Fragmented State in a Neo-Developmental Experience: Examining Limits in Argentine Industrial Policy

Abstract

At the beginning of this new century, the “pink tide” of neo-developmental reactions to neoliberalism repositioned the state in development processes in Latin America. However, state leadership in countries like Argentina showed clear limitations to implement a consistent industrialization policy that contributes to structural change. An important limitation and insufficiently studied is the institutional-organizational dimension of state-building relative to the phenomenon of state fragmentation, which reduces state capacity and coherence amid wicked problems such as the structural change. Focused on the recent Argentine experience, the work shows that without a real hierarchy and decision-making capacity of the organizations involved in industrial policy, strategic planning processes become incapable to face the logic of state fragmentation. Official documents were analyzed, and interviews were conducted with national officials of the Ministry of Industry (2009–2015) and the implementation of the 2020 Industrial Strategic Plan.

Keywords:

• industrial policy
• state fragmentation
• state capabilities
• Latin America
• Argentina

JEL Classification Codes:

• O1
• O2
• O54
• E6
• D7

Disclosure Statement

No potential conflict of interest was reported by the authors.

Notes

1 Similar aspects are noted in the Brazilian and Bolivian experiences (Schapiro 2014; de la Cruz Prego 2020).

2 The term “jibarize” (jibarizar) is the action of reducing or diminishing, and generally has a negative connotation. The verb arises from the metaphor that refers to the practice of the Jivaro people of cutting off heads and reducing them.

3 The Ministry of Production was divided into the ministerial portfolios of Agriculture, Livestock, Fisheries and Food, and Industry and Tourism.

4 In the background there is the change in the relations of force after the attempt to implement Resolution No. 125 (2008) of the Ministry of Economy and Production and the confrontation unleashed with agricultural entities regarding export rights to cereals and oilseeds (known as the “Conflicto con el campo”), which represented one of the most exhausting political conflicts of the two governments of President Cristina Fernández.

5 Between 2009 and 2010, the MI was made up of the secretariats of Industry and Commerce (foreign), and of SMEs and Regional Development.

6 The nationalization of the flag carrier in 2008 (privatized in 1990) and of the pension and social security benefits fund in 2009 (privatized in 1993) are two enigmatic examples.

7 From then until 2015, the MI was made up of the secretariats of Industry (Secretaría de Industria, SI), of Small and Medium Enterprises (Pequeñas y Medianas Empresas, SePyme) and of Industrial Strategic Planning (SPEI).

8 In fact, the creation of the SPEI and the suppression of the foreign trade area were carried out in the same regulation (Decree No. 2085/2011).

9 The chains were: 1) food: poultry and eggs, dairy and pork; 2) leather: footwear and leather goods; 3) textiles and clothing; 4) forestry-industrial; 5) automotive and auto parts; 6) agricultural machinery; 7) capital goods; 8) building materials: cement, iron and steel and aluminum; 9) chemical and petrochemical; 10) drugs for human use; and 11) computer software and services.

Additional information

Notes on contributors

Cristhian Seiler

Cristhian Seiler is Assistant Researcher in Institute of Humanities and Social Sciences of Litoral (National Scientific and Technical Research Council) and National University of Litoral, Santa Fe, Argentina. Víctor Ramiro Fernández is an Independent Researcher in Institute of Humanities and Social Sciences of Litoral (National Scientific and Technical Research Council) and University National of Litoral, Santa Fe, Argentina.

Víctor Ramiro Fernández

Cristhian Seiler is Assistant Researcher in Institute of Humanities and Social Sciences of Litoral (National Scientific and Technical Research Council) and National University of Litoral, Santa Fe, Argentina. Víctor Ramiro Fernández is an Independent Researcher in Institute of Humanities and Social Sciences of Litoral (National Scientific and Technical Research Council) and University National of Litoral, Santa Fe, Argentina.