Silvia Naishtat
08/27/2020 - 12:09
- Clarín.com
- Economy
The classic session of the Council of the Americas in Buenos Aires was transformed this Thursday into a string of talks recorded by officials without the possibility of questions from the large investing public who followed it from the screens. Of course, there were surprising definitions such as that of Miguel Pesce, which was recorded before the sonorous and repudiated statements by Eduardo Duhalde about the coup. President of the Central released : "The level of poverty and inequality that has Argentina are difficult to handle in a democratic country" . And he appealed to improve relations with the United States, something that at least is curious when AmCham has just complained about the change of rules in the telecommunications sector.
Another surprise: the Minister of Productive Development, Matías Kulfas stated that “Argentina needs a new social and productive consensus” , something demanded by various sectors and that until now had not been taken into account. Moreover, by listing ten objectives, he called for an end to the false antinomy of exports versus the domestic market in the need to increase exports, a whole page turning with respect to a part of the government that claims otherwise.
Perhaps noting the stage that comes with the negotiation before the IMF, where Washington has a decisive weight, Pesce emphasized the need for agreements with the United States, admitting that there are differences but a common path from “history, technology transfer and investment of US companies in Argentina. We have to do everything we can to improve the relationship with the US Sometimes we have points of conflict, but we have to look for the points of coincidence ”.
Pesce referred to the Argentine crisis by pointing out that "since 2011 we have not found processes of sustained growth with levels of poverty and inequality difficult to bear in a democratic country" and admitted the problems with the external sector. "In 2011 we exported for US $ 83 billion and currently for US $ 62,000 million."
The Minister of Productive Development, Matías Kulfas, together with the head of Banco Nación, Eduardo Hecker, and the secretary of Small and Medium Enterprises and Entrepreneurs, Guillermo Merediz, in the announcement of a credit line for SMEs. (Photo: Presidency of the Nation)
As he explained, “the instability of our currency led us to a dollarization process. We are one of the countries with the highest amount of dollar bill per capita in the world. And if it is measured in relation to our GDP, we surpass many US states " He referred to inflation as a "chronic problem that can only be stopped between 1991 and 2001 that ended in a very bitter social and economic crisis."
As he explained the Central's policy, he maintained: “We do not set inflation targets, but principles. One that the interest rate should be real in terms of pesos so as not to deteriorate savings in pesos. Other than that the exchange rate is sustained in real terms. Also the growth of the financial system, which is the smallest in the world. We bet on the growth of the capital market and the return of Argentine capital. There are US $ 170 billion of Argentines ”. Towards the end of his presentation, he praised the behavior of the financial system in this pandemic and said that NO placements grew 75%, which allowed financing companies and loans to the private sector. He also said that 4 million bank accounts were activated due to state assistance and another 2 million that entered for the first time.
Minutes earlier, Matías Kulfas referred to the need for a broad productive agreement. Kulfas mentioned that we must establish another link between the micro and the macro, "we have to export more, produce more with a greater export orientation . "
Here are other points of his proposal:
- We must create the conditions to incorporate the productive sectors to the 4.0 technological revolution. We must end the false antinomy between the internal and external market, Argentina can do it with a strong weight in the domestic market and also exporting.
- Pay attention and deal with the environmental issue to export sustainably.
- Achieve a good macroeconomy so that they are encouraged to invest in medium-term development.
- The reduction of poverty.
- Lower the gender gap.
- An intelligent commercial opening with agreements to win market by taking care of vulnerable sectors. This is not to protect them, but to help them insert themselves.
- Productive development must be a regional development policy.
- Promote sectors such as natural resource chains such as agribusiness and technology associated with hydrocarbons and mining.
- Green industrialization in renewable energy, electro mobility in the automotive industry.
- The knowledge economy is a central axis with a new law that allows the creation of highly qualified youth employment.
- The health industry with great capacity to produce health supplies.
The Minister of Productive Development had started his presentation by describing the inheritance received, with a strong capital outflow since April 2018 and a crisis of over-indebtedness. He said that the economy left by Macri already had a deficit of 4.5% of GDP, a productive system in difficulties and very high interest rates that stifled the real economy.
In passing, he described the State's assistance plans in the pandemic that mobilized $ 300 billion pesos for the payment of salaries to more than half of the employees in the formal private sector, some 3,1 million people, financing for capital. of work and credits at zero rate for monotributistas and self-employed. "It encompasses 5.25% of GDP what has been disbursed by the State in a successful containment program so that the activity remains standing."
