A current point of debate is that of strategic interests and the goods and services that the state should guarantee. In Argentina, a new leader (and party) has come to the presidency outside the traditional division between Peronism and anti-Peronism. In his government, the state’s deregulation is a priority, even a Ministry has been dedicated to it. Meanwhile, in the United States, the new Trump administration has created the DOGE (Department of Government Efficiency), led by Elon Musk, and the position of “Czar of crypto and artificial intelligence” is held by David Sacks, another billionaire and leader of AI. Criticisms of technocrats in the government, creating disruption in society, and diminishing public jobs, even going against the law, go way back. But the truth is that AI is here to stay, and it is a resource that can be used to deregulate and innovate, both in the state and the private sector.

The raison d’être of the public employee

There are different classes of employees in the public sector. In Spain, for example, there are career civil servants (with stability) and contract workers (temporary for less critical functions). A system of competitive examinations seeks to ensure the suitability of candidates. The preparation for these “competitive examinations” has generated a parallel market of private academies and does not always guarantee continuous professionalization. In a wide variety of areas what is essential or necessary may be disputed, as in the case of a technical assistant librarian.

In the United Kingdom, the civil service combines stability for essential positions with more flexible work schemes, similar to the private sector, in non-critical areas. Meritocracy and performance evaluation are emphasized. Whereas in Mexico, public sector jobs, such as teachers, can be inherited, and in Vietnam, public jobs are even sold or rented. In Argentina, at least until a generational change occurs, acquired rights tie the state to obligations that imply a high cost.

The raison d’être of the protection of public servants is to guarantee essential state services which, by their nature, must be maintained regardless of political, economic or personal changes, commercial ups and downs or exceptional circumstances. The functions considered essential and which the state must cover generally include three major areas. One is the provision of basic and universal services that each society will define, such as health care, security and defense, and education. Another is justice: ensuring compliance with laws and the protection of rights, mainly through the judiciary. And the third is that which guarantees the functioning of public administration, even during crises or changes of government.

The public sector as a political tool

Political and private sector interests have made use and abused public employment outside the specific purposes for which they have been designated. Transitory public employment (positions of trust) is used as a tool for governance, in parallel to fixed structures and as a way to build party loyalty.

In the United States, for example, there is a clear differentiation between career employees, with stability in key areas, and political employees trusted by the government in office. In any case, job stability, as in the private sector, is less than in other countries. Many functions are outsourced or delegated to the private sector. In addition, public employees are usually subject to periodic performance evaluations, which improves their efficiency.

In Argentina, public employment is perceived as a guaranteed source of employment beyond personal suitability. This is a corporativist hangover that is also a bargaining chip to pacify groups —such as unions or political groups— with the power to destabilize society. There is a great contrast with the dynamism that, although in theory, the private sector should have. This is due in part to union protections, the use of public office for political, sectoral and personal benefits, and legal protections.

In many Argentine provinces, public employment is the main source of formal employment. The number of provincial public employees per thousand inhabitants has grown by 70% in the last 20 years. The figures reflect an inflated administration in regions that, paradoxically, contribute less to the national gross value added according to data from CEPAL and MECON (2023).

In this context, we owe it to ourselves to discuss whether the maintenance of public posts, beyond the critical, a priori unnecessary ones, is the best way to inject money and dynamism to the less productive provincial economies. Moreover, redistribution through public employment raises doubts about its sustainability and efficiency of the economy. This dependence on the state as an employer reinforces political clientelism.

Efficiency and transparency vs. governance.

Public sector reform in Argentina requires not only regulatory tweaks, but also a cultural change. It is not an easy task to provide employment alternatives in a country with more than 50% poverty; first the private sector must be invigorated. There is also a need for a restructuring plan and accompaniment in the transition.

Within the public sector there is much room for efficiency and transparency. Independent audits, digitization of crypto and blockchain technologies, unification of duplicated tasks and process automation are the tips to untangle the tangle of excessive bureaucracy and administrative fragmentation. In this way, administrative structures at national, provincial and municipal levels could be optimized.

Therefore, it is necessary to define the essential functions and scope of the state, and to prioritize the areas where public employment is indispensable. In my opinion, one of these areas is the one that must guarantee the functioning of the basic powers of the state and the provision of essential services with quality and transparency. And the other is the one that should aim at the development of what are considered strategic interests, such as those set forth in the Preamble of our Constitution: “to strengthen justice, promote the general welfare, and secure the benefits of liberty”.

_{*Machine translation proofread by Janaína da Silva.}