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this post was submitted on 21 Nov 2023
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The problem is the nature of such companies. Some companies can easily be replicated and have plenty competition. However, states usually own infrastructure which can’t just be built three times by different companies to compete. So someone ends up simply having a regional monopoly and jacking up prices.
Now. I will not deny that it appears like radical reform is needed, spending must be cut, and state companies are always expensive affairs. I’ve just done a quick search on Wikipedia for big Argentinian companies, and the state owns several banks and airlines. Clearly some of those could be privatised, as financial services and airlines more easily can compete than for example water utilities or power grid operators.
The whole dolarisation of the economy is hardly sound even if it tries to circumvent the existence of weak institutions in Argentina by transferring trust to the Fed, although the lack of control over their currency means that they’re at the whim of US monetary policy