The economic stakes of the presidential candidates is of crucial importance for the future of the country. However, because of the complexity of factors involved is difficult to understand for those who are not specialists in the subject. Germain Laverde Forero *, finance expert, we illustrated with the analysis of the proposals of the two candidates who passed the second round, in terms of economic growth model and strategies to reduce inequality, to vote knowingly.
The commitment model
The growing interconnectedness of economies and financial markets has created a disturbing phenomenon: economic crises are becoming more frequent, deep and destructive.
What began as a speculative bubble in the housing market in the United States became one of the deepest crises ever documented in history. What began as a global financial system crisis became a global scale macroeconomic crisis that takes "surprise" to those formerly robust economies, or at least well enough subsidized by good neighbors.
In this scenario, in which international trade is reduced by more than 20% annually and in which the declared policy turns toward protectionism, Colombia faces a presidential election in which the economic model takes a preponderance particular.
not want to fall into the dull debate and employment taxes as the televised debates and have realized over and over again how some candidates want to upload, download them and others to have other creative options (and little clear) of funding. The origin of the funds is secondary, at least from a philosophical standpoint, over the use to be given to them.
The new president faces a scenario of slow and weak recovery in relations with neighbors and the correct stimulus to the productive apparatus become of paramount importance for growth.
Build 500,000 or 1,200,000 homes, create 500,000 or 2,500,000 jobs in the formal, unifying the tax rate and eliminate tax exemptions, incentives for agriculture, and solve the problem of land tenure, are the places common in those who have fallen candidates. This is where the real has been no proposals and selfishness is endemic to the national society regarding the important question is no longer the growth model and solution to the problem of inequality and becomes simply "To me, how much will it cost?"
The growth model should take advantage of national comparative advantages, unproductive land, the privileged geographical position, trade ties and economic interdependence with our neighbors to ensure both supply and demand primary products. The appreciation and low interest rates and we guarantee the automation price, now, from the we ensure the production base of raw materials sufficient for a technicalization useful. The central issue is to close the gap between real GDP and potential GDP, as installed capacity is being used well below its optimum.
The problem of inequality must be resolved from the entrance of private and public spending ever since. excessive government spending, to be made to subsidize poverty, resulting in greater inequality. If I give her lunch to all those who are hungry, I enrich the companies that produce food and fix the problem for eight hours. If, however, trains and give seed capital (instead of giving taxpayer money) to the less fortunate, empowers them income opportunities and reduce the gap between employers and employees.
out to vote before I ask you to think about these two issues, and submit the program of its candidate for these two litmus tests. Not a guarantee but it is minimal due diligence that comes with a conscience vote.
* Germain Forero Laverde is professional in Finance and International Relations. Master of Science in Finance Pompeu Fabra University. Research Professor Cipe - External University of Colombia.
germanf.forero @ uexternado.edu.co
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