1. August 2014
1964–2014
OPTIMIZING
GLOBAL TALENT
SCHOOLING
IN BRAZIL
TALENT MOBILITY AND
EMPLOYEE
ENGAGEMENT
LATAM FACTOIDS / DESTINATION: ARGENTINA / STATE BLANK DEED GUIDE / MARKET SUMMARY: ORANGE COUNTY, CALIFORNIA
AMERICA
Latin
MOBILITY CHALLENGES IN
3. www.WorldwideERC.org | Mobility 65
W
hen you think of Argentina, what is the first
thing that comes to mind? Tango ... steak
... polo ... soccer ... the first South American
pope? Argentina is all that and much more: a
land of incredible natural beauty.
The second-largest country in South
America and eighth-largest globally,
Argentina stretches 4,000 km (2,500 miles) from its subtropical north
to the sub-Antarctic south, from Iguazú Falls, located in the far north
and made up of 275 individual cascades, to Ushuaia, capital of Tierra
del Fuego and the southernmost city in the world. An abundance of
exotic wildlife, colonial towns, the Andes mountain range, glaciers, the
Bariloche Lake District, the beaches of the Atlantic coast, Patagonia,
Tierra del Fuego, and Buenos Aires also make Argentina an attractive
travel destination.
While preserving its natural beauty practically untouched, Argentina
is a modern country. It has the most literate population in Latin
America, providing a solid basis for making it one of the great literary,
artistic, and scientific nations of the region.
Expats in Argentina experience a quality of life that is among the
highest in Latin America. Buenos Aires, the capital city and top expat
destination, offers a high standard of living. It is one of the most
culturally vibrant cities in South America, attracting a wide range of
dance and theater companies, concerts, artists, and exhibitions, as well
as offering an abundance of sport and leisure activities, an exciting
nightlife, and excellent schooling and housing options.
DESTINATION PROFILE:
Natural Beauty and Economic Uncertainty
By Lorraine Sandford, Susan Kidd, and Gustavo A. Pérez
ARGENTINA
4. 66 Mobility | August 2014
DESTINATION PROFILE: ARGENTINA
FoodEating and drinking play an important role
in Argentinian culture, and meals are seen as
a time when friends and family get together.
Strongly influenced by Europe, Argentina’s
cuisine includes many Spanish-style dishes,
Italian pastas and pizzas, and French pastries.
In Buenos Aires a wide variety of international
restaurants offer foods from around the world.
Argentina is particularly famous for its beef.
Most Argentine families get together every week-
end to share one of the nation’s most important
culinary traditions: the asado, an elaborate meal of
grilled meat.
Especially in rural regions, Argentines often
get together to tomar un mate—drink a green
tea brewed in a dried-out gourd, using a metal
straw called a bombilla. Mate has a strong
cultural significance for the Argentines, being
itself both a symbol of national identity and
social gathering with family and friends.
History
Europeans arrived in what is now Argentina in
1516, and Spain established a permanent colony
in Buenos Aires in 1580. The Spanish integrated
Argentina into their empire and in 1776 trans-
formed Buenos Aires into a flourishing port. In
1816 Buenos Aires declared its independence from
Spain, and the Argentines published their national
constitution in 1853.
The introduction of modern agricultural techniques
and immigration from Europe, together with invest-
ment in railroads and ports, especially from the British,
placed Argentina into the world economy. By 1913
Argentina was one of the world’s 10 wealthiest nations.
Argentina then suffered from political turmoil,
swinging between elected governments and military
dictators, but finally establishing a free democracy in
1983. However, Argentina has not developed strong
political parties that are determined to build and share
wealth. Consequently, the economy has experienced a
continuous downswing, and although the country is
blessed with resources, the political situation has pre-
vented Argentina from taking full advantage of them.
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Cultural Considerations
Because Argentines are very welcoming to foreigners,
many expats find it fairly easy to adapt to their way of
life. Newcomers may be surprised to see that people get
closer to each other in social situations than they do in
some other cultures. Whether of the same or opposite
sex, people will at least shake hands. More commonly,
though, women greet one another and men by kissing
on one or sometimes both cheeks. Men who are good
friends may greet one another with a friendly hug or a
kiss on the cheek.
A newcomer has to remember that in Argentina
time is an elastic concept, and that the pace of life
and the concept of punctuality may have a different
meaning than in the newcomer’s country. This can
be frustrating and confusing for the expat, but it´s
definitely part of the culture. There are also cultural
differences within the country. An Argentine from
Buenos Aires (porteño) is likely to have a more cos-
mopolitan and fast-paced lifestyle than the rest of the
country, which is more laid-back and easygoing.
Doing Business
In Argentina, business is all about who you know,
and not as much about what you know. Personal con-
nections and third-party introductions are extremely
important. Interpersonal relationships, loyalty to fam-
ily and friends, and building trust are key to success-
ful business interactions.
Hierarchy is extremely important in the workplace,
and managers tend to adopt a paternalistic attitude
toward their subordinates. Argentines prefer a strong
and charismatic leadership style. Decision-making is
centralized, and managers do not delegate easily.
Argentines have an indirect, low-context commu-
nication style. They prefer oral communication to
written, using a lot of body language and expressing
themselves quite eloquently. There is also a prevailing
“zero-sum” attitude, a “winner take all” mentality
that can make negotiations lengthy, unpredictable,
and difficult.
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DESTINATION PROFILE: ARGENTINA
Economic Conditions
Argentina benefits from rich natural resources,
a highly literate population, an export-oriented
agricultural sector, and a diversified industrial base.
However, Argentina today is suffering a severe
economic crisis, exacerbated by a currency plunge
that set off global concerns about the fragility of
developing economies. It has seen the steepest drop
in the Argentine peso since the country’s economy
collapsed more than a decade ago.
Generous social spending after the economic
collapse, and measures such as freezing household
electricity rates, widened Argentina’s budget deficit,
encouraged energy consumption, and increased the
country’s dependence on energy imports, contribut-
ing to the erosion of the central bank’s hard currency
reserves. High inflation has become a heated political
issue—a 40 percent inflation rate is currently pro-
jected for 2014. With Argentine government officials
largely avoiding the public eye and leaving explana-
tions of the abrupt economic policy shifts to others,
many Argentines are extremely concerned about the
future of their country.
The real estate market, particularly for foreign
investors and expats, has been greatly affected by the
crisis. The high inflation rate has led the government
to impose stringent restrictions and limitations on the
purchase of foreign currency. These new restrictions,
coupled with constant price increases and speculation
on the devaluation of the Argentine peso (ARS), have
severely impacted the market for expatriate residen-
tial rental leases.
Housing choices cannot be negotiated easily, and
therefore expats need to know that to secure housing
they may need a Plan B—and even Plan C. Destination
service providers need to set very clear expectations
with incoming expats and make them aware of the cur-
rent pessimism of landlords regarding the value of their
properties. The real estate market in Argentina does
not appear to be on the verge of recovery: Landlords
are taking their properties off the market for fear of a
further currency plunge, or they are asking for higher
rental prices (in pesos) and requiring an increase of
at least 15 percent every six months during the rental
contract to compensate for galloping inflation.
The high inflation rate in Argentina is also affecting
the prices of utilities and condo fees on a monthly
basis. Companies will need to take this into account
and budget for these costs to increase constantly.
Visa and ImmigrationCitizens from the Americas and Europe do not need a
tourist visa to enter Argentina. All other nationalities
should check before traveling.
In order to work legally in Argentina, it is nec-
essary to be a resident or to have the appropriate
working visa. An expat coming to work in Argentina
is required to obtain an entry permit and temporary
visa, which will need to be renewed every year.
Nationals of Mercosur countries—an economic and
political agreement among Argentina, Brazil, Paraguay
(currently suspended), Uruguay, and Venezuela to pro-
mote the free movement of goods, services, and people
among member states—do not need a local sponsor
company in order to apply for a temporary visa, thus
making the immigration process easier.
Rules and regulations tend to change unexpect-
edly, and the processes may be time-consuming and
bureaucratic.
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Accommodation
and Living
Most expatriates live either in downtown Buenos Aires
or in the suburbs. Apartments in the city are the primary
option for single transferees, while families prefer a
house in the suburbs, close to the international schools.
For those choosing to live downtown, many exclu-
sive neighborhoods offer an intense cultural lifestyle,
many elite restaurants, cafes, and bars. Depending on
location and budget, apartment buildings may have a
pool, tennis courts, gym, gardens, recreational areas,
and common-room facilities.
Within a drive of 20–40 km (15–25 miles) from the
center of Buenos Aires, families can live in the sub-
urbs in open neighborhoods or in gated communities.
These areas offer a wide variety of modern houses
as well as recreational areas, tennis courts, or golf
courses, and some even have lakes where a variety of
water sports can be enjoyed.
Housing is relatively expensive, and due to the cur-
rent inflation rate, rental prices and expenses increase
every six months.
Getting
Around
Using public transport in Buenos Aires is rela-
tively easy: The system is continually improv-
ing—it consists of an extensive subway network,
innumerable long- and short-distance buses, and
taxi service. Driving throughout Argentina takes
some getting used to and requires a great deal of
caution. Drivers are very aggressive, especially in
Buenos Aires, where traffic is fast, unpredictable,
and disorganized.
Throughout Argentina, planned and spontaneous
demonstrations and protests may block streets
and highways, causing sporadic travel delays, for
instance to and from airports.
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DESTINATION PROFILE: ARGENTINA
Health Care
Because the public health service in Argentina is very
basic, everyone who can afford one has a private health
insurance plan. Most companies insure their employ-
ees directly in a private health plan. It is important
for companies to offer their expats a comprehensive
medical plan that covers as much as possible.
Argentine physicians are well-educated and highly
skilled, and many have received advanced training
abroad. In private clinics and hospitals, the technical
standards may be as high as in U.S. and European
medical institutions. In Argentina you are free to
choose any doctor or specialist you like, no matter
where you live. Some doctors, especially pediatricians
and general practitioners, still make house calls.
Education
Buenos Aires and its environs offer excellent school-
ing options for expats, providing world-class bilin-
gual education at kindergarten, primary, secondary,
and tertiary levels, with state-of-the-art facilities
including arts and sports programs. Expatriates can
choose between these bilingual schools—the school
calendar runs from March to December—and the
American School, which caters to an internationally
more diverse community, with a school calendar that
runs from August to June. French, Swiss, German,
and Jewish schools offer other bilingual options.
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Personal
Safety
Petty crime in the larger cities, especially in Buenos
Aires, continues to be a problem for residents and
visitors alike. It is important to be especially alert for
pickpockets and purse snatchers on the streets and on
buses and trains, and to take only registered taxis.
Expats living in Buenos Aires outside gated com-
munities will need to install an alarm system in their
home or take on a private guard service. This is com-
mon in most neighborhoods, and the cost is shared by
the neighbors on the block.
Unexpected
Argentina
Because of the large influx of European immigrants
in the 19th and 20th centuries, Argentina is known as
“the European country of Latin America.” Spanish
and Italian communities are numerous, as are
English, French, German, Swiss, Jewish, and others.
European influence can be found in Argentine art,
architecture, and lifestyle. It has been said that an
Argentine can be defined as “someone who gestures
like an Italian, speaks like a Spaniard, was educated
like an Englishman, and copies French fashion.” M
Lorraine Sandford and Susan Kidd are managing partners
of LABS Relocation Services in Buenos Aires. They can
be reached at +54 11 5263 0300 or by email at lorraine.
sandford@relocation.com.ar and susan.kidd@
relocation.com.ar, respectively. Gustavo A. Pérez is South
America director for Brookfield Global Relocation Services
in São Paulo. He can be reached at +55 11 2165 6881 or by
email at gustavo.perez@brookfieldgrs.com.
REPRINTED WITH PERMISSION FROM THE AUGUST 2014
ISSUE OF MOBILITY, PUBLISHED BY WORLDWIDE ERC®
