro, Brazil December 1, 2015 (Reuters/Ricardo Moraes).

In my piece published this week on Foreignaffairs.com I reflect on Argentina’s and Brazil’s current political and economic situations. I argue that while their current challenges are their own, a potential long-term solution to their problems comes from each other—namely working to build an integrated South American economic hub. You can read the first two paragraphs of the article below:

This year has been a rough one for South America’s two largest states. Brazil—once lauded as a rising global power—has fallen deeper into recession and political turmoil. And although Argentina is finally attempting to transform itself into a model of sober pro-market governance after years of Peronist populism, it shares with its northern neighbor a grim set of economic and political indicators: stagnating growth, endemic corruption, and a new government beset by high expectations. As a result, Argentine President Mauricio Macri’s initially high approval ratings have declined since he took office in December. In Brazil, meanwhile, interim President Michel Temer comes close in unpopularity to the disgraced Dilma Rousseff.

Despite their undeniable problems, however, there remains in both countries a cause for optimism. Argentina and Brazil are, for now, absorbed in their own domestic dramas, but they have within easy reach the long-term solution to their economic woes: each other.

You can read the entire piece as it appeared on Foreignaffairs.com here.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.