President Cristina Kirchner revealed her expansive, and expensive, massive public spending plan to insert more than 21 billion dollars into the Argentine economy.  Aimed at countering both the effects of the global financial crisis and predictions that Argentina’s economic growth will slow from 6.5 to 4 percent in 2009, the plan focuses on infrastructure. Kirchner was quoted as saying in an AFP article, “There are public works that call for (intensive) manual labor. Works that will mean hiring more than the 362,000 workers currently in the building sector, increasing the number to nearly 770,000 jobs.”  Along with a focus on construction, Kirchner also introduced a bill that would entice Argentines to bring back their funds from banks abroad, paying only a tax between one and eight percent.  Businesses that encourage employment will also receive tax incentives and debt relief.

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Chile’s public works minister, Sergio Bitar, has announced that they are considering building a 14-mile tunnel under the Andes.This tunnel would facilitate trade with Argentina by allowing trucks as well as a train to cross between the nations.At 8,250 feet, the new tunnel would replace one at a higher altitude that during the winter is often blocked with snow.One Argentine-Brazilian consortium has estimated that the project will cost around 2.3 billion U.S. dollars.While the Presidents of both nations are “interested” in the plan, it is still unknown when such a project might be finished, much less begun.

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