Lack of creativity due to lack of sleep
For about 40 years, agreements with the International Monetary Fund (IMF) and the public spending adjustment commitments promulgated by the National Government have taken the economic and political scenario of the country. Thus, since 1981 several regimes have chosen to define their fiscal policy based on the international agency’s requirements.
The current government, led by Mr. Lenin Moreno Garcés, is no exception;denoting thus, the still existing, simplicity and lack of creativity with which the governments of the day develop their public policies;In addition to the burntism concerning the social grievances that they cause.
In this way, the two policies that have composed the common denominator in the nine letters of intention presented to the IMF since 1981 are: partial or total reductions of the subsidy to fuels and weakening of the public sector through mass layoffs and labor restrictions. In the tenth letter of intention, written in March of this year, the same commitments as expired as simplistic that have promoted the different governments throughout the last decades are evidenced again, 38 years later,.
Thus, for example, the economic measures announced last Tuesday, October 1, among some things, indicate: liberalization of the price of diesel and extra gasoline and eco -eco -art;with what the price that the consumer disburses for these goods increases by 120% in the case of diesel and in 24% in the case of the extra and the Ecopaís. Similarly, in the case of public sector labor contracts, it seeks, among some things: force public servants the monthly contribution of a day of their salary and reduce their annual vacations of 30 to 15 days. In addition, as Minister Martínez affirmed last Thursday, October 3, the plan includes, the existence of a speechless schedule (dismissals) that the Government intends to undertake what would be added to the more than eleven thousand citizens dismissed until the beginning of this year;demonstrating the ease with which our rulers decrease the value and rights of the public worker with respect to the private.
It would seem that, in a fairly reduced vision of reality, it seeks to meet the needs of the treasury through simple accounting mechanisms concerns and income, without taking into account everything that entails. On the contrary, an adequate global vision would seek to devise strategies that do not exclude the interests of the great majorities and harmonize as a whole the agents within the economy.
Speaking of the serious social consequences caused by these measures, it is enough to take a look at our own history. Thus, in most cases, the negative effects on the economy were persistent in the following years to the application of policies, with decelerations and decreases of up to 8% of the gross domestic product (GDP) as in the 80s;as well as increasing unemployment rates. The latter occurs, to a large extent, as a consequence of the massive disconnection of public servants who, on the rare occasions, immediately achieve a job in the private sector. Of course, as in any deceleration, the increase in poverty and inequality is imminent.
With everything mentioned, the disinterest of the national government can be clearly evidenceprogressive taxes or targeting of subsidies. After all, today current and future economists must understand that the challenge not only consists of paying off figures and closing numerical deficits;but also in being creative and inclusive in the implementation of policies that, beyond dealing with inert numbers, involve the lives of many human beings.