Marco Lavagna Resigns from INDEC

Marco Lavagna Resigns from INDEC

Marco Lavagna has resigned as the director of INDEC, Argentina’s National Institute of Statistics and Census. His departure occurred shortly after the launch of the updated consumer price index (CPI) last month. Sources confirmed this information, stating that Lavagna communicated his resignation internally within the institute.

Context and Implications of Lavagna’s Resignation

This resignation raises concerns, especially as it comes just days before a critical update of the CPI, a key metric for both government and opposition narratives. Currently, Pedro Lines, the technical director of INDEC, will assume interim responsibilities.

Lavagna’s exit also coincides with broader issues within the institute, including frozen salaries and a noticeable trend of staff, including directors, seeking employment elsewhere. Reports have emerged of significant job searches on platforms like LinkedIn due to precarious working conditions.

Background on Marco Lavagna

  • Lavagna assumed leadership on December 30, 2019, with support from President Alberto Fernández and Minister of Economy Martín Guzmán.
  • He is an economist affiliated with the Peronist movement and has ties to Sergio Massa’s Frente Renovador.
  • Previously, he faced penalties from the former Secretary of Trade, Guillermo Moreno, for publishing inflation data that differed from those released by INDEC.

Significance of the Consumer Price Index (CPI)

The new CPI reflects several critical updates, including the adoption of the Coicop 2018 classification as per UN recommendations. This revision adds a new category for “Insurance and financial services” and utilizes data from the 2017-18 National Household Expenditure Survey.

These changes aim to enhance the accuracy of the CPI, which influences economic policies and public perceptions. Under Lavagna’s leadership, INDEC had begun using digital tools for price surveys, covering over 39 urban areas and generating around 500,000 monthly price observations across more than 24,500 points of sale.

Concerns Over INDEC’s Independence

There is a growing demand for an independent INDEC, free from political interference, capable of providing reliable statistics. Employees have emphasized the necessity for competitive salaries and transparent hiring processes for leadership positions to enhance the credibility and functionality of the institute.

Lavagna’s resignation highlights the ongoing challenges facing Argentina’s statistical agency, particularly the need for stability and public trust in its methodologies. Observers are keeping a close watch on how this situation will impact upcoming economic reports and statistical releases.