Second Inclusive Growth Programmatic DPF

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The development objectives of Second Inclusive Growth Programmatic Development Policy Loan Project for Argentina are (i) strengthen the foundations for private sector-led growth (Pillar 1), and (ii) strengthen the social safety net and enhance fiscal equity (Pillar 2). The focus areas of the DPF the foundations for private sector-led growth and strengthening the social safety net have become more important in the current circumstances. The DPF series supports the continuation of the government’s effort to lay the foundation for eventual private sector recovery and growth through measures that reduce policy distortions that act as barriers to private sector activity. This includes actions to promote competition, reduce the costs of intermediate inputs or capital goods and the red tape associated with doing business, while encouraging private investment in infrastructure, including the exploitation of renewable energy. Productivity growth in Argentina has been very low over recent decades in an economic setting marked by macroeconomic and policy volatility.