Development and role of argentine provinces. A new role of provincial governments in economic development

This article aims broadly at formulating a role change in Argentine provincial governments when tackling challenges presented by the current international context for Argentina in terms of sustainable and productive growth based on equity and social cohesion with a shared strategic perspective. The Argentine government must act rationally to be able to plan an integral development; accordingly, provincial governments must reformulate their role to accompany such process by using appropriate resources and applying truly effective policies and instruments for regional economies to develop. As a case study, we take the province of Buenos Aires’ budget and its “Industrial Promotion Schedule”, where we examine how resources were allocated and how said schedule was applied in the last five years as well as its impact on the real economy of Buenos Aires. Finally, we formulate our ideas for the new approach we propose, which aims at producing a dramatic change in the direction of provincial management for a successful economic development.