Increased participation; reduced dissipation

As the previous blog entry outlines, I am currently residing in Buenos Aires with my current status reading: unemployed.  This could change by the end of this week however.  Having sent close to a hundred CVs without reply, aside from a few automatic confirmatory responses acknowledging my application, until the weekend it was appearing as though an unpaid intern-ship in a good company was drifting further and further away.  The possibility of contributing to a Microfinance research firm is still on the cards, however, now approaching the final year of my degree, the pressing need for a telling internship exists more so than ever before.

There exists a burning desire to become part of the labour force which following many unsuccessful applications for a paid internship, (now accepting that an unpaid internship is the most probable way of being employed) is now manifesting itself in frustration.  As most are acutely aware, the importance of contacts in any line of work can never be underestimated as the ability to progress a CV further up the line ultimately differentiates it from the thousands of applicants competing for the same position.  At the lowest rung of the employment ladder, contacts appear ever more pronounced as once part of the labour force doors automatically open as the importance of a university qualification is then surpassed by relevant experience.

Having worked for a number of years in the financial services sector of Ireland it is understandable that people can become disheartened with their work.  It stems from a lack of motivation, opportunities, challenges, pigeonholing and bad management, with the former being the most prevalent.  Given my current predicament it is difficult to acknowledge a lack of motivation as competition for jobs is greater now than I can remember, with rudimentary jobs acquiring vast numbers of over-qualified applicants.  So, those that lack motivation have no excuse considering the pressure being put on by young and eager graduates.  There is another side which shows that the current situation of high demand and short supply is ultimately driving down labour costs for companies as the competition for places increases each year and graduates continuously have to undercut each other to obtain their desired job.

Although, it is not all skewed in favour of the company, with one year of university remaining until I graduate, the opportunity cost of pursuing paid employment now is too great as professional experience at this stage (albeit without charge) will carry far greater weight as I look for employment next year (or, alternatively pursue a Masters…), in the competitive Irish labour market.

Over the past two weeks I became ever more exasperated as the possibility of the necessary work experience (in Argentina) diminished with every passing week.  Until, on Saturday evening my fiancée, having spoken to a good friend of hers, mentioned of a contact which could possibly find an opening in a well respected international financial institution with an office in Buenos Aires.  The position would be unpaid, it will mean living on the bare minimum for a number of months but ultimately it will be worth every second of it.

Should the opportunity arise I will take it!

Lunch decided

The curios case of Buenos Aires

Following a year in Madrid, one can really appreciate the order, the food, the relative cost and its size; it is a marvellous place which aesthetically resembles the Argentina’s, Buenos Aires.  There’s no doubting that more similarities exist, but following my immediate arrival in the Argentine Capital from Madrid, the differences seem far more apparent. 

One has to appreciate the order which being part of the European Union (and the Euro) provides, although the currency Union is looking more fragile than ever before, as Spain is a marvellous country which I will return to, albeit for three hours following my return to Dublin from Buenos Aires, but certainly again in the future.  The reason why I highlight the stability provided by the Euro is for the simple reason that from my first moment in Buenos Aires the difficulty in making a rudimentary payment of rent is hindered by the landlord’s unwillingness to accept payment in anything but dollars.  I was acutely aware of the government imposed difficulties – which attempt to reduce the dependence on the dollar – prior to my arrival however; I could not have envisaged the scale of such problems and paranoia throughout the Capital.

I read an article in the economist highlighting Argentina’s protectionist policies which required the high-demand mobile phone the Blackberry to be produced in Tierra del Fuego, in the very south of the country.  I recall thinking at the time that the effects for Argentine consumers would be the inflation of prices for a luxury good (could this transcend across the economy as a whole), an economy which is continuously trying to become more independent (almost autarkic measures being imposed) and an unstable economy run by an ineffective government.

The last point was confirmed this year as Argentina’s populist Peronist party (lead by Cristina Fernandez) attempts to reduce the use of dollars as the reserve currency making it illegal for Argentines to get dollars, meaning an ever-increasing black market.  This policy might be seen as effective for increasing the use of Argentine Pesos, but when the prices of renting and purchasing property, for example, are quoted in dollars, life becomes that bit more complicated.  I performed a check on the RE/MAX (real estate agency/realtors) website and from what I have seen the majority of properties for rent/sale were quoted in dollars, creating great difficulties for the purchase of property by an Argentine national.  A recent conversation with some friends, (a couple; one Argentine, the other American) gave me a clear idea of the predicament facing locals.  There exists a considerable nexus between the treatment of nationals by nationals and the treatment of those from the United States or ‘Gringos’.  Whilst looking for an apartment, the Argentine rang numerous agencies repeatedly, to be fobbed off…repeatedly.  Eventually, the American attempted and as he described it, he ‘rang the same agency using his crudest Span-Americano accent and he was treated like a King’.

Latin America has oft been referred to as the United States’ backyard.  John Pilger has produced many documentaries on the treatment of Latin American countries by the hegemonic power that is the United States.  However, the attitude portrayed by Argentine nationals towards other nationals leads me to consider the self-perpetuity of the United States rise through different invasionary policies over the years, as demonstrated in this documentary with John Perkins and his take on Globalization.  Equality within a State is no bad thing, but prioritization of non-nationals over national’s goes against what Kirchner is attempting to do.  Her policies have now put a premium on anybody who has direct access to dollars or foreign currency for that matter, as confidence in the Argentine Peso diminishes.

Recently walking down Florida a popular tourist street in the Centro of Buenos Aires, I was quoted 5.7 pesos per dollar; the actual exchange rate is 4.5.  This is the black market, and men ranging from suited to street gear offer generous exchange rates.  Although appealing, one should be careful as stories about robberies are well known, while there appears to be a police present within ten metres of each person offering an exchange.  As tempting as an inflated exchange rate may appear, the risks are far too great. 

One has to be concerned for the Argentines as their access to the widely accepted reserve currency becomes more difficult; foreigners (not only those from the US) have greater opportunities within the South American State.  Baffling as it may seem, it’s true.  There is widespread anger in Argentina as inflation is soaring once again.  According to tradingeconomics.com, Argentina had an inflation rate of 9.9 per cent in May 2012, as Clarin a daily estimates that overall inflation for 2012 could reach 30%.  In a recent conversation with a Peronist (a pro-Christina Kirchner) in response to the high predicted rate of inflation, he stated that “¿qué economía ha crecido sin inflacción? / What economy has grown without inflation?”  A valid point, but such levels of inflation are unsustainable at best, at worst the economy will once again come grinding to an ever so tragic halt.  The rise in prices has been moderately reflected with rises in wages, but it is nowhere near sufficient for the rate to remain sustainable.

Argentina is embarking upon unstable economic policies once again, creating uncertainty and difficulty throughout the Republic.  Since my arrival I have been shocked by the price of normal goods, which in a many cases surpass those of Madrid.  It is evident that the monetary policy is creating problems for business owners; for many the crisis of 2001 is still fresh in the memory.  Prices are on an upward trend and looking at the price of one good: coffee, for example, prices are twice, if not three times those of a similar coffee shop in Madrid, surpassing those of Ireland also. Considering the proximity to the crop it is a clear demonstration of the crippling tariffs imposed upon imports.

What I have listed above is a brief outline of some perceived problems faced by Argentines and the economy but there is something else that I have noticed since my arrival in the tango capital and that is paranoia…