Buenos Aires: Still the Paris of Latin America?
This Latin American market seems to be in elegant decline
Argentina is a long way from anything else, except possibly Brazil. That statement is both wrong and self-evidently right. It is wrong geographically because there are other neighbors of course, and it is wrong in the feeling you first get landing in Buenos Aires, whose architecture and layout earns its name as Paris of Latin America. And yet it is right when you feel the isolationism that seems to permeate this country. Anyone who can afford to go on vacation goes to Europe, very occasionally to Brazil. It is as if the rest of Latin America did not exist except as a perceived source of illegal immigrants. It is right in the low use of any language except Spanish – unless you are in a grocery store because Chinese runs these so you can speak Mandarin! It is right in the sighs of academics that decry their lack of connection to US and European institutions.
Buenos Aires is a big city with 14 million inhabitants. Based on my experience in Asia, I expect skyscrapers and heavy traffic, and grit and thick air. Instead, it is a wide open city and, thanks to the breeze that still flows from the ocean down the Río de la Plata the skies are crystal clear and the air smells fresh. It is November, fresh and sunny. The many outdoor cafes are full, fountains tinkle, and wrought iron balconies on multi-storey buildings recall Paris. The streets are tree lined, just now full of purple jacaranda blossoms that I associate with South Africa – it is the same latitude.
There are further similarities to Johannesburg. A local friend recommends carrying only what fits in my pockets, no purse. She has observed several daylight robberies. Nonetheless, walking through the park and through the streets full of little shops and cafes, I feel no threat. We walk through the La Recoleta cemetery in which Eva Peron is buried. I have seen nothing like it before: it is a miniature town with narrow streets, lined with miniature houses with iron grilled, glass doors through which one sees an altar and one or more decorated caskets. The dead are present. Fresh flowers cover the door grille of Evita’s crypt.
The new president, Cristina Kirchner, is said to study Evita’s speeches and movements and to copy and use them, so as to draw on the deep emotion that still surrounds her. This is positive for the bulk of the population; the upper class still distrusts those like Evita who rise up the social ladder. For them, the American dream of rags to riches is unattractive.
I had been asked to lecture at IAE, the Management and Business School of the Universidad Austral. It one of the best business schools in Latin America so off I went to the handsome campus. The infrastructure at IAE is fabulous but professors regret being so far away from anywhere, so that contact between business schools is rare. The conference attendees, executives in local and foreign companies, see China mostly as an export market, a buyer of agricultural produce mostly. To hear about China as a global source of investment seems unexpected, yet in the last month Chinese firms bought a bank and large firm in Argentina. Someone said, ‘so we sell soybeans and they buy firms.’
The labour market here is good, I am told. One can hire people and it is much cheaper than Brazil where the Real has risen sharply. But actual inflation in Argentina is currently about 30%, making it expensive and increasingly salaries must rise too. Repeatedly I hear that Argentinians make great managers: practical, determined, and committed, but that they make rotten entrepreneurs. Certainly there are no real global Argentinian companies, though there are many small and medium sized enterprises.
My biggest surprise?
One thing you learn soon is that tango and football, considered widely the symbols of Argentina, are actually symbols only of Buenos Aires. The rest of the country does not really value either one. Thinking I could catch a football game in the provinces since I was not in Buenos Aires for the big Sunday games, I was inspired to enquire when I saw a stadium outside Salta. ‘Oh no,’ the locals assured me. ‘That stadium was built but we don’t play football here; we use the stadium for concerts.’





































