Don’t Cry for Me, Argentina: Argentine Debt Crisis, 2023
Approximate Committee Size: 28 Delegates
In 2018, Argentina took a staggering $44 billion loan from the International Monetary Fund (IMF) in an attempt to reconcile with a steep devaluation of the peso, a rise in inflation, and a growing fiscal deficit. However, along with the loan came a series of stipulations, or austerity measures, which consisted of cutting public spending, increasing taxes to increase government revenue, reducing public sector employment, and restricting social welfare programs. As a result of these austerity measures, growing poverty and inequality sparked public unrest, while the country continued to backslide into an economic recession. In 2022, Argentina attempted to restructure its debt repayment guidelines with the IMF, but to little avail. By 2023, national debt continued to rise and GDP contracted significantly, causing over 40% of the population to live in poverty. In 2023, Argentina and the IMF reopened negotiations to discern the most effective methods of repayment. Argentina was primarily concerned with debt restructuring, lowering the interest rate on the loan, decreasing the austerity measures stipulated in the loan, and receiving aid for their current economic distress.
CHAIR: Markandeya Karthik
Crisis Manager: Reesa Bhowmik
ISSUES TO CONSIDER
Balancing Debt Restructuring and Austerity
The IMF’s Role in Domestic Economic Policy
Social Protection and Economic Reform
LEARNING OBJECTIVES
Examine the economic and political consequences of large-scale IMF lending and the long-term impact of austerity measures on developing nations.
Understand the challenges of sovereign debt restructuring and the negotiations between debtor nations and international financial institutions.
Explore the trade-offs between national economic sovereignty and compliance with international financial conditions during times of crisis.
About the Chair
Mark Karthik is a member of the class of 2026 in Georgetown University’s Walsh School of Foreign Service. He was raised almost entirely in Hong Kong but was born in Bangalore, India. He is majoring in International Economics, with a minor in Chinese and a certificate in International Business Diplomacy. Outside of class he is usually playing tennis, guitar, or looking for some new coffee shop in the city. He looks forward to meeting all of you and having a weekend of constructive debate!
About the Crisis Manager
Reesa Bhowmik is a senior in Georgetown University’s Walsh School of Foreign Service, majoring in International Economics. She has lived and studied in three countries, which has shaped her appreciation for diverse cultures, perspectives, and people. Her interests lie at the intersection of economics and public policy, and she aspires to drive impact-focused change by addressing structural challenges such as income, gender, and education inequality.
On campus, she is a member of the Georgetown Angel Investor Network, an ESCAPE First-Year Retreat leader, and the stage manager for No Pressure Creatives, an original Asian American student-produced musical.
Outside the classroom, she enjoys discovering new bike routes, trying different coffees, and watching science fiction with her family—Star Trek is often playing on her screen.