THE ROLE OF SOCIAL SECURITY PRIVATIZATION IN ARGENTINA'S ECONOMIC CRISIS (original) (raw)

The paper examines the implications of Social Security privatization in Argentina, initiated in 1994, as a significant factor contributing to the country's subsequent economic crisis. It argues that privatization led to a substantial loss of government tax revenue, forcing Argentina into higher borrowing and escalating debt levels. Detailed analysis and calculations presented demonstrate that the fiscal deficits resulting from the privatization closely mirrored the total government budget deficits during the crisis years, highlighting the critical link between policy decisions and economic outcomes.