Argentina today is living a fantasy. President Kirchner is the Wizard of Oz who has created the sense that his country is recovering rapidly from the domestic despair and international disgrace that were caused by President de la Rua’s colossal mismanagement.
The politics of hemispheric trade have turned. Under normal circumstances, failure in Cancun could have been expected to give a needed boost to FTAA negotiators, since FTAA would now become the primary trade expansion vehicle available to the hemisphere.
John Taylor looked at the last two years in Latin America and stated that market spreads between sovereign debt and US treasuries have come down, there has been an increase in capital flows, the number of current capital accounts is improving, and exports are growing.