By World Bank
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Extra info for Argentina: from insolvency to growth
At the national level, expenditure compression in the 1980s reduced the already-low productivity of public expenditures. While recent employment reductions and privatizations have relieved the compression, only better management and resource allocation across programs can realize potential productivity gains. 12. At the provincial level, spending is nearly twice the noninterest expenditure of the national administration. 1 Most provinces, long accustomed to a share of the inflation tax, are only now beginning the adjustment that the Federal Government started three years ago.
54. Moreover, the annual system deficit could turn out to be US$1-$2 billion higher than the Government's present projections, depending on several possible adverse developments during the passage of the law and the transition-phase implementation: unfinanced pension increases, slow progress in controlling evasion (and therefore a slower decline of the dependency ratio), and overly generous treatment of workers during the transition with insufficient years of contribution, who might otherwise have to delay retirement until age 70.
Fourth, the facilities operated by the armed forces need to be consolidated and relocated to areas from which they can most effectively defend Argentine territory. On the other hand, wages do not appear to be a problemmilitary pay is significantly higher than civilian pay, and on a par with other countries when compared to mean incomes at similar grades and length of service. 39. The reform strategy the Government has begun to implement the rationalization of the entire military sector. This includes defense-industry privatization, personnel retrenchment, and facilities consolidation.
Argentina: from insolvency to growth by World Bank