We are living times to read and hear is nonsense and irresponsible statements everyday thing, and one tends to see diluted their sense of wonder.
But some gems they leave one thinking. For example, when the radical deputy says Aguad Oscar in the 2011 budget debates, which "who does not want the government budget is" (when the intentions of the opposition have been known for months, see here) and "These policies represent the model has failed" .
While recognizing the validity of many observations that he can make to the current economic policy (I recommend about this article Carlos Leyba) one wonders on what basis the deputy measured Aguad failure, or what the successful model you have in mind to replace the existing.
Or, to learn some speech at the annual conference of the UIA, as the manager of Federico Ledesma Nicholson when he says "The power of the market to generate wealth and expand freedoms is unmatched" , one is reminded of the global crisis still going on, think about the destructive power of the "market" and is pondering whether we want to again put the dog. Or if this is only a nostalgic event.
In the latter case and as a remedy for homesickness, bring a document that already has a few years and that many people would rather read, perhaps to help jog your memory.
"It is imperative to correct the course"
"It insists on presenting to society the image of a thriving industrial sector, in the process of modernization and expansion, which would only being marginalized, those companies, longing for old times are not adjusted to new rules established by the current plan and seek to live under the shelter of a generous protection than the place apart from foreign competition. There is talk of increasing industrial exports and imports of capital goods-would-joint showing a jump of competitiveness. "
" It further states that most of the "duties" that require the process industry in the region and the world, have already been made, except for labor reform, which did not materialize is passing on to Parliament. "
" The reality is quite different. "
" consumption levels obtained the plan, compared to 1989/90, a horse of a growing and dangerous trade deficit financed by debt and the completion of major state assets, put up a smokescreen to the devastating effects of an open industry-although necessarily can not become what we qualified at the time as "a tightrope without a net experiment and without training", except for those sectors that the government put sheltered from foreign competition. "
" That openness was enhanced by distortion of relative prices, which from the very beginning of the program outright disadvantageous conditions placed on the industry to face aggressive competition from abroad. "
"Under these conditions there was a marked and progressive fall of national manufacturing value added."
"spent the foot" deregulatory "and involved tax reductions in fiscal pact gave him everything they could give, but the problem of relative prices is still there. This, despite the drastic adjustments carried out by companies and certain level of investment growth in some branches, which may not achieve short-term productivity gains to close the competitiveness gap commented. "
"Now that the smoke is dissipating, the reality is emerging:
- A list of industrial lush closed, bankrupt, broken or immersed in laborious and uncertain process in accordance with its creditors.
- Industries heavily indebted, with both the financial sector to the Treasury, and face serious difficulties in sustaining its credit spreads still paying very high real rates.
- Branches entire production that have been invaded by the external supply, as at these prices it is better to import than to produce and invest.
- High rates of unemployment that are fed to a large extent, the industry's layoffs. "
" The issue is particularly critical for the segment of small and medium industries, he has not even been able to benefit in the recent past for its inability to access foreign financial markets, the exceptionally low level of international interest rate. These difficulties are enhanced in the interior by the strong attachment of the industries located there with the agricultural crisis and regional economies, the highest level of interest rates and prices of basic services. "
" The industry, therefore, is being pushed to a dead end. is said-and the truth is that it appears as extremely difficult, there is no possibility of changing the exchange rate. Nor, given the commitments made in the Mercosur-an initiative that must be defended at all coast, may be amended tariffs and rebates from 1 January 1995, and paid the customs union under difficult competitive conditions in relation to regional partners. New tax cuts Fiscal Pact type of financing difficulties faced by the Treasury. "
" Overall, it appears that the country is inhibited, for economic policy and influence key economic variables. "
" So, being on the horizon is only a traumatic alternative, socially unacceptable to the UCR and highly questionable from the standpoint of its effectiveness: a severe recession with the consequent fall in wages throughout the economy. But this fall will occur, anyway, by way of the facts in a context of brutal unemployment, if nothing is done. "
" Rising unemployment to levels not known to our society and an unsustainable trade deficit begin to question no future stability. "
" urge, then, correct course. It should redirect the social and economic process of recovering economic policy instruments in pursuit of a comprehensive rethinking of the ways and times to allow the successful integration of our industry in the region and the international markets. "
" For this to be possible it is necessary to achieve levels of political and social consensus needed as never before now, given the overwhelming weight of the constraints presented by this reality that must be sincere. The market alone will not solve such a serious situation. "
Radical Civic Union - National Committee
Manuel Cywin - Raul R. Alfonsin
(Requested published in ClarÃn, p. 11, Sept. 2, 1994 on the occasion of the Industry Day.)
PS: Actually, the most sensible words Meeting UIA last Thursday I found the consultant's No. 1 foreign policy of President of Brazil, Marco Aurelio Garcia:
"We need an industrial policy of state intervention, not free market."
" The policy has to be different than in the past, with the highest incidence of the education system, and that is awarded by the State. "
" We need a policy of solidarity and intelligence production, because no one can live well if the neighbors do not .
But apparently not welcomed too.
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