Claudio de Moura Castro
Inter-American Development Bank
Washington, D.C.
Sustainable Development Department Best Practices Series
Executive Summary
This paper describes a very interesting project to train unemployed
youth in Argentina and discusses several critical issues facing it.
It should not be considered as an authoritative view on this project
funded by the Inter-American Development Bank but rather as an attempt
to elicit a dialogue with those who know the project better or who are
familiar with the theme.
After several decades of economic stagnation and institutional stalemate,
the Argentine economy was reformed, inflation controlled, and the regulatory
framework revised. The early 1990s witnessed fast economic growth even
though the employment creation was less than spectacular. However, growth
stalled again in 1995 and unemployment never stopped growing, reaching
presently 30 percent for youth aged 15 to 24. 1
It goes without saying that such high unemployment rates are painful
and disruptive. The social conflicts which have been so hard to mitigate
in the past may again find fertile ground if unemployment is not alleviated,
a situation the Argentine government wants to avoid.
As a result of these uncomfortable statistics, the government has taken
several initiatives both to reduce unemployment and to avoid its worst
consequences. The Programa de Apoyo a la Reconversión Productiva funded
by the IDB is one amongst others and the Proyecto Joven is part of
this loan.
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1 The unemployment rate for 15 to 19-year old males
is 46.8 percent, while females in the same age bracket have an unemployment
rate of 58.7 percent.