The rebirth of a priority that marked the management of Mauricio Macri as president he looks forward to the new mandate of Javier Milei. After confirmation of Diana Mondino about the country’s exclusion from the bloc BRICS, The future chancellor opens the doors to eventual entry into the Organization for Economic Cooperation and Development (OECD), an old desire of the founder of Pro.
Argentina’s position regarding the BRICS and the OECD is clear, as expressed by Mondino in an interview with Reuters. Despite the invitation to join the group BRICS, the country does not consider it a priority to be part of this association of developing nations. “The invitation is on the table, but there is no rush to make a decision. At this moment, we do not see enough benefits in joining the BRICS,” Mondino said.
On the contrary, the future head of Argentine diplomacy confirmed in that same interview that the invitation to join the OECD is already on the table for Argentina, along with other countries such as Peru, Romania, Bulgaria and Croatia, which began the process. in January 2022.
Thus, Mondino affirmed that Milei’s government will definitely work to join the OECD, although he warned about the complexity and length of the process.
The benefits of joining the OECD are multiple. In the short term, it could generate a lower cost of capital and impact the risk rating, which in turn would pave the way for productive investments. In the medium and long term, joining the OECD could boost the country’s economic and social development, since it would allow access to a market of 500 million consumers and the best practices of developed countries.
The Milei government will have to meet a series of requirements to enter the OECD, among which are:
- Improve institutional quality
- Promote productive development
- Guarantee social well-being
As Ámbito learned, the necessary steps have already begun to resume the path towards the OECD. One more time, Marcelo Scaglione, who was Argentine representative before this organization during the government of Mauricio Macri, is dedicated to this task. Through his X account (formerly Twitter), Scaglione published a post with José Antonio Ardavín, Head of the Division for Latin America and the Caribbean of the OECD Global Relations Secretariat.
In said post, Scaglione confirms: “I have anticipated and confirmed the position of President Javier Milei and the future Minister of Foreign Affairs Diana Mondino on the continuity of Argentina’s entry into the OECD.“.
However, entry into this international organization will not be immediate, as it could take between four to six years, according to sources. Despite this long wait, the crucial thing is the journey it entails.
The difficult road to the OECD
Scaglione, in interviews with other media, expanded on the benefits of being part of this organization, pointing out that underdeveloped countries that join the OECD manage to reach the status of developed nations in 25 years.
The Macri official cited the case of South Korea, which entered in 1996 with a GDP per capita of US$14,000 and has reached US$48,000 today. However, He stressed that this change requires transformations in institutional quality, productive development, education, and health.
By meeting OECD requirements, Argentina would be demonstrating that it is committed to economic stability, good governance practices and sustainable development. ANDThis could attract foreign investments and generate a climate of greater optimism in the economy.
The Milei government will have to be careful in designing its policies to meet OECD requirements. If achieved, entry into the international organization could mark an important milestone on the path to the country’s development.
Source: Ambito
