Prospects for Revitalizing Argentina

THE GAY AND DOUGLAS LANE JOURNAL OF THE LEHIGH UNIVERSITY MARTINDALE CENTER STUDENT ASSOCIATES Perspectives on Business and Economics is published by the Martindale Center for the Study of Private Enterprise. Editorial offices: Rauch Business Center, 621 Taylor St., Lehigh University, Bethlehem, PA 18015. PROSPECTS FOR REVITALIZING ARGENTINA Stephen Cutcliffe, Ph.D. Editor Editorial Board Alberto J. Lamadrid L., Ph.D. Todd A. Watkins, Ph.D. Michelle LeMaster, Ph.D. Richard N. Weisman, Ph.D. Andrew Ward, Ph.D. George P. White, Ph.D. Perspectives on Business and Economics Volume 39 2021

ii MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE CENTER STAFF Todd A. Watkins, Ph.D. Executive Director Judith A. McDonald, Ph.D. Associate Director Andrew Ward, Ph.D. Associate Director Trisha Alexy Program Manager Melissa M. Gallagher Administrative Coordinator J. Richard Aronson, Ph.D. Founder & Director Emeritus Founded in 1980 thanks to a generous endowment from Elizabeth Fairchild Martindale and Harry Turner Martindale '27, the Martindale Center for the Study of Private Enterprise is an interdisciplinary resource in Lehigh University’s College of Business. The Center engages students, faculty, and the business and policy communities in active inquiry, tackling questions central to understanding and fostering sustainable private enterprises and inclusive economic systems throughout the world. MARTINDALE CENTER PUBLICATIONS Periodicals • Perspectives on Business and Economics (Annual) • Martindale Discussion Paper Series • Occasional Paper Series • Martindale Center Policy Briefs Books • I.W. Lieberman, P. DiLeo, T.A. Watkins, and A. Kanze, eds., The Future of Microfinance (Brookings, 2020) • T.A. Watkins, Introduction to Microfinance (World Scientific, 2018) • J.R. Aronson, H.L. Parmet, and R.J. Thornton, eds., Variations in Economic Analysis (Springer, 2010) • T.A. Watkins and K. Hicks, eds., Moving Beyond Storytelling: Emerging Research in Microfinance (Emerald, 2009) • I.W. Lieberman and D.J. Kopf, eds., Privatization in Transition Economies: The Ongoing Story (Elsevier, 2008) • K. Fabian, ed., Globalization: Perspectives from Central and Eastern Europe (Elsevier, 2007) • J. Laible and H.J. Barkey, eds., European Responses to Globalization: Resistance, Adaptation and Alternatives (Elsevier, 2006) • V. Munley, R. Thornton, and J.R. Aronson, eds., The Irish Economy in Transition (Elsevier, 2002) • F. Gunter and C. Callahan, eds., Colombia: An Opening Economy (JAI, 1999) • D. Greenaway and J. Whalley, eds., “Symposium on Liberalisation and Adjustment in Latin America and Eastern Europe,” in The World Economy (Blackwell Publishers, 1994) • A. King, T. Hyclak, R. Thornton, and S. McMahon, eds., North American Health Policy in the 1990s (John Wiley & Sons, 1993) • A. O’Brien and R. Thornton, eds., The Economic Consequences of American Education (JAI, 1993) • A. Cohen and F. Gunter, eds., The Colombian Economy: Issues of Trade and Development (Westview Press, 1992) • D. Greenaway, R. Hine, A. O’Brien, and R. Thornton, eds., Global Protectionism (Macmillan, 1991) • E. Schwartz and G. Vasconcellos, eds., Restructuring the Thrift Industry: What Can We Learn from the British and Canadian Models? (1989) • D. Greenaway, T. Hyclak, and R. Thornton, eds., Economic Aspects of Regional Trading Arrangements (Wheatsheaf Press, 1989) • R. Thornton, T. Hyclak, and J. Aronson, eds., Canada at the Crossroads: Essays on Canadian Political Economy (JAI, 1988) • R. Thornton and J. Aronson, eds., Forging New Relationships among Business, Labor, and Government (JAI, 1986) • R. Thornton, ed., Schumpeter, Keynes, and Marx: A Centennial Celebration (1984) • R. Thornton, A. Ott, and J.R. Aronson, eds., Reindustrialization: Implications for U.S. Industrial Policy (JAI, 1984) For information on Martindale Center Publications, contact the Center at: 621 Taylor St., Lehigh University, Bethlehem, PA 18015. Past issues of Perspectives are available at https://preserve.lehigh.edu/cbe-martindale.

iii PERSPECTIVES Perspectives on Business and Economics is the journal of the Martindale Student Associates Honors Program founded and run by the Martindale Center for the Study of Private Enterprise at Lehigh University. Each year, a faculty panel selects 12 of Lehigh’s finest undergraduate students to become Martindale Student Associates. Each student undertakes research focusing on an aspect of the economy and business environment of a foreign nation or state and prepares an article for publication in this journal. The country or state of focus changes each year. This cohort’s study of Argentina began in the spring of 2020. After several on-campus orientation seminars, in-person meetings came to a sudden stop due to the spread of COVID-19. It soon became apparent that typical academic life would not resume. Confirmed campus speakers were quickly converted to Zoom meetings and trips to Washington, D.C., and New York City canceled. Hoping for a healthier future, the May Argentina trip was rescheduled for August, then, as the pandemic raged, rescheduled again for spring 2021. In the end, the cohort did not have the opportunity to visit Argentina. However, with the assistance of remote technology, the students met with organizations and industry experts and discussed the imperative topics in Argentina, including socioeconomic evolution; economy and debt crises; education; the entrepreneurial environment; environmental policies; health care system; human rights; judiciary and penal systems; media influence; relationship with China; and the women’s movement. Through it all, the cohort remained positive and determined to complete their articles. This journal is the product of the students’ resilience and hard work. Special Thanks The Martindale Center acknowledges the critical role played by alumni, parents, friends, and the many experts in Argentina and the US who gave generously of their time and expertise as advisors and speakers to help make the 2020–21 program and Volume 39 of this journal a success. Our sincere thanks begin with Anita De Maio, MA, doctoral student in social sciences at the Universidad de Buenos Aires. It was through her that most connections of topic experts in Argentina were made. She also set up in-person visits and spent time introducing our staff to speakers during the preprogram visit. Her contributions to this journal are invaluable. Special thanks to Lehigh University professors Luis Brunstein, economics, and Mariana De Maio, journalism, for facilitating discussions with the students and introducing us to Anita. Carlos Daniel Lopez, Relationship Manager, Corporate Banking at Grupo Supervielle, and alumnus of the Iacocca Global Village for Future Leaders program, deserves thanks for all his work in Argentina to connect us with transportation companies and with banking and environmental agencies. He also spent time meeting with our staff in-country during the preprogram visit. Special thanks to Santiago Villalba, consul general of the Consulate General of Argentina in New York, for writing the introduction to this journal and for his support of this project. Alejandro G. Nervegna, deputy consul general, head of economic and commercial affairs, facilitated an informative session on the current economic situation in Argentina, and his colleague, Estafania Donna, deputy consul, met with us in 2019 to brainstorm session topics. Students and faculty were thrilled and thankful that Noah B. Mamet, former US Ambassador to Argentina, shared his time to reflect on his experiences and policies while living and working in Argentina. Thanks to Peter Harter, founder of the Farrington Group and former Martindale Honors alumnus, for introducing us. Ira W. Lieberman, president of LIPAM International and member of the Martindale Advisory Committee, deserves special thanks for connecting us to the World Bank. Thanks to Monzerrat Garcia, program assistant, for pulling together the World Bank panelists with expertise in Argentina. From the finance, competitiveness, and innovation division, we thank Alfonso Garcia Mora, global director; Zafer Mustafaoglu, practice manager; Xafier Xirera, senior economist; Bujana Perolli, senior financial sector specialist; Tugba Gurcanlar, senior private specialist; and Oliver Masetti, economist. The panel also included Mariangeles Sabella, senior country officer for Argentina, Paraguay, and Uruguay, and Daniel Ortiz del Soto of the finance and private sector of the World Bank. Thanks as well to all panelists. Griffith Welton, partner, PwC, New York, deserves thanks for connecting us with PwC, Argentina.

iv Thanks to PwC partners in Argentina Ezequiel Mirazon, José María Segura, and Hernan Rodriguez for a session on macroeconomics, the knowledge service industry, and Vaca Muerta. Kevin Cassidy, director and representative to the Bretton Woods and Multilateral Organizations, International Labour Organization (ILO), and Pedro Américo Furtado de Oliveira, director, ILO Office for Mexico and Cuba, deserve thanks for facilitating a discussion on the future of work in Argentina. Also, thanks to their colleague, Sarah Morgan, for connecting us to the Argentina desk of the US State Department. Finally, we want to thank the US State Department Office of Brazilian and the Southern Cone Affairs for providing panelists and pages of references for the students to use in researching their topics. And thanks as well to panelists Mauricio Cortes, foreign affairs officer, Office of International Labor Affairs, Bureau of Democracy, Human Rights, and Labor; Gianni Paz, senior Argentina desk officer; Katherine Ordoñez, public diplomacy desk officer; and Allison Listerman, regional economics officer. Candelari Boffi Pablo Gabriel Bortz Roberto Carlés Luis Donatello Ana Emilia del Pozo Leandro Gitelman Veronica Gomez Gabriel Guillen Nicolás Gutman Leonardo Hekimian Pablo Andres Lara Carlos Daniel Lopez Eduardo Nervi Sabine Papendieck Sol Prieto Martín Redrado Yael Schmoisman Mark Scott Gregory Skutches Graciela Noemí Soiza Paula Verela Cliff Allen Williamson Maria Barbara Zepeda Cortes The Martindale Center thanks the following individuals: The Martindale Center thanks the following organizations: La Bobina—Fábrica de Hilos Center for Development Economics Studies and International Center for Political Studies, Universidad Nacional de San Martín Consulate General of Argentina, New York ESTRATECO Consultores Loren Trade Ministry of Defense of Argentina Ministry of Health Chagas Program in Chaco Province National Directorate of Economy, Equality and Gender of the Ministry of Economy of Argentina National Scientific and Technical Research Council, Argentina Office of the Attorney General of Argentina PwC Transpack Argentina US Department of State UN Development Programme Operationalizing Environmental Land Management Universidad de Buenos Aires World Bank Group The Martindale Student Associates thank Trisha Alexy for organizing the itinerary and topic sessions; faculty mentors, Professors Lamadrid, LeMaster, Ward, Watkins, Weisman, and White, for guidance on research and writing; and Professor Emeritus Stephen Cutcliffe and Nancy Watkins for their editorial rigor and patience. The students also thank the faculty spouses for support and friendship throughout. On behalf of the Martindale community of students, alumni, faculty, staff, and friends, we express immense appreciation to Douglas Lane '67 and Gay Lane for their support of this journal and, finally, to Professor Emeritus J. Richard Aronson for founding the program and creating such an enduring legacy at Lehigh. Todd A. Watkins, Ph.D. Executive Director, Martindale Center Stephen Cutcliffe, Ph.D. Editor

v THE MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE RECOGNIZES AND THANKS OUR MAJOR CONTRIBUTORS FOR THEIR GENEROUS SUPPORT J. Richard Aronson '87PG '15GP and Judith L. Aronson '80G '87PG '15GP Alan S. Brodherson '86 Fairchild-Martindale Foundation Faith R. Glazier '87 '19P and Robert A. Weisstuch '85 '19P Jay H. Golding '67 and Susan Golding Stephen F. Goldmann '66 Donald M. Gruhn '49 and Judy Gruhn Barry C. Harris '70 and Sandra Harris David Heidecorn '78 '11P and Deborah S. Heidecorn '78 '11P Frederick H. Jamieson '74 and Jane P. Jamieson '75 Edward R. Klein '67 '68G '01P and Rosalyn F. Klein '01P Michael D. Krauss '83 and Dara Lynn Krauss Jeffrey A. Laborsky '99 and Melissa Laborsky '99 Douglas Lane '67 '90P and Gay Lane '90P Rina S. Pertusi '85 '14P and William G. Pertusi '83 '14P Rodolfo Segovia '89P '91P and Silvia Segovia '89P '91P Sarat Sethi '92 and Kanika Priya Sethi Steven R. Shoemate '85 Sidney J. Silver '57 '59G '81P '93P '15GP '18GP and Margaret Silver '81P '93P '15GP '18GP James B. Swenson '59 '15GP '17GP and Roberta H. Swenson '15GP '17GP Maria E. Taber '93 and Mark D. Taber Ferdinand Thun '56 and Elizabeth Thun Kenneth R. Woodcock '65 and Dorothy Woodcock Allen M. Yurko '73 and Gayle Yurko

vi THE MARTINDALE CENTER FOR THE STUDY OF PRIVATE ENTERPRISE THANKS THE FOLLOWING DONORS FOR THEIR VALUED SUPPORT (FY2017–FY2021) Luis A. Arcentales '98 '00G Kirsten H. Bahlke '17P '23P and William T. Bahlke, Jr. '88 '17P '23P Kathryn E. Bahner '17 Martin H. Bahner '86 '17P and Susan M. Bahner '89 '17P Richard W. Barsness and Dorothea L. Barsness Devon J. Battaglia '01 '03 and Irene L. Battaglia '04 Elizabeth H. Beatty '84 '16P Elizabeth L. Benko '01 and Hrvoje Benko '01 Jason J. Benkoski '98 James R. Berger '76 '07P Thomas A. Berglund '82 and Rosemarie Fiorilli '83 Whitney L. Bernstein '15 '16G Christopher J. Berzin '10 Kenneth D. Blanchette '10 Margaret C. Buell '88 '93G '17P '19P and Stephen G. Buell '70 '71G '77G '17P '19P Thomas F. Burke, Jr. '93 and Sharon Burke John M. Burton '15P and Karen M. Burton '15P Robert M. Cahill '84 '23P and Mary Beth Cahill '23P Gregory V. Capece '10 '11 Taylor C. Carroll '17 Laura G. Chan '17 Erin L. Collette '15 '16G Helen M. Colismo '03 Megan E. Colville '12 Anais Concepcion '10 Amy R. Confair '06 and Edward D. Confair '06 Michael J. Connor '80 '14P and Lee Ann Lusardi Connor '79 '14P Sacha Connor '00 Christine M. Croft '95 Christopher L. Croteau '92 and Lena Croteau Brian P. Cunningham '09 '10 and Danielle M. Spar Cunningham '10 Christopher J. Cunningham '03 and Lori A. Shuler-Cunningham '03 '04G David Danko '17 Billie M. Davis '02 '03G Ian M. Davis '18 Kristin S. Deliso '11 Nicole R. Dobson '96 Joleen R. Doverspike '99 '01G and Joshua C. Doverspike '99 James J. Duane III '73 '04P '06P and Michelle V. Duane '04P '06P Alix E. Eggerding '04 Andrea J. Englander '05 Alec L. Entress '16 Jeffrey J. Entress '16P and Patricia K. Entress '16P Caitlyn H. Esposito '09 and Daniel V. Esposito '06 Andrew C. Fiala '92 and Ehren Weidenkeller Justin L. Frankel '96 Jenifer Gilio Alexander Glass-Hardenbergh '16 Steven M. Glassman '04 '05G Benjamin O. Golden '94 Daniel A. Grande '11 and Jordan McKinley Milton H. Grannatt III '68 '69G '72G '75G and Patricia S. Grannatt '72G Shaan Gurnani '16 Rebecca A. Guzman '07 Huaibing He '16P and Jiemin Wang '16P Tristan A. Heffler '18 Marie E. Helmold '81 Phillip Hernandez '19 Mary J. Hill Rosemary M. Hilley '78G '03P and John L. Hilley '03P Elizabeth Hittinger '44W '71P '75P '78P '97GP '02GP Logan A. Hodges '16 Katherine Hodsdon '11 Jeffrey T. Horvath '92 Christopher M. Jewell '03 Christine M. Joachim '96 Andrew J. John '06 '07G and Soo Hooi Oh '06 '07 Casey R. Jojic '03 Muhammad Ariff Kamarudin '12 Jonathan M. Kamenear '07 and Heather Kamenear Carolyn Kaplan '02 '03G and Rudyard D. Kaplan '02 Mark S. Kaufmann '53 and Carole Kaufmann Matthew F. Kleinhenz '17 Kevin M. Kniffin '95 Andrew M. Krentz '13 Andrew R. Lauden '93 and Trisha W. Lauden '93 Kelly Lear Nordby '90 Kenny Y. Leung '01 Ira W. Lieberman '64 '94P and Phyllis Lieberman '94P

vii LEHIGH UNIVERSITY AFFILIATIONS KEY: 'Yr: Undergraduate degree year 'G: Graduate degree year 'H: Honorary degree year 'P: Child’s undergraduate degree year 'PG: Child’s graduate degree year 'GP: Grandchild’s degree year 'W: Late spouse’s degree year Grace H. Lin '19 Sara B. Lupson '06 '07 Nicholas A. Lynch '05 '07G Toni A. Marraccini '09 Betsy M. Martindale '90 and Wight Martindale III '85 Veronica D. McKinny '18 Norman J. Merksamer '52 '84P (Deceased) and Geraldine Merksamer '52W '84P Amy C. Nehlsen '00 and James P. Nehlsen '00 Thomas R. Nelson '81 '12P and Katherine R. Nelson '12P Jacquelyn M. Neumann '05 '06G and Benjamin Neumann Alexander A. Niewiarowski '15 Karen A. O’Donnell VanderGoot '99 and Matt R. VanderGoot Katherine M. Oliver '14 '15G Christina Pak '15 Marc C. Palmer '10 Erika R. Papaccioli '03 Catherine Y. Preysner '16 Laura O. Rheinauer '03 '04G Gretchen A. Rice '11G Karen J. Richard '93 Shauna G. Richman '83 Daniel N. Romanow '02 and Joanna L. Kleinberg Daniel E. Rosenthal '92 '21P and Michelle H. Rosenthal '92 '21P Kathleen N. Ryan '13 Kristin E. Sargent '02 Lauren Z. Schlossberg '96 and Andrew Schlossberg Elizabeth L. Schnabolk '08 and Stuart D. Schnabolk '09 Sheila C. Schottland '05 and David Schottland Curtis S. Schuelein '81 Bruce M. Serchuk '89 and Anita Soucy Allison A. Shearman '07 Jonathan P. Skinner '20P and Karen K. Skinner '20P Richard S. Slayton '89G Tyler A. Sloan '15 David A. Slomsky '95 Paul E. Smith '61 '63 '93P and Carol A. Smith '93P J. James Spinner '73 and Karen Spinner Cynthia L. Stauffer '87 Caitlin M. Stein '08 and Andrew C. Stein '08 Olga M. Stewart '05 '06 J. Nicholas Strasser '01 and Rosanne Facchini Karen L. Stuckey '75 '10P and Henry W. Seduski, Jr. '10P Jasmine E. Surti '12G Connie D. Svoboda '99 David A. Szablowski '82 Javon J. Tai '15 SueNee Tan '09 Tyler A. Tate '04 '05G William J. Tronoski '92 and Anastasia M. Tronoski '92 Jon P. Van Order '94 M. Jeremy Walsh '08 Jeffrey S. Wantman '00 and Sara Wantman Katherine L. Warren '02 and Michael S. Warren '02 Kirk M. Warshaw '80 '07P '11P and Anna R. Warshaw '07P '11P Edmond A. Watters III '61 '66G '74G Ashley E. Weber-Pickard '00 Richard N. Weisman '00P and Melody Weisman '81G '00P Caroline F. Weisstuch '19 Cynthia E. Welton '94 and Griffith J. Welton '88 Beth M. Wilson '18P Lindsay I. Wilson '18 Cathy E. Withers '14 '15G Eric C. Wolfe '92 and Jessica Wolf Katherine A. Wu '18 '19G Susan M. Wu '18P and Thomas C. Wu '18P Peter Zanias '05P Stephen V. Zanias '05 '07G

viii PROSPECTS FOR REVITALIZING ARGENTINA Volume 39 2021 INTRODUCTION Santiago Villalba.................................................................................................................................. 1 THE SOCIAL AND ENVIRONMENTAL RAMIFICATIONS OF ARGENTINA’S SOYBEAN INDUSTRY Emma B. Banker................................................................................................................................. 2 Argentina derives significant economic benefits from its booming soybean industry, leading the Argentine government to prioritize support for the industry ahead of social and environmental concerns. Without proper government intervention, negative impacts from soybean industry expansion, including social inequality and deforestation, will be exacerbated and result in unforeseen implications like the rapid approach of climate change. This article explores the most prevalent repercussions and provides possible solutions to mitigate their impacts. THE INFORMAL SECTOR IN ARGENTINA: ITS ROLE IN MITIGATING EXTREME POVERTY Abbhi Sekar. ........................................................................................................................................ 11 Argentina has one of the largest informal sectors in South America and the world. Many of the residents in poverty work in the informal sector and struggle to make ends meet. The government has hardly scratched the surface of combating this problem. This article explores possible solutions to transitioning informal workers to the formal sector as well as some of the benefits of the informal sector regarding limiting extreme poverty. RENEWABLE ENERGY AND THE FUTURE OF ARGENTINA’S ELECTRICITY SECTOR Jack M. Heller...................................................................................................................................... 20 Argentina has some of the best renewable energy and fossil fuel–based potential in the world. The Argentine government has an opportunity to invest in renewables and, hence, in its future energy stability. Combining these efforts will allow Argentina to reach not only its electricity needs but also its commitments under the Paris Agreement. HARNESSING ARGENTINA’S LITHIUM WITH POSITIVE LOCAL IMPACT Anmol Shrestha................................................................................................................................... 28 Argentina has endured a recent economic crisis related to currency devaluation, massive national debt, and declining exports. The country’s lithium reserves have the potential to alleviate the burden of this crisis, if utilized effectively. This article discusses the estimated exponential increase in global lithium demands across the world in pursuit of cleaner energy and how Argentina can position itself within the global market to capitalize on this trend while ensuring the best possible outcome for Argentine communities inhabiting lithium-rich regions. INFANT HEALTH CARE IN ARGENTINA Lina Arbain Oumera............................................................................................................................ 37 With the Argentine economic crisis in 2001, more people became medically uninsured and health outcomes deteriorated. One particularly alarming outcome was that infant mortality rates increased. In response, the Argentine government implemented Plan Nacer (Birth Plan), a novel maternal-child public health program. This article describes the evolution of the Argentine health care system, with a specific focus on how Plan Nacer led to a successful upgrade in infant health and mortality. THE PROMOTION OF FINANCIAL INCLUSION IN ARGENTINA THROUGH FINTECH F. Griffin Reichert................................................................................................................................ 45 Fintech and cryptocurrencies have been blossoming in Argentina due to their ability to give people access to necessary financial instruments that many Argentines have moved away from because of persistent hyperinflation and currency controls. This article examines the roots of financial exclusion,

ix the existing platform for fintech and blockchain technologies, and what steps must be taken to shape the future of fintech in Argentina. FOOD INSECURITY IN ARGENTINA Kira K. Stevenson................................................................................................................................ 54 Argentina is a large food exporter, famed for its prized meats and wine production. However, its agricultural prowess is at odds with the rising levels of food insecurity among its citizens. Various methods of intervention have had little success in alleviating hunger. This article investigates the sources of food insecurity along with identifying possible solutions that would put Argentina back on track to meet the Zero Hunger Sustainable Development Goal. THE ORIGINS OF ARGENTINA’S CURRENT MEDIA LANDSCAPE Noah F. Jalango.................................................................................................................................... 62 The unique relationship between Argentina’s political leaders and its media companies is rooted in one of the country’s darkest periods under a brutal dictatorship. A small number of media outlets gained distinct advantages during that time, which played a large role in their rapid growth, and Argentina now suffers from a high concentration of media ownership. This article explores the circumstances that created Argentina’s current media landscape and offers potential solutions to this issue. REVIVING ARGENTINA’S SMALL BUSINESSES Jenny Lin. ............................................................................................................................................ 71 Argentina’s small businesses make up 99.8% of the total enterprises in the country. Yet the nation’s volatile nature has created barriers for both existing and potential business owners who face obstacles in accessing financial institutions, navigating the complex tax system, and reacting to political uncertainty. This article examines the ongoing challenges facing small businesses andoffers plausible recommendations to create a more sustainable environment. ARGENTINA’S VACA MUERTA: BLESSING OR CURSE? Joseph E. Saba..................................................................................................................................... 80 Many politicians, oil and gas companies, and citizens of Argentina see the oil and gas extraction of Vaca Muerta, a shale oil and gas reserve, as a panacea to the economic crisis Argentina is experiencing. While that might be a plausible solution, it likely will only exacerbate the economic crisis and create new issues if not properly utilized. Currently, Argentine citizens are suffering on economic, environmental, social, and medical fronts. Either the project needs to be abandoned, or these issues need to be addressed and rectified if Argentina has any hope of escaping the current economic climate. THE ARGENTINA–UK ISLANDS DISPUTE Maria M. Lancia................................................................................................................................... 88 The Falkland Islands/Islas Malvinas sovereignty dispute has created an unstable relationship between Argentina and the UK for almost two centuries. Current geopolitical and economic conditions, including the hydrocarbon industry’s volatility, trade renegotiations necessitated by Brexit combined with the EUMercosur agreement, and international pressures, are optimal for warming bilateral ties and bringing this sovereignty dispute to an end. This article outlines a solution that allows the two nations to come together to form an agreement. CONTRIBUTORS. .....................................................................................................................................96

1 I was honored to speak with Lehigh University’s Martindale Student Associates when they were beginning their research studies focused on my home country, Argentina. I am touched that young people, in particular emerging leaders such as the Martindale students, are sincerely interested in learning about the pais that I love and represent as General Consul at the Consulate General of Argentina in New York. I learned then that in normal years the Martindale students and faculty mentors would have traveled to our proud nation to explore in person the economic, social, and political topics of their research. While I am saddened that global circumstances made it impossible for them (yet!) to experience Argentina’s beauty and vibrant culture first-hand, I am impressed that despite the barriers the students persevered to develop the compelling articles contained in this volume. Heartfelt felicidades to the young scholars for their dedication to tackling some of the most important and vexing issues in my country. Our President Dr. Alberto Fernández, speaking to the 75th Session of the UN General Assembly late in 2020, remarked, “The way out of the pandemic and towards the objectives of the 2030 Agenda, requires promoting economic, industrial and social policies aimed at the structural change of our economies.” He mentioned Argentina’s commitments to environmental sustainability, economic productivity and job creation, health, education, equality, and—above everything else—human rights. It is impressive that the articles in this volume address every one of those mentioned by the President. The range of topics is remarkable, from the environmental, economic, and social impacts of the agriculture, energy, and extractive industries; to mitigating poverty and food insecurity and improving infant health; to the power of the media. As I write this, much of the worldwide attention is focused, for obvious reasons, on the near term—the pandemic and its consequences. Like all nations, Argentina has been hard hit, exacerbating the challenges addressed in these articles. These researchers, refreshingly and uniformly, have taken a longer view that is hopeful in seeking ways to foster progress across all of Argentina’s many dimensions. As is natural in academic fields, the views, thoughts, information, and opinions expressed in the following articles belong solely to the authors and to the individuals involved and do not necessarily represent the opinions or views of this Consulate General. Nevertheless, I am glad to see how many young, talented people are interested in my country and grateful to Martindale for picking Argentina as the subject of this volume, which surely will be helpful to overcome our challenges with the insights and recommendations that have emerged from the deep looks by these outside eyes and bright minds. I also believe in the importance of this type of initiative to promote mutual knowledge of our countries, with mutual benefits. I close with a sincere wish and welcoming invitation: that all these scholars will be able to visit sooner rather than later and at last be fully immersed in the wonders of Argentina. Son todos bienvenidos. Vengan pronto. Santiago Villalba General Consul Consulate General of Argentina in New York INTRODUCTION

Perspectives on Business and Economics, Vol. 39, 2021 2 Introduction In 2018, Argentina exported over $15 billion in soybean products, more than a quarter of the export earnings for the country as a whole. The soybean industry in Argentina is integral to bolstering the economy, which encourages the Argentine government to prioritize soybean production over social and environmental concerns. The negative consequences of the soaring soybean production include land grabbing, deforestation, and the push of foreign countries and corporations to invest in Argentina. More than half of Argentina’s fertile, crop-growing land, nearly 20 million hectares of land, is now being utilized to produce genetically modified soybeans, making the area one of the largest genetically modified crop regions in the world. As a result of this spread, specifically in the Pampa region, located from the center of Argentina to the northern part of the country, smallholders (peasants and indigenous people who farm small areas of land) have become increasingly dispossessed. These smallholders grow crops for their families and local markets and are unable to afford the costs that are associated with procuring and maintaining genetically modified crops. The Argentine government is reaping the shortterm benefits of the soybean industry without recognizing the current and future costs. The Argentine government has not yet established any effective legislation to protect smallholders from land grabbing, but many nongovernmental organizations (NGOs) have formed over the past few decades to fight for peasant and indigenous rights. Even in cases where legislation exists, it is not effective. For example, while Argentina’s Forest Law was enacted in 2007 to control deforestation, enforcement has not been consistent. Without proper regulation to control land use, deforestation rates will continue to climb, and the larger corporations will continue to drive the smallholders out of business and off their land. As the soybean industry expands, the THE SOCIAL AND ENVIRONMENTAL RAMIFICATIONS OF ARGENTINA’S SOYBEAN INDUSTRY Emma B. Banker Argentina derives significant economic benefits from its booming soybean industry, leading the Argentine government to prioritize support for the industry ahead of social and environmental concerns. Without proper government intervention, negative impacts from soybean industry expansion, including social inequality and deforestation, will be exacerbated and result in unforeseen implications like the rapid approach of climate change. This article explores the most prevalent repercussions and provides possible solutions to mitigate their impacts.

3 government needs to enact further legislation to mitigate the impacts of land grabbing and deforestation and ensure that the groups responsible for carrying out the legislation have the necessary resources. Civil society should continue to push the government to create effective legislation, as this pressure has proved successful in the past. In this article, I discuss the benefits and drawbacks of the soybean industry in Argentina and present potential steps the country might take to balance its reliance on the soybean industry with initiatives to ensure social justice and global environmental responsibility. Background Since 2003, South America has dominated the international soybean market, surpassing North America as the world’s leading soybeanproducing region. Brazil, Uruguay, Paraguay, Bolivia, and Argentina hold 5 of the top 10 spots as chief soybean producers around the world (Oliveira & Hecht, 2016). Argentina and Brazil alone are responsible for approximately 49% of global soybean production as of this writing. Exports increased dramatically over the course of the late twentieth century. South America exported nearly zero soybeans in 1970, 10 million metric tons by the mid-1990s, and more than 70 million metric tons by 2015. A majority of Argentina’s soy products are exported to China, leading an Argentina Board of Trade official to comment, “our economy is very dependent on soybeans and China—perhaps too dependent” (Larmer, 2019). Argentina became the top supplier of soybean oil to China by 2010, supplying 80% of Chinese imports of the product. Argentina garners economic benefits from dealing with China; however, the relationship may not be as beneficial as it appears. The growing interdependence exposes Argentina to China’s policy changes. In 2015, Mauricio Macri, President of Argentina from 2015 to 2019, tried to reduce China’s influence on Argentina by canceling some Chinesefunded infrastructure projects, but the Chinese government retaliated by decreasing soybean imports by 30%, which caused a shock to Argentina’s economy. Macri restructured Argentina financially by diversifying the sources of financial support, so Argentina did not depend as heavily on economic support from China (Bernal-Meza & Manuel Zanabria, 2020). Nonetheless, in December 2018, Macri signed over 30 investment deals with President Xi, including an $8.6 billion currency swap, a form of a no-interest loan that bolstered the economy and lessened the nearly 50% inflation rate. As a result of this deal, China became Argentina’s largest noninstitutional lender (Larmer, 2019). China has been able to influence political decisions by threatening to take its business to competing countries, which could lead to devastating impacts on the Argentine economy. Over the past three decades, soybeans have come to occupy almost 50% of Argentina’s cultivated land (Larmer, 2019). While this growth has driven economic benefits, it also has come at a significant cost to indigenous people, the environment, and biodiversity. Greenpeace International states that the main causes of forest area loss, generally, are fires and agricultural expansion due to livestock and transgenic soybeans. In 2019, Greenpeace published a report estimating that 4.3% of global deforestation was occurring in the north of Argentina (Greenpeace, 2020, p. 3). The rising deforestation rates are partly due to the Chinese resource demand, which includes minerals as well as agricultural products. In 2003, approximately 12.6 million hectares of Argentine farmland were devoted to soybeans, producing nearly 35 million tons. As Chinese demand grew, the farmland increased to about 20.5 million hectares of land by 2016, yielding almost 59 million tons of soybeans. This represents a 63% increase in soybean farm area planted and a 69.5% growth of soybean production (Bernal-Meza & Manuel Zanabria, 2020). As Argentina continues to produce more soybeans for China, barring any changes in land use legislation, the deforestation rate will continue to rise. Recognizing the seriousness of the problem, the scientific community, NGOs, national and local governments, and civil society joined forces to advocate for a policy to mitigate the disastrous effects of deforestation. The Argentine government enacted the Forest Law in November 2007 to reduce deforestation. The law designates certain areas of land into categories, and the category indicates the level

4 of deforestation activities allowed, although the law proved ineffective over the first decade. The Forest Law should receive 0.3% of the national budget annually, but, as of 2020, conservation efforts receive less than 5% of this amount, and deforestation continued in areas where it was prohibited by law (Ocaña, 2020). The government is hesitant to enforce the law because funding the law implies acting against the business sector. Additionally, penalties are not strong enough to dissuade violators. Deforestation in Argentina is significant as livestock and the transforming of forests to arable land are responsible for more than half of the greenhouse gases that Argentina emits, and deforestation threatens to dramatically reduce biodiversity (Larmer, 2019). Researchers, NGOs, and civil society are collectively concerned about the future effectiveness that the Forest Law will have on lessening deforestation. Studies on the impact of the Forest Law show that it was effective in reducing deforestation overall since the nationwide deforestation rates decreased. Nevertheless, deforestation continued in areas both where it was forbidden and where it was permitted (Camba Sans et al., 2018). Several grassrootsorganizationshavebeen created by those impacted by land grabbing to fight for their rights. There are some laws at the national level that were enacted to protect the indigenous people and to prevent eviction from land, but the legislation proved unsuccessful in combating land grabbing (Busscher et al., 2018). One organization, Movimiento Campesino de Santiago del Estero–Vía Campesina (MOCASE), has been working over the past decade to resolve an increasing level of disputes with agribusinesses that have deforested Santiago del Estero, a province in northern Argentina, and evicted peasant families in order to expand soybean production (Lapegna, 2013). MOCASE has the goal of moderating agribusiness corporations that attempt to expand their soybean production by evicting the peasant families that occupy the land, and MOCASE has been highly successful in achieving this goal for the past two decades. The Argentine economy is heavily reliant on support from foreign investors, so the government often puts international business interests ahead of the rights and needs of some of its own people, undermining the efforts of these grassroots organizations. The current economic impacts of these grassroots organizations are not individually significant, but they collectively represent an important trend within the country. These organizations collectively are increasing the levels of social and political awareness in the country, and that heightened consciousness will help garner support for reforms, similar to how one million petition signatures helped to create the Forest Law. Consequences of the Soybean Industry Decreasing Smallholder Farm Area As the global population and the need for food increase, the expansion of the soybean market in Argentina has become increasingly driven by the international market and tends to ignore the concerns of some segments of society to promote a better economy. One of the consequences of the increased demand for arable land is land grabbing, which entails “the capturing of control of relatively vast tracts of land and other natural resources through a variety of mechanisms and forms involving large-scale capital that often shifts resource use to that of extraction, whether for international or domestic purposes” (Borras Jr et al., 2012). Social repercussions of land grabbing include indigenous people and peasants losing their land because of the “accumulation of dispossession,” which involves the “appropriation of land, generally by private actors, for commodity production in regions where local communities have precarious land tenure” (Camba Sans et al., 2018). This phenomenon occurs when land use shifts from being focused on family farming to the more centrally leveraged, multinational agribusinesses, resulting in the smallholders losing their land. The smallholders can be forced to leave their land in two manners: direct, meaning violent evictions; or indirect, which involves the people voluntarily leaving due to an adverse condition being introduced, for instance, when farmers’ crops close to genetically modified crops are exposed to harmful chemicals used on the genetically modified crops.

5 In Argentina, there has been a steady decrease in the smallholder farm area: there were around 421,000 farms spanning over 30.8 million hectares in 1988. Almost 88,000 farms, or 20.8%, were run out of business over the course of the 1990s; thus, in 2002, only 333,000 farms were actively producing crops (Lapegna, 2013). In 2018, there were around 257,000 habited farms, a 39% decrease in number of farms since 1988 (Instituto Nacional de Estadística y Censos, 2020). GRAIN, an NGO that supports small farmers and social movements to help maintain communitycontrolled and biodiversity-based food systems, estimates that foreigners have acquired more than one million hectares of land in Argentina (GRAIN, 2008). Additionally, over nine million hectares of land are subject to some form of land dispute, impacting at least 63,000 people. Busscher and colleagues (2018) report on the ways title holders and land investors have pressured farmers to leave their land, violating their human rights: “menacing actions, such as with bulldozers or other equipment; the use of private security forces; intimidatory behavior and harassment, such as setting houses on fire; the illegal or unauthorized occupation and/or use of land by the investors; and the bribing of local police and judicial staff to facilitate their complicity.” Without government intervention and effective policies, the smallholders will continue to be subjected to violence and lose their land Growing Genetically Modified Soybeans The conflicts over land in Argentina and the expansion of the genetically modified soybean industry are interrelated. In 2006, 47.5 million tons of genetically modified soybeans were produced, and it is estimated that more than 90% of the soybeans produced in Argentina were genetically modified, according to the Secretary of Agriculture, Livestock and Fisheries (SAGyP). Lapegna (2013) specified three negative consequences of genetically modified soybeans: “intensified economic concentration, serious environmental damage, and the eviction of peasants and indigenous families.” Smallholders lose their land because they are not able to be competitive with the larger corporations and their lower-priced genetically modified soybeans. Agribusiness corporations, like Monsanto, Nidera, and Syngenta, were advantaged by the introduction of genetically modified seeds and agrochemicals since they were able to overcome the barriers of growing genetically modified crops. In the early 2000s, during a collapse of the Argentine economy, many smallholders lost their land. Soybean production, driven by large corporations, was able to quickly recover and boost the damaged economy. The entry of large corporations into the Argentina soybean industry has caused issues with the rural population because locals are forced to sell their produce at a certain price to compete with the larger industries. Of the 35 genetically modified crop proposals that arose between 1996 and 2015, 80% were approved by the National Advisory Commission on Agricultural Biotechnology (CONABIA), including seven related to soybeans. The corporations involved in these applications were Syngenta, Dow AgroSciences, BASF, Bayer, and Monsanto. Monsanto alone was the applicant on about one-third of these cases. These larger producers have investment capacity to put toward growing genetically modified soybeans that have a greater yield, but the indigenous communities have to make do with the limited resources they have. One of the strategies smallholders have taken to mitigate the negative impact of genetically modified crops in the industry is marketing their non–genetically modified crops and even organic soybeans as superior, allowing them to charge a premium price for their products. If the smallholder crops are contaminated, they may be unable to sell their crops at a premium price for being non– genetically modified and may lose their land as they cannot subsist. The smallholders have a lesser yield than the larger agribusinesses, so they must make more money from the crops they have. Beginning in the late 1990s, peasant farmers in Formosa began to gather together in markets called ferias francas, where they could sell their produce. These ferias francas are prominent in Formosa and in many other parts of the northeast region of Argentina. Previously, the peasant farmers

6 would sell their products in bulk to the larger corporations or intermediaries who would take most of the profits. The transformation to ferias francas allowed the farmers to diversify their crops and to turn more of a profit. The market concept was created through NGO intervention and rural political organization to allow the smaller farmers to offer a variety of products and reconnect the consumers with the producers rather than the bulk produce the larger corporations sell. The organization of smaller farmers allows them to promote their food as being produced without chemicals and to operate with lower costs than if they were to work independently. Increasing Deforestation Rates and Implications The United Nations Convention on Biological Diversity, an agreement developed in 1992 that aims to create national strategies to protect biological diversity, claims that Argentina is one of the most biodiverse nations, with an economy that relies heavily on financial support from the agricultural sector, primarily soybeans (Convention on Biological Diversity). Changes in land use and closer proximity of people to forests can have a significant impact on climate change and biodiversity. The accelerating deforestation will cause the impacts of climate change to arrive much sooner than expected. Animals are more wary of approaching roads as they can indicate the presence of humans. Due to the pressure of deforestation, certain animals are becoming scarcer. Humans and domesticated animals, like dogs and cats, moving into the forest area are enough to drive some bird species, tapirs, pumas, jaguars, peccaries, and anteaters to disappear from the region. In 1997, 18% of mammals in Argentina were labeled as being under threat (critically endangered, endangered, threatened, or vulnerable), rising to 24% in 2000 before falling to 21% in 2012. From 2000 to 2012, reptiles and amphibians in the threatened category rose from 8% to 78% (Convention on Biological Diversity). Additionally, the loss of native forests due to agricultural expansion is the primary threat to biodiversity. As deforestation continues, these animals cannot adjust to the changing conditions in the forest borders. A key example of deforestation is the Gran Chaco region, which is shared by Brazil, Bolivia, Paraguay, and northern Argentina, and covers approximately 65 million hectares. NASA estimates that from 1985 to 2013, 14.2 million hectares (about 20%) of the Gran Chaco region were deforested and converted to farmland or grazing land (Patel, 2020). From 2010 to 2018, over 2.9 million hectares of the Gran Chaco region were converted into farms or ranches, with the vast majority of the cleared land in Argentina (Camba Sans et al., 2018). Gran Chaco, the second largest forest in South America after the Amazon, has been losing a staggering 2000 hectares of land per day on average. Guyra Paraguay, a nonprofit organization, claims “30,454 ha, 43,717 ha, 235,601 ha, and 222,475 ha were deforested in 2010, 2011, 2012, and 2013, respectively” in the Argentine portion of the Gran Chaco region alone (Guyra Paraguay, 2018). Corporations are drawn to the Gran Chaco region largely because of the plentiful rainfall, inexpensive land, and the ease of utilizing genetically modified crops. This deforestation has global noteworthiness, as more than half of the greenhouse gases emitted by Argentina are due to changes in land use and livestock, and deforestation threatens to dramatically reduce biodiversity. Policy Options and Enforcement Protecting Indigenous and Peasant Rights The increase of genetically modified soybean production in Argentina has caused many smallholders to lose their land. This taking of land has occurred to the detriment of the rural, indigenous communities, which has led to protests, specifically due to the competition over land claims. In Santiago del Estero, human rights advocates and national authorities started to take notice dating back to the early 1990s. MOCASE, a peasant social movement in Santiago del Estero, was formed to fight for the land rights of peasants and indigenous people and has since become the largest peasant organization in Argentina. A few years after its creation, MOCASE was responsible for creating a national alliance of

7 peasant organizations throughout Argentina. The resulting Movimiento Nacional Campesino Indigena (National Indigenous Peasant Movement) is an organization of more than 20,000 families, both indigenous people and smallholders. MOCASE also is a member of the Coordinadora Latinoamericana de Organizaciones del Campo (Latin American Coordination of Agrarian Organizations) as well as La Vía Campesina, a transnational peasant alliance. The national Ministry of Human Rights summarized the essence of the Santiago del Estero agenda’s challenge to human rights as “the indiscriminate advance of the agricultural frontier via soybean production is a threat not only to real possession rights but also the environmental assets of rural communities” (Lapegna, 2013). Without intervention, the increasing soybean production will continue to be a threat to human rights and indigenous communities. La Vía Campesina developed the Declaration of Rights of Indigenous Peoples over 20 years, which the United Nations debated for six years, finally adopting it in 2018. The resulting UN Declaration on the Rights of Indigenous Peoples (UNDRIP) aims to protect those who have been historically discriminated against, like the indigenous and peasant workers, in particular those who are susceptible to the consequences of climate change and deforestation. However, in 2014, a UN Special Rapporteur recognized that governments may be unwilling to allocate resources for the betterment of indigenous people or they may not have the necessary resources to do so (Golay, 2019). Because there are many different organizations involved in UNDRIP and it draws from other documents, the Convention on Biological Diversity, for instance, it is important for the Argentine government to clearly define agencies that are responsible for certain objectives and to provide resources, like training and funding, to government officials and organizations. The Argentine government should strive to achieve the objectives delineated in UNDRIP to promote the social and economic development of peasants and indigenous people and work with the UN if the country does not have the resources necessary to accomplish these goals. Mitigating the Spread of Genetically Modified Soybeans Although genetically modified crops are vital to the Argentine economy, the Argentine government needs to have regulations in place to ensure that genetically modified crop cultivation practices do not harm other crops. Additionally, these regulations should ensure that the smallholders are not further threatened by the concentration of power and farming practices of the multinationals growing the genetically modified crops. CONABIA was formed within the SAGyP in 1991 to regulate, evaluate, and monitor developing activities with genetically modified organisms. CONABIA is responsible for authorizing requests to develop or utilize genetically modified crops. The organization is made up of members from both the private and public sectors, many of whom are involved in biotechnology within the agricultural communities, introducing potential conflicts of interest. The Argentine government should develop a more concrete selection process for CONABIA to lessen the potential for conflicts of interest, which would allow CONABIA to monitor genetically modified soybeans more transparently. With the genetic modification of soybeans, farmers not only obtain a greater yield but also save valuable resources that would have been spent protecting the crops from pests, but only those who can afford to invest in genetically modified crops reap the benefits. Genetically modified crops can grow with less rainfall and are more resistant to insect predation, resulting in increased yield per hectare. They also have greater simplicity as the soybeans are herbicideresistant. Soybeans are genetically modified to withstand Roundup, a glyphosate-based herbicide. Monsanto is one of the larger players responsible for the dissemination of genetically modified soybeans in Argentina, with the aid of Argentine agricultural actors. To spread the herbicides on the crops, corporations often use a large tractor that has arms with nozzles, which can cause the agrochemicals to drift to fields where the herbicide is not intended. In one instance, peasant farmers suffered at the beginning of 2003, when companies sprayed large amounts of the herbicide and destroyed nearby cotton that the farmers had planned to

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