
Neuquén For more than half the $ 3,700 million pesos in the budget this year comes mainly from oil royalties. However, the province can not be overcome even with all this money, the problems of social inequality. Bilder Ernesto
Teachers and Adriana Giuliani, faculty researchers at the National University of Comahue, warn against entering a stage of decline of the oil economy and argue that Neuquén urgent convert this model, which is running out as the same hydrocarbon reserves .
analyze this problem and propose some alternatives for sustained development, based on a more equal income distribution.
What is an oil economy and the Neuquen?
is a special type of those who base their economic strategy on the exploitation of natural resources. It's basically rentist and much of its resources come from the "economic rent", or additional amount that is obtained from a source whose supply is limited by natural or artificial. In the case of oil income is abundant, since the difference between the international price and cost of removal is significant. The concept is generally used to reflect on oil-producing countries, but is perfectly applicable also to a province, although there are variables that control how the exchange rate and overall macroeconomic policy.
What distinguishes it from other development models being implemented in the world? We can cite
side to Norway, where oil for excellence that has brought together its top economists and financiers for the income received and not wasted the day when oil runs out, can remain a prosperous country. On the other side is Nigeria, which is a total mess, with a high level of corruption and drag it history of many African Nations. And in the middle are the Arab countries, which between themselves are not homogeneous and all have some particularity with respect to the polity.
Of these three models mentioned, the researchers chose to focus on the "neat Norway," to demystify the idea that when an economy dependent on oil, is inevitably vulnerable and suffer what some authors categorized as a "curse."
Where Neuquén economy would be located?
Leaving aside the cases of Norway and Nigeria that are extreme, in general these economies share certain characteristics with respect to resource management and administration of income they get. For example, a short-term implementation of economic and social policy, lack of transparency in expenditure and budgetary policy, with little interference by enforcement agencies, high transaction costs by the State; powerful interests linked to the fate of spending and the concessions made by the political power, poor development and low competitiveness of the private sectors are not linked to well-exportable, inequitable income distribution, with large pockets of poverty, patronage networks that consolidate the political power of government. We found these features in Neuquén.
The international price of crude has led in recent years an unprecedented surplus. But thinking about the fall of reservations mention what it could do with the surplus now?
The Constitution states that all the extra resources should be applied to something that works for the future. The barometer of this province's oil and in recent years, there was a huge coincidence favorable. The large devaluation, together with the rise in international oil prices, catapulted the resources of the province as never before.
However, the Neuquén government itself takes the depletion of hydrocarbon reserves in recognizing the need the restructuring of production through various projects that have been presented, especially in pre-election stage. The issue is that this argument justified the provincial debt in 2006 through the issuance of debentures by $ 250 million.
And you, what you think of this proposed conversion?
We realized the need for a serious project conversion, indicating a specific project to where it will target extra resources. This province is economically ill-conceived, which is mounted weak. The irrigation canal could propose to extend the agricultural frontier and is an option possible. But then you have to think of a democratic conception of land distribution. The projected racetracks or the ministry center hardly contribute to the conversion.
The presentation of programs that promise to change the productive matrix has been a constant in the various internal lines of the popular movement of Neuquén, in 45 years in office. But the reality is that never were implemented and currently more than half of economic activities depend on the extractive sector.
What are the proposals that you make a serious project to address the restructuring of production?
believe that the intervention the state is essential to enable sustainable development and to avoid unequal distribution of income. It is exploiting the natural resources available considering strategic assets for economic development in the country. In this sense, it is necessary to review in coordination with the National Energy Policy, in force since the early nineties, which allows multinational corporations to appropriate and send abroad the greater share of oil revenues. In parallel, design a project that includes some basic assumptions. Among others, we mention the following:
- Overcoming the dependency on external funding.
- Promote a productive profile to strengthen social justice in the sense of moving towards a more equitable income distribution.
- The state's administrative apparatus must be engaged and trained for the new strategy.
- Encourage activities that generate added value, and possibly exportables, ie, they can go outside the region.
- For support of this model of development or to operate any plan, it must promote a new system of dialogue and coexistence with the social partners.
Could also consider creating a fund to deal with counter-cyclical when reserves are exhausted hidrocarburíficas? Norway
countercyclical fund has a surplus consisting of oil obtained. This would be a viable and desirable alternative. And is entering a period of decline of the oil economy in Neuquén. It is a warning and therefore it is urgent to convert this model is low, as the same reservations of our "black gold."
Contact: Ernesto
Bilder: eabilder@uncoma.edu.ar
Adriana Giuliani: agiulian@uncoma.edu.ar
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