Knowledge Economy: Firms have asked the next government to change the sector’s legislation to stabilize the country

That is possible Knowledge based services The development of the local economy is a consensus shared by all political forces, especially in the midst of post-pandemic global technological development. Now the department seeks to put on the agenda how to create conditions for development across the country, which is why it was launched “Project Federalism” must be implemented during development The next three reigns. There is order in the most significant points Changes in the current sectoral legislation to resume the spirit of 2019Although the basic factor must be achieved Macroeconomic order.

The proposal was given to the teams of candidates who will contest the November 19 by-election. Sergio Massa and Javier Miele. However, attention was drawn to the need to work with provinces and municipalities in addition to existing educational, technical and manufacturing systems.

He “Federal Economic Plan for Knowledge Economy” became Argencon, a room that brings together companies in the field, based on data, findings, experiences and conversations collected in recent years. It is made up of four axes on which we intend to work between 2023 and 2035: Governance, Competitiveness, Resource Creation and Development Programmes.

The basic premise of the sector is that the demand for knowledge industries is far greater than the current installed capacity. Global growth is contemplated there, although digital transformation of industrial value chains and technological renewal of the public sector at the local level will play an important role.

On the governance axis, Argencon said a political agreement that transcends the horizon of an administration is needed to coordinate stable rules allowing investments in medium and long-term projects. They asked to avoid it “Highly-Regulated Intervention Systems”.

In particular, they A Endorsement at the public policy level of the “Federal Knowledge Economy Plan”. At all levels of the state. The department also aims to achieve institutional ranking at national level, at par with similar departments. Agriculture and Industry. Other propositions are creation Observatory and carried out reworking of statistical information Intech.

Argencon-based companies sought reinstatement The original knowledge economy law Year 2019. “The current regulations, as a result of the 2020 reform, have a significant anti-export bias, great bureaucratic complexity, a major lack of definitions and interpretive concepts that leave areas exposed to the discretion of the utility power. Moreover, it is discriminatory in its treatment. Exportable professional services, which represents more than 60% of sectoral exports. It is proposed to restore the principles of Lay 27.506Voted in 2019, it will be the legal instrument that will provide stability and predictability to the program over the next decade,” they explained.

As for the second axis, competitiveness, premise two: the full concept of value created and ascertainment of future costs. Sectoral organizations expect Liberalization of exchange market, Tax treaties with importing countries, elimination of export duties, relative price stability and new fiscal stability law.

Regarding the resources required in the coming years, the focus was on skill training, connectivity and equipment. The most important items include English language training, short-term jobs to connect the world, promotion of non-formal education, regularization of import of essential goods and development of infrastructure for connectivity.

The last axis of the federal knowledge economy plan is development, which, according to Argencon, requires “collective action.” Public-Private To create cross-value across the entire production matrix and deploy digital capabilities across the entire social curve. Digital transformation, entrepreneurship and SMEs, technological connectivity and the positioning of Argentina in the global market are prioritized by companies in the knowledge-based services sector.

The latest sector data compiled by Argencon in its semi-annual report “Argen Economy” Show that knowledge-based services play an important role for the local economy, although it is the fourth export commodity. Stagnation in the past decade. Something not dissimilar from Argentina’s reality.

The document described that Knowledge economy exports Between the third quarter of 2022 and the second quarter of 2021, they accumulated USD 8,059 million. 60.2% of these coins entered Professional services31.8% Computer Services and corresponds to 8% Others Services.

The total exported last year represented a nominal growth of 8.8% compared to the same period in 2021-2022, although when zooming in on stagnation: “This increase does not represent an actual increase in the level of activity, but the effect of exchange rate lag on wages measured in dollars. Discounting the monetary effect, The level of export activity remained at similar values ​​to 2022“

Broadening our view, the deceleration of exports is evident: 14.2% in the third quarter of 2022, 12.1% in the fourth quarter of that year, 8.4% in the first quarter of 2023 and 1 .6% in the second. There is a direct correlation with this dynamic increase Transmission intervalIt improves the identification of companies”“talent drain”.

Especially, for some workers in this industry Offering services abroad as freelancers can be very lucrative, charge them in dollars and do not enter the formal circuit. For local companies, competition for salaries creates an increase in costs, which makes them less competitive with their competitors abroad when selling their services to the world. Orgencon estimates that they are losing about US$2.5 billion a year due to this situation.

The report reflected that Loss of Argentina’s share of world trade in services Last decade: He went from being ranked 36th in the world in 2011 to 41st in last year’s rankings. World Trade Organization (WTO). Global participation fell to 15.2% and Latin America to 26.4%, with many talents migrating to countries in the region, mainly UruguayDue to greater macro stability and access to dollar bills.

The Employment generation The field was serious. According to Argencon’s work, based on official data, total formal employment in the knowledge economy reached a total of 486,000 positions in the first quarter of 2023, again reaching a historic high. This value is 7.4% of the total national private employment. Year-on-year growth was 5.9%, almost 3 times the national growth rate.