Monday in Buenos Aires (6/23)

Brrr – it’s a bit chilly here. Yes, it’s winter in this part of the world. Today is a “Business Formal” day. And we’re off to three high-powered appointments.

First stop was the Central Bank of Argentina (BCRA) where Martin Castellano provided an excellent presentation on “The Monetary and Financial Policy Response to the Current Turbulence.” As you may know, since 2000/2001 Argentina has been responding to and recovering from a series of severe economic shocks. As a representative of the Central Bank, the institution that is responsible for creating and implementing fiscal policy to establish and maintain economic stability, Mr. Castellano made and supported the argument that Argentina is “well-prepared to face turbulence vis a vis other emerging markets.” He reported an inflation rate of 8%, with an unemployment rate to match. The historical and current economic data that he presented gave us all a good picture of the current state of the Argentine economy, and his explanations of the policy choices the Bank has been making were quite helpful to our understanding.

After a fine lunch in a convent across the street from the bank, we walked back to the hotel meeting room for our next appointment with a representative from the US Commercial Service. As you will remember from our trip to Rio, the US Department of commerce has established offices in foreign countries to provide information and support to Americans who are considering establishing business in these countries.

http://www.comerciousa.org/argentina/en/setEnglish.asp

Our hosts and speakers in Argentina were Brian Brisson, the Senior Commercial Officer and his Associate Charles Renado. After providing an overview of the services his office provides to American businesses, Mr. Brisson provided an overview of the current economic and political climate in Argentina, as well as an assessment of the challenges, opportunities, and best prospects US business people and investors face in planning and executing successful business plans in Argentina. This was indeed quite helpful for all of us, especially as the student teams prepare to do their country and market assessment assignments for class.

Out final appointment for the day was a presentation by Juan Ferreira, President of Monsanto Argentina (soon to become president of Monsanto EMEA – Europe, Middle East, and Africa). Monsanto is a world leader in agricultural biotechnology, a leader in producing herbicides such as “Roundup” that prevent crops from being infected and destroyed. Additionally, Monsanto is a primary developer and marketer of genetically engineered (GM) seed and bovine growth hormone, and it aggressively litigates and lobbies for its interests around the world. Mr. Ferreira carefully presented his company as being a primary contributor to solving global issues of world hunger and food production, and as a strong contributor to creating a healthier and more sustainable world. As Ferreira himself noted, this approach is indeed controversial:

http://www.responsibletechnology.org/GMFree/Home/index.cfm

After a long day of stimulating and challenging presentations, we returned to our “home away from home” and settled into quiet dinners in small groups on our own.