Complain, blame responsibility, or take hands into the matter? Guillermo Carracedo, former CEO of Bunge y Born, states that what's essential these days is an alert entrepreneur opened to opportunities and willing to make rapid decisions. Promoting a boost in international trade and supporting the small and medium-sized companies, both private and state owned, are some of the key issues that need to be addressed.

Many different sources have reported the reasons that brought us to this crisis. But very few have tried to analyze the role of the entrepreneur in this new Argentina. Although it is important to understand how we arrived at this situation, it is crucial to acknowledge we need immediate solutions. We will soon examine what went wrong, so as not to repeat those mistakes - as for now, it is much more urgent to search for a change in direction.

Although I can be a talkative entrepreneur, I will try my best to summarize the characteristics of the country in which the investor in productive means will operate during these coming years.

The zero hour is today. We have devaluated, declared the default, we lack local and foreign credit, foreign trade will face a difficult development, fiscal profits have been altered, unemployment is close to 25%, a great portion of the population resides in poverty, the consumer sector has lowered its income, savings are changed to dollars, inflation is visible, there are no signs of economic reactivation, we have lost global trust, and the year 2003 is still very far away, or otherwise pretty close, depending on the interpretation.

The Tyranny of Time

There is very little time to pronounce strong politics in social and economic issues, and yet there is too much time ahead for those who believe that a provisional government cannot promote these long-term politics to change the country's profile. The government should do its homework on the issues of public consumption as well as in fiscal administration and state laws. The private sector should rapidly adapt to the spaces brought upon this new social and economic picture.

In the mid 90's, the country pointed toward a sustained growth and consequently the traditional entrepreneur would rush to invest. In other words, we built a greater structure than what is necessary today. Today, in relation to the world, our patrimony is cut by half. By comparison, our income is also decreasing.

In short, the country is filled with companies that took the '90s with a perspective of growth, growth that should have spread into the next decade, but reality shows that the decade of 2000 will reflect the decade of the '80s. Everything is in excess. It's hard to admit it, but our infrastructure is greater than our buying power.

We should come to terms with the idea that this Argentina will predominate for years to come, and consequently companies will have to adjust.

It is a mistake to think that the country could regain the foundations of the '90s in the short term. We as entrepreneurs need to change our focus. Let's take into account that the middle class is nominally in the same situation as in the '80s. It is also important to consider that compared to the '80s, there is an outrageous increase in poverty and unemployment. In the past fifteen years, the population has grown in numbers almost as much as in poverty. When compared with the '80s, the composition of our society is alarming. It is crucial to understand that one third of the population lives in poverty, with everything that this implies.

To the problem of shortage of working capital, we should add an almost extinct credit, uncertainty, skepticism and consumers who are fearful of any additional expenses. Entrepreneurs should analyze this picture.

As businessmen, we must adapt to this reality. Our companies should be prepared to manage stock, search credit options, avoid superfluous expenses, return to limited advertising, find spaces for development, understand the new relationship with both banks and government agencies, prepare for price and exchange controls, regulated interest rates, devaluation and inflation expectations, protectionism and government-imposed directions, fall in industrial production as it finds the real level of consumption, and a foreign trade strictly dependant on what they are willing to buy abroad.

Except for both the exports/GDP relation that positions Argentina at similar levels to other countries in the region, and the circulating currency versus the Central Bank's dollar stocks, which is the highest in decades, the remaining figures of our economy have regressed many years back.

The government needs to be offered solutions. Authorities are anxious to hear fresh ideas. They should be presented with projects that adjust to these new circumstances to be discussed by the lawmakers.

The small and medium-sized companies will become the focus of our present situation. They will be able to reduce the levels of unemployment as well as increase fiscal profits. They must be granted financial and strategic support to stimulate their expansion. The recent drastic change in circumstances has left some business sectors completely stunned.

But it is important to help these sectors understand their place in the country and the opportunities, on a regional and extra regional level, that this change has brought upon them. By virtue of its high labor demand, the "exportation of design" will be key for the restoration of the country.

This is the time for universities to welcome the challenge and assist small and medium-sized companies with clear concepts on how to take good advantage of these new opportunities.

Syndicates, entrepreneurs and professionals will have to apply all their creativity to compensate for the intellectual ambivalence of a very vulnerable government.

Consumers will have to accept the idea of lowering their lifestyles; our general well being will change tendencies, public services will be less efficient and currency will be unstable. But they should be optimistic in that new employment opportunities will emerge in compensation.

A New Argentina

If we are to stimulate our companies, we should first accept that Argentina has shrunk - we should admit that both our dollar patrimony and income have regressed many years back.

Those who choose to respond in accordance to the real situation will be the most successful. When weighed against our individual incomes, we find ourselves in excess of space and activities. Shopping malls, grocery stores, movie theaters, TV channels, restaurants, advertisement, entertainment, general and public services - these are only some of the areas that will have to adjust. They will need to reshape themselves according to society, which will have to build itself up again, overcoming a phase that seemed long forgotten.

The dimensions of our body have been reduced; our suit is now too large. To build up that body again will take at least five years. We should tailor that suit. We should make companies viable for this Argentina of 2002.