In this report, we analyze the Large Investment Incentive Regime (RIGI) one year after its approval and assess its possible implications for the province of Mendoza and for the country as a whole.
The document is organized into several sections, ranging from a conceptual analysis of development and climate change to a specific study of the RIGI and its potential impacts. First, we introduce different interpretations of the concept of development, reviewing historical and contemporary approaches and highlighting the debates between perspectives that mainly associate it with economic growth and those that understand it more comprehensively, incorporating social and environmental dimensions. We also examine the relationship between development and climate change, stressing the influence of greenhouse gas emissions and their effects in regions such as Mendoza, which is characterized by a semi-arid context and high dependence on water resources.
We then describe Mendoza’s socioeconomic situation in recent years, marked by high levels of poverty, precarious employment, and productive concentration. Building on this context, we explain the main features of the RIGI, which is designed to attract large-scale investments in sectors such as mining, energy, oil and gas, tourism, technology, and infrastructure, with a minimum investment requirement of 200 million U.S. dollars. In return, it grants tax, customs, foreign exchange, and legal benefits, such as tax reductions, exemptions from import and export duties, free availability of foreign currency, and regulatory stability for several decades.
The report also details the mechanisms of provincial adherence, noting that numerous jurisdictions have already joined the regime, including Mendoza. We outline the projects that have been submitted, the activities in which new projects could be presented under this framework, and the territorial dynamics that could arise from its implementation.
Finally, we present a series of reflections on the potential economic, social, and environmental impacts of the RIGI. We consider both the expected benefits in terms of attracting capital and generating foreign exchange, and the risks associated with the pressure on strategic common goods, the limited capacity for state regulation, and the reinforcement of an extractivist model.