Latin America Argentina is committed to agriculture and Peru to mining to rebound their economies
The continent and the world face the slowdown of their economies that, according to experts, began with the subprime crisis of the 2006 and was evident in the financial economic crisis that affects the world from the 2008 until now.
Latin America has suffered the effects of this global economic crisis with different emphasis according to local economic realities. This is the case of Argentina, in which the political conduction of the State is added as a fundamental element to explain the vagaries of its economy. The strategic development decisions implemented in these years have been more due to the interests of power groups than to national interests in a development perspective. On the other hand, in the case of Peru, there has been greater strategic coherence between one political administration and another.
Peru and mining
In order to reactivate the economies, the countries opt for a certain productive sector as the protagonist in their development strategy. In the case of Peru, it seeks to take advantage of the most optimistic environment in the commodity market to sustain its projections of economic growth based on the mining and energy sectors. In this direction, the Peruvian authority has proposed a promotion and development strategy, whose objectives are to promote exploration, make projects viable in the portfolio and guarantee the continuity of current operations. A simplification of the administrative scope is contemplated with the modification of the mining exploration regulation.
In this context, the award of three new projects that are in the portfolio is registered. The first is the Michiquillay project, whose estimated resources exceed 1000 million metric tons, with an investment that reaches USD 2000 million. The mining projects Jalaoca and Colca are also in the portfolio.
"There is no doubt that mining continues to be the engine of the Peruvian economy and therefore the State should promote a legal framework friendly to the investor, who must submit the corresponding environmental impact studies and develop an adequate communication with the communities, to avoid obstacles that paralyze the projects", Says the Peruvian government authority.
Argentina, on the other hand, prioritizes agriculture
In the context of the inauguration of the exhibition organized by the Sociedad Rural Argentina, SRA, for the past 131 years, President Mauricio Macri installed the phrase that summarizes the strategic will of his government: "When the field grows, Argentina grows"He said to those present.
It had been years since the first authority of the nation was present in the exhibition of the SRA, because the previous governments put the emphasis on enhancing industrial activity, at the expense of agricultural and livestock, as protagonists of the Argentine economy. On the occasion, Luis Miguel Etchevehere, who heads the SRA, previously recognized that the government of President Macri had had the will to value the importance of the field and agricultural activity in the national economy.
Macri promised a new tax reduction and the realization of a set of public works to benefit the sector: "I can not ask you to produce with technology of the XXI Century, on a 19th century infrastructure"He told the attendees and explained that more than 1,000 miles of roads and highways will be built over 20.
The choice for agriculture is made and begins to be implemented quickly to reactivate the Argentine economy. The policy of devaluation of the peso and the elimination of withholdings on exports is already a beneficial factor for the agro-export sector, which is responsible for a non-negligible volume of 137 million tons in the last harvest season, 12 million more than in the previous period.
Source: Martín Carrillo O. - Blueberries Consulting
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