The area of Microfinance & Microenterprise as we know it in the United States is very different from the reality of what is found today in Argentina. With this in mind, most of the economists that we work with in Argentina suggest the simple fact that Argentina is not ready to expand in this area and therefore have few examples of successful microfinance initiatives.

The 1990s was an economic rollercoaster for Argentina, with soaring growth due to international investment usage that would prove fruitful for the short term. By the end of the decade, the Menem Administration under the guidance of the IMF and World Bank, had liberalized sectors and instituted structural adjustment policies that eventually plummeted the economy. This was done to address the $150 billion debt incurred largely by the military government in the late 1970s and 1980s. By 2001, the economy deteriorated so badly that the country suffered an absolute meltdown, with industrial infrastructure and agricultural markets on their knees, minimal social and public services available, and aggressive privatization that resulted in many Argentines unable to afford basic needs such as water. More than 50 percent of the country lived below the poverty line—an astonishing statistic considering the apparent wealth of the nation.

After two years of desperation (2001-2003), Argentina is beginning to stabilize its debt, reinvest in infrastructure, and boost agriculture profits. The growth is built upon incredible grassroots movements and leadership efforts that are producing jobs throughout many sectors. GDP has been growing exponentially, creating a feeling of optimism. Many fear that this optimism may be premature, suggesting that the 8 percent GDP growth rate will inevitably lead to severe decline, like in the 1990s. Economists propose that the country is not yet ready to adopt many microfinance schemes that have been successful globally and that Argentina has few current examples of successful microenterprise initiatives. For instance, Grameen-Bank–style microcredit has yet to be developed thoroughly in Argentina for a variety of reasons. Most notably, banks are not yet prepared to get involved in this sector of risk. In addition, local cultures often do not hold to the same principles that are found in other countries that have successfully integrated Grameen's community lending scheme.

FSD partners with organizations that provide economic opportunity to underserved populations. Volunteers and interns contribute in the areas of mentoring cooperative members, teaching capacity-building courses, bringing organizational skills, and networking/researching other local foundations for information sharing. These practices are showing strongly positive results and are in great need by local organizations.

Read more about Microfinance & Microenterprise programs and opportunities initiated by our Community Partners in Argentina.

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