1. What was your countrys condition before MDG 1 is raised by UN?

There are several channels linkin a re ate downturns to household welfare. !hort ter" effects on inco"e# which increase $overty and ine%uality levels# tend to track the evolution of the une"$loy"ent rate and other labor "arket outco"es &Gas$arini and 'ruces# ())*+. ,olicy inconsistencies &such as electoral s$endin and debt sustainability issues related to the transition to the fully-funded $ension syste"+# the e.haustion of the currency board "echanis"# and an unfavorable international scenario dee$ened a recession which started in 1/// and tri ered a lar e crisis at the end of ())1. The "eltdown resulted in a lar e fall in out$ut and e"$loy"ent0 GD, fell 11 $ercent between ())) and ())(# and une"$loy"ent rose to 1/ $ercent. The recession and the ensuin crisis had a lar e i"$act on $overty. The co"bination of increasin $rices &due to the devaluation+ and fallin no"inal inco"es &due to the shar$ fall in econo"ic activity+ i"$lied a 2u"$ in the official $overty rate fro" 3*.3 $ercent in 4ctober ())1 to 53 $ercent in May ())( &see 6i ure (+. 7n Dece"ber 1///# 6ernando De la 89a succeeded 'arlos Mene" as $resident. :is overn"ent $ro"$tly enacted the first of three $acka es of ta. increases# which took effect in ;anuary ())). <cono"ic indicators %uickly turned ne ative a ain as the ta. increase killed the buddin econo"ic recovery. the overn"ent doubted that cuttin ta. rates would s$ur enou h rowth in the short ter" to offset lost revenues= it thou ht "arkets would be unwillin to finance hi her debt= and it did not wish to abandon the convertibility syste" and si"$ly $rint "oney. That left only one o$tion0 increasin ta. rates. The results were the o$$osite fro" what the overn"ent e.$ected0 ta. increases reduced confidence in overn"ent finances by discoura in rowth in the $rivate sector# the source of the overn"ents ta. revenue. 'avallo introduced a bill to switch the e.chan e rate link of the $eso fro" the U.!. dollar to a co"bination of the dollar and the euro.

(. Which tar ets of MDG 1 that have been achieved your country in last few years? 3. What kind of efforts that been a$$roached by your country to achieve the tar ets? <duardo Duhalde# who beca"e $resident on ;anuary 1# ())(. :e instituted revolutionary chan es by devaluin the $eso= forcibly convertin dollar de$osits and loans into $esos &>$esofication?+= and voidin "any kinds of contracts. The FAO chief also pointed out that 15 developing countries already had hunger rates below 5 percent dating back to at least 1990: Argentina, Barbados, Dominica, Brunei Darussalam, Egypt, Iran, Kazakhstan, Lebanon, Malaysia, Mexico, Republic of Korea,

Saudi Arabia, South Africa, Tunisia and the United Arab Emirates.

@. What is your countrys a"bitious $ost-()15 a enda for MDG 1?

According to the In Focus policy brief from the Institute of Development Studies, the "After 2015" debate is about questioning the value of an MDG-type, targetbased approach to international development, about progress so far on poverty reduction, about looking to an uncertain future and exploring what kind of system is needed after the MDG deadline has passed
8ule of law. !afe uards a ainst takin s of $rivate $ro$erty by the overn"ent are weak. The 2udicial syste" has a re$utation for inefficiency and corru$tion. Aiolent cri"e beca"e a bi $roble" when the recession beca"e a de$ression. Ta. strate y. 8eal ta. revenues are now risin as the econo"ic recovery takes fir"er hold. 8eal s$endin is not risin as fast because $rices have not risen as fast as the $eso has de$reciated. The current bud et sur$lus affords unusual $olitical latitude to cut ta. rates. 'o"binin ta. cuts with ta. si"$lification and reater efficiency by the ta. bureaucracy# Br entina could brin "uch of the under round econo"y above round. 7t could chan e fro" a country that i"$oses hi h ta. rates on a relatively narrow ta. base to one that i"$oses lower rates on a broader base. B"bitious but not unrealistic oals over the ne.t one or two $residential ter"s would be to reduce the value-added ta. fro" the current level of (1 $ercent to 1) $ercent= reduce the $ayroll ta. fro" the current level of (1 $ercent to () $ercent= reduce the to$ rate of inco"e ta.= and eli"inate nuisance ta.es# includin the ta. on financial transactions. 6ederal-$rovincial financial relations. 6ederal revenue sharin weakens the link between the ta.es $rovinces levy and the revenues they s$end. The federal overn"ent has not been willin to et tou h with $rovinces that are essentially bankru$t. Bs a result# the $rovinces face weak financial disci$line. Govern"ent s$endin . !$endin on $ensions and salaries of overn"ent e"$loyees# includin su$erfluous e"$loyees# co"$rises a lar er $art of the bud et than is desirable for a country at Br entinas level of econo"ic develo$"ent. Many e.$enditures lack trans$arency. Cabor. 7nfle.ible labor laws contribute to a hi h une"$loy"ent rate. <"$loyers "ust $ay heavy severance char es to fire e"$loyees# so they are less likely than e"$loyers in the United !tates to take a chance on hirin e"$loyees who "ay not work out. Br entinas statistical a ency esti"ates that @) $ercent of

wa e earners work in the under round econo"y. &Many of these $eo$le have first or second 2obs in the above- round econo"y.+ :ealth. Govern"ent-run "edical care is $oor.