COMMENT

A lesson, not a model

Greece has a lot to learn from the problems that have dogged Argentina since the Latin American country declared bankruptcy in 2001.

The powers of overinflated populism – not just here but in other parts of the world too – which cited Argentina as an example of success that Greece should try to emulate and pressured governments in Athens to default on its debt payments and declare bankruptcy should take special note.

They should also not ignore the fact that not only is Argentina’s debt much smaller than Greece’s as a percentage of its gross domestic product, but it also has a much larger production base than Greece as well.

Nevertheless, despite its many assets, Argentina fell apart after declaring bankruptcy and to this day has not managed to regain its international standing and good reputation.

For Greece to have heeded the abovementioned voices and followed the same path, especially given the weakness of its economy, would have been nothing short of a complete disaster.

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