Argentina - Strategies toward industrial and export development
UMA Engineering Ltd., Calgary, Canada | AGRA Earth & Environmental, Calgary, Canada
As Argentina was facing a critical situation involving severe imbalances in the domestic and external sectors as well as hyperinflation, the Government implemented a comprehensive adjustment program for sharply reducing the public sector deficit and inflation. Although this program should, eventually, help to establish a more stable and balanced monetary, financial and fiscal environment, the immediate prospects point to an even further contraction. For example, industrial capacity utilization rates, as well as the levels of output, investment and employment are likely to fall below their current low levels before growth can be expected. The unusually severe current industrial recession may deepen to a point where irreparable structural damage is inflicted on large segments of Argentine industry, particularly those with higher value-added and skill intensity. A major conclusion of the report, therefore, is that, at present, a vigorous export drive is the main available option for the resumption of industrial growth, concurrent with the expansion of employment and investment, and without a simultaneous acceleration of inflation. An effective short- and medium-term industrial strategy should have at its core a program of export promotion and development.
Show more [+] Less [-]AGROVOC Keywords
Bibliographic information
This bibliographic record has been provided by World Bank