Investment, the investor and the long term financing
Neither lowering the public expenditure from 14% to 3% on GDP, nor privatizing quickly, nor opening a country, nor anything could assure the success in the long term. Even the more daring and ambitious investor who came with the pro-business economy, the press heroes of the Nineties know this reality.
Many investors bought very efficient Argentine companies that today are in creditors’ meeting or hard problems. Private Equity Fund burst in buying companies haphazardly. There were them of these famous ones, which they bought companies without debts, with interesting fixed assets that could be used like guarantees of later loans. Companies that, as a consequence of their performance, paid important sums of money from income tax, interesting contributors of the state treasury and the society. Simply changing the destiny of the tax (passing from income taxes to financial cost) they took loans whose financial cost base was assured. In the end credits bridge originated by the purchases were cancelled through financing by the own company. From 1998 with
With purpose about replacing fired successful entrepreneurs, the best head hunters arrived in
A set of reforms and financial instruments of short-term economic policy to stabilize the rate of exchange and the inflation (the convertibility plan), without a real and attractive investment plan in the long term, never was a sustainable scheme. When the economy or the businesses were concentrated in the short term and do not have long-term strategy, the results are those who are observing. The economy only participated in a game: short term. In the obstinate search to obtain instantaneous recognitions, it was established the short-term objectives that stimulated the myopia. This policy took to us living and succumbing only by the quarterly numbers of the INDEC (National Institute of Statistics and Census).
The inflexible search of the established assumptions for every quarter made forgetting everything what it didn’t have a connection with the intentions to reach determined goals. A feeling to travel in a submarine by ten years impeded to took advantage of creative opportunities and alternatives. Some economist couldn’t even think without receiving reproof and haughtiness. With opening barriers, privatizations and liberalization in high speed in a short term were to live existentialism or at least one bubble. The booty of exchange and monetary stability during the 90th - fed the future failure (it eliminated the national industry and most of the Argentine businessman).
The globalization caused the crisis in a way as great waves like in the beach when it is necessary to move quickly or the wave pass over the Nation and this remain to row against the current. Wave after wave immovable