Though not an especially inclusive economy under former President Hugo Chavez by any means, Argentina's new president Nicholas Maduro seems to be ill-advisably leading his nation's economy down the road of extractive institutions. As the "Global Public Square" staff details in this article, the new regime has taken multiple steps towards more extractive institutions, starting with passing a decree granting Maduro "the ability to pass laws without consulting Congress." Additionally, the military has taken steps to nationalize big business, and despite sitting on one of the world's largest oil reserves, the government is providing massive subsidies for it to its population as well as Cuba's.
Argentina is making the classic mistakes A and R lay out for why nations fail. The government has made its political institutions even more extractive, and, as predicted, its economy is suffering from the results. The authors of this article have a foreboding warning for President Maduro: "It is beginning to resemble North Korea, simply by following the most ruinous set of policies in the world."
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