My understanding is that both countries were very similar economically in the 20’s and 30’s, yet Argentina now has a terrible economy, and Australia is booming. What did Australia do right, and Argentina do wrong in the last century?

Question

My understanding is that both countries were very similar economically in the 20’s and 30’s, yet Argentina now has a terrible economy, and Australia is booming. What did Australia do right, and Argentina do wrong in the last century?

In: Economics

Answer 1

Australia ranked 13th out of 180 for corruption index, Argentina ranked 94th. Corruption is engrained and Australia doesn’t normally hoard foreign currency. Argentina hoards US dollars every time someone sneezes, adding to instability and inequality in the economy, every time someone sneezes. Repeat that for 80 years.