ECONOMIA DE ARGENTINA

Oh Argentina, where to start? First, a short reminder on recent past events. Having accumulated large amounts of foreign denominated debt, Argentina experienced a severe economic crisis in 2001 when it defaulted on its obligations causing the banking sector to freeze up and many businesses to close their doors creating widespread unemployment. During the economic collapse, Argentinians were able to access only minor portions of their rapidly depreciating bank savings and the ensuing protests caused the death of several people.

Ten years later, a protectionist model has triumphed in the country creating strange effects in every day market activities. Products that are not "made in Argentina" are either not allowed to be sold in the country, are heavily taxed, or are slapped with high tariffs raising prices significantly. For example, electronics such as computers are approximately twice the price as in Western countries and the sale of Iphones has been prohibited. A thriving black market has emerged with products being supplied by those traveling abroad and shopping trips across the Chilean border to buy clothes and electronics have become common. Argentina is definitely not a country for a cheap shopping holiday. The countries leaders have implemented this protectionist policy to promote growth of local industries but in reality it has reduced local access to many goods, promoted a black market that doesn't pay sales tax, encouraged the theft of foreign goods belonging to visitors, and all the while failed to promote much needed improvements in productivity of Argentinean companies.

Although modern and developed in appearance, Argentina has maintained a cash only culture. Credit cards are little used and extra charges are common, exasperating the occurrence of tax evasion since cash transactions without receipts are the norm rather than the exception. Obtaining change following a purchase can be a real challenge. Most businesses operate on nothing but a few pesos in the cash register and anything over 50 pesos ($10) can be difficult to change; signs that profits are low and working capital tough to come by. Paper bills appear so old and fragile that one is afraid it will fall apart before it can be spent. Counterfeits are rampant, occasionally dispensed in ATM's but most often handed to unsuspecting consumers by taxi drivers and corner store owners. Trust and honesty in everyday transactions is lacking.

Capital controls and lack of faith in the banking system has encouraged many to move savings out of the country. On the border with Uruguay, dogs are not sniffing for illegal drugs but rather for US dollars. As a foreigner you can access only $250 per transaction and local banks charge $6 per withdrawal making it the worst of the countries we've visited when it comes to accessing cash.

High government spending has led to a real inflation rate of more than 20%, one of the highest in the world. In the short term this has decreased unemployment and stimulated consumption but prices are rising so fast that it has made life visibly more difficult for the retired and for numerous people left out of the formal economy who's incomes have stalled. All this, combined with currency control measures that keep the Argentinian Peso artificially high, means that prices are rising faster than the currency depreciates making the cost of traveling here one of the highest on the continent.

With recent turmoil still fresh in their minds, Argentinians are firmly behind this "new" economic model preached by their beloved President Christina, even though visibly it has made life more difficult and has increased the odds of another economic choc to the overheating economy, which is sadly accustomed to dramatic boom and bust cycles. Based on conversations with locals and information published in the media, change appears unlikely and further economic deterioration is the likelier outcome before the country comes to terms with reality and chooses to fully reintegrate the global economy and starts making real, sustainable gains.

LA QUIACA / VILLAZON BORDER CROSSING

The road to La Quiaca, on the northern frontier of Argentina, passes through a scenic and barren landscape high on the Altiplano complete with llamas and mud-brick houses. The town, sitting at more than 3400 meters of altitude looks more like neighbouring Bolivia than Argentina. The border crossing closes early in the evening, therefore if you plan on arriving late book accommodation ahead as choices are limited and can fill up quickly. We stayed at the Copacabana Hostel, which was fine for a night and was within walking distance of the border.

Crossing between Argentina and Bolivia is virtually unrestricted, for short visits you can walk across freely to either side. There are no money exchanges on the Argentinian side so going over to Bolivia is necessary to exchange money.

However, when officially crossing the border passport stamps and all, it's a long and unpleasant process. After quickly getting the Argentinian exit stamp people line up and wait on the bridge separating the two countries, overlooking the murky river and pigs roaming the banks on the Bolivian side. Obtaining the Bolivian entry stamp requires hours of patience and involves standing in the hot sun breathing in the fumes from nearby buses and trucks that are also waiting to enter. Bring water and be prepared to confront people attempting to cut in line!

There is only one desk for entry and one for exit stamps and officials staffing them are not the most efficient. Most Bolivians don't own passports but carry large folders of photocopied ID documents that must be reviewed and verified, making the process painfully slow. After three long hours of waiting, we were finally through.

CAFAYATE & SALTA, ARGENTINA

It didn't take us long to find ourselves in the middle of another wine region. The vineyards of Cafayate in Northern Argentina are literally located in the town itself and their proximity and relatively small size make the tastings and visits more accessible and personalised. We preferred the wines here than in Mendoza and took a particular liking the the organic, white Torrontes Reserva at Bodegas Nanni.

Nestled in a valley, the town is small, pleasant and follows a strict routine of late mornings, long siestas (due to the sweltering heat of the day) and very late dinners, all which corresponded well with our own pace. We stayed at Hostel Rusty-K, which had a great courtyard and plenty of local Argentinian tourists, a great combination for long suppers and lively evenings. The lazy dog living at the hostel boasting rasta dreadlocks fit right in!

An important note for wine connoisseurs, (as we are aware many follow this blog), this season has seen many episodes of violent rains in late afternoons which may negatively affect the grapes. The storms were truly impressive as the thunder clouds slowly came over the mountain and poured heavy rains and hail into town at about the same time every day.

We spent a few days in nearby Salta but unfortunately don't have much to say about it. I was again brought down by the almighty empanada or Saltena as their called in the region. Delicious but potent, this second round of food poisoning has forced me to give up this great snack, maybe forever. We did manage to make it to the Inca Museum featuring well preserved, frozen Inca mummies, children sacrificed to the Gods over 500 years ago and now unearthed from the volcano tops at more than 6000 meters of altitude.

MENDOZA & TUCUMAN, ARGENTINA

Unable to travel north through the deserts of Chile because of sold out buses, we risked being "stranded" in La Serena for several days. The only available transportation option we found was a bus to Mendoza which meant we were going to Argentina, again! (CATA International) January and February are the two busiest months for travel in Chile, so if you're on a tight schedule its better to book transportation and lodging a few days ahead.

Never ending luggage inspections and disorganised immigration procedures at the Argentinian border gave us a whole 4 hours to wait for and view the sun to rise from high up in the Andes, where the impressive border crossing sits. Sleep deprived and confused, we finally arrived in Mendoza to find a beautiful, modern city, with wide tree covered streets and very European feel.

We did the popular tourist thing and rented bikes to visit the surrounding vineyards in the Maipú Valley (Mr. Hugo Bikes). A short bus ride from the city center is all it takes to have the opportinuty to indulge in some of the best boutique wines the country has to offer. We particularly liked the French onwed Bodega Carinae and also Bodega Mevi for their excellent wines and well organised, thorough tastings.

With heavier backpacks, which now included a few bottles of wine, and a slight headache we quicky headed north to Tucuman. It was only meant to breakup the long journey north to Calafate and we regret not having stayed longer. Tropical and lively with a exotic looking population, Tucuman seems to appear out of nowhere in the Argentinian landscape. The city is often overlooked by travelers but we strongly recommend anyone heading that way to spend a few extra nights here.

CHRISTMAS IN BARILOCHE, ARGENTINA

We were able to experience a rather "traditional" Christmas in Bariloche. Many of the friends we had made along the way were crossing paths here, each making their way from various parts of northern and southern Argentina.

We rented cabins perched high on the hill overlooking the town. The owner and host Alejandro, proved to be very helpful and patient, given the rowdy bunch we were. (Vientos del Sur) recommended.

It ended up being steak asado instead of turkey; fernet and cola instead of nutmeg, but spending the holidays in warm and sunny setting with a fabulous group of people was a great experience. On Christmas eve, beginning at exactly midnight, we were treated from our viewpoint to an impromptu display of fireworks being set off from all parts of the city below.

After 5 days of overindulging in everything we could get our hands on, we had to part ways hoping to cross paths again at a later time on the gringo trail.

PATAGONIA LAKE DISTRICT, ARGENTINA

We packed our bags and escaped Buenos Aires only to find ourselves on a monstrous 22 hour bus ride across the Pampas to Bariloche in the Patagonian lake district. It sounds worst than it was, bus travel in Argentina is comfortable and after a few hours one gets accustomed to viewing subtitled movies and watching the scenery go by. In cama class the legroom is plenty and the seating comfortable while semi cama class feels a bit cramped and the seat does not recline enough to trick the body into a comfortable sleeping position. The full cama class has a fully reclined flat seat which was unfortunately slightly outside of our price range.

The fact that we're beginning this post with such an elaborate description of bus travel represents well our experience in the south of the country. Distances are vast, prices are high, landscapes are very similar to our own in Canada, and it feels a lot more like Europe than South America with its population largely originating from German and Italian immigration.

We enjoyed El Bolson (Pehuenia Hostel) with its market fair and artisanal beers. Unfortunately I was bedridden for three days with food poisoning in Esquel after eating a dodgy empanada and missed the ensuing cook-off at the hostel consisting of stews, soups and asado, which filled the time. After a few weeks of breathing in ash from the nearby Puyehue volcano we decided to call it quits and head for clearer skies across to Chile. For those looking primarily for outdoor activities such as hiking and camping then this is your place, but for those wanting to experience the South American lifestyle, there is no need to come all this way south.

BUENOS AIRES, ARGENTINA

Determined to get to know Buenos Aires better this second time around, we began our search for an apartment, a monthly rental, as soon as we arrived. Information online is sparse and unreliable, what you sign up for is not necessarily what you get. Most rental agencies offer only higher end rentals with prices starting at nearly $1200, not necessarily what we were looking for. Our three weeks of searching were arduous, but nevertheless ended up being one of the most pleasant periods so far. We stayed at great hostel called Estoril in the center of town, where we ended up making fantastic friends with whom we would meet again later on in the trip.

Buenos Aires is unique and exciting, when given the opportunity it simply has to be seen and experienced. It has plenty of negative aspects though, the lack of security and poor air quality (it's often referred to as "Aires Males") are but two examples. Nevertheless, the energy and architectural beauty of this dense city easily makes up for its not so pleasant aspects. The old traditional restaurants of San Telmo, the cafes of Palermo, the nightlife of Palermo Viejo and Soho, the bustling Micro Center, the pedestrian streets of La Boca, and chic Recoleta are just a few of the must sees.

Using the Airbnb website we finally found a place called One House and moved into a large house we initial shared with two Spanish and one French girl in the San Telmo neighborhood. We then registered in the Spanish school Rayuela only four doors away, which greatly improved our odds of making it on time in the morning. The school was very professional and classes were fun and challenging. Being part of a group containing only 3 people greatly helped and we made much progress in those two weeks according to our Spanish roommates with whom we could now conversate with.

It was a month of excess in many ways. The morning pastries from the panaderia across the street, the steak asados and wine, the late nights out often not ending before 7am and or course all that helado. Although we now had some difficulty fitting into the new clothes we bought that month, it was all worth it. The people we met and the times we had in this city have left a lasting impression on us.

CORDOBA, ARGENTINA

As our pictures demonstrate, Cordoba is a city which is primarily enjoyed by night. We were thrilled by the open air restaurants and bars, so much so that we almost forgot my birthday. The best areas lie a few streets off the canal named La Cañada, an artificial waterway created to manage floods. The name unfortunately set us up quite well with this common response from locals, "yeah just like the canal!", when we were asked which country we come from.

We met a waiter there named Willfrid, originaly from Haiti, one of the few people living in Argentina with such origins. Speaking French all night wasn't great for building Spanish skills but we got the chance to get a view of Argentinian culture from someone who had recently been catapulted into it.

Cordoba was a worthwhile stop in Argentina's central region, a way to ease ourselves in before entering the countries chaotic capital, Buenos Aires.

SAN IGNACIO DE MISIONES, ARGENTINA

Five hours south of Iguazu, in them midst of a tropical forest, the Jesuit ruins still stand since the time they were constructed in the 17th century by Spanish priests and the Guaranis, the local people that inhabited the area prior to colonization. It's described as a rare occasion where colonizer and colonized lived alongside respectfully and incorporated each others cultures and languages to create a functioning and productive community. In the 18th century the king of Spain, weary of their allegiance, ordered the Jesuits home and the community slowly disintegrated.

Nowadays San Ignacio is a sleepy, traditional place where the heat of the day causes the closure of almost everything. We stayed in a small cabana owned by a painter who spoke a bit of french, Posada Los Lagartos. It was a welcome stop in our travels, a place to relax and to see a site often overlooked by many travelers on the gringo trail.

IGUAZU FALLS, ARGENTINA

We were excited about crossing into Argentina but were slightly weary of doing it at Iguazu. We were expecting to find a town overrun by tourism due to its proximity to one of South Americas most popular attractions. On the contrary, Puerto de Iguazu was a nice surprise, although a bit wet, it's a great small place.

Unable to view the falls on the first day due to the rain, we had a chance to visit the outdoor market and indulge in tablas (a large plate of cheese, ham, prosciutto, olives, bread...), and Argentinian wine. It was our first and definitely not the last encounter we had with that combo.

On the second day we finally made it to the falls. The falls are shared by Brazil and Argentina but the latter holds the largest nature reserve, which features walking trails, elevated platforms above and below the falls, exotic birds and animals which include toucans and monkeys. The falls are simply incredible and the surrounding tropical environment only adds to their mystique.

A NICE WELCOME IN BUENOS AIRES

 

Its been difficult to post pictures and info lately since our Macbook suddenly died on us shortly after leaving Salvador de Bahia. Most places in South America don't hold or service Mac products, they cost nearly 50% more than in Canada making them unfordable here. Our goal was to have it checked out in Buenos Aires to see if there was a way to salvage it but it turned out that we wont have to!

Its the common situation, you get out of the bus station after a long, all night journey, tired and half asleep. Two ladies approach you, looking harmless, completely normal Portiños. All of a sudden you get sprayed with a substance, all over your bag and clothes. Your not sure where it happened, most likely form above...? They come in to offer help. I let my day bag slide down my arm to see what the hell has been put on my backpack and as soon as you put your guard down more people move in. A man yells to create a diversion while another grabs whatever is in arms length and disappears.

So the damage... one Macbook (hopefully it was scrap), my passport, coat (which I needed because its chilly at night), Ipod and earphones) and ego!

I need to stop now since people have been waiting to use the hostel computer... Once we figure out how to remedy our computer/communication we will update the blog and elaborate on our travels...

INTRO TO BUENOS AIRES

After a couple days of shivering in the cold Chilean seaside town of Valparaiso, we decide to check our options for a quick flight to somewhere sunnier. LAN proposes a short, cheap hop to Buenos Aires and the next morning we were on that flight with no plans or expectations. Those few days in the city lay the roots for what was to become our long term travel experience in South America.

That was in summer 2010 and from there onwards we began preparing for our return. We had no set date or concrete plans but as 2011 rolled onwards it became clear that the timing was opportunistic. So here we are with our first blog entry just a few days before leaving in what we hope will be an experience that will provide inspiration and enlightenment, as we undertake a new course with our lives.