In the wake of the crisis: Argentina's new economic and labour policy directions and their impact

144 Pages·2007·0.43 MB·English

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The two papers in this volume provide in-depth information on, and analysis of, b
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the policy shifts in Argentina in the wake of the 2001 economic crisis and their l
impact. The first paper, by Marta Novick and Carlos Tomada, discusses the d
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adaptation of the development model as a whole, and the attempt to integrate a
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economic and social goals in general, and decent work in particular, within a i
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Argentina’s new economic
the contributions in this book, public policy in Argentina since 2003 was w
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inspired by the concept of decent work. Indeed, Argentina was the first Latin n and labour policy directions
American country to make decent work an objective of its labour legislation and s
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This book presents an invaluable experience, both of the impact that globali- g
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society which was seen to possess a relatively developed welfare state, and of a s:
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remarkable national response to the challenges of globalization. This publication, s
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whose authors include both independent academics and key policy actors, pro- c Marta Novick, Carlos Tomada, Mario Damill,
vides valuable insights into the options, the strategies adopted and their results. he Roberto Frenkel and Roxana Maurizio
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Research Series 114
Price: 20 Swiss francs I
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In the wake of the crisis:
Argentina’s new economic and labour policy directions
and their impact

International Institute for Labour Studies
In the wake of the crisis:
Argentina’s new economic
and labour policy directions
and their impact
Marta Novick, Carlos Tomada, Mario Damill,
Roberto Frenkel and Roxana Maurizio
Introduction by Juan Somavia
Research Series 114
Research Series
The aim of the Research Series of the International Institute for Labour Studies is to publish
monographs reflecting the results and findings of research projects carried out by the Institute
and its networks. The Series will also occasionally include outside contributions. The monographs
will be published in moderately priced limited offset editions. The Institute thus hopes to main-
tain a regular flow of high quality documents related to its areas of continuing interest.
Copyright © International Labour Organization
(International Institute for Labour Studies) 2007.
Short excerpts from this publication may be reproduced without authorization, on condition that
the source is indicated. For rights of reproduction or translation, applications should be made to
the International Institute for Labour Studies, P.O. Box 6, CH-1211 Geneva 22 (Switzerland).
ISBN 978-92-9014-850-0 (print)
ISBN 978-92-9014-851-7 (web pdf)
First published 2007
The responsibility for opinions expressed in signed articles, studies and other contributions of this
volume rests solely with their authors, and their publication does not constitute an endorsement
by the International Institute for Labour Studies of the opinions expressed.
Copies can be ordered from:ILOPublications, International Labour Office, CH-1211 Geneva
22, Switzerland.
For on-line orders, see www.ilo.org/publns
Photocomposed in Switzerland BRI
Printed by the International Labour Office, Geneva, Switzerland
iv
Contents
Preface by Gerry Rodgers . . . . . . . . . . . . . . . . . . . . . . . vii
Introduction by Juan Somavia . . . . . . . . . . . . . . . . . . . . ix
Argentina 2003-2006: Economic growth with decent work
A new model for Latin America?
by Marta Novick and Carlos Tomada . . . . . . . . . . . . . . 1
Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
The European debate and its relevance for Latin America . . . . . . 6
The Argentine experience prior to 2003 . . . . . . . . . . . . . . . 13
Macro-economic policy and the role of labour . . . . . . . . . . . . 18
Labour policies: objectives and strategies . . . . . . . . . . . . . . 26
The agenda of unresolved issues . . . . . . . . . . . . . . . . . . . 39
Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Macroeconomic policy changes in Argentina at the turn
of the century
by Mario Damill, Roberto Frenkel and Roxana Maurizio . . . . 51
Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
1. The convertibility regime and the Argentine economy
in the nineties . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
2. The labour market in the nineties . . . . . . . . . . . . . . . . . 69
3. The post-convertibility macroeconomic regime and performance 74
4. The evolution of employment and unemployment
in the recovery phase . . . . . . . . . . . . . . . . . . . . . . . 105
Bibliography and references . . . . . . . . . . . . . . . . . . . . . 127
v

Preface
This monograph has its origins in two distinct activities of the
International Institute for Labour Studies.
The first was a review of the impact of the World Commission on
the Social Dimension of Globalization, three years after its report was
published. For that purpose, it was decided to examine the experiences
of certain countries that have developed new policy approaches which
pursue some of the recommendations and goals of the World Commis-
sion. Roberto Frenkel and his colleagues at the Centro de Estudios de
Estado y Sociedad, Buenos Aires, agreed to prepare a paper examining in
depth the changes in macroeconomic policy in Argentina in recent years,
following the deep crisis of 2001-02, and their consequences.1
The second was a plenary presentation by Marta Novick, at the
IILS Research Conference in Geneva on December 1, 2006, which
explored the extent to which the recent policy developments in Argentina
constituted a new economic and social model. In collaboration with
Carlos Tomada, Minister of Labour, she has expanded that earlier pres-
entation into a fuller analysis of how decent employment was made an
integral part of the overall strategy for growth and development.
The two papers, while initially independent of each other, provide
complementary perspectives on recent policy developments in Argentina,
and we have combined them in a single monograph, along with an intro-
duction by Juan Somavia, Director-General of the ILO.
1 The review of the World Commission’s work has been circulated as IILS Discussion Paper number175
under the title “The quest for a fair globalization three years on: Assessing the impact of the World Com-
mission on the Social Dimension of Globalization” by Hamish Jenkins, Eddy Lee and Gerry Rodgers.
vii
In the wake of the crisis: Argentina’s new economic and labour policy directions
The Argentinean experience is of course unique, but then so is every
country’s experience. And the policy innovations in Argentina have been
striking both in their scope and their impact. There are no doubt inter-
esting lessons here for other countries to draw.
Gerry Rodgers
Director
International Institute for Labour Studies
Geneva
August 2007
viii
Introduction
Juan Somavia
The International Labour Organization (ILO) has been concerned
with the social consequences of economic processes since its inception. It
was created as part of the Treaty of Versailles, which in 1919 marked the
end of the First World War, in the spirit that universal and lasting peace
could only be achieved on the basis of social justice or, in other words, a
decent life for people. Trade competition between the main developed
countries, which intensified during the first era of globalization of the
world economy at the end of the 19th century, along with deep class
divides, had left workers mired in a state of exploitation and deprivation
which was both morally unacceptable and politically unsustainable. At
that time, an undercurrent brought to the surface what was later to be
called the “social question”. Thus was born the ILO.
Nevertheless, the world had to endure the great Depression of the
1930s and another world war before entering an era of economic progress
and social advance. The ILO’s pioneering work began to bear fruit and
the strength of its labour standards made a considerable contribution to
a constantly improving quality of life for much of the developed world
for some decades. Meanwhile, another important part of the world was
hoping to embark on this new path. In the mid-seventies, the oil crisis,
and then the debt crisis of the eighties, ushered in a new era in the world
economy which put a brake on the economic growth which had seemed
inexhaustible and gave way to a process of global adjustment.
A second wave of globalization then began, accompanied by a range
of structural adjustment policies. These policies were intended, on the
one hand, to give a target for flows of capital and goods from the devel-
ix