A Cheap-Peso Boom.

Argentina has found an economic formula that works: export more, import less. The peso, once pegged to the dollar, is now worth about 30 U.S. cents. That's been a boon to the country's export industries. Sales of beef, honey and soybeans have skyrocketed, albeit from a rock-bottom base. In addition, the export wine industry is thriving, and tourists are flocking to Patagonia. With land and labor costs relatively cheap, well-off Argentines and expats are building homes and buying ranches. Real-estate agent Ernesto Serigos, based in Bariloche, reckons he's sold more properties in the past six months than the previous four years. Meantime, imports have plunged--down nearly 60 percent last year.

Analysts are split on whether this mini-recovery can last and help the impoverished majority without jobs, land or dollars. Optimists note that industrial production is surging, and the economy is expected to grow this year by a respectable 4 percent. Bears counter that Argentina is hamstrung by debt and volatile commodity prices, and lacks a long- term growth strategy. Even the most sanguine foresee sluggish ...