Argentina

E

Manufacturing

Most industry in Argentina is centered along the Paraná River from Rosario to the city of Buenos Aires, and industry employs 24 percent of the national labor force. The country’s oldest industry is the processing and packaging of foodstuffs. By the early 1990s the production of petroleum products had exceeded food processing in value. Other important manufactured goods are motor vehicles; consumer goods such as refrigerators, washing machines, and television sets; pharmaceuticals and cosmetics; electronic equipment; and fibers.

F

Energy

Although most rivers and falls with potential energy are located far from industrial centers, Argentina is developing its water resources at a rapid rate. Major hydroelectric projects include the Yacyretá Dam on the Paraná River (in cooperation with Paraguay) and the Salto Grande on the Uruguay River (in cooperation with Uruguay). The first of 20 generators at Yacyretá, one of the world’s largest hydroelectric facilities, was activated in 1994, but cost overruns, corruption, environmental problems, and construction delays slowed the completion of the project considerably. In early 2005 the governments of Argentina and Paraguay agreed to complete the Yacyretá hydroelectric project by 2008.

While most electricity is generated by hydroelectric or thermal power plants, Argentina has one of the most advanced nuclear energy programs in Latin America, providing 8 percent of the country’s electrical needs. Overall, Argentine power plants generated 83.3 billion kilowatt-hours of electricity in 2003.

G

Currency and Banking

Argentina’s currency is the peso argentino, consisting of 100 centavos. The Central Bank, which was established in 1935 and came under government control in 1949, functions as the national bank and has the sole right to issue currency. After an economic collapse Argentina in 2002 abandoned a law that had pegged the peso to the U.S. dollar on a one-to-one basis. The peso was devalued by 30 percent and allowed to float freely.

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H

Commerce and Trade

The trade balance tends to be favorable to Argentina when world demand for food is high. The country’s exports were worth $29.6 billion in 2003. Exports are principally animals and animal products, including meat, hides, and wool; grains, including wheat and corn; oilseed; petroleum products; and automobiles. Imports are typically machinery and equipment, chemicals, metals, and airplanes and other vehicles; in 2003 imports cost $13.8 billion. Chief purchasers of exports are Brazil, the United States, Chile, China, Spain, Italy, Netherlands, and Uruguay; leading sources for imports are Brazil, the United States, China, Germany, Italy, Japan, and Spain.

Argentina is a member of the Latin American Integration Association (LAIA, known in Spanish as Asociación Latinoamericana de Integración, ALADI), which governs regional trade. It is also a member of the Southern Cone Common Market (also known by its Spanish acronym, MERCOSUR). Founded in 1991, MERCOSUR eliminates tariffs on many goods traded between Argentina, Brazil, Paraguay, and Uruguay. A large portion of Argentina’s imports and exports are with its MERCOSUR partners. Chile is also an important trading partner with Argentina and other members of MERCOSUR.

I

Tourism

Argentina has a number of tourist attractions, but the country’s distance from Europe and the United States has limited the development of the tourism industry. Even so, several million tourists visit Argentina each year. The top destinations are Buenos Aires, the Andes and the lake district around Bariloche, and Patagonia. Buenos Aires is a vibrant, sophisticated city that offers many urban pleasures and has long prided itself on being the “Paris of South America.”

Adventuresome travelers may choose to travel through Patagonia on horseback, stopping to fish and camp out, or hike in the Andes Mountains. Skiers flock to resorts in the mountains to enjoy their sport during Argentina’s winter months of June, July, and August. The lake district and Atlantic beaches draw Argentineans as well as visitors from abroad. Iguaçu Falls, on the border with Brazil, is another popular tourist site. National parks preserve many of the country’s natural wonders.