A few minutes ago I watched how Alberto Fernandez, Chief of Cabinet, informed the press how negotiations with the campo had gone. Sitting besides a speechless Lousteau (who looked a lot like Messi did when he did not get to play in the last World Cup game), he mentioned how everything had gone fine and how after fixing each parties position he had heard the campo's requests. Obviously there was no negotiation on the export taxes, which is what the campo unionists were there for in the first place ... Fernandez did mention a couple of things which will, IMHO, add to the already existing noise: He mentioned they would work on a plan to assure small ruralists a fair profit according to their activity.I've just got 2 questions: (1). What happens with the mid and large ruralists? (2). How does the government get to determine how much profil any ruralist will make?
A countless amount of questions appear once you start thinking about the first two. Since it's very late and I am very tired, I will just say this: there is a reason why there is a clear separation between the private and the public. Argentinean politicians seem to believe there is no line in the sand, and trespassing is a mere attribution that the State has.
Dear sir, that is wrong. Not only should the State not determine profitability of any sector; it should not intervene at all, except to set clear rules for it not to have to meddle. Then we ask ourselves - how come we are losing ground in Foreign Investment? How come our business climate is far from optimal?
When the state starts taking care of the state - which means finding ways to run more efficiently and therefore need less taxes to run bigger - we will all be better off. Until then, we will continue to be a forever-emerging country run by simple-minded control freaks.
