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Argentina

Argentina. * Population (2010) : 40,091,359 * Ethnic groups : 86,4% European 8,5% Mestizo 3,3% Arab 1,6% Amerindian 0,4% Asian & others. *23 Provinces *Buenos Aires as autonomous city.

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Argentina

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  1. Argentina * Population (2010) : 40,091,359 * Ethnicgroups : 86,4% European 8,5% Mestizo 3,3% Arab 1,6% Amerindian 0,4% Asian & others

  2. *23 Provinces *Buenos Aires as autonomouscity

  3. Thecityandtheprovinceshavetheirownconstitutions, but existunder a federal system • Theadministrativedivisions of theprovincesare • departments • municipalities • Exceptfor Buenos Aires province, which is dividedintopartidos • Thecity of Buenos Aires is dividedintocommunes

  4. Origins of ArgentineFederalism • causes of nationalunification • decisiontoadopt a federal regime • degree of centralization Eachdimension has itsowncauses (Articleby E. L. Gibson & T. G. Falleti)

  5. Union of separatesovereignorsemisovereignprovinceswasdrivenbymutualeconomicneeds, but thesebythemselvesdid not determine a federal outcome • Thechoice of a federal regimewasdeterminedbyinability of onepowerfulregiontoimposeitsdominionovertheothersthrough a unitaryproject. Federalismemergedonlyafterdecades of failedconstitutionalprojects, intermittentsecessionistchallengesandcontinuousmilitaryconflict. • Theemergence of a centralizedfederalismwastheoutcome of regionalconflicts in whichvictoriouselitesfrompoorprovincessought a strongandautonomouscentralgovernmetthatwouldpreventoneprovince’sdominionovertheothers in theunion.

  6. History of Argentina • Colonialera in 16. century • Declaredindependence in 1816 • ConservativeelitesdominatedArgentinapoliticsthroughnominallydemocraticmeansuntil 1912 • Thecountry’sfirstfreeelectionwasconducted in 1916, but thepresidentwasoverthrownby a coup in 1930

  7. Peronism • In 1946, General Juan Peron waselected as president • He created a populistmovementcalled “Peronism” • His wifeEvaplayed a centralpolitical role until her death in 1952 • Eve Peron Foundation • FemalePeronistParty • Women’ssuffrage in 1947

  8. DuringPeron’stenure • Wagesandworkingconditionsimproved • Unionizationwasfostered • Strategicindustriesandserviceswerenationalized • However, stablepricesandexchangeratesaredisrupted • Foreignpolicybecamemoreisolationist • Censorshipandrepressionwereintensified • Coup in 1955 : He fledintoexile

  9. In 1958 elections, Frondizicameintooffice • However, militaryinterferedbehalf of conservatismandagrarianinterest, forcedhimtoresign in 1962 • In 1963, IlliawaselectedandtriedtoincludePeroniststopolitical life • So, armedforcesretookpower in 1966, coup • New repressiveregimecaused Peron tocallbackbystudetandlaborprotests • Freeelectionsweredemandedand Peron cametopower in 1973

  10. Peron died in 1974 andlefttheofficeto his thirdwifeIsabel Peron, thevicepresident • Conflictbetweenleft – rightextremist, ledtomayhemandfinancialchaos • Coupd’etat in 1976, whichremoved her fromtheoffice

  11. Thisnewdictatorshipbrought • somestability • numerouspublicworks at first • But then, • deregulation of financeledtosharpfall in livingstandards • recordedforeigndept • deinstrialization • peso collepsed • corruption • finally in 1982 defeatbytheBritish in theFalklandsWar • Discreditedthemilitaryregimeandledtofreeelections in 1983

  12. Ever since, therewereseveralcoupattemps in Argentina, but theyfailed • In 1987 againstPresidentAlfonsin • In 1988 againstPresidentAlfonsin, twotimes • In 1993 againstPresidentMenem • Because of economicproblemsandcorruption

  13. Power sharing between the centre and the regions Federalism in Argentina

  14. Republic is divided into provinces, municipalities and the Autonomous City of Buenos Aires → right to have its own constitution, has to respect the federal one (section 5) • 23 provinces • Federal government can intervene in the provinces in order to maintain peace.... (section 6)

  15. The Congress • Bicameral legislative branch: Congress (Senado de la Nacion) and Chamber of Deputies (Cámara de Diputados de la Nación) • Both houses can introduce bills → send to the other House for debate → has to be accepted by the President • It can lever indirect takes in concurrence to the provinces • → an agreement-law regulates the partition of these taxes → “priority to the achievement of a similar degree of development, of living standards and equal opportunities throughout the national territory” • Direct taxes for a specified term throughout the territory

  16. The Senate • Senators elected directly by the population (American model) • in the Congress 3 elected Senators from every region plus 3 from Buenos Aires City (section 54) • Vice-President also the President of the Senate → belongs to the Legislative (section 57) • Has to give consent if there is the wish to form new provinces out of the already existing provinces • The agreement-law has to be originate here → responsible for laws that concern the equality bewteen the provinces • Executive members are appointed with the its consent

  17. Judiciary • Supreme Court and other national courts have the exclusive jurisdiction for all cases concerning one or more provinces • Federal judges aren't allowed to be provincial judges (section 34)

  18. Provinces • Have all the powers that aren't delegated to the federation by the constitution • Can choose their own form of governance according to the national constitution

  19. Argentina • Rich natural resources • Highlyliteratepopulation • Diversifiedindustry • Export-orientedagriculture • Seriouseconomiccrisis in thelate 19th century Historically, the Federal governmentwastheoneresponsibleforinternationaltradeandsub-nationalgovernmentsforlocaltaxes, however a shift in control of taxes on behalf of federal government has beenseenrecentlymainlywithCo-ParticipationLaw.

  20. MAIN CHARACTERSTICS OF FISCAL FEDERALISM IN ARGENTINA • The most decentralized state in Latin America • Approx. half of total public spending at local level • Doubles institutional and political autonomy The problem: Sub-nationalgovernmentsblamedto be responsiblefordeficits. • Centralized tax collection • Redistribution of the tax revenue through intergovernmental transfers, causing a high vertical imbalance • The Commonwealth is responsiblefordistributing 56.66% of itsrevenuestoprovincesandretaining 42.44%. The rest is reservedfortheNationalTreasury. • Gap between the revenus andexpenditures of thesub-nationalgovernments Expenditures: 63% of allgovernmentexpenditures Revenues: 37.93% of allgovernmentrevenues equalledbytransfers • The fourrichestprovinces(Buenos Aires Province, Buenos Aires City, CordobaandSantaFe) arerecieving 40% of alltransferswhiletheeightpoorestrecievingapproximately 25%

  21. Tax-SharingandIntergovernmentalTransfers Regulatedwith • Co-participationLaws • Distribution of resourcesbetweenthenationandprovinces • Solvingtheconflictsbetweenprovincesandmunicipalities • Transfer Service Laws • Financingeducationalservices

  22. PROBLEMS • A “Labyrinth” ? - Complexity • Inefficiency • VerticalFiscalImbalance • Irresponsiblesub-national gov.s, as if no hard-budgetconstraint, duetolack of incentives, not enoughefforttocollecttaxeslocally • Bail-out problem, higherlevels of localgovernmentsbailsoutthelowerlevels – Moral Hazard • Lack of FinancialControl • Sub-national gov.s werefreetoborrowinternationallyuntil 1994, mighthaveresulted in instability, nowtheyneedtoget an approvalfromthenational gov. • UnfairRedistributiveOutcomes

  23. References • http://www.isr.umich.edu/cps/pewpa/archive/archive_99/19990003.pdf • http://aysps.gsu.edu/econ/files/ECON_TaylorGregory_Argentina_summer07.pdf • http://dss.ucsd.edu/~ssaiegh/Economia.pdf

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