From Libertad y Progreso, we consider positive the announcement of the reduction of ministries made by the Government, but we believe that if it is not reinforced by the reduction of almost 3000 distributions included in the National Executive Power it would only be cosmetic with no real effects.
This exuberant amount of Government areas has generated, to justify its existence, regulations and controls that complicate the lives of Argentines, and that should be eliminated along with their original distributions, as we explained in our video “La Odisea de la Bondiola” (see here).
If we want the reform of the State to be real and deep we must demand it and also have cushioned social effects. This has an economic cost, but that is why we received financing from international organizations. Not as it happened with the enormous availability of voluntary credit that was accessed during the last two years, which was used to maintain and not correct the underlying problem.
To implement the reforms with cushioned effects, it is not necessary to go through Congress but to use the attributions established in Law 25.164, of Public Employment. In the first place, the administrative units dependent on each one of the ministries of the new reduced structure. Then, the ministers of the new structure, reorganize the personnel they need. Once this is done, those that would not have been relocated in the new structure will be in the condition of availability established by Law No. 25,164, receiving the salary for one year; although it could be studied to extend it to two with the collection of a percentage of the remuneration charged in activity. Additionally, an in order to facilitate the transfer to the private sector of public employees in availability, it will be given to employees job training and incentives will be granted to private companies that hire them. For example, the State could pay the employer contributions for a period of two years; among other things for those who hire former public employees.
Also, it could be granted an early retirement for those who, remaining in availability, would not have obtained employment in one year and are over 55 years of age. And to complement the package, it will renegotiate the agreement with the provincial governments with personnel reduction goals to return to the levels of 2001 in a reduced period.
Taking these measures into account is very important to achieve a successful reduction of the state structure with a minimum social cost.
Finally, It is vital to move forward in a modification of labor laws that facilitate the hiring of workers, to encourage private employment and help the transfer of state employees to the private sector, as we propose in this video; and the deregulation of the economy, both complementary legs that will help the plan to reduce public spending and the state bureaucracy.
To understand the dimension of the enormous State that the Government seeks to reduce, look at our video La Gran Raviolada, and to know the package of reforms of Freedom and Progress to eliminate spending and start a sustainable path of growth, click here (“You can and should lower the expense and here we propose how).
