Argentina Finds Rare Commodity: Optimism

La Opinion de los Argentinos

After two years of unrest, the national outlook in Argentina is improving. (Source: La Nación & Poliarquía)

Turn on Bloomberg or CNN International, and you’ll see optimism is a rare global commodity these days. Gulf of Mexico residents watch their livelihoods disappear, the Euro hits a 4-year low against the dollar, and Iran prepares to join the flotilla party on the Gaza strip. Funny thing then this Argentina. Maybe it’s PBES (Post-Bicentennial Euphoria Syndrome) or possibly PMOS (Pre-Mundial Optimism Syndrome). Or maybe it is a genuine belief among Argentines that the times they are a changing, and better days lie ahead. The front-page headline of La Nación yesterday certainly suggests a strong shift in the winds of local expectations. “After an extended period of a political and social conflicts, economic crisis and serious questions about the quality of their elected officials,” says La Nación, “the negative national outlook has started to moderate regarding the country, the government and the future.” According to the survey conducted by Poliarquía, twice as many Argentines are optimistic about the country’s future compared to just six months ago, while the number of residents who have a negative outlook fell 22 points from 54% to 32%. While the numbers are encouraging, concerns persist on a variety of issues affecting Argentines like unemployment, poverty and insecurity. In summary, La Nación cautions public officials against breaking out the party hats; yet, a rising tide of optimism anywhere in the world today deserves a second look. (Full Story in Spanish)

Mercer 2010 Quality of Living Survey

No Surprises: Buenos Aires and Montevideo were the highest ranked cities in South America.

While global mergers and acquisitions are based largely on perceived synergies and potential bottom line impact, a very human-oriented discussion typically emerges once the deal is done. Who do we send from the Home Office to manage the new foreign subsidiary?  How is the quality of life there vis-à-vis the U.S.? And, of course, what is an appropriate compensation package for our soon-to-be expats? Fortunately Mercer, a global leader in HR consulting, has the answers in their just-released 2010 Quality of Living Survey. Unlike the International Living index which focuses on variables important to retirees, the Mercer survey is designed to help multinationals fairly compensate their employees working abroad, and New York—with a score of 100—is used as the base city. The La Nación headline came as no surprise to InvestBA readers: Buenos Aires, the best city to live in South America. In fact, out of 221 cities, Buenos Aires and our other local favorite, Montevideo, were ranked back-to-back at #78 and #79, the two highest ranking metros in South America, followed by Santiago (#90), Brasilia (#104), Rio (#116), and São Paulo (#117). Mercer used 39 variables in compiling the ranking including political, social and economic environments; health care; education; public services and transportation. To learn more about Mercer and the 2010 Quality of Living Survey click here.

For more information about relocation opportunities in Argentina and Uruguay, download our premium newsletter Privada, or e-mail your inquiry to retire@investba.com.

Rethinking country risk can change the way you view investing and living abroad.

With volcanic ash cascading earthward, half of all flights grounded in Europe and U.S. housing prices nursing an “epic hangover,” it’s a good morning to reflect on quality of life and other advantages of living here in Argentina and Uruguay. Granted, both countries rank consistently as the #1 and #2 destinations in Latin America for Quality of Life, but sometimes anecdotal evidence speaks louder than quantitative rankings. In an analysis of country risk, investor and best-selling author Bill Bonner shares a lunch conversation with a friend who moved to Argentina “because (he) felt (his) children would have a better future here than in Britain.” After ticking off a litany of BA advantages (e.g., lower population density, more affordable housing, shorter commute times), the friend dug deeper: “If you want to give your children the best combination of lifestyle and economic opportunity, there are better places to live.” Does that mean you should renounce your citizenship and hop the next flight to BA, Montevideo or São Paulo? Of course not. Like Bonner’s article, it’s simply an open invitation for us to rethink country risk, growth opportunities and lifestyle advantages of living abroad. Whether you’re bothered by the status quo or anticipating greater changes on the horizon, use online tools to start planning an exit strategy now. Not familiar with the local terrain? Open a Google map. Still struggling with the language? Join LiveMocha. Wondering what your net worth is in pesos? Go to XE.com. With an open mind and enough due diligence, you just might find a better place to live.

Cleaning Up: Maid Service in Buenos Aires

Uniform shop in BA. Immigration, psychology impact domestic help supply/demand. (Photo: Buenos Sarahs)

Uniform shop in BA. Immigration, psychology impact domestic help supply/demand. (Photo: Buenos Sarahs)

“The woman who cleaned our house was our best friend. We will never forget her and her lovely family.” Those words, found on one BA expat’s blog, are a common refrain for many foreigners living and working in Buenos Aires.  The maid or empleada doméstica is a key member of most Argentine households, and their work ethic, reliability and affordability make them an important part of the quality of life equation for expats and foreign investors.  The supply and demand variables in the domestic care sector also offer some interesting insight on the changing nature of immigration and labor psychology, writes Julia Raggio in an interesting study for La Nación. As always, there are both formal (agencies) and informal (word-of-mouth, Craigslist) channels for finding domestic help, but more and more workers today are young women from Paraguay, Peru and the northern provinces of Argentina who prefer more flexible work arrangements (e.g., not being full-time, live-in maids). While that jibes well with most expat lifestyles, most Argentine families (almost 75%) express a preference for full-time, live-in assistance to help with cooking, cleaning and child care round-the-clock.  Susana Villafañe, H.R. Director for Mucamas de Argentina, says, “We have domestic help thanks to the foreign workers.” She adds good treatment, compensation transparency (“blanqueo”) and fair wages are the three keys to a good working relationship. In terms of the latter, she says employers should be willing to pay somewhere between 1,500 and 2,000 pesos per month (US$390 – US$515) for the services of a good domestic employee with 2-3 years of experience.

"Just livin' the dream": When the economy has everyone down, sometimes living abroad makes sense.

"Just livin' the dream": When the economy has everyone around you down, BA might make sense.

While some of our home countries are drowning in debt, others lack optimism regarding job prospects and the economic outlook. It’s times like this when many begin to re-prioritize and ponder quality of life, a common narrative thread here on InvestBA. Whether it’s the annual International Living ranking or a wine expert lauding the “wonderfulness” of BA, or a foreign investor branding Argentina “the best place in the world,” these sources bring added credibility considering they have all scoured the planet looking for the best of whatever it is they are searching for: places to retire, food & wine, or prime real estate. For the uninitiated, these articles fuel the imagination but don’t necessarily show you how to connect the dots and make the leap. Shelter Offshore to the rescue. The expat resource which touts Wealthier Living Abroad, fills in the dream-to-reality canvas for readers with some back-of-the-envelope calculations and a carpe pasaporte-inducing headline, “Live Your Dream Life Abroad for Less than £1,000 a Month.” ($1,300 USD). Argentina is one of four Latin American countries mentioned in the article and Buenos Aires neighborhoods like Palermo SoHo are singled out for their abundance of dining, educational and cultural offerings. Once you’ve made the leap, Shelter Offshore recommends a minimum six-month commitment at whatever “wealthier” destination readers may choose. (Full article)

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