Federal Capital (Paco Urondo Agency, Buenos Aires Economico published 24/09/2010)
One of the first characteristics, and perhaps one of the most important, which should provide a national model popular is a process of industrialization. In fact, the industry has two advantages over the primary sector. On the one hand, creates added value and therefore work. In this sense, there is social inclusion project without an expansion of the domestic manufacturing sector. Even small and medium industry is more labor intensive than big business. The large company, if you want to increase production, is likely to resort to incorporation of capital because they have the resources or to acquire or have access to financial resources to make. In contrast, small and medium enterprises, in the absence of sufficient resources or access to cheap financing, used to increase its workforce at the time to increase their production level. Therefore, the re-industrialization process based on the increase of small and medium enterprises can reduce the unemployment rate and thus reduce poverty, homelessness and social exclusion. And not only that incorporates the agricultural sector less labor forces that industry, but also currently the feature of primary sector was accentuated in Argentina. The soybean production and automation generates field incorporates the agricultural sector increasingly fewer workers. On the other hand, in the manufacturing sector produces the greatest amount of technological advances. Since the industrial revolution with the advent of steam power, technological change is generated in the manufacturing sector. Mounting Tape, Taylorism, Toyota are examples of technological advances that were introduced in the industry throughout history. Therefore, the developed countries achieved strong growth in its industrial sector is technologically advanced nations. In contrast, countries engaged in primary production are technologically dependent on core countries. In short, building a national and popular economic model requires in principle the expansion of the industrial sector that will lead to greater social inclusion due to increased employment generation and greater technological independence from us in developed countries. In this sense, for the industrialization of the economy requires a macroeconomic framework that allows the profitability of the manufacturing sector is greater than the cost of the primary sector. In other words, you must apply different economic policies that generate increased profit and industries to this how much of the economic surplus is invested in industrial activity. For example, in the agro-export model (1880-1930) consolidated a macroeconomic framework from the creation of large estates, economic liberalism, the disciplining of the gaucho as labor and encouraging direct foreign investment in sectors such as railways, which allowed the primary sector more profitable than manufacturing. In this context, the surplus generated by Argentina's economy was turning mostly to primary production, thereby obstructing any attempt to industrialization of the national economy. In contrast, from 1930, with the worldwide Great Depression in 1932 with the Pinedo Plan, then the assumption of Peron and five-year plans, there was a change in the macroeconomic framework used to increase the profitability of the industry and starting in Argentina of a industrialization process of consolidating a new economic model called as import substitution industrialization (ISI). The American case in the nineteenth century is paradigmatic in this regard. While the South based on the estates and slave labor was devoted to cotton production for export to England, Northern began developing the manufacturing sector textiles. The North needed the South exported cotton, which led to the Civil War between the industrial north and the south slave cotton. The Northern victory allowed the consolidation of a macroeconomic framework from land reform and destruction of large estates at the same time forcing the South to supply cotton to the industrial north, leading to the industry's profitability is greater than the the primary sector. From this point, the American industrialization process did not stop ever. However, not every process of industrialization is popular. In this sense, who is funding the expansion of the manufacturing sector is key. Indeed, growth industry can be financed by the working class from lower wages. In other words, low wages for workers implies lower costs for industry could be achieved increased profitability in the manufacturing sector but funded by employees. In this case, the process of industrialization of the economy is far from being a popular phenomenon. For this it is important to understand the unbalanced production structure of Argentina's economy. The national economy has two distinct sectors. On the one hand, the agricultural sector, which has strong competitiveness because of the fertility of the pampa, ie by natural questions. In this regard, the agricultural sector is clearly exporter (exports more than it imports) and thus generating foreign currency for the national economy. However, it is a sector which, as we said, does not generate jobs. On the other hand, the manufacturing sector is not competitive as a result of Argentina's economic history, because the industry is not competitive naturally but must be done through different competitive economic policies that lead to the construction of a macroeconomic framework that to increase the profitability of the manufacturing sector. For these characteristics the Argentine industrial sector is clearly importer (ie, imports more than it exports) and therefore applicant currency. But on the other hand, as noted above, is a sector that absorbs a large amount of labor. Therefore, the key to be popular is to achieve industrialization process funded by the primary sector (pampas) that is competitive and with a high rate of return. In this way, would achieve an expansion of the manufacturing sector while high wages for workers. The best example in this regard was the industrialization process verified during Peron's government (1946-1955). One of the most important institutions created by Peron was the Argentine Institute for the Promotion Exchange (IAPI) that monopolized grain marketing. Thus, part of agricultural income was absorbed by the State using it to promote the industrial sector. As the industrialization process was funded by the highly competitive sector of Argentina's economy was able to build a macroeconomic framework that would translate into an increase in the relative profitability of the industry allowing most of the economic surplus turned to the manufacturing activity while improving the standard of living of the working class with ever higher wages. In this sense, the economic model of Perón was national (to get the largest rate of industrialization in Argentina) and popular (the not be financed by the working class). In this sense, is fundamental to national economic model and advocate for the most popular political organization and participation of the working class to lead and guide the process to offset the economic and political interests of dominant sectors (industrial and large landowners). From the assumption of Nestor Kirchner in 2003 resumed the construction of a national economic model and popular. First, from a series of economic policies (for example, devaluation of national currency, the subsidy policy and certain microeconomic policies) was rebuilt a macroeconomic framework that would again increase the profitability of the manufacturing sector, which resulted in the process of re-industrialization of Argentina's economy and reducing unemployment which allowed the rise of social inclusion. But besides this process of re-industrialization is not funded by the working class but rather, as a result of retention, is funded largely by the agricultural sector. In fact, with the deductions, for example, developed the policy of subsidies to reduce costs to industry. Therefore, while it verifies a process of expansion of the industry increases the participation of employees in the product, demonstrating that the process industrial redevelopment is being financed by the working class. This forces a growing organization and unity of the popular sectors to defend and strengthen the national economy and popular model that has been experiencing since 2003 until today.
The author is an economist of the Study Group of National Economy and Popular (GEENaP).
www.geenap.com.ar (Paco Agency Urondo)
www.geenap.com.ar (Paco Agency Urondo)
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