The tragedy of Bahía Blanca exposes the importance of infrastructure, both for the safety of people and for the competitiveness of the economy. It is very likely that over time the debate about the need to carry carried out important public works projects to diminish the effects of natural catastrophes, as well as to reduce the costs of producing in the country.
A report of the Mediterranean Foundation warns that Argentina is poor investment. “To promote its competitiveness and achieve sustained economic growth, It needs to significantly increase its investment rate, both private and public, until reaching 25% of GDP In the coming years, ”says the entity in a report.
At work it is proposed that In 2024 “the total investment stood at 16% of GDP (first nine months of the year), so there is much to improve ”.
The entity with headquarters in Cordova maintains that “in the case of the Public investment, being one of the items most affected by the cuts, fell to 1.3% of GDP in 2024, after being 2.6% in 2022 and 2023 ”.
“In the year of Pandemia (2020) it had fallen to 1.8% of GDP, and on average it was 2.4% of GDP between 2015 and 2024. The largest drop in 2024 was observed in national public investment (from 0.8% to 0.3% of GDP), While the provincial was reduced from 1.4% to 0.8%, almost completely explained by the lower transfers of nation capital to provinces, ”says the work.
The report also details that “Capital transfers from provinces to municipalities went from 0.3% to 0.2% of GDP between 2023 and 2024”.
Public investment or private investment?
To the extent that he leaves solving inflation, and while the government persists in the back of the backward exchange rate, then the debate of the “Systemic competitiveness” The economy will charge flight.
From the Executive it is proposed that it is not necessary to devalue to achieve the goal; It is indicated that taxes must be lowered, and for this, public spending must be reduced. But The “chainsaw” has a limit from which it conspires with the aim of reducing costs of producing without touching the dollar.
The Mediterranean report then highlights that “Either with public funds or with a public-private participation scheme (PPP), it will be necessary to increase infrastructure investment in 2025 and subsequent years to indirectly increase the productivity of the private sector, and with it, its international competitiveness ”.
“Argentina must improve the quality of its infrastructure, since in 2024 it was in 56th position in the infrastructure ranking that integrates the world competitiveness index provided by the International Institute for Management Development (IMD), behind Latin American countries such as Chile and Colombia, although ahead of Brazil, Mexico and Peru, ”says the study.
Little credit to the PPP system
The system of Private Public Participation (PPP) was trying to implement during the Mauricio Macri government To make roads, routes and electric lines. Failed by high inflation. Companies have to go on international market to seek financing and for this They have to pay huge amounts in guarantees and interest rates which makes the business unfeasible.
The Mediterranean Foundation considers that “although PPP schemes represent an attractive way to boost infrastructure investment, Its implementation in Argentina faces significant obstacles. ”
“As demonstrated in the failed tender of the hydrovy of the Paraná and Paraguay rivers, The complexity of the regulatory framework and the limited institutional capacity of the State to design, tender and supervise PPP projects pose considerable challenges, ”says the entity.
The report adds that “Without a comprehensive strategy that addresses these challenges, the potential of PPP to boost the development of infrastructure in Argentina could be compromised. ”
Complaints of the governors for the state of the routes
The state of the routes has a place of privilege among the main concerns of the governors. Last week the head of the Pampa Executive, Sergio Zilotto, denounced that almost half of the arteries administered by Nation in the province are on the verge of collapsewhile demanding the transfer of 600 kilometers of trace to be handled by local management.
On the other hand, Santa Fe, a year ago launched the productive roads program in the town of Dos Rosas and La Legua. The first stage of Productive roads implies an investment of $ 2 billion in 62 kilometers of work, including Provincial Route 22 that unites Eusebia, Bicha and Tacural neighborhood of the Castilian department with Colonia Bossi and two roses and La Legua, of the San Cristóbal department.
Source: Ambito
