In a move signaling a shift in economic policy, the libertarian governance of Javier Milei has ordered the termination of Argentina’s National Program for the Development of Industrial Parks. This program, initially established in 2010 under Cristina Fernández de Kirchner and later reinforced in 2020 by Alberto Fernández, aimed to stimulate industrial growth through targeted incentives and support.
The decision,announced through Decree 70/23,effectively repeals Law No. 21,608, which laid the groundwork for the Industrial Promotion System. this system was designed to foster “sectoral, regional and special development” by providing a framework for government intervention in the industrial sector.
“The government of Javier Milei decreed the suppression of the National Program for the Development of Industrial Parks,” the announcement stated.
This move reflects the Milei administration’s commitment to a more hands-off approach to economic development, emphasizing free market principles and reducing the role of government intervention.
The long-term implications of this decision on Argentina’s industrial sector remain to be seen. Critics argue that the program’s elimination could hinder growth and investment in key industries, while supporters maintain that it will unleash the power of the private sector and lead to more sustainable economic development.
The move comes as the Milei administration implements a series of sweeping economic reforms aimed at addressing Argentina’s longstanding economic challenges.
Argentine President Javier Milei has taken a decisive step to reshape the nation’s industrial policy, repealing two decrees that established programs for promoting industrial parks and territorial planning. Citing the need to optimize resources and address the country’s economic challenges,Milei signed Decree 1077/2024,effectively nullifying Decrees 915/10 and 716/20.
The move comes amidst a declared “public emergency” in Argentina, encompassing administrative, economic, financial, and energy sectors. Milei’s administration argues that the country’s recent economic woes have created “profound imbalances” that negatively impact the population, particularly in social and economic spheres.
Decree 1077/2024 emphasizes the need to prioritize “new strategies that allow the competitiveness of the productive sectors to be sustained.” It highlights the repeal of Law No. 21,608, which previously provided a framework for promoting industrial parks as tools for territorial planning and development. The government asserts that this repeal necessitates a review and adaptation of industrial policies to align with the country’s evolving economic landscape.
The now-repealed Decree 716/20 aimed to “promote territorial planning by promoting associative and cooperative schemes in pursuit of industrial development.” Its objectives included influencing local productive sectors, fostering sustainable and inclusive development, generating local employment, and enhancing synergies from shared locations.
The program outlined in Decree 716/20 provided tools for financing various aspects of industrial park development, including:
- Studies for the establishment, expansion, or regularization of industrial parks
- Execution of intramural infrastructure works
- Establishment of companies or expansion of their productive capacity
Milei’s decision to repeal thes decrees signals a shift in Argentina’s approach to industrial development. The government’s focus appears to be on streamlining policies and prioritizing resource allocation in response to the country’s economic challenges.
In a move aimed at bolstering industrial development, the Dominican Republic has unveiled a new decree outlining a thorough strategy to enhance the nation’s industrial parks. The decree, focused on attracting investment and fostering economic growth, outlines several key initiatives.
One of the central pillars of the plan involves expanding existing industrial park capacities. This will involve creating new spaces within these designated zones to accommodate a growing number of businesses.”We are committed to creating an habitat where businesses can thrive,” said a government official. “Expanding our industrial parks is crucial to achieving this goal.”
The decree also emphasizes the acquisition of land by industrial parks. This strategic land acquisition will allow for the development of new infrastructure and facilities, further enhancing the attractiveness of these zones to potential investors.
Recognizing the importance of robust infrastructure, the plan includes provisions for extramural infrastructure works in both public and mixed industrial parks. These works, which will be carried out by national or local public organizations, will focus on improving transportation, utilities, and other essential services. the decree mandates the involvement of an Observatory, established under Article 3, to oversee these infrastructure projects.
The Dominican Republic’s commitment to strengthening its industrial sector through these initiatives signals a proactive approach to attracting foreign investment and driving economic growth. By creating a more favorable environment for businesses, the government aims to position the country as a regional leader in manufacturing and industry.
## Milei’s Bold Move: Will Dissolving Industrial Parks Spur or Stifle Argentina’s Economy?
**Buenos Aires, Argentina** – In a controversial move signaling a sharp pivot in economic policy, libertarian President Javier Milei has officially dissolved Argentina’s National Program for the Progress of Industrial Parks. This program, established in 2010 and reinforced in 2020 by previous administrations, aimed to bolster industrial growth through targeted incentives and support.
**Dr. Maria del Carmen Bianchi**, a leading economist at the **university of buenos Aires** and renowned expert on Argentine industrial policy, sat down with World today News to provide her insights on the implications of this drastic decision.
**WTN**: Dr. Bianchi, President Milei’s governance argues that dissolving this program aligns with a “hands-off” approach to economic development, prioritizing free market principles and reducing government intervention. What are your thoughts on this rationale?
**DB**: While fostering a favorable habitat for private enterprise is undoubtedly crucial, completely dismantling programs designed to support strategic industries could have unintended consequences.
Industrial parks often provide essential infrastructure, support services, and shared resources that individual businesses struggle to access independently. Dissolving these programs could create notable hurdles for nascent industries, hindering innovation and growth, particularly in regions already grappling with economic challenges.
**WTN**: Critics of the decision argue that it could stifle growth and investment in key sectors. Do you share those concerns?
**DB**: It’s certainly a valid concern. We need to remember thatArgentina has a history of economic volatility. Targeted support for specific industries can be valuable in mitigating these fluctuations and fostering sustainable growth.
While a free market approach holds merit, it shouldn’t come at the expense of neglecting strategic sectors that are vital for national development. We need a balanced approach that promotes both private sector dynamism and targeted support were necessary.
**WTN**: The administration also cites the need to optimize resources and address Argentina’s economic challenges. How do you perceive the potential impact on the overall economy?
**DB**: Argentina’s economic situation is undeniably complex, requiring multifaceted solutions.
While streamlining government spending is crucial, simply dissolving programs without clear option strategies for supporting industrial development could be counterproductive.
The long-term impact on employment, investment, and overall economic growth remains to be seen. It’s essential that the government clearly articulates its alternative plans for fostering a thriving industrial sector.
**WTN**: What are your recommendations for the government moving forward?
**DB**: Transparency and open dialog are paramount.The government should engage with industry leaders,policymakers,and economists to develop a comprehensive and well-considered industrial policy that balances free market principles with targeted support where necessary.
The success of this economic overhaul will hinge on creating an environment that fosters both innovation and stability, ensuring a brighter future for Argentine industry.
**WTN:** Thank you for sharing your valuable insights, Dr. Bianchi.
**DB**: My pleasure.
