tivity is limited to the exploitation of
natural resources, including petroleum, natural gas, fish, and seals.

Argentina
Argentina benefits from rich natural resources, a highly
literate population, an export-oriented agricultural sector, and a
diversified industrial base. Although one of the world's wealthiest
countries 100 years ago, Argentina suffered during most of the
twentieth century from recurring economic crises, persistent fiscal
and current account deficits, high inflation, mounting external
debt, and capital flight. Beginning in 1998, with external debt
equivalent to more than 400 percent of annual exports, economic
growth slowed and ultimately fell into a full-blown depression, as
investors' fears grew in the wake of Russia's debt default,
political discord caused by then-President Carlos MENEM's unpopular
efforts to run for a constitutionally prohibited third term, and
Brazil's devaluation. The government of Fernando DE LA RUA, elected
President in late 1999, tried several measures to cut the fiscal
deficit and instill confidence and received large IMF credit
facilities, but nothing worked to revive the economy. Depositors
began withdrawing money from the banks in late 2001, and the
government responded with strict limits on withdrawals. When street
protests turned deadly, DE LA RUA was forced to resign in December
2001. Interim President Adolfo Rodriguez SAA declared a default, the
largest in history, on Argentina's foreign debt, but he stepped down
only a few days later when he failed to garner political support
from the country's governors. Eduardo DUHALDE became President in
January 2002 and announced an end to the peso's decade-long 1-to-1
peg to the US dollar. When the peso depreciated and inflation rose,
DUHALDE's government froze utility tariffs indefinitely, curtailed
creditors' rights, and imposed high taxes on exports. The economy
rebounded strongly from the crisis, inflation started falling, and
DUHALDE called for special elections. Nestor KIRCHNER was elected
President, taking office in May 2003, and continued the restrictions
imposed by DUHALDE. With the reemergence of double-digit inflation
in 2005, the KIRCHNER administration pressured businesses into a
series of agreements to hold down prices. The government also
restructured its defaulted debt in 2005, convincing most bondholders
to accept a large cut on the value o