The study presents an overview onArgentina's economic growth, income distribution, andpoverty, mostly as of 1991, when the country underwent aperiod of adjustment, which remarkably led to a sharpinflation drop, to the privatization of state-ownedindustries, and to fostering foreign commerce, thus wideningthe economy. Nonetheless, the study points out that all ofthese adjustments affected the poor, particularly throughlabor demand, exacerbated by the slowdown of the growthprocess, resulting from the economic crises of 1995, and1998. Recommendations include macroeconomic, and reformpolicies to allow rapid growth, and stabilize the economy,without inflation, for a substantial poverty reduction. Theelimination of centralized, collective bargaining laboragreements, reduction of labor taxes, and severancepayments, would prod a funded, unemployment insurancesystem, based on individual accounts, and thus, reduce thehigh cost of labor. Temporary employment, and extendedprograms should not be enforced under payroll taxes, toallow exceptions for small scale enterprise development.Accessibility of the poor to basic services should beenhanced, mainly through greater investments in education,and health care services. In addition, a strong system ofsafety nets is recommended, through the identification ofexpanding programs, to also provide emergency employment,and income during potential crises.
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