Telecommunications Infrastructure
Computing & Internet Diffusion
Analysis: Strengths & Weaknesses
Analysis: Impacts on non-IT business
IT Labor
Having the highest per capita gross domestic product and the second highest total gross domestic product and life expectancy in Latin America, as well as low rates of population increase and illiteracy rates, Argentina has attracted many business opportunities. The population and economic activity are highly concentrated in the Greater Buenos Aires area, as is the IT center. The population is largely of European descent and continues to have strong ethnic, cultural, as well as business ties with Europe. Consumer preferences tend to resemble more those of Europeans than those of other Latin America nationals. Traditionally, Argentina has had a large middle class, though in the last decade this class has suffered most during economic downturns.
Argentina's Labor Union
With its long tradition of strong labor organization, Argentina maintains labor conditions and standards comparable to those in more developed, industrialized countries. As in many highly unionized countries, layoffs can be complicated and costly to employers. Because the rapid economic changes resulting from free market reforms require less rigidity in labor arrangements to succeed, some legislation has been passed to simplify termination requirements and lower such costs to employers (1). The unions have largely accepted this as inevitable, but they are pressing the government to pay greater attention to the problems of economic restructuring as it affects working people.
Argentine Labor Laws
Argentine workers are more highly educated and better paid, on average, than labor in other Latin American countries. Economic reforms and the introduction of laborsaving technologies have increased demand for highly skilled workers but reduced employment opportunities for unskilled workers.
The Argentine Labor Code has traditionally been a serious disincentive in the hiring of new employees. Labor market reform is another major initiative for the Alianza government, which is committed to building on improvements that have taken place over the past several years. Major labor reform legislation was passed by the Senate in April 2000 (2).
