Friday, April 4, 2008

Free Sandrail Blueprint



Income distribution, field and other herbs

is a fact of undoubted relevance, speaking specifically of the field, there is a high concentration of land in few hands: 2000 producing a total of 73000 59% own the land (the remaining 41% of land divided between 71,000 producers). We should also mention that 20% of producers generate 80% of total soybean production (of which 95% goes to export).
After analyzing these numbers, we conclude that the distribution of income is not made effective in practice, is only a political banner. Worse, it is going in the opposite direction, favoring exploitation in a few large agricultural producers. Also, it is also important to highlight the poor distribution of subsidies, unfortunately, reach only the industrial part of the production chain, leaving completely relegated to the producers (eg in the case of corn oil, large amount of subsidies are in the hands of the oilers, as is the case of dairy farmers and dairy companies.)
With the current exchange rate artificially undervalued by the BCRA, increases the country's exports (via substitution of imports, which benefit industry field and interchangeably), but the whole society is poorer in dollars. In addition, we must note that whenever wages are several steps behind inflation, and by measurements from INDEC ceased to be reliable, we can not estimate with certainty the number (private estimates indicate inflation in 2007, about 20-25%).
The key to this situation of inequality and regressive taxation is that income distribution, announced at length by the current national administration, not made effective in practice, does not return in social inclusion programs, training, infrastructure (roads good for example), or in subsidies to small producers (agricultural or SMEs), who really are in need of them, to stick a jump leap towards greater efficiency and lower costs (since the real exchange rate is depreciated by a context of rising inflation and cost increases, as well as the appreciation of regional currencies due to inflation in the U.S.).
There is a poor quality in public spending (combined they can not reduce it). State enterprises that provide services and consume no resources (LAFSA, ENARSA), cross-subsidies financed by society that only come at the hands of large companies, inexplicably neglected infrastructure, few training programs and inclusive, low credit lines for SMEs . Unfortunately, you are missing a great opportunity to carry out reforms to a tax system riddled with regressive and distortionary taxes and the Federal Revenue Sharing Scheme (pending since the constitutional reform of 1994), as in bad times, with the excuse of cost cutting is not possible to carry out any of these neglected and needed reforms.
must also fight for a factual federalism, leaving aside the discretionary allocation of funds related national governors, setting fair guidelines for allocating funds to provinces that provide many millions (as in the case of Santa Fe), and are in a situation of discrimination, for example, regarding oil provinces that do receive royalties from the central government.
hope that government and society to wake up in time to say no again: Argentina, another lost opportunity.

Cristian Bergmann

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