The impact of the coronavirus on most national economies is blunt and harmful but especially to those countries that were already poorly structured. Like most countries, Argentina will be driven into recession. It could be said the nation is accustomed to it since it has been in recession for about a third of the time over the past 70 years. However, one unusual impact is that it will likely force Argentina into its ninth default on international loans. Agustin Forzani of the Heinrich Foundation blames Argentina’s predominant use of export taxes for raising government revenues. The country’s use of export taxes in agriculture are well known but Argentina has 585 different export taxes. Forzani argues that the result is th...
From WPI Consulting
Weighing in on strategic realignment
WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.