September 23, 2020

Argentina prepares “economic reconstruction” with focus on the poorest

After two years of economic recession, Argentina fears that the crisis due to the coronavirus pandemic will hit the poorest sectors, for which the Government is preparing a plan to help and “rebuild” a society with a poverty rate of 35.6 %.

“What is coming is an economic reconstruction, with effort, with a task, but with the support of the State and with an incentive for the growth of the private sector,” Social Development Minister Daniel Arroyo said on Friday during a visit to Farmacorp laboratories. , a company recovered by its workers after the bankruptcy during the previous management.

Arroyo stressed that this process will be based on three axes: “the reconstruction of work, with non-bank loans” at a rate of 3% per year, the approval of “a universal basic income” and the urbanization and access to basic services in the nearly 4,000 “popular neighborhoods”, known as slums, that the country has.


“Popular neighborhoods means where there is overcrowding, many people in little space, where there is a lack of water, basic services. A part of Argentina lives more similar to the 19th century than to the 21st. Urbanize the 4,000 villas,” he added.

A report by the United Nations (UN) published this week warned that, due to the pandemic, the general poverty rate could reach 40% at the end of the year, with a special impact on child poverty, which could reach to 58.6%, and in the extreme poverty rate.

In this sense, the minister stated that since the virus came to the country “it is evident that poverty has increased and it is evident that it has increased inequality”, which affects more “boys and young people and especially girls and young women” .

The intention of the ministry is to attack the problem of inequality from the beginning of the school stage, since “the primary school has 98% schooling in Argentina, but many already arrive with a significant level of inequality”, and to alleviate this Situation will seek to “universalize the income of children” in kindergartens for a stage of 3 to 5 years.


During the quarantine, the number of people in the country that received some type of food aid went from 8 million to 11 million, and while the confinement remains, at least in the most affected areas such as the capital and the province of Buenos Aires, they will spread social aid, which according to data from the Ministry represents 3% of GDP, such as Emergency Family Income, an aid of 10,000 pesos (about $ 137) to the neediest families.

In the areas where the quarantine has been relaxed, and has even given way to a phase of “social distancing”, which is the majority of the country’s provinces, they have started plans to promote work.

“85% of Argentina has gone back to normal, there we implemented the plan ’empower work’ with each of the provinces of Argentina with a fund for machines, tools, supplies and capital goods to rebuild work in the construction, in food production, in textiles, in the care economy and in recycling, “he stressed.

At the budget level, he affirmed that the Ministry is “over-executed” due to a decision by President Alberto Fernández despite the fact that he could not approve a new budget and they are working on the 2019 budget, developed during the administration of former President Mauricio Macri (2015-2019).

“Today the ministry is over-executed, there has been a decision by President Alberto Fernández to pour resources into the central areas: health, productive development and social development,” he concluded.

Since workers recovered the two plants that Farmacop has in the city last year, production has been based on personal hygiene products such as alcohol gel, and now they will be able to add 150 brands of medicines with the three quality control machines. financed by the Ministry of Social Development under the Recuperar program.


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