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“The reduction in public works by the Javier Milei government will have a serious impact”
Hydraulic and civil engineer Claudio Velazco spoke with RADIO REALPOLITIK FM (www.realpolitik.fm) about the situation of public works in the country.
Claudio Velazco highlighted the negative impact of the lack of public works on the economy and employment. “Behind the image of a public works project, you see not only machines and materials, but also people who are putting their shoulder to the wheel. In 2024, we will have had between 250,000 and 300,000 job losses in the sector,” he explained.
According to the engineer, this situation is the result of a policy of contraction of state investment: "The national government has drastically reduced public works. This has led to many construction companies having to close or lay off employees, while citizens lose the possibility of accessing works that are essential for their quality of life."
Unfinished and paralyzed projects
Among the affected works, Velazco pointed out an emblematic case: a 4-meter diameter aqueduct that was to transport drinking water to 2.5 million people in Berazategui, Quilmes and Lomas de Zamora. "This work, with an investment of 340 million dollars financed by international organizations, is paralyzed because the state did not contribute the 25 percent that corresponded to it. It is a clear example of how a political decision impacts the lives of millions of people," he said.
Budget cuts: a political decision
Velazco criticized the reduction in the budget for public works, which represented only 1.22 percent of the total in fiscal year 2023. “Historically, investment in infrastructure has been much higher. This percentage is extremely low and reflects a policy of disinterest in improving the quality of life of citizens,” he said.
He also questioned the governments decision to extend the 2023 budget to 2024 without updating it. "President Javier Milei boasted of having canceled or paralyzed 8 percent of the budget allocated to public works. This not only represents thousands of fewer jobs, but also millions of dollars that were not invested in essential infrastructure," he said.
The efforts of the provinces
In contrast, Velazco praised the attempts of the province of Buenos Aires to reactivate some works. «Despite the cuts in national funds, the province has tried to continue with important projects, signing agreements to assume responsibilities that originally corresponded to the Nation. However, this situation creates a great asymmetry, since Buenos Aires contributes 40 percent of the national economy, but receives less than 22 percent in co-participation», he explained.
An uncertain future
Velazco warned about the long-term consequences of this adjustment policy. “The lack of investment in infrastructure increases the risks for society. For example, the deterioration of roads increases the rate of fatal accidents. Investing in public works is not an expense, it is an investment in security, health and quality of life.”
The X-ray of the infrastructure
Velazco began by comparing the state of the infrastructure with a medical consultation: “It is like when you go to the doctor and he tells you that first you have to take an X-ray to see the current state. That X-ray is our current infrastructure. Then, we have to plan how many years we can start to reduce that deficit in a reasonable way, in line with our economy.”
The engineer also stressed the need to project these investments in dollars due to the constant loss of value of the Argentine peso. “This deficit must be projected for 10 or 20 years so that it does not continue to increase,” he explained.
Key areas and alarming figures
Velazco presented an analysis of the most priority areas in infrastructure and the estimated costs:
Hydraulic works to mitigate flooding: 70.601 billion dollars.
Sewers: 32.044 million dollars.
Railways: $11.279 billion.
Drinking water: $10.78 billion.
Roads and routes: 7.667 billion dollars.
On this last point, the engineer warned: “In a province where roads have been neglected for years, this cut represents a serious problem. The lack of investment directly impacts connectivity and economic development.”
The case of floods: A recurring problem
Referring specifically to hydraulic works, Velazco was blunt: “We cannot guarantee that, in the event of a major storm, La Plata will not flood as in 2013. Works have already been carried out, but they are not enough, and the decisions not to invest only aggravate the situation.”
Criticism of Mileis administration: “An absent State”
Velazco strongly questioned the vision of Mileis government on the role of the state: “An absent State is what this government is carrying out, at least in the area of ??infrastructure. In La Plata, with almost 200 settlements, how can a poor neighborhood access services without state intervention? Thats what we pay taxes for.”
He also criticised the private concession model: “It is unfeasible to think that a businessman would find it attractive to finance routes that are not profitable. This has already been demonstrated in Chile, where concessions were subsidised by the state.”
Budget 2025: “A scheme of political pressure”
The engineer also referred to the national budget: “The drastic reduction of 87 percent in public works is not only alarming, but also shows a harmful political vision. Works that could be executed in one year are projected until 2028, clearly with the intention of pressuring the governors to support the ruling party.”
Velazco concluded with a warning: “We must be afraid of large figures, but we must be even more afraid of the lack of planning and hiding the reality. The reduction in public works is not fully perceived now, but its effects will be devastating in the future.” (www.REALPOLITIK.com.ar) |
