Yet More Manipulated Figures - this time in Argentina

As mentioned in my previous post, one shouldn't always take at face value economic statistics, especially when they enable the ruling powers of the day to revel in the data's overwhelmingly positive outlooks. Last week Cuban economist Carmelo Mesa-Lago warned us about the significant economic growth figures coming out of Cuba, and suggested the various ways in how they could have been 'manipulated'. Well today I came across the following article, "Will Cristina Head Off Another Crisis?" The articles relates, as in a similar fashion to the reliability of Cuba economic data, to the reliability of Argentina economic statistics and as to whether or not the Argentine government is taking increasing liberties with regards to the compilation of such statistics (http://news.bbc.co.uk/1/hi/business/7035500.stm).

Despite Argentina's impressive growth in the recent years, it can be said that President Kirchner has taken a very hands-on and at times quite unorthodox approaches as a means to boost growth and curb inflation. For instance during my stay in the country, Kirchner encouraged a nation-wide boycott of various international petrol companies (most notably Shell). He saw their price increases as highly detrimental to his own attempts curb to inflation.
Now it seems fiddling with official economic statistics may be his latest of weapons to curb inflation. So whilst 'official' inflation rates stand at 9%, many believe it actually to be as high as 15%-20%. Who to believe? Well according to one economist, "since January, when the government doesn't like what the official figures are telling it - it decided basically to modify those figures." And these can never be too promising when the actual institute for the collection of economic data in Argentina (INDEC) actually start demonstrating themselves protest over this supposed government interference.

Aside from the manipulation of statistics the BBC article quite rightly highlights other pressing issues which can be easily forgotten amidst the figures of seemingly impressive economic growth. Economic growth means little when it's poorly distributed. An example of which can be seen in Argentina's southern oil-rich province of Santa Cruz. Violent labour disputes continue to highlight the disaffection towards the regional government and its ability to distribute the benefits of the oil boom. An in the far north, in the province of Chaco, people continue to be dying of hunger and living in houses made of mud and sticks and without access to running water. Furthermore the article draws or attention to how the sudden rise in genetically modified soya in Chaco, whilst enabling short-term gains, will likely lead to vast tracts of lands being left barren due to the soils' lack of nutrients, something that will prove highly detrimental for the land in the long-term.

So whilst the signs of economic growth may be evident to see for those stuck in the splendour of downtown Buenos Aires, or for those who limit themselves to looking at GDP growth statistics - whether you believe them or not - all isn't as rosy as it seems.