Making Argentina relevant again - for Middle Power Diplomacy (Sands)

8/3/2019 Making Argentina relevant again - for Middle Power Diplomacy (Sands)

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Dear Ministro Timerman:

During my secondment to the Inter-American Development Bank or, as you often refer to it, the

Inter-American Underdevelopment Bank, I have been able to make meaningful observations of

popular and elite perceptions of our Southern Cone republic. My work, as you may have heard,

focuses on how to position the region in the international system and how to best leverage our

strengths for greater legitimacy in forums like the United Nations, the IDB, the OAS and,

importantly, the Group of 20.

I also have had the opportunity, through the generous sponsorship of the bank, to take evening

classes at the Johns Hopkins - SAIS. I know you graduated from SIPA, so I hope you won’t

begrudge my choice of schools. One course I was fortunate to take, called Middle Power

Diplomacy, focused on exactly these regional promotion and “branding” issues. If you will allow

me the opportunity, I would like to share some reflections from the course that I hope will help you

better understand where the Argentine Republic is succeeding and struggling to advance its

positions internationally. First, I would like to discuss our brand and the opportunities and

challenges we face in shaping it in the future. Second, I want to share how scholars and observers

here view Argentina’s place in the changing world order. Finally, I outline several actions that our

government can take to best raise our profile and define our strengths in multilateral and bilateral

contexts.

Stranko 1



The Argentine Brand – Not just for cattle

Argentina’s role as a middle power in the world was reinforced by our inclusion in the G-20, but

there are certain factors that are challenging this status quo. The rise of our neighbor and partner

Brazil is the most obvious one, since it is marginalizing some of our legitimacy as a leading voice

for the region. A secondary reason is the rise of other “middle” powers at a global level that are able

to capture share of voice in international organizations like the WTO or the UN. A tertiary, although

not important factor, is the perception in the West of Argentina as an intransigent, pettish global

actor. From my studies at SAIS, and from my interactions at the IDB, I have come to understand

that the international perception of our brand is one of fiscal irresponsibility and political unreality.

And while many Argentines would argue that we have a commodity-based economy defined by

booms and busts, foreigners would view it as mismanagement of booms leading to political

extremism during busts.

Nonetheless, we have many positive brand characteristics at an international level, some of which

include: Argentina as a social and economic exception within Latin America, Buenos Aires as a

capital of culture, fashion and design, and our countryside as a fountain of first-rate food and drink

products. We have the chance to build on these softer powers in the West where we are a known

quantity, but the more exciting chance is to improve our perception in Asia and particularly China.

Fortunately for us, the world economic order is changing quickly, and now is our time to position

ourselves within the emerging one. Although this may seem like a daunting task, the fundamentals

of this new order are very favorable to Argentina. This is why I implore you to take up the task with

the same courage and optimism as Cristina and the great patriot Néstor took on the task of

rebuilding our economy from its gravest crisis.

Stranko 2



The world is changing, finally

As much as it pains me to say it, given our ongoing diplomatic difficulties over the Malvinas, it was

at the height of the British Empire that our insertion into the international system was the most

meaningful. The livestock and agricultural products we exported to the United Kingdom and its

empire enriched our citizens, industrialized our economy, built our national infrastructure and made

us into one of the richest countries on earth. In a unipolar world where the United States dominated

international affairs, our external position was marginalized. In this world, and in the decades since

the end of the Cold War, we were the country that took on some of the most brutal free-market

recommendations of American economic policy and then the country that fell the furthest into a

catastrophic debt default. Plainly speaking, we aligned strongly with the hegemon only to be cast

aside once our system was felled by its policies. We have been in this situation for some time now,

and at no time since the change of the world order in 1945 has Argentina been in a position of self-

determination in international affairs.

Now with a bipolar economic world emerging with the rise of China, our fortunes are looking up.

Our economy have a complementarity with China that rivals the one with had with Britain (and

could never have with the United States). In practical terms, this new multipolar economic structure

plays to our strengths. We are an agricultural power, and the old battles we fought against the West

through organizations like the Cairns group now seem less relevant when the West is no longer our

main customer. Instead, we can derive real power from being the breadbasket to the South and

promoting an economic model that leaves more room for the state to define broader goals for

development and regulate private actors within the system.

Stranko 3



This is why I advocate the following five policy recommendations as the primary way to hasten our

ascent to our rightful position in the world economy:

• Develop closer cooperation with Brazil on matters of regional interest and mutual interest

with our major trading partner China, like developing more competitive agricultural

production processes

• Take advantage of China’s deep-pocketed diplomacy in order to finance infrastructure

projects in a way that we cannot do with our private sector debt markets

• Advocate a greater role for the state to play in economic development and stability, and

highlight our tumultuous experience with reckless privatization as a cautionary tale

• Boost our brand through trade promotion activities in areas of greatest consumption growth

like Asia, emphasizing political as well as economic cooperation in the process

• Moderate our firebrand image in international forums in favor of a more aloof tone towards

U.S. and European action–thereby demonstrating the increasing marginalization of the

American model

As Argentines, we are finally seeing glimpses of the prosperity and equity that our society deserves.

It is only through strong, premeditated political action that we can best project these successes

abroad and take advantage of these serious changes happening in the international system. Given

the landslide results from the elections earlier this year, no other government since the democratic

transition has been in a better position to advance these goals. It is time for the world to witness a

confident, strong Argentina advancing our national interests at home and abroad.

Respectfully,

Jaime Stranko, Director of Argentine Delegation of the Inter-American Development Bank

Stranko 5

Making Argentina relevant again - for Middle Power Diplomacy (Sands)

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