There are different country models, each with its own economic, social and political logic. In general, two predominant approaches can be identified. One of them is the model based on closed economies and a broad and present state, which demands high tax levels to sustain its operation and fulfill its obligations, whether social assistance, infrastructure or public administration. In this model, The State has a leading roleregulating different sectors of the economy, establishing commercial barriers and promoting development through direct intervention policies.
On the other hand, There is a model that encourages free import and exportpromotes the arrival of foreign investments, promotes competition and seeks to reduce the presence of the State in the economy. Under this conception, the market and the private initiative acquire a fundamental role in the development of the country, which implies lower tax burdens to attract capital and generate employment.
In this context, the Incentive regime for large investments (Rigi)a mechanism designed to attract large corporations and promote long -term investment commitments in different strategic sectors. As a consideration, tax exemptions are granted that seek to generate a mutual benefit between the private sector and society as a whole.
The logic behind the Rigi It is clear: Reduce tax burden for companies in order to stimulate investment in the short term and, in turn, generate long -term benefits through employment creation, economic growth and the revitalization of key sectors. It is an approach that seeks to enhance the virtuous circle of development, where initial investment generates direct and indirect employment, energizes consumption and improves the competitiveness of the country globally.
The most benefited industries with this scheme are technological companies, mining, energy and heavy industry. Since its launch and after the Presentation of Milei in Davos in Januarythe program has generated investment commitments for millionaire figures. These capital flows have the potential to transform not only the economy in macro terms, but also local and regional realities, especially in provinces where energy and mining projects have a great impact on employment generation and infrastructure development.
One of the first effects of the arrival of these investments is the hiring of specialized professionals and support personnel. But the impact is not limited only to direct labor: It also extends to a wide network of suppliers and complementary services. From the acquisition of machinery, supplies and security equipment, to the hiring of accounting, legal, gastronomic and health services, each great investment generates a waterfall of opportunities for local companies. The necessary infrastructure for these investments also translates into the demand for transport, logistics and communications, even more energizing the economy of each region involved.
In the case of technology companies and the knowledge sector, the impact of the Rigi is equally significant, although with a different logic. Unlike the mining or energy industrywhose activity is concentrated in specific areas of the country, the Technology companies They tend to form strategic poles in different cities, promoting the creation of innovation and development ecosystems. This not only attracts talent and capital, but also generates synergies between companies, promoting the specialization and competitiveness of the sector.
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One of the recurring debates around these incentive schemes is the possible inequality in competition conditions. Some criticism point out that granting tax benefits to large corporations can represent a unfair advantage over smaller companies or entrepreneurs who do not access the same stimuli. However, When analyzing the impact in general terms, it is observed that the entire value chain is benefited by the arrival of new investments. Suppliers, customers and consumers experience a positive effect as the productive ecosystem is strengthened, generating opportunities for actors of different sizes and profiles.
In addition, the presence of large companies in a market is usually in the growth of derived enterprises. Professionals who acquire experience in these companies can eventually capitalize on their knowledge and contact networks to launch their own projects, diversifying the offer of products and services. This phenomenon, common in the main technological poles of the world, demonstrates that competition does not always imply exclusion, but can also be a growth engine for innovation and diversification of productive tissue.
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Of course, the success of this type of policies depends on multiple factors, including macroeconomic stability, legal certainty and regulatory predictability. Without an adequate framework, incentives can lose effectiveness and not translate into the expected benefits. That is why, in addition to the implementation of the rigi, It is key that the country maintains clear and sustainable rules over time, generating confidence both in investors and local workers and entrepreneurs.
In short, the Rigi It represents a commitment to growth based on private investment and economic openness. Its effects are not instant or homogeneous, but they can lay the foundations for sustained development over time. Like any economic policy, its success will depend on the ability to manage its implementation with intelligence and strategic vision. What is clear is that in an increasingly competitive world, attracting investments and generating quality employment must be a priority. As Jack Welch said, “the ability of an organization to quickly learn and convert that learning into action is the definitive competitive advantage.” Applying this philosophy to economic development could be the key to making the most of the opportunities that Rigi and other incentive mechanisms can offer.
CO FOUNDER & COGH HIGH FLOW.
Source: Ambito
