Good article by a former US ambassador to Chile:

Chile

I'm not sure why Argentina is so dysfunctional, but there is a long history of denial and fantasy in the public mind, and promoted by irresponsible leaders. A great example is the disasterous Falklands War, which ironically, led to the end of military rule and the beginning of democratic rule in Argentina. After years and years of preaching a downright childish argument claiming ownership to the islands ("Well, sure, no one but UK citizens have lived there in the past 150 years, but they're kinda close to Argentina, so we must own them!") the Argentina military launched a blatant war of aggression in 1982, and paid the price when Margaret Thatcher and the UK kicked their ass.