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MERCOSUR is not fulfilling the objectives of its creation. Instead of being a tool to facilitate and promote international trade, it has been working as a factor that enhances protectionism. The best alternative is to return to the founding objectives. (more…)
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The high competitiveness of sectors such as agribusiness, energy, mining and the knowledge industry generates a low exchange rate, which is a disincentive for other sectors that create most of the jobs. The solution is not to devalue but to quickly and thoroughly address the reforms announced in the May Act.
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The cancellation of Cristina Kirchner’s retirement and pension is a source of intense controversy. In fact, this case is only one example of a more general problem, which is the proliferation of special regimes and the multiple coverage generated by the accumulation of old retirement plus the widow’s pension. (more…)
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The intensification of protests in Aerolíneas Argentinas and Intercargo increases the urgency for solutions. Evidence suggests that the way to reduce conflict is to create an environment of competition and hard budget constraints, as occurs in most private companies.
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The government announced that pension moratoriums will not be renewed. This is a step in the right direction that must be accompanied by the reorganization of the social protection system. The challenge is to achieve the right balance between solidarity and incentives in favor of formal job generation.
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The improvement in the financial mood contrasts with the social mood deterioration. Although salaries and pensions have been rising over inflation, their level is still far below what it was 7 years ago, when the current crisis started. The solution is to move on in the implementation of the May Act.
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In the Argentines’ beliefs, universities are seen as a factor of social mobility. However, due to the crisis in basic education, they are no longer so. The National Government’s tool to reverse this situation is to empower citizens to pressure provinces and universities to improve their management.
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Welfare programs cannot prevent the increase in poverty because the main source of income for the poor continues to be their jobs. To improve the social situation, it is not necessary to keep adding and overlapping welfare programs, but rather to go ahead with transformations to make employment more dynamic.
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The increase in unemployment does not say as much about labor deterioration as the stagnation in formal employment in private companies and the sustained increase in informality observed in the last decade. Reversing this degradation requires macroeconomic order and a profound modernization of labor rules.
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The accumulation of welfare benefits on families receiving the AUH discriminates against families of similar income with formal jobs. This is inequitable and discourages job formalization. The child allowance system must be unified and benefits must be defined on a family income basis instead of job characteristics.
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