National Reports

09/03/2014 -
Edition 538

The federal government is decisively intervening on the teachers’ salaries negotiation, but provides a marginal and shrinking proportion of the remuneration. This contradiction generates the conflict, leading to the irrational situation where even provinces that have reached agreements with the unions are not beginning classes either. Instead of interfering in the wage negotiation, the federal government should support financially the provinces in order to reduce teacher absenteeism and droppouts, and to improve quality education. 

02/03/2014 -
Edition 537

The Argentine government will finally compensate for the nationalization of REPSOL YPF. Although the announced compensation will be of about U$S 5 billion in bonds, when the high implicit interest rates are computed the total costs rises to more than U$S 10 billion. In addition to the elevated amount, the bulk of the payments will be faced by future administrations. This is another clear testimony of opportunistic decisions made based on unprofessional criteria that compromise the welfare of future generations. 

23/02/2014 -
Edition 536

The drop in unemployment rate that was reported by the INDEC occurred because many people stopped looking for a job. This is the result of the loss of capacity to create new jobs due to the low economic growth and the poor quality of labor institutions. The problems is not solved by inducing employers and unions to set their wages below the inflation level or using public funds to subsidize inactivity- such as the Asignación Universal por Hijo and the Progresar- but by improving the design of labor market institutions. 

16/02/2014 -
Edition 535

The "model" implemented from 2003 relied on twin surpluses (fiscal and foreign). Since both were generated by the reduction of real wage, as a consequence of the strong currency devaluation, once real wages were restored to the pre-crisis level the economy stagnated. To reestablish the "model", it is necessary not only to devaluate but also to ensure that the wage increases are less than the devaluation of the dollar and inflation. Promoting public policies seeking a rise in productivity and competitiveness appears to be a more promising alternative in order to achieve growth without deteriorating real salaries.   

09/02/2014 -
Edition 534

Faced with the dollar instability, the authorities announced their intention to revise economic subsidies. Apart from being a delayed response, the initiative was put as a threat to those who seek to protect their savings by buying dollars instead of a fair and rational policy in the allocation of public funds. The general rule should be that tariffs are in line with the costs of public services. In parallel, it is needed to implement social tariffs so that poor households in the whole country (not just those living in Buenos Aires) will be the only ones receiving subsidies.

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