By Carolyn Gray Anderson
As U.S. Ambassador to Argentina under President Barack Obama, Noah Mamet (bolstered a positive bilateral relationship in the areas of entrepreneurship, education, clean energy and global climate change, repeatedly looking to his home state — and to UCLA in particular — as an exemplar of progress in all these areas.
Ambassador Mamet recently took part in a conversation with Argentine native Adjunct Associate Professor Andres Terech (Ph.D. ’04), the event sponsored by UCLA Anderson’s Center for Global Management, and drilled down on the economic and trade challenges facing Latin American countries, including a U.S. aversion to problem of inflation in places like Argentina. Mamet said it’s the biggest challenge for managers doing business there today, as local salaries sometimes need to increase as much as 42 percent from one day to the next. One impediment is Argentina’s slowness to invest in infrastructure. “When the cost of energy goes up, it’s hard to control inflation,” he said.
A third of Argentina’s GDP is held outside the country, suggesting a mistrust of domestic reinvestment, which may deter outside investors, too. Mamet said a one-time tax amnesty that invited Argentines to declare their overseas assets revealed $130 billion in investments that the government wants to attract back to the country. “Bank information sharing was a game changer,” said Mamet. “It was the most successful tax amnesty in history.”Mamet believes tech will boost the economy and encourage international trade. Among perhaps six Latin American unicorns, four came straight out of Buenos Aires, said Mamet, making Argentina a contender for world markets.