The Governance of Financial Assistance in the Infrastructure Sector in Argentina

12.31.2018 | Case Studies | Alejandro Einstoss Tintos, Patricio Gónzalez Szteinman, Paula Núñez

 

A Final Report by CIPPEC published in 2018 

Official financial aid and development assistance from states with “low intensity democracies” could be linked, in many receiving countries, with the expansion of political patronage, the reduction of transparency, higher political repression, governance failures, and even instances of corruption.

In many cases, such financial mechanisms manage to bypass regulations established around selection mechanisms for public investment projects, public procurement processes, sectoral regulatory frameworks and public accountancy.

Subsequently, infrastructure projects financed by these mechanisms tend to be linked to public procurement procedures that are not entirely transparent, often lacking bidding processes as well as economic feasibility and environmental impact studies.

This study will aim to shed new light on how financial aid flows from States with “low intensity democracies” can affect economic, political and social outcomes in Argentina, in order to draw conclusions that allow for the proposal of improvements with regards to the documented problems.

In order to accomplish such aims, this study will research and document possible “administration failures” tied to financial aid and investment on infrastructure sponsored by the aforementioned States, focusing on how such financial aid flows can affect the application of good governance practices in Argentina.