The government will implement a new system for collecting and distributing resources

Based on the controversy aroused by the storage of food about to expire in state warehouses, presidential advisor Federico Sturzenegger detailed the new system he developed at the request of President Javier Milei for the collection and distribution of existing resources. Through his official account on X, formerly Twitter, the presidential adviser explained the mandate of the president and the Minister of Human Capital, Sandra Pettovello. “In this alternative system, the objective of emergencies to be covered remains unchanged, but the execution changes radically. In the new system, you don’t buy the goods, you buy a ‘call option’ on those goods (in financial jargon it’s a call),” he said. The government provides aid in emergency situations. But it does so through an inefficient and expensive collection system. Is there a better system for achieving the same goal? At the request of President @JMilei and Minister Sandra Pettovello, we designed an alternative system. Fede Sturzenegger (@fedesturze) June 2, 2024 Along these lines, Sturzenegger pointed out that “the private sector charges for providing that insurance and in return commits to the delivery of goods when and where it is required,” and then summarized: “It’s a very simple idea: the government buys insurance for immediate delivery in the emergency.” The private sector uses all its logistics and storage capacity to supply this stock. And as that stock rotates, the products will always be available without the State having to have inventories or have a single warehouse. The fact that the State manages the stock is as if instead of buying insurance on my car, I decided to have spare parts in my house in case I have an accident. Much more efficient is to have insurance that provides me with those parts when I need them,” he added. He then referred to the problems solved by the new system that the government will implement. “If I have them at home I need a place, I have to bring them, they can be damaged, they can be stolen, and if they have an expiration date they can expire. All these costs are avoided or will be much lower with a contingent contract,” he said. He also said that the previous system was used to benefit a sector of the population with their own businesses and referred to the criticism against Pettovello. “It’s one thing to provide aid to the most vulnerable, it’s another to use that aid to sustain a network of private businesses. The latter is what Minister Pettovello has been discovering during her administration and that is why the attacks,” said Sturzenegger.At the end of the extensive text shared in different tweets, the advisor said that the implementation of the new system “will sweep away yet another of the mechanisms with which the political system has profited from poverty.”

Original source in Spanish