GOVERNOR OF THE PROVINCE OF BUENOS AIRES CARLOS RUCKAUF
The province of Buenos Aires is where almost 40% of all Argentines live. It is also the home of a large part of the country's economic activity, and as such, actively courts foreign investment. Carlos Ruckauf notes that his province offers investors several important comparative advantages. "The agriculture and stock-raising sectors of the economy are strong. This makes it feasible to launch joint agribusiness ventures with importing countries. A bill is going to be passed in the next few days that will give preference in government purchases to companies located in the province of Buenos Aires," the governor added.
Business opportunities mentioned by the governor include establishing manufacturing and export hubs in the cities of La Plata and Bahía Blanca, both of which are duty-free zones. Ports and airports are also in the process of being privatized, and access routes to and from other points in Argentina and also Mercosur are being built to encourage trade. "Opportunities for trade via the Internet abound as well," said Mr. Ruckauf. The province is using the same system for public works as the federal government. "Leasing will make the construction of highways, jails and hospitals very attractive to the private investor," stated the governor. He went on to say that a number of US firms had initiated contact with provincial Secretary of International Commerce Diego Guelar, a former Argentine ambassador to the United States.
The province is in the process of differentially reducing the tax it levies on gross earnings and real estate according to the area in question. It also supports a year by year reduction in the national VAT tax to 18%.
Following the guidelines of a plan agreed upon with the federal government, the province of Buenos Aires has committed itself to reduce its debt load by 33% this year. Total debt dropped from 496.1 million pesos in the first quarter of 1999 to 240.1 million in the same period of 2000.
Although he and other provincial governors belong to the opposition Justicialist party, Ruckauf pointed out that while there were differences regarding certain measures, this has not prevented them from collaborating with President Fernando De la Rúa. "People are wrong to demand too much from President De la Rúa. He inherited a big fiscal deficit and needs more time to put measures in place that will get the economy going again. The IMF, which has been monitoring Argentina for so long, should have been more strict in the 12 months prior to De la Rúa's taking office and should be less strict now," Ruckauf concluded.
