Argentina - Economic Memorandum for the Province of Buenos Aires : Key Public Policy Issues
2010
World Bank
The Province of Buenos Aires has historically been the most important of all 23 Argentine provinces. Following Argentina's independence in 1816 and the development of the export-oriented agricultural sector, the province's control of the nation's biggest ports and waterways turned it into a major political and economic power. Rapid population growth, primarily driven by immigration, stimulated consumption, which led to the rise of manufacturing industries in and around the main urban centers in the province. The construction of the railway, which by 1914 had reached 35,000 km in length, gave Buenos Aires an additional advantage: it linked the agricultural interior of the country to the ports located in Buenos Aires, La Plata, and Bahia Blanca (as well as to Rosario in Santa Fe Province). Given the central role the Province of Buenos Aires plays in Argentina's economy, ensuring its sustained growth and competitiveness is a key national priority. The Province accounts for 35 percent of Gross Domestic Product (GDP), more than half of the country's manufacturing industry and 37 percent of its exports. Its private sector is the largest in the country, with every third Argentine company located in the province. The Province's schools and universities turn out a large share of Argentina's labor force, and its roads and ports transport the bulk of the country's domestic goods and exports to their respective markets. Argentina's economic success is therefore closely linked to that of the Province of Buenos Aires. This chapter provides a general background of the province's economic profile, growth record and social conditions.
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