Revista del CEI - Centro de Economía Internacional

end of 2006. For the very first time in the past thirty years, a decrease in the income gap was verified. Thissituation would persist in 2007 due to the high growth rate the Argentinean economy continues to show.The same lower disparity effect is manifest in other indicators such as exports, which are growing annuallyat a two digit rate, the country’s credit worthiness and the situation regarding welfare reflected insignificant job creation, changes, though very gradual, in the regressive trend of income distribution, andthe increase in investment in infrastructure, education and health care.It is clear that four or five-year periods are not enough to reach definitive conclusions. They merely enableus to outline what may be a new scenario subject to the continuity of policies in Argentina and thedevelopment of the international economy on sustainable bases. The confirmation will depend on theresponses to most of the questions mentioned throughout the previous paragraphs. Namely, thestrengthening and quality of institutions, including the role of the State as a promoter of investment ininfrastructure and human resources; the orientation of the economic policy to achieve growth in the longrun, diversification of the productive structure and international integration into dynamic demand sectors;and, finally, the implementation of social policies for the sake of equity and to improve the people’s qualityof life.2. The Role of InstitutionsThe last 23 years were of uninterrupted democracy in Argentina, marking a turning point with respect tothe instability that characterised the constitutional system for more than 50 years, from 1930 until 1983. Byensuring a continuous political debate, the participation of citizens in issues of government administration,the respect for human rights and civil liberties, and more transparency, this exercise of democracycontributes to improving governance. An example of this is represented by the Education Financing Lawrecently enacted as a long-term programme. This Law is likely to be succeeded by others related togovernment administration, the role and professionalism of the civil service, the protection of theenvironment and the quality of social policies.It is interesting to point out some substantial issues present in the public debate either in Australia,Argentina or in both countries simultaneously and which are relevant for the quality of institutions andterritorial balance. These include the following:• The advantages or disadvantages of a parliamentary system as opposed to a presidential one,an option which has been suggested but has not become the object of thorough analysis inArgentina so far. In Australia, this issue underlies the proposals to transform the monarchy into arepublic and it is present in the role a future president would play in such an event; either strong,should he or she be elected by the people in a direct ballot, or more in the role of representationof the State, should the president be appointed by the Prime Minister subject to parliamentaryratification;• Regionalisation as a means of making the federal system more efficient, reducing the number ofstates or provinces and promoting dialogue between the central administration and those ofstates or provinces. It has been argued that the smaller number of states or provinces inAustralia, which total eight, simplifies ministerial management and regular coordination betweenthe Prime Minister and state governors in order to make decisions on significant goals, strategiesand problems relevant within society (biannual meetings are currently held at that level).• The location of the national capital far away from the main urban centres, with the aim ofbuffering their relative weight on investment and territorial planning decisions. These reasonswere particularly taken into account when the decision was made in 1911 to relocate theAustralian federal government seat in Canberra. They also constituted the grounds for the bill of1986, never put into force, to move the Argentinean Federal Capital to Viedma.• The automatic allocation of certain taxes to states or provinces, on the basis of a mechanismwhich contemplates population criteria, GDP share, a reduction in income disparity, territorial