A bypass to the public administration

Authors

Abstract

Tax relief policies and tax advantages for the relocation of companies are a constant throughout the world as a way of promoting economic development in disadvantaged territories. In the case of Argentina, they were channeled through a regional industrial promotion regime that granted subsidies to relocate companies in economically depressed provinces. This article shows how the government of a province characterized as patrimonialist, San Luis, transformed its productive structure in a period of 10 years (1982-1992), by locating a vast of industries in its territory. Using the process tracing technique and a series of in-depth interviews, it is argued that the government informally delegated bureaucratic competences to a non-institutionalized agent in order to perform tasks that the state apparatus did not have the capacity to carry out and, in this way, promote the arrival of investments in its territory.

Keywords:

Subnational public policy, Territorial development, Subnational political economy