The 8 pillars of the National Productive Plan

  • News
  • Oct 5

Las week, the Minister of Production Francisco Cabrera, and the Minister of Labor, Jorge Triaca, presented at the Argentine Industrial Union the guidelines of the National Productive Plan, with the purpose of creating more and better employment for Argentines.

By means of plans from different ministries, which impact on production and employment, such as Education and Science and Technology, the purpose of the initiative is to get the most of capital, work and suppliers, to increase production and make Argentina a more competitive country thanks to the increase in exports and investments.

Cabrera said: "Competitiveness and productivity are the responsibility of the National State. We have the tools to improve and solve these problems. We work with Argentine businessmen for them to be able to grow and to reach together a productive federal transformation. We will not let go of anyone. We are a government that listens. We want to be close to everyone. We are open to proposals, ideas, because we improve our country together".

The 8 pillars of the National Productive Plan

• Capital cost reduction. Argentina is on the verge of a true evolution that began with the exit from the clamp (cepo) and the settlement of the holdouts’ litigation: obtaining the lowest financial cost in history for the Argentine families and SMEs.
• Improving human capital and labor productivity, strengthening the training system for work, promoting the first job and labor formalization, and reducing the costs of absenteeism and labor litigation.
• Infrastructure and energy plan. The most ambitious in history, to reduce the logistics costs and ensure energy supply for Argentine companies, and in particular, for SMEs.
• Innovation and technology plan. Take the investment in R+D to 1.5% of the GDP, increasing private investment in particular and taking the scientific investigation to production, to create more and better jobs.
• Equity and tax efficiency. Tax sustainability, fight against evasion and promotion of a federal tax reform in order to facilitate growth, increase formalization and productive investment.
• Antitrust and market transparency. To favor the entry of new companies, a reduction in the cost of supplies, encouragement to investment and protection of consumer rights.
• Smart integration to the world. More exports through the opening of new international markets and the promotion of argentine goods and services worldwide, and attraction of new productive investments.
• Administrative facilitation and de-bureaucratization. To eliminate barriers to entrepreneurism, to the creation of new formal companies, and to reduce the costs of interaction with the State.

As explained by the daily, for the Infrastructure and Energy axis, for instance, the National Plan for Transport and Logistics Improvement is already implemented, the goals of which are to increase the transport capacity of loads from 435 million tons to 600 million; treble the weight of rail transport and rehabilitate 6000 km of rails; multiply six fold the weight of river-maritime transport or double the number of passengers in air transport. The Transport plan expects to make 2800 km of new roads. To that end, investments for US$ 26,000 million will be sought until 2019.

In that same sense, it is worth mentioning the Drinking Water Plan. Its purpose is the access to water through network of 100% of the urban population (today in 87%) and the incorporation of 8.2 million new users. In addition, it will be sought that 8.9 million more persons have access to sewers in three years. As to the Energy, the ministry headed by Juan José Aranguren will seek with the National Energy Plan "to promote investments in the energetic infrastructure," a rise of 22,500 MW of power to 2025 "with renewables responsible for the 20%" and an investment in the nuclear sector until reaching 10% of the total generation.

As regards the axis of Innovation and Technology, the National Plan of Innovation is promoted, with which it is intended to invest on R+D at 1.5% of the GDP, equilibrate public and private investment, and foster the hiring of staff with masters and PhDs in the companies.

On the other hand, on the Capital Cost Reduction axis, the daily referred to the National Financing Plan, in charge of Alfonso Prat-Gay, Luis Caputo y Federico Sturzenegger, with the rules and regulatory changes (already in process) and with the birth of the UVI. Moreover, there is the National Plan of Productive Financing, in charge of Pablo García (BICE) and Francisco Cabrera, that mentions projects such as the extended guarantees, productive scoring, SME banking and financial inclusion. Caputo will be in charge of the Development Plan of Capital Markets. The "vision" is: "to boost the creation of employment with the reduction of the financial cost."

The Mobile Communications and Connectivity Service Plan therefore promotes convergence, new virtual operations taking up 10%-15% of the market, greater speed and service quality ("abandonment of 2G for 4G"), the lowering of the communication and connectivity cost to companies, and the development of the apps industry.

The longed-for tax reform is soon to come, regarding national and federal taxes, that will seek to "eliminate distortive taxes." This last goal shall end up “easing the production of regional economies and the movement of production between provinces." In addition, there will be a review of the tax burden, “generating incentives for increasing the size of the companies and fostering enterprise growth."

The intention is to rank the country among the top 50 for Doing Business thanks to the laws of standards simplification for SMEs, access to credit and fostering of investments. The Government shall also seek to expand commercial agreements, with the EU, the U.S.A., Canada, Japan and South Korea “to double the number of treaties.”