I think the government of Argentina is in the wrong here. Their corporations have great managerial talent (e.g., steel maker Ternium) and yet they insist on unnecessary gov't intervention (companies like Ternium must have a gov't official on the board). Years ago, they nationalized their largest airline and since then it has never turned to a profit. YPF was nationalized because, so the gov't says, it didn't invest enough in Argentina. This reminds me of banking in Mexico, which is mosty in the hands of big, foreign corporations, these draw large quantities of dividends from their Mexican subsidiaries. Some gov't officials fear they could be drawing too much as to undermine the country's banking system's capitalization, but they realize one basic thing: It's their money and they can do what they want with it. They know they can regulate capital movements, but they cannot seize the banks (unless they go under, of course). Free market definitely has its flaws, it will never work for healthcare, for example. Anyhow, policy makers should let it work where it does, because doing otherwise always comes at a cost.