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Uruguay has grown three more times than Argentina

Beyond the electoral defeat, the left-wing Frente Amplio of Uruguay has demonstrated that combining rationality and good institutions is possible to grow with social inclusion. The experience is very instructive in the face of an accumulation of failures among the countries in South America. (more…)

There is a birth of a mother under the age of 20 every 6 minutes

The muddle around a protocol for abortion shows the level of ignorance about how the federal system works. The protocol was merely an optional guide since medical regulations are a provincial jurisdiction. Spain, which eliminated its national “Ministry of Health”, should be imitated. (more…)

With Evo Morales the GDP per capita has multiplied by 3

The upheaval in Bolivia generates passionate controversies. This obscures the Bolivian remarkable economic and social performance. Regarding the challenges that Argentina faces, Bolivia’s most instructive lesson is that fiscal discipline is a source of social progress. (more…)

People run away from the argentine pesos

The main challenge for the new president is to balance public finances. It is not an explicit citizens’ demand, but an implicit one underlined in the growing rejection of the Argentine peso. This is observed in the people’s urgency to buy goods or dollars to get rid of the pesos and protect themselves from high inflation. (more…)

Federalism should not be a topic in the presidential debate

The good practice of debating among presidential candidates was distorted by an agenda with issues –such as security, education, health, social welfare, environment, and housing– which are not the federal government’s concern. Respecting the distribution of jurisdictions’ roles is key to come out of the crisis. (more…)

Provinces receive more vat and profits than the federal state

The Supreme Court questioned the decrees through which the federal government decided to reduce VAT on food, the income tax, and the Monotributo. It is pertinent to reject this norm but demagogic and incoherent in the way the Supreme Court implemented it. (more…)

The poor are those who receive least income from the state

The available evidence does not support the claim that the poor live on tax-financed state transfers paid by the middle class. The reason is that the public sector manages an enormous mass of public resources in a disorderly and arbitrary manner that, in its major part, does not benefit the poor. (more…)

The federal government pays only 7% of the teachers’ salary

The governor of Chubut laid some of the blame for the teachers’ strike in his province on the federal Secretary of Education allegedly for not sending him funds. This shows how federal interventions in services in charge of the provinces do not provide solutions, but excuses to elude responsibilities from their own failures. (more…)

Welfare programs are local governments’ jurisdiction

In response to a worsening crisis, Congress sanctioned the food emergency. This act deepens the misguided approach of considering the welfare programs as a federal function when it is local. In order to stop repeating failures, it is essential that local governments fully assume their responsibilities. (more…)

To reprofile debt, Uruguay had 10 years of fiscal surplus

As part of the strategy to deal with the crisis, the government proposed a “re-profiling” of its debt, as Uruguay did in 2003. In the Uruguayan case, the key to success was not the debt rescheduling, but the fiscal discipline that came with it and lasted for more than a decade. (more…)