Argentina

The study looks at recent analytical work concerning social issues in Argentina, which suggest both inequality, and unemployment are worsening, aggravated by pessimism... Show More + and despair - partly shaped by a recession of almost three years - as well as by the inadequacy of public institutions. This study examines the case of Argentina, and draws on its existing social capital as an immediate strategy, and an investment for the future, to assess the role social capital can play within its context. The study finds that aggregate levels of social capital in Argentina are low, outlining that while the social capital of the poor in the country, may enable protection among themselves in times of hardship, it does not help them get ahead in the long-term. Civic associations have proved vulnerable to deep changes in the local social, economic, and political landscape, seemingly due to a historic heritage of authoritarian relations with the state. Thus, the study attempts to promote a dialogue among national actors, and policy makers on the implications of the determinants of social participation, and interpersonal trust. Evidence suggests that less than twenty percent of the population participates in any form of organization, of which, determinants of participation feature the better off, higher educated, or unemployed, while the poorest tend to find the experience unrewarding. The study also measures levels of less structured collective action in response to shocks, as a strategy for interacting with public officials, pointing out that during any form of crisis, Argentines turn to their closest circles of family, or friends, but do not assert their influence on public decisions during prosperous times. Recommendations suggest the creation of an enabling climate for the development of social capital, that provides space for public-private interactions, emphasizing on educational investments, and, creating a culture of information dissemination, and transparency. Show Less -

The study explores the interactive clash resulting from reforms, and institutional capacity at the provincial level, as the main element to explain current limitations,... Show More + and to suggest recommendations conducive to further social reform. To understand the framework for past reforms, the study reviews the economic, political, and institutional context within which such reforms were implemented, and examines the national government's reform policy - within the implementation strategy - and, as well, the provincial governments' capacity to manage change - i.e., in three provinces, Catamarca, Cordoba and Salta. The study focuses mainly on education, and health reforms, significantly different in both design, and formulation: health reform only introduced administrative hospital autonomy, merely a partial aspect of a broad health system reform; whereas, the education reform consisted of a total educational system change. The result was that the health reform was supported basically by interested syndicates, who envisaged compensatory benefits, whereas, the actual beneficiaries - the patients - were poorly informed. Conversely, educational reforms were limited by weak capacity at the provincial level, and as well, limited information. An improved educational reform implementation design is recommended, based on institutional capacity building to improve the quality of education, and, suggests a broader health reform within a strategic framework based on public awareness, but which includes the ministries, medical profession, and provincial health workers. Show Less -

This report presents the findings of an exploratory study conducted in poor areas of three provinces in northern Argentina (Misiones, Salta, and Santiago del Estero).... Show More + The study comprised a random (cluster) sample of three hundred households of women in reproductive age with at least one child. Focus groups (13) and in-depth interviews with key informants (health providers, educators, religious, and community leaders) were conducted to validate quantitative data and to explore issues such as gender roles, domestic violence, abortion, and contraception. The study aimed at contributing to a better understanding of reproductive health issues, quality of life, and rural poverty--primarily as it affects women--and providing policy recommendations for addressing reproductive health issues in rural poverty alleviation strategies. The study also explored, albeit on a limited basis, men's perceptions and behavior related to reproductive health. The principal findings of this study focus on gathering reliable data for decisionmaking especially at the sub-national levels; controlling family size as it has a direct impact on women's income-generating capacity and quality of life; developing the political will to promote and implement comprehensive reproductive health programs; increasing public awareness of reproductive health; and analyzing factors in the underutilization of health services and contraceptives. Show Less -

In mid-1999, the World Bank initiated diagnostic studies of three topics relevant to improving public sector transparency in Argentina. The topics proposed for study--procurement,... Show More + the detection and investigation of corrupt acts, and the role of public information--were seen to be critical to any Argentine Government program to combat corruption. The three resulting papers (to be attached as Annexes) are synthesized in the present overview which provides a number of specific recommendations for imprvements and a suggested course of action for the future. The research focused almost exclusively on the federal government, but holds lessons for the other levels (provincial and municipal) as well. The report describes the situation prior to the assumption of office by President Fernando de la Rua (December 10, 1999). President De la Rua has begun an anti-corruption program, which is addressing many of the problems identified here. This report does not and cannot assess these new efforts. The attached consultants' reports should be read with that understanding. Show Less -

The study presents an overview on Argentina's economic growth, income distribution, and poverty, mostly as of 1991, when the country underwent a period of adjustment,... Show More + which remarkably led to a sharp inflation drop, to the privatization of state-owned industries, and to fostering foreign commerce, thus widening the economy. Nonetheless, the study points out that all of these adjustments affected the poor, particularly through labor demand, exacerbated by the slowdown of the growth process, resulting from the economic crises of 1995, and 1998. Recommendations include macroeconomic, and reform policies to allow rapid growth, and stabilize the economy, without inflation, for a substantial poverty reduction. The elimination of centralized, collective bargaining labor agreements, reduction of labor taxes, and severance payments, would prod a funded, unemployment insurance system, based on individual accounts, and thus, reduce the high cost of labor. Temporary employment, and extended programs should not be enforced under payroll taxes, to allow exceptions for small scale enterprise development. Accessibility of the poor to basic services should be enhanced, mainly through greater investments in education, and health care services. In addition, a strong system of safety nets is recommended, through the identification of expanding programs, to also provide emergency employment, and income during potential crises. Show Less -

This report reviews the evolution of Argentina's financial system, particularly since the "Tequila Crisis" of 1995, and identifies future challenges to further financial... Show More + deepening. The report offers recommendations in two main areas: the banking sector (particularly in regulatory framework and supervision) and capital markets (particularly in the framework for institutional investments). To restructure the banking system, the government should reduce the presence of public banks, restructuring smaller, weak private banks; restrict bank acquirers to A-rated banks to improve merger quality; and improve access to finance for small and medium enterprises. To improve banking supervision, strengthen supervisory personnel; separate the functions of banking regulatory agencies but facilitate their coordination; pass laws to protect public officials from personal liability when exercising public duties; improve auditing and data management systems; and strengthen guidelines for bank governance. To improve capital markets, Argentina should introduce consolidated group accounts to improve corporate disclosure; assign a greater role to independent directors; improve the quality of external audits; tighten the regulation of capital market intermediaries; improve market surveillance to prevent trade allocations; and increase capital requirements to protect small investors. Pension funds and mutual funds need to liberalize rules; and the insurance sector needs to consolidate. Show Less -

This report focuses on Argentina's fiscal experience during the first years of the Convertibility Plan, evaluates selective important developments and programs affecting... Show More + Argentina's fiscal condition, and sets up a framework for future work. It presents a review of the consolidated performance of fiscal accounts over 1991-96 period, and a review of some of the structural reforms that affected the fiscal accounts, such as the social security system reform. On the revenue side, this report advances in the assessment of revenue sharing arrangements between the federal government and provinces. On the expenditure side, this report evaluates the complex housing program, financed with transfers from the federal government but managed by the provinces. The report suggests that major restructuring of the Argentine economy requires significant reallocation of both labor and capital to obtain the potential for productivity gains. Show Less -

The provincial finances study has four objectives: a) to review fiscal performance of Argentina provinces since 1991 and highlight the reform agenda needed to recover... Show More + fiscal discipline; b) to contribute to the upcoming revenue-sharing arrangement revision and provincial taxes revision; c) to identify institutional reforms to enhance the federal government's capacity to improve fiscal incentives and provincial governments' accountability; and d) to identify performance criteria to rank provinces according to financial capacity. The remainder of the report is organized as follows: chapter two describes the Argentina federal system fiscal performance at the provincial level, adjustment patterns and policy agenda; chapter three identifies the need for Fiscal Federalism reform and sets forth future system guidelines; chapter four reviews the provincial financial policy management situation and draws some lessons from recent financial bail-outs of some United States cities; and chapter five describes a methodology to score the provinces according to standard economic and fiscal indicators and presents the results for 1995. A simulation model further shows how provincial financial capacity could be projected using simple assumptions. Due to lack of information on the debt profile of many of the provinces, the model results must be for illustrative purposes only. The technical appendix includes four annexes with analytical work supporting the main report. Show Less -

The purpose of this report is to review the achievements and challenges that the Convertibility Plan has brought to the Argentina economy over 1991-1994, and then assess... Show More + prospects for economic growth in the wake of the economic turbulence that beset Latin America in 1995. The main pillars of the convertibility plan are: a) monetary reform; b) fiscal reform; c) public sector reform; d) social security reform; and e) trade reform. The report looks at each of these areas in its first chapter. The second chapter reviews the main macroeconomic implication of the convertibility plan both in its growth period (1991-94) and the crisis year of 1995. It looks at public sector performance, the federal government, capital inflows, current accounts, real exchange rates, financial market effects, monetization and dollarization, trade flow response, investment, savings, productivity, and competitiveness. The third chapter is a compendium of issues and policy recommendations to help move the economy in the desired direction. Show Less -

This report analyzes the reform needs and options in electricity distribution and water and sanitation services (W&S) in Argentina's provinces. The main focus is on... Show More + the regulation of private operators since many provincial governments are considering concessioning all or part of these services to the private sector to improve quality and rely more on private financing of the sector's expansion needs. The report examines contract-based regulation, tariff design and institutional concerns in a detailed analysis of the specific regulatory framework of both sectors. This analysis is necessary to show the linkages between: (i) tariff design on one hand, and investment targets and financing on the other hand, and (ii) national and provincial regulatory issues. The report reviews the main general policy issues the provincial governments will have to address, including what is involved in limited credibility, competition, contract-based regulation, and decentralized regulation. It also covers the main issues, including privatization of provincial electricity distribution companies, water and sanitation services, and institutional demands of regulation of privately operated utilities. Several steps are necessary in order to maximize gains from the privatization strategy. They include: (a) making the most of what competition for the market allows; (b) giving incentives to new owners to remain concerned with the public interest; (c) assigning rights and obligations in contracts as clearly as possible; (d) anticipating potential needs for renegotiation; (e) defining the nature and form of property to maximize accountability; (f) not underestimating the importance of tariff design; and (g) carefully preparing and developing the provincial regulatory capacity. The report strongly endorses the general concessioning strategy followed by most provinces. Not all provinces, however, will be able to follow a strategy relying on private investors as there is much variation in potential rates of return and commercial as well as non-commercial risks. For those that are unable or unwilling to transfer the W&S and electricity distribution services to the private sector, the report offers alternatives. It suggests, in the short run, the commercialization of these services, which can serve to establish the credibility of the provincial commitment to reform. Show Less -