Argentina's Turmoil: The Politics of Informality and the Roots of Economic Meltdown

Abstract

This article argues that Argentina's current economic crisis cannot be fully understood without an analysis of recent political processes. It defines the politics of informality that have characterised Argentina's democracy-building processes. This de-institutionalisation of politics was perceived as the facilitator of democratic consolidation, state reform and economic restructuring. In practice, the politics of informality contributed to the crisis of 2001. The article begins by analysing the scale of the political and economic crisis from 1999. It is followed by an analysis of the politics of informality implemented by the Raúl Alfonsín and Carlos Menem's governments and then goes on to explain the consequences of informal politics. Finally, it concludes by outlining the main factors that conspire against democracy and economic stability in Argentina.