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OECD Territorial Reviews: Córdoba, Argentina

image of OECD Territorial Reviews: Córdoba, Argentina

This report examines the Province of Córdoba, Argentina, and provides recommendations for the design of a regional competitiveness strategy as well as the governance structure needed to implement it. Over the past decade, Córdoba has experienced sustained economic growth and widespread improvements in the standard of living. However, the provincial economy is at a pivotal point: it is still highly reliant on traditional manufacturing and commodities, a model that may no longer be sufficient for the future. Córdoba’s challenges and opportunities are the same as those found in many OECD regions and require a renewed development strategy, one that builds on key assets and focusses on closing crucial infrastructure gaps. Investments in skills, research, and innovation are essential to propel the province into higher-value-added segments of production chains. At the same time, Córdoba needs to shift from a sectoral approach to an integrated, activity-focused strategic plan, in which the entire territory (cities and regions) becomes a platform for innovation and fosters new economic opportunities.

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Assessment and recommendations

The Province of Córdoba is at a difficult junction and pivotal point in its development path. Following the 2001-2002 Argentinian crisis, the province has experienced sustained economic growth and widespread improvements in the standard of living but it has not fully reaped the economic, social and environmental benefits of regional competitiveness and productivity. Córdoba has a productive matrix (agriculture and food industry, car manufacturing, ICTs and tourism) that served its economy well in the past but that does not show promise for the future if nothing changes. It relies on commodities and traditional manufacturing exports that are faced with ever-shrinking markets. This report argues that a regional development strategy is needed to set a medium- to long-term vision for Córdoba to diversify the provincial economy, upgrade in Global Value Chains (GVCs) and sustain regional well-being. Investments in skills, research and innovation are essential to allow the province to participate in higher value-added segments of value chains by embedding advanced services into traditional production or by increasing technological intensity. At the same time, its sectoral approach needs to shift towards an integrated, activity-focused strategic plan, in which the entire territory (cities and regions) becomes a platform for innovation. The following sections detail the assessment and recommendations from the report for strengthening the enabling policies and governance frameworks that can boost Córdoba’s productivity and competitiveness over the short, medium and long term.

English

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