The multiplication of care plans is the most visible link in a vicious circle. It all starts with him stagnation and low productivity of the Argentine economy. This leads to the lack of creation of formal salaried jobs in private companies. The jobs that are created are in public employment and informal self-employment. Specifically, in the last decade the formal wage employment in private companies it was nailed to 6 million people. However, total employment increased by 3 million people, except that half of the increase was in public employment and the other half in self-employment.
To enter public employment, in general, it is required to have some studies such as completed high school or incomplete higher education. People with low levels of education (incomplete secondary education) are self-employed in informal self-employment where income is low and intermittent precisely due to the stagnation and low productivity of the economy. The State, in short, sees the need to maintain care plans and even multiply them in the face of the pressing social situation. The neuralgic point is that what causes the need to multiply assistance plans is the terrible intervention of the State itself.
The low productivity is due to the fact that the State it does not create conditions for private investment, nor for the private sector to be more efficient. The investment rate in the last decade of the Argentine economy was 16% of GDP, insufficient to replace the capital consumed: it would need to invest at least 25% of annual GDP sustained over time.
*By Jorge Colina, IDESA economist.
by Jorge Colina*
