How To Do Half Head Highlights

(Published in Strategy Journal 04/01/2008)

This week the government decided to "borrow money" to the State Bank to finance the deficit Transantiago. This mechanism was substantiated by the Minister of Finance, Andrés Velasco, such as a bank credit to private sector and that under no aspect should be considered as a self-loan.

What the minister has demonstrated only is that just as there are different perspectives and viewpoints to all things, there are different ways to explain transactions which have the final prestige of objectivity. What the minister is not saying a thing is objectively explain things and another to give a rational justification for an economic absurdity as is the Transantiago. I mean it's an expense that grows exponentially every day, the larger the deficit and even the minister know how much, for a service if it improves, it does so minimally.

More curious is the huge contradiction between the obsession with the fiscal balance of Treasury and this insane waste Transantiago. When it comes to funding education or public health and adjustment of minimum wage, draconian and final criterion is: prudence in the management tax. But when it comes to tragic operated by private transport, fiscal balances are not even close by in the minds of the authorities.

we are told, is to meet the needs of the people and solve the transport problems that have brought such indignity, but the primary reason that has caused so many troubles to citizens, is that the system was never intended to serve the public interest but rather, the private interest. The more serious part of the funds and tax credits to finance the deficit Transantiago are targeted profits of operators.

It is shown then that the obsessions fiscal balance are the only arguments to facilitate the pursuit of private interest and nothing else. When deficits are to increase the minimum wage or improve education, is wrong because it strengthens the public sphere, democracy, social justice. But when serving private interests, no expense is spared because it means more government officials and educated citizens, but only the most profits for private business.

Marcel Claude, an economist .