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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…)

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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…)

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The currency crisis could have been avoided

After the surprising primary election results, the Central Bank did not stop the peso depreciation even though it was in better conditions to do it than in the 2018 crisis. With the dollar stampede, the government tried to compensate by reducing taxes and increasing social spending, adding up more uncertainty to a fragile situation. (more…)

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Youth unemployment more than triples that of adults

International experience shows significant differences in the incidence of youth unemployment. The quality of the transition systems from school to work explained the phenomenon. This points out that Argentina could reduce its very high youth unemployment rate by redesigning its educational and labor institutions. (more…)

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The agreement with the European Union is an opportunity

The agreement with the European Union is far from being a threat. Instead of delaying its approval in Congress, the best strategy is to focus on competitiveness improvements. The risk for Argentina is to postpone needed economic reforms while neighboring countries advance in the implementation of free trade. (more…)

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Wages in the Buenos Aires city double those in north of the country

Bus strikes in the interior of the country are the consequence of the anachronistic model of collective bargaining. Labor conditions are imposed centrally with contempt about regional differences. The solution is not to re-establish national subsidies but to decentralize collective bargaining. (more…)

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The dollar does not generate poverty, low productivity does

New controversy about the dollar has risen. A high value is associated with social costs, a low value with an imminent economic crisis. The debate is as persistent as it is inconducive. The rightful discussion is how to design public policy to induce productivity increases based on better institutions. (more…)

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Without pension reform, inflation cannot be lower than 40%

The economic authorities project a significant drop in inflation in 2020. This will destabilize public finances because pension spending increases due to adjustments based on past inflation. Pension reform must not be postponed to solve this inconsistency.
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9 out of every 10 new jobs are informal

As has been repeated for decades, in the face of rising unemployment, legislators are proposing to prohibit dismissals by law. It is an old idea that ignores that in recent years almost all the jobs created were informal. Banning layoffs will aggravate this trend. (more…)

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A quarter of the moratoria generares double benefit

The decision to extend the moratoria (pension without contributions) for three more years shows that the consequences of poor decisions in the pension system continue to be underestimated. While long-term strategies are proposed (such as the commercial deal with the EU), in the social security prevails opportunism. (more…)

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