Argentina

In oil producing developing countries, oil provided revenues for a few initially. Thereafter more revenues were needed as the state social welfare role expanded. The... Show More + states then sought to exercise more control. Governments could have chosen to direct oil policy solely through a combination of legislation and regulatory bodies. But they also choose a direct role in the petroleum sector development and operations through a National Oil and Gas Company (NOC). Governments perceived the NOC as a natural extension of the state ownership of subsoil mineral rights, even in developed countries such as Canada, the United Kingdom, and Norway. The paper provides a background of past economic and hydrocarbon sector policies and reviews the enabling political and economic framework of the Menem government, the objectives sought by the Government of Argentina (GOA) in this radical reform of the hydrocarbon sector, the selected strategy to achieve a successful private sector participation, the legal and regulatory instruments that needed to underpin the process, the technical, legal and financial assistance and advice that were required by the GOA effort, the various challenges which the GOA had to overcome in the process and the results achieved in the privatization of the hydrocarbon sector. Show Less -

This is Background Paper 3 of a series of working notes in conjunction with the economic recovery and growth exercise. There were many contributors. Argentina's import... Show More + system is extremely rigid. The policy of prohibiting imports of products that can be made in Argentina dooms export industries to using high-cost, often low-quality inputs manufactured in Argentina. The Government should obtain consulting assistance to help streamline the implementation of its export promotion policies and programs. Clearly, the emphasis should be on a minimized and simplified role for the Government. Show Less -