Javier Milei, the President of Argentina, has introduced various economic reforms aimed at overhauling the country's economy, including plans to slash state spending and reduce the fiscal deficit.

Milei's economic reform plan includes privatizing state-owned entities and weakening labor protection, which has sparked nationwide protests and opposition from labor unions.

The International Monetary Fund (IMF) has endorsed Milei's shock therapy for Argentina's economy, which includes plans to restructure the state and reduce government intervention.

Argentina owes $42 billion to the IMF, and Milei aims to address this debt through his economic reforms.

Milei plans to roll back capital controls and trade restrictions, and he will meet with Elon Musk to discuss potential investments in Argentina's vast lithium reserves.

Argentina has significant lithium deposits, which are crucial for the production of electric cars, and the US is the largest investor in the country.

Milei's economic policies are influenced by economists like Milton Friedman, and he aims to restore confidence in Argentina's economy.

The president proposes eliminating the central bank in Argentina and replacing the local currency with the US dollar.

Milei's government has already begun to implement economic reforms, including the deregulation of the economy and the removal of generous subsidies for electric, gas, and transport.

The president has also issued a decree that facilitates economic deregulation and privatization, which has been met with opposition and protests.

Milei's economic reforms are intended to boost exports and investment, but there are concerns that they may exacerbate poverty and social and economic inequalities in Argentina.

The reduction of government subsidies, particularly for essential services such as healthcare and education, may disproportionately affect vulnerable populations, including the 40% of Argentina's population that lives below the poverty line.

Milei's administration plans to privatize 41 state-owned companies, which could lead to job losses and reduced access to essential services.

The government has also cut subsidies for energy and transportation, which will save $1 billion in 2024, but may increase the cost of living for many Argentinians.

The abolition of price controls on food and health insurance programs may also exacerbate social and economic inequalities.

Milei's reforms have been met with protests and opposition, with many arguing that they will disproportionately affect the poor and vulnerable.

The president has threatened to take away social welfare rights from protesters, which has sparked concerns about the impact of his reforms on human rights and social justice.

Despite these concerns, Milei's administration remains committed to its economic reforms, which are intended to reduce the country's debt and stimulate economic growth.

However, the implementation of these reforms may be challenging, particularly in the context of Argentina's high inflation rate, which exceeds 200%.

The International Monetary Fund has approved a $4.7 billion disbursement to Argentina, which will help to support the country's economic reforms.

Overall, Milei's administration faces significant challenges in ensuring that its economic reforms do not exacerbate social and economic inequalities in Argentina.

The government's plans to reduce government subsidies and privatize state-owned companies may have a disproportionate impact on vulnerable populations, particularly in regards to access to essential services such as healthcare and education.

It is unclear how Milei's administration will mitigate the potential negative impacts of its reforms on social and economic inequalities in Argentina.

The IMF's support for Milei's economic reforms may impact Argentina's economic sovereignty, as the organization has significant influence over the country's economic policies.

Milei's policies aim to roll back capital controls and trade restrictions, which could have significant implications for Argentina's trade relationships.

The US is the biggest investor in Argentina and has significant influence over the IMF, which could shape the organization's support for Milei's economic reforms.

Argentina has vast lithium reserves, which are crucial for electric cars, and the US is exploring investment opportunities in these reserves.

The IMF has warned of a 2.8% economic contraction in Argentina, and the country faces high debt loads and inflation over 200%.

Milei's economic reforms have sparked nationwide protests and market boosts, and the IMF has predicted a gradual deflation with the implementation of these policies.

The IMF deal with Argentina is a 30-month extended fund facility worth $45 billion, which aims to lay the foundations for fiscal consolidation and reserves accumulation.

The deal will reduce pressure on parallel exchange rate markets and sets targets for growth, lowering inflation, and positive interest rates.

Argentina is expected to benefit from high global commodities prices, and the trade surplus is estimated at $12 billion this year, despite energy import costs.

The IMF's support for Milei's economic reforms has been criticized, with some arguing that it will undermine Argentina's economic sovereignty and lead to a loss of control over the country's economic policies.

Milei's plans to eliminate the nation's central bank and replace the currency with the US dollar have been met with resistance, and international economists have warned that these proposals are risky for Argentina.

The IMF's role in supporting and shaping Milei's economic reforms will be crucial in determining the success of these policies and their impact on Argentina's economic sovereignty and trade relationships.

Javier Milei, the President of Argentina, has introduced various economic reforms aimed at overhauling the country's economy, including plans to slash state spending and reduce the fiscal deficit.

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Content: Argentine President Pledges Economic Reform in a Passionate Speech to Congress | Deutsche Welle Introduces Germany | DW | 02.03.2024
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The political climate of the times
Argentine President vows to push for economic reform
In a speech to the National Assembly on Friday, Argentina's new president, Miguel Millay, vowed to continue to push for economic reform, whether or not he has the support of the National Assembly.
He said that if the economic model is not transformed, "Argentina has no future."
Milley told lawmakers he would continue to push through reforms with or without congressional support.
Argentina ’ s new liberal president, Javier Milei, delivered a passionate speech to Congress on Friday (March 1).
He said he "will continue to push" for economic reform.
The Argentine leader, who describes himself as an "anarcho-capitalist," promised to slash state spending and reduce the government's fiscal deficit.
“We ’ re going to completely change this country. ”
Millet told lawmakers that he would continue to push ahead with reforms, whether or not he had the support of Congress.
He said "we will not back down, we will continue to move forward...
Whether it is through laws, presidential decrees or amending regulations, "he added," We will change this country forever...
with or without the support of political leaders, with or without all the legal resources of the executive branch ".
"I ask for patience and trust... It will take a while for us to see the results of the economic restructuring and the reforms that are being implemented," he added.
If the economic model does not change, "Argentina has no future"
Millay said he would introduce a bill that would penalize anyone — including the president — who financed the deficit by issuing additional money.
When he takes office, Mile will devalue the peso by about half.
"If we don't fundamentally change the economic model, then Argentina has no future," he said.
How will Argentina choose between China and the EU?
Milley's speech was repeatedly interrupted by cheers from supporters, who told Congress they would face "another animal" if they opposed his reform efforts.
Miley's Shock Therapy
After taking office in December last year, Millet issued decrees repealing or amending hundreds of laws aimed at curtailing the power of trade unions and deregulating state interference in the economy.
However, his claims met with resistance, and the court issued a ruling halting these measures.
Miller proposed a comprehensive reform plan, seeking to privatize state-owned entities and weaken labor protection.
The bill was voted down by lawmakers last month.
It includes the power to delegate to the executive branch for one year and the power to pass laws by decree on the basis of "economic emergencies".
Millet ’ s shock economic measures boosted the market, but sparked nationwide protests and strong opposition from labor unions.
Trade unions say the reforms will hurt the poor.
Despite his harsh words to lawmakers, the Argentine president struck a more conciliatory tone in his interactions with governors, proposing a 10-point “social contract ” agreed by May 25 that includes a“ rediscussion ” of the current tax distribution between the federal government and provincial governors.
Mire and the provincial governors have also been at loggerheads over the issue of funding cuts.
This week, when the governor threatened to cut off energy supplies to the rest of Argentina due to a funding dispute, the dispute heated up.
(Reuters, Associated Press, Agence France-Presse)
© 2024 Deutsche Welle Copyright Notice: All content in this article is protected by copyright law and may not be used without special permission from Deutsche Welle.
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What issue did Milei want to address without printing money?

Milei's economic reform plan includes privatizing state-owned entities and weakening labor protection, which has sparked nationwide protests and opposition from labor unions.

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

The International Monetary Fund (IMF) has endorsed Milei's shock therapy for Argentina's economy, which includes plans to restructure the state and reduce government intervention.

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Content: BUENOS AIRES, Argentina — President Javier Milei of Argentina kicked off a visit Wednesday to the United States, where he'll meet with tech billionaire Elon Musk, as his government seeks an infusion of cash to overhaul Argentina's embattled economy.

The populist president started his four-day trip in Miami, home to one of the largest populations of Argentines in the U.S., where he received an honor from the Jewish community Wednesday at an Orthodox synagogue. Milei will meet with Musk on Friday in Texas, his spokesperson said, where he will also tour a factory for Tesla, Musk's electric car company.

Milei's third trip to the U.S. in merely four months as president comes as he reshapes Argentine foreign policy in line with Washington. Standing beside Gen. Laura Richardson, head of the U.S. Southern Command, at the southernmost tip of South America last week, Milei vowed to boost the nations' ''strategic alliance'' — underscoring how he sees U.S. support as vital to the economic overhaul on which he has staked his presidency.

''We took advantage to present a new foreign doctrine for Argentina,'' Milei wrote Wednesday on social media platform X of his meeting with Richardson. In the same post, apparently directed at Musk — a self-declared free speech absolutist — Milei said he promoted ''true freedom of expression'' and slammed journalists critical of his administration as trying to ''stop us from speaking."

''We are not going to remain silent in the face of slander, insult or defamation,'' he wrote.

Milei's plan to drastically cut public spending has inflicted economic pain and encountered resistance in a nation where annual inflation tops 276%. On Wednesday, police forcibly dispersed anti-government protestors blocking a main Buenos Aires artery.

Not only is the U.S. the biggest investor in Argentina, it also has the most influence over the International Monetary Fund, to which Argentina owes $42 billion. The IMF has endorsed Milei's shock therapy for Argentina, agreeing to disburse $4.7 billion from a bailout package the country took out six years ago.

The State Department's investment climate statement last year noted ''capital controls, trade restrictions, and price controls'' as factors hampering investors in Argentina. Milei has vowed to roll back those interventionist policies with market-oriented changes favored by business leaders, like Musk, one of the world's richest men who leads rocket company SpaceX, social media platform X and Tesla.

Milei and Musk — who both share a brash personality-driven style and distaste for government overreach — have expressed mutual admiration. Ahead of his inauguration last December, Milei praised Musk as an ''icon of freedom in the world." Musk gushed over Milei's speech lambasting socialism at the World Economic Forum in Davos, Switzerland, commenting ''So hot'' with a meme of a couple having sex while watching Milei speak.

With its vast lithium reserves, Argentina has much to offer Musk, a dominant player in the electric auto industry who has dubbed the metal, an indispensable ingredient in electric car batteries, "the new oil."

Milei's free-market policies have raised hopes in the U.S. that the metal and other badly needed raw materials can be extracted closer to the U.S., breaking China's dominance of the battery supply chain. The Biden administration said it was exploring investment opportunities in Argentine lithium earlier this year.

Argentina owes $42 billion to the IMF, and Milei aims to address this debt through his economic reforms.

Milei plans to roll back capital controls and trade restrictions, and he will meet with Elon Musk to discuss potential investments in Argentina's vast lithium reserves.

Argentina has significant lithium deposits, which are crucial for the production of electric cars, and the US is the largest investor in the country.

Milei's economic policies are influenced by economists like Milton Friedman, and he aims to restore confidence in Argentina's economy.

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Content: Argentina’s Javier Milei Attempts To Turn Back the ‘Pink Tide’

Election Sunday could elevate a radical libertarian, free marketeer, and advocate of sound money to the presidency of the country whose name means money.

It’s too soon to say whether tomorrow the arch-libertarian Javier Milei will be able to convert his place from leading contender to become Argentina’s president-elect. There might have to be a runoff. It’s not too soon, though, to savor the prospect of a free marketeer and sound money advocate acceding to the Pink House. Particularly in the land that spawned Perónism and whose name — Argentina —  means money.

The anarcho-capitalist is campaigning with a chainsaw, vowing to upend Argentina’s establishment, which he describes as a “political caste” of “useless parasites.” It’s “no time for nice words and good manners,” he avers, noting that, as the Wall Street Journal reports, “the caste is trembling.” The anger, if strident, is understandable, with Perónism, a leftist hybrid of nationalism and statism, having ravaged the once-thriving Argentine economy.

Poverty stands at 40 percent in a country that once vied with America as a contender for economic superpower status. Inflation is running at a catastrophic 138 percent, devastating Argentines’ buying power and driving a black market in dollars. No wonder Mr. Milei wants to ditch the country’s debased peso, which he calls “a currency emitted by Argentine politicians” that isn’t even “worth excrement,” because the pesos can’t be used as fertilizer.

The real path toward restoring sound money in Argentina would be to restore a peso convertible into gold or silver, as opposed to merely adopting a fiat dollar. Yet Mr. Milei’s proposed “dollarization” — making the greenback Argentina’s sole legal tender — is something of a step in the right direction. It would mark a sea change for a country that has been notorious for its lax monetary and fiscal policies after it abandoned its gold standard.

That was in 1929. Since then, Argentina’s currency has fallen in tandem with the country’s economic prospects. As the 20th century began, both America and Argentina “were young, dynamic nations with fertile farmlands and confident exporters,” journalist and historian Alan Beattie has observed, and “Argentina was among the 10 richest economies in the world.” Emigrants fleeing Europe were often torn, he noted: “Buenos Aires or New York?”

Argentina’s prospects dimmed during the Great Depression. Instead of following America’s path by embracing global trade, Argentina fell prey to the siren song of Perónism. This regime of corporate cronyism and big government, as economist Lawrence Reed explains, “expanded the power of labor unions, spent lavishly on welfare schemes and waged class warfare against the rich,” and drove Argentina’s economy into the ditch.

One of the most insidious aspects of Perónism is how it inverted the formula of “negative rights.” These are enshrined in America’s Constitution to protect against the predations of the government, as seen in, say, the First Amendment, which opens by saying “Congress shall make no law . . .” By contrast, Eva Perón justified the socialist takeover of the economy and a bloated welfare state by saying “Where there’s a need, there’s a right.”

Mr. Milei is, in the Financial Times’ telling, running on a platform that is as far from Perónism as it gets, calling for “unfettered free markets,” free trade, and “giving primacy to private property and individual freedom.” The fact that he has named his dogs after economists like Milton Friedman, Robert Lucas, and Murray Rothbard suggests he has an awareness that political liberty is not possible without economic liberty.

Whether or not Mr. Milei wins the presidency in Sunday’s first round of voting, as he suggests is a possibility, or at all, his candidacy is a bright spot on a continent that has lately drifted toward the shoals of neo-Marxism. Observers call it a “pink tide.” The Argentines have the opportunity at the ballot box to buck this leftward trend, choosing sound money and individual liberty and putting their country on the path to prosperity it left decades ago.

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The president proposes eliminating the central bank in Argentina and replacing the local currency with the US dollar.

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Content: The content originally appeared on: Al Jazeera – Latin America News

Argentines are voting in a presidential election that might see a far-right populist leader, who has vowed to overhaul the Latin American country’s ailing economy, emerge victorious.

Polling stations opened their doors at 8am local time (11:00 GMT) and are expected to accept voters until 6pm local time (21:00 GMT), with results to come by late Monday.

During Sunday’s ballot, voters are also selecting members of the Congress and provincial governors, specifically 130 lower house representatives and 24 national senators.

Decades of economic decline and record inflation have propelled libertarian outsider Javier Milei, the 52-year-old far-right populist leader of the Liberty Advances party, to the front of a tight race.

The eccentric economist and first-year lawmaker, who has described himself as an “anarcho-capitalist”, had emerged as an unexpected frontrunner in the August primary election.

Milei has been compared to controversial leaders like Donald Trump in the United States and Jair Bolsonaro in Brazil, and has been winning support among some Argentinians by promoting radical policy changes.

Voters are angry at traditional parties for failing to address the Latin American nation’s ailing economy for decades.

Milei has mostly focused on the economy, which experts agree is perhaps the most severe challenge facing Argentina right now, with inflation standing at a whopping 138 percent in September and only expected to grow by the end of the year.

To fix the economic issues, Milei has proposed eliminating the central bank, replacing the local currency with the US dollar as Ecuador and El Salvador have done, and slashing public spending.

He has also promised cultural reforms as he has presented himself as an opponent of socialism at home and abroad, and is a staunch critic of abortion, which he has described as “murder” even though it was legalised by the country’s Congress in 2020.

Milei’s main rivals are Patricia Bullrich, a 67-year-old former security minister who is the candidate for the centre-right Together for Change coalition, and Sergio Massa, the 51-year-old incumbent economy minister who represents the governing Peronist coalition.

To win the presidential election, a candidate must secure 45 percent of the vote, or 40 percent plus a 10-point lead over their closest competitor.

Pre-election polls give Milei the best chance of winning, but they have proven notoriously unreliable in past elections.

So, it is possible that there will be two winners, which would force a second round of voting in November.

A new president and vice president are expected to take office on December 10.

dollarizing the Argentinian currency
closing the central bank

Milei's government has already begun to implement economic reforms, including the deregulation of the economy and the removal of generous subsidies for electric, gas, and transport.

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Content: (Bloomberg) -- Argentina’s labor movement is testing popular support for President Javier Milei’s austerity blitz in a national strike less than two months into his presidency.

Thousands of Argentines flooded the streets and avenues surrounding congress during a mass protest Wednesday in Buenos Aires organized by the CGT, one of the South American nation’s oldest and most powerful union groups. The events of the day will help set the tenor of debate as the libertarian economist attempts to slash the size of the state in a bid to tame triple-digit inflation. A key vote on part of that agenda was postponed by lawmakers until next week.

The government projected a sense of calm from afar. “Some thousands striking, some millions working,” presidential spokesman Manuel Adorni tweeted, while Milei — from his official residence in the outskirts of the capital — posted a chart showing money in circulation and the central bank’s liabilities. Security Minister Patricia Bullrich was set to meet with the president later Wednesday about the security response, with her office estimating there were only 40,000 strikers in the street.

Protesters concentrated around Avenida de Mayo and cut off the city’s widest avenue, 9 de Julio, despite strict measures against street blockades Bullrich announced in December. The crowd gathered to watch the principal union leaders deliver a brief address in the early afternoon and began to disperse afterward. In attendance were various Peronist political leaders, including Buenos Aires Governor Axel Kicillof, and members of the country’s biggest unions carrying flags and playing drums.

“They devalued and tripled prices for food, gas, and now they tell us there won’t be pension raises,” Hector Daer, the umbrella labor group’s secretary general, told the protesters. “That’s why we are telling members of congress to act in line with their popular mandate.”

Truckers union leader Pablo Moyano sent a sterner message to Economy Minister Luis Caputo, who is helming the government’s aggressive spending cuts: “If he continues with these measures, Minister Caputo will be thrown to the Riachuelo,” a famous Buenos Aires river.

Moyano later backtracked on his comment, calling it a metaphor. Referencing the initial statement, Caputo said on social media that he hopes the justice system gets involved.

After taking office in December, Milei issued a decree deregulating vast swaths of the economy and sent a sweeping package of free-market reforms to congress. He unfroze prices for thousands of everyday products and is advancing steadily on the removal of generous electric, gas and transport subsidies, amid annual inflation hurtling beyond 211%. While the CGT successfully challenged labor provisions of the decree in court, a vote on the so-called omnibus bill is headed for the floor of the lower house.

Milei has stuck to the bombastic rhetoric of his campaign but also taken a pragmatic turn by withdrawing a proposal to privatize state-owned oil company YPF SA from his package of legislative reforms. The bill’s passage will be crucial for his government to meet targets laid out by the International Monetary Fund in its latest review of Argentina’s $44 billion aid program, the multilateral lender’s largest.

“Depending on how many people they mobilize, the union will be able to demonstrate how much weight it carries at the negotiating table,” political analyst Raul Timerman said in an interview. “If the protest is massive, lawmakers will have a harder time voting in favor of the government. But if the protest fails, it will make clear Milei still counts on the support of the population.”

How the authorities respond to the protest, the earliest strike ever called after a presidential inauguration in Argentina, will also be telling. In addition to the pre-emptive measures Bullrich announced in December, the Adorni said last week workers who participate in the strike would be docked a day’s pay.

Work stoppages began at noon and are set to last through midnight, while public transport is scheduled to run through the late afternoon in order to facilitate access to the demonstrations, although demonstrations blocked bus lanes in some parts of the city and TV reports showed some subway stations closures in the early afternoon. The protests are being led by unions representing truckers, sanitation, construction and gas station workers.

The strike has already disrupted transportation. Airlines including Gol Linhas Aereas SA, Aerolineas Argentinas SA and JetSmart have announced cancellations or delays for Argentina flights, while shippers including Agencia Maritima Nabsa SA told clients the protests will affect port operations.

Milei’s party holds just 15% of the lower house and 10% of the senate, while the Peronist movement it defeated and its left-wing allies have just under half of votes in each chamber. The libertarians are counting on the support of the main pro-business opposition bloc founded by former President Mauricio Macri and more moderate members of two other parties to push through their reforms.

The strike could tilt political will in Milei’s favor if it unites a fractured political group pushing for change, according to political scientist Gustavo Marangoni.

“Ultimately, politics boils down to rivalries,” said Marangoni, director of M&R Asociados in Buenos Aires. “The government will say to the different factions, ‘We may have our differences, but we are against the Argentina that today took to the streets.’”

--With assistance from Daniel Carvalho.

(Updates with comments made at protest by union leaders, street blocks)

©2024 Bloomberg L.P.

The president has also issued a decree that facilitates economic deregulation and privatization, which has been met with opposition and protests.

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Content: Argentina’s Javier Milei’s “Instant Democracy” and Neoliberalism

Javier Milei, YouTube screen grab.

Self-described “anarcho-capitalist,” Javier Milei became the president of Argentina in December 2023 promising “drastic” measures to temper the inflation crisis that has gripped the country. In the weeks since his election, Milei has brought forward an ambitious neoliberal restructuring program encompassing almost every aspect of the government.

Milei’s agenda confronts considerable opposition in Congress, where his governing coalition, Libertad Avanza, holds only a fraction of the seats. To adjust to these circumstances, Milei has cultivated a strategy of “turbo-politics,” bypassing legislative processes that risk delaying the implementation of his state reorganization plans.

Milei’s approach to Congress is symbolic of a decades-old strategy I have elsewhere called “neoliberal parliamentarism.” This concept describes a pattern of deliberate efforts to reform or subvert legislative institutions as a means of facilitating neoliberal reforms that do not have sufficient popular support to be actualized through usual democratic channels. These changes, even when temporary, often leave long-term scars on institutions by weakening norms of institutional forbearance.

The Emergency Decree and the Omnibus Bill

Milei has followed this blueprint, insulating the core elements of his agenda from democratic influence. The dismantling of the Argentine state began in earnest in mid-December when the executive branch presented an 83 page Necessity and Urgency Decree (NDU) aimed at repealing over 300 various laws and regulations, facilitating the privatization of core public assets.

This “mega-decree,” Milei claimed, was necessary to “start to undo the huge number of regulations that have held back and prevented economic growth”. It includes sweeping economic deregulation, such as the elimination of regulations on Argentina’s supermarket laws, which required the guarantee of low prices on basic products. It also includes measures to eliminate rent controls. Suggested labour reforms to cut pregnancy leave and increase the job probation period were suspended by the courts in January 2024.

Less than a week after issuing the NDU, the executive branch sent a massive omnibus bill titled Foundations and Starting Points for the Freedom of the Argentine People to Congress for consideration. The bill bundles the major elements of Milei’s neoliberal restructuring initiatives under the heading of a single piece of legislation with 664 articles. It will enable the government to carry out, in a matter of weeks, what would normally take years to achieve if these reforms were considered independently and subjected to the usual legislative scrutiny.

Reforms from the 351 page bill include an extraordinary provision declaring a state of public emergency on matters related to the economy, fiscal balance, social security, defence, health, and administration.

The emergency declaration delegates more than 1,000 extraordinary powers from the legislative to the executive until December 31, 2025, with the possibility of a two-year extension. This provision would enable Milei to make major reforms without having to consult Congress, thus eliminating a major hurdle to the implementation of neoliberal reforms.

Authors of the bill are attempting to facilitate the privatization of 41 state-owned companies across various sectors including energy, aviation, port administration, and agriculture. They also enable the reorganization of public administration, including embedding regulatory cuts from the NDU into law.

Additionally, the omnibus legislation proposes substantial reforms to environmental protection laws. These changes include the weakening of the Glacier Protection Law, allowing the mining of sensitive “periglacial” areas. The bill is presently being rushed through the legislative process by way of Extraordinary sessions of Congress, leading to marathon sittings during Argentina’s usual summer recess period.

“It’s impossible for people to have an idea of the enormous number of proposals Milei has sent,” said Ricardo Gil Laverda, a constitutional lawyer and former Argentine Justice Minister. “They cover dozens and dozens and dozens of laws, often on deep topics.”

To influence negotiations, Milei has threatened to put forward a non-binding referendum if the opposition parties do not agree to the main terms of his restructuring plan. Milei has also threatened to take away social welfare rights from protesters who block streets.

Despite these efforts, however, the reality of Milei’s lack of Congressional support has led him to compromise on some elements of his agenda as it makes its way through the legislative process. Although the structure of the bill remains, opposition politicians have made more than 100 changes to it, including curtailing the scope of the President’s emergency powers to one year rather than two, and retaining YPF, the national oil and gas company, in public hands, despite allowing most other state-owned companies to remain subject to privatization.

Neoliberalism and the Decline of the Legislature

Argentina is not unique. This most recent example of legislative subversion is a familiar tactic used to accommodate neoliberal restructuring, that has been utilized repeatedly by neoliberal reformers in recent decades, including the IMF-sanctioned omnibus bill rammed through Greece’s parliament in 2014.

This approach to the legislature is the consequence of the political limitations of neoliberal policy, which is opposed by considerable segments of society. A blueprint for this strategy is spelled out by former New Zealand Minister of Finance Roger Douglas in his 1993 book, Unfinished Business. The book recalls lessons from his experience implementing a neoliberal agenda dubbed ‘Rogernomics’ in the 1980s against the headwinds of widespread social and political opposition.

Douglas claimed it is “uncertainty, not speed, that endangers the success of structural reform programmes.” Neoliberal reforms should not be passed incrementally, but as a rupture, moving in “quantum leaps” to overcome popular opposition.

Democratic processes are typically slow and deliberate, designed to enable the legislative body to scrutinize the executive, foster compromise, and encourage debate. It was necessary, therefore, to streamline the democratic process to ensure that politicians could neither interfere with, nor demand meaningful changes to, neoliberal reorganization efforts.

Neoliberal governments should confront the legislature, not as an essential element of the process of democracy, but an instrument used by politicians and vested interests to interfere with the operations of the marketplace. “Speed is essential. It is almost impossible to go too fast,” Douglas said. “Once the programme begins to be implemented, don’t stop until you have completed it.”

This tactic did not occur in a vacuum, but emerged intrinsically from the content of a neoliberal theoretical framework that views democratic institutions as an additional layer of state administration to be overcome. Neoliberal thought is deeply skeptical in the capabilities of reason to infer or predict causality. Given the limitations of the mind, society should be governed, not by conscious modelling and careful planning, but according to spontaneous or “invisible hand” forms of social organization, which are the outcome of independent, unplanned individual decisions.

This position is most clearly expressed by Friedrich Hayek, who claimed that parliamentary sovereignty was in fact the “root of the evil” in modern society, since it facilitated the growth of the state. Legislatures constituted one limb of what Milton Friedman called the “iron triangle” of politicians, bureaucrats, as well as corporate and individual special interests that were perpetually reliant upon the government for rents, and therefore had an interest in obstructing market reforms.

‘Instant Democracy’ and the Rise of ‘Neoliberal Populism’

What should we make of Milei’s approach to Congress, then? Is it reflective of a new pattern in neoliberal governance, or merely the extension of an old one? The answer is both. While Milei’s approach clearly shares categorial similarities with the neoliberal legislative blueprint built for speed, his blending of these ideas with a coarse, populist rhetoric grounded in anti-statism, signifies an intensification of these patterns.

Milei’s populist neoliberal worldview contributes to a rising trend among far-right governments around the world to use this rhetoric to rationalize the subversion of democracy. This kind of “neoliberal populism” conflates democratic institutions with political actors, claiming that they are instruments of obstruction for self-serving politicians and bureaucrats.

This is a view Milei has proudly declared. “For me, the state is an enemy, as are the politicians who live off it,” he said. “We will put an end to the parasitic, stupid, useless political caste that is sinking this country.”

Grounded in the same logic as neoliberalism’s conventional demand for freedom from the state, democratic institutions increasingly appear as impediments to the logic of the marketplace. The elimination of cumbersome legislative processes, then, removes the obstacles that restrain market forces, generating popular economic independence, and restoring common-sense. This inverts the logic of democracy, making it appear as though executive rule is necessary to protect the interests of “the People” from Friedman’s “iron triangle.”

The anti-parliamentarism at the core of the neoliberal theoretical outlook has increasingly transformed into a populist program that mobilizes a general dissatisfaction with politicians against democratic institutions as such. Neoliberal politicians, such as Milei, use this reasoning to manufacture the conditions for the ongoing use of emergency powers and the concentration of authority in the executive branch.

The global elite, sensing “the smell of a big privatization wave coming,” are said to be “infatuated” with his take-no-prisoners approach to Congress. Thus, although not a new phenomenon, Milei’s brand of “instant democracy,” which conceives of speed and flexibility as the essence of legislative governance, has the support of both the financial elite as well as a growing populist dimension, giving it the hallmarks of a burgeoning political movement of the most regressive kind.

As the institutional forbearance that restrained most neoliberal governments to stay within the confines of liberal democratic constitutional structures continues to give way to a logic that sees the legislature as subordinate to the market, it is likely that we will continue to see the erosion of democratic standards.

Tom McDowell is a Lecturer in the Department of Politics and Public Administration at Toronto Metropolitan University. He is the author of Neoliberal Parliamentarism: The Decline of Parliament at the Ontario Legislature (University of Toronto Press, 2021).

How will Milei's reforms impact workers?

Milei's economic reforms are intended to boost exports and investment, but there are concerns that they may exacerbate poverty and social and economic inequalities in Argentina.

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Content: Argentina's President Saves Economy, 5,000 Government Employees Don't Continue Inflation, People Crash
International Center Tsai Sha-ling / General Report
Javier Milei, a far-right liberal economist known as “Trump Argentina, ” announced a“ shock therapy ” after his election as Argentina ’ s president to rescue a serious economic crisis with drastic fiscal reforms, insisting that it is normal for things to get worse until concrete results are achieved, calling on people to survive the inflationary boom, and adding to a series of reforms, including the layoffs of more than 5,000 government posts, means that Thousands of government employees will not be rehired.
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Speaking to supporters, Mirei declared that he was “unwinding the suffocating web of government control ” and changing a large number of regulations that are hindering economic growth, stressing:“ We have no choice, no time, no room for meaningless discussion. ”
Our country needs to take immediate action, "he said.
In order to reduce government spending, Mirei announced that he will not renew the contracts of government employees hired before he takes office in 2023, and that he will be sworn in as president on December 10 this year; employees hired before 2023 will not be affected for the time being, but the related contracts will also be reviewed.
The report pointed out that the 2023 as the demarcation point, apparently in response to the former president's proposed salary increase in the last year of his term.
With inflation expected to reach 200% by the end of the year, Mirei intends to accelerate measures, including privatization of state-owned companies, in the hope of boosting exports and investment, easing labor laws, reducing protections for employees, making it easier for companies to lay off workers, and banning state intervention in the rental housing market.
In addition, energy and transportation subsidies will also be cut, and some government departments will be abolished.
Whether Mirey ’ s shock therapy will save the economy is still unknown, but people have taken to the streets to protest against soaring prices.
Some economists believe that although such measures may be necessary to solve Argentina ’ s long-term financial problems, without an adequate safety net, the poorest people in society may struggle to survive and may not be able to survive until the country ’ s economy returns to normal.
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The reduction of government subsidies, particularly for essential services such as healthcare and education, may disproportionately affect vulnerable populations, including the 40% of Argentina's population that lives below the poverty line.

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Content: December 16, 2023

As Argentina’s new president, it took only one day for Javier Meili to get rid of the Culture Ministry. Miley was inaugurated on December 10, and the next day, the liberal economist and former television commentator delivered on her campaign promise with characteristic bravery. Also on the chopping block – or, rather, in the path of her chainsaw, which Miley wielded throughout her campaign to symbolize her intention to cut government spending – was the Ministry of Women, Gender and Diversity.

Many other ministries were reduced in size and transformed into new entities. The Ministry of Social Development, the Ministry of Education and the Ministry of Labour, Employment and Social Security will be divided into a newly formed Ministry of Human Capital headed by former TV producer Sandra Pettovello. Meanwhile, the ministries of public works, transport, energy, mining and communications will be merged into a new infrastructure ministry. (It appears that the Ministry of Culture and the Ministry of Women, Gender and Diversity will be dissolved entirely.)

Coming out on top after a runoff election against Argentina’s former economy minister Sergio Massa, Miley is keen to show her supporters she is serious about austerity measures. The self-described “anarcho-capitalist” cut widespread subsidies for gas and electricity and canceled public projects, considering these actions necessary to bring Argentina’s economy under control. Additionally, Miley announced a plan to devalue the Argentine peso against the dollar to half its current value in an effort to prevent hyperinflation, a move lauded by the International Monetary Fund, which has held Argentina’s debt to the tune of $40 billion. More is due. Prices in Argentina have more than doubled in the past year, and 40% of the population lives below the poverty line.

Although Miley’s actions are presented as economic policy, they are also a means of exerting control. A fan of Donald Trump and Jair Bolsonaro (former presidents of the US and Brazil, respectively), Miley has a history of blustering, ignoring reporters, and promoting far-right views on issues such as abortion, immigration, climate change, and gun ownership. He also regularly attacks his political rivals, labeling socialists “trash” and “human excrement”. (Bolsonaro also fired his country’s cultural ministry when he took office, and Trump congratulated Miley on her victory, saying he would “make Argentina great again”.)

Miley has referred to his country’s Ministry of Education as “the Ministry of Education”, and his disparaging view of the arts and humanities extends back to history – to the public accounts of those executed and disappeared by Argentina’s 1970s military junta. Casting doubt on the numbers and mocking human rights activists. Miley’s vice president, Victoria Villarruel, a regular supporter of the junta, in September called for a tribute to the “victims” of leftist groups of the 1970s and the dismantling of the ESMA Museum and Memory Site in Buenos Aires. , a former junta prison and torture center, has recently been named a UNESCO World Heritage Site.

Source: www.theartnewspaper.com

As of 2024, what are the statistics regarding poverty?

Milei's administration plans to privatize 41 state-owned companies, which could lead to job losses and reduced access to essential services.

Title:

Content: December 28, 14: 30
Opinions
“No money ”: the new President of Argentina introduced the first economic reforms
Elena Kondratieva about the shock measures of Javier Miley in a country with 40% poverty
President of Argentina Javier Miley
Argentina ’ s new president, Javier Miley, in his first speech as head of state, warned the country of the need for shock measures, and in December the first phase of his plan to save the economy took shape.
True, it does not contain many election promises and there are things absolutely opposite – the new government is going to raise export duties and taxes contrary to the ideals of libertarianism, which the Argentine leader calls himself a representative of.
The authorities attribute the inconsistencies to the difficult economic situation, which requires the adoption of unpopular measures.
Both Miley and his economy minister, Luis Caputo, said the measures they were taking ran counter to their beliefs.
But, according to them, this is the lesser evil – on the other side of the scale they call hyperinflation and catastrophic impoverishment of the population.
On the third day of the government, December 13, Caputo announced the first steps of the new government, including a devaluation - the official rate of the dollar soared from 366 pesos to 800 pesos.
Currency restrictions in force in the country since 2019 have been maintained.
The authorities admit that there are no conditions for their cancellation until the government solves the problem with the debt instruments of the Central Bank.
Nevertheless, the devaluation, stronger than many experts and ordinary people expected, allowed to narrow the gap between the official and the so-called blue exchange rate, which is used in the informal exchange market.
Today, the latter is about 1,000 pesos per dollar.
About the same time he was on the eve of the announcement of Caputo.
The devaluation, combined with the end of the programs of freezing of prices, spurred the already high inflation.
According to experts, by the end of December it will be about 30%.
In November, the price increase was 12.8%.
Miley ’ s government calls its main task for next year a zero budget deficit.
The task is extremely ambitious, given that in October the International Monetary Fund (IMF) predicted that Argentina, with the necessary reforms, will be able to reach a surplus budget only by 2028.
To achieve this goal, the new government, apparently, will have to work hard with the same chainsaw, which has become a symbol of Miley ’ s election campaign.
In the course of the election campaign, the president has already emphasized that the state and the so-called caste, the establishment of the country, will pay for his spending reduction program, and "people will not be touched."
As the first measures show, this principle has proved to be very broadly interpreted.
So, among the first measures, Caputo announced the gradual abolition of subsidies for electricity, gas and public transport.
Today, Argentinian households with low and middle incomes pay about 15-20% of the cost of electricity.
According to the plan of the authorities, the subsidies will be completely abolished by December 2026, but in 2024 they are going to spend $2.5 billion less on them.
Transportation subsidies are expected to save $1 billion next year.
Another article for saving will be government orders for infrastructure projects.
The government promises to abandon them completely.
“There is no money ” is a phrase that Miley constantly repeats and which his supporters print on T-shirts.
Reductions also affected the state apparatus.
The government of Miley changed the number of ministries from 18 to 9, almost halved the number of departments and announced the termination of more than 5 thousand labor contracts concluded in 2023.
Reforms signed by the President
The next step of the Mileus government was an emergency presidential decree, which was signed on December 20.
The Argentine Constitution gives the Head of State the power to change legislation without the prior approval of Parliament in an exceptional situation.
Miley, under this pretext, decided to include in the decree more than 300 articles that cancel or amend existing laws.
The head of state called the main goal of the document deregulation of the economy
For example, the government abolished price controls, including on food and health insurance programs.
Suppliers of the latter after the publication of the decree have already announced an increase in the cost of services by 40%.
Introducing his decree, Miley said that the state will no longer be able to restrict exports.
Deregulation also affected the aviation industry, the rental market, labor relations, tourism and various industries, including wine and sugar.
Some paragraphs raised serious questions about the justification of their inclusion in the emergency decree.
Thus, the document gives football clubs the right to become joint-stock companies.
Miley himself in an interview with LN + explained the need for this item by the fact that the measure will attract foreign investment to the country.
For the sake of investment, the government also repealed a law restricting the ownership of land by foreigners.
The decree is due to come into force on December 29 and can only be repealed by parliament if both chambers vote in favor.
It is not yet clear what will happen to the bill in Congress.
Miley's "Freedom Comes" coalition holds 37 of 257 seats in the Chamber of Deputies and 8 of 72 in the Senate.
They have allies in the opposition, mainly in the Alliance Together for Change (24 senators and 93 deputies), but they may not be enough.
The public also met the decree ambiguously, although Miley himself believes that he can successfully bring it to a referendum if blocked by parliament.
After the announcement of the reform in different parts of the capital, there was a noise from blows to pots - a traditional form of protest in Latin America.
In addition, opposition to the decree was expressed by the largest trade unions in Argentina, not excluding the strike, restrictions on which, incidentally, were imposed by the signed decree.
Mega-bill
Miley ’ s government completed the month with the introduction of a bill to parliament with a package of reforms covering not only the economy, but also criminal law, as well as electoral law, health care, education and defense.
In total, the document contains more than 660 articles.
Especially for its consideration, the executive branch convened an extraordinary session of parliament, which will last from December 26 to January 31.
Among the proposed reforms, I will highlight the increase in export duties.
In his first speech as head of state, Miley promised that the tightening of belts will fall on the shoulders of the state, not private business.
Nevertheless, the first package of bills included the establishment of a duty of 15% for agricultural products, which are now not subject to fees, and an increase from 31% to 33% of the duty for flour and oil.
The authorities promise to subsequently cancel the fees from exporters, but for now the government, they say, needs funds to get rid of the budget deficit.
There is no deadline for the fulfillment of the promise made to exporters.
The bill also included a tax amnesty and the privatization of 41 state-owned companies, including oil and gas YPF, airline Aerolineas Argentinas, Banco Nación Bank, geostationary communications operator ARSAT and railway company Ferrocarriles Argentinos.
Miley noted that the YPF process will take place after reforms within the company, which should increase its value.
This will be his second privatisation.
In 2012, the government of Cristina Fernández de Kirchner decided to return YPF into the hands of the state, expropriating 51% of the shares of the Spanish company Repsol under the pretext of insufficient investment in the country ’ s oil and gas sector.
The conflict with the Spaniards was settled by the payment of compensation in the amount of $5 billion back in 2014, but in 2023 the consequences of the expropriation made themselves felt again – in September, the court of the southern district of New York ordered Argentina to pay $16 billion to the Burford Capital fund, which bought the bankrupt after the nationalization of the company, which owned 25% of the shares of YPF.
Miley ’ s emergency decree stated that the state ’ s share in Aerolineas Argentina ’ s shares would be transferred to its employees.
After that, the country ’ s largest airline, which has also been through privatization and renationalization, will stop receiving support from the budget, thanks to which, in particular, air traffic on not the most popular routes was maintained.
Given the emergence of new competitors in the context of deregulation of the aviation industry, Aerolineas Argentina is likely to be forced to reduce the number of destinations in the country.
At the same time, despite the declared "No Money", the bill provides for a reduction in tax on personal property and exemption from tax on the sale of real estate purchased before 2018.
Where to find money
The bill also included a painful topic for Argentina's foreign debt.
The government proposes to abolish the rule that obliges the executive branch to obtain permission from Parliament to issue dollar bonds in excess of the amount specified in the budget.
Argentina ’ s debt remains an acute problem for the country.
On December 21, the country made another payment as part of an agreement to settle its debt to the IMF.
The loan was issued to the country at the request of Mauricio Macri, who in May 2018, as head of state, turned to the IMF for help against the background of a sharp fall in the national currency.
The funds for the December tranche of $921 million to Argentina were provided by the Andean Development Corporation (ACR).
The country cannot afford to pay from its own reserves.
Already in the period from January 9 to February 1, 2024, Argentina will have to make new payments totaling more than $2.8 billion.
The government is trying to negotiate with the fund to change the agreement, but this does not negate the need to find funds to repay the payments.
One of the sources could be the $6.5 billion currency swap that China has promised to provide to the past government of Argentina.
The Miley administration is trying to gain access to it, but there seems to be little progress so far.
The situation for Argentina is complicated by the numerous statements of Miley and members of his coalition about relations with China.
During the election campaign and after the election, the head of state repeatedly said that he did not intend to promote relations with Beijing, because he did not want to do business with the Communists.
In addition, the foreign Minister of Argentina Diana Mondino said that the country will not enter the BRICS, where it was accepted at the end of the August summit of the group.
Beijing may also be concerned about the Miley administration ’ s refusal to accept government orders for infrastructure projects that fall under the purview of Chinese investors.
After taking office, Javier Miley and his team tried to mitigate past statements.
The new administration invited Chinese President Xi Jinping to the inauguration, which took place on December 10.
He himself, however, did not come, but Miley held a meeting with the Chinese delegation and sent a letter to the Chinese leader, in which he asked him to help gain access to the currency swap.
Another source of financing for Argentina could be the New Development Bank (NDB) of the BRICS, a formal application for accession to which was submitted in October by the then President of the country Alberto Fernandez.
However, the Miley administration apparently decided to freeze the process, since at the end of November Mondino said that Argentina was unable to join the NDB due to the inability to contribute capital.
It is possible that the government of Miley will decide to change its position, but so far this has not been reported.
Several Argentine experts in conversation with me complained that the Latin American country cannot afford to be guided by ideological prejudices in foreign policy, and regretted the missed opportunities in refusing to develop relations with China and BRICS.
Ghostly light at the end of the tunnel
It is possible to evaluate the reforms proposed by Miley differently, but we can definitely say that the Argentines in the coming months will have a hard time.
The government itself recognizes this.
In his first speech as head of state, Javier Miley openly said that the shock measures he proposed would lead to higher unemployment and poverty, as well as lower economic activity and real wages, but then "there will be light at the end of the tunnel."
At the same time, Miley does not call the timing of the onset of a bright
In an interview after the election, he said that it will take at least a year and a half to solve the problem of inflation.
In recent weeks, members of the administration have refrained from making any predictions, promising only to support the most vulnerable segments of the population and to do everything possible to ensure that the period of decline in economic activity passes as quickly as possible.
It remains an open question whether the residents of the country, where, according to the National Institute of Statistics and Census Indec, the poverty rate is already 40%, will have enough patience.
The opinion of the editor may not coincide with the opinion of the author.
The use of the material is allowed subject to compliance
of rules
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How many state-owned companies would be privatized under Milei's mega bill?

How will Milei's reforms impact workers?

What does Milei promote in terms of healthcare and education?

The government has also cut subsidies for energy and transportation, which will save $1 billion in 2024, but may increase the cost of living for many Argentinians.

The abolition of price controls on food and health insurance programs may also exacerbate social and economic inequalities.

How will Milei's reforms impact workers?

Milei's reforms have been met with protests and opposition, with many arguing that they will disproportionately affect the poor and vulnerable.

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Argentines Take Feminist Strike to the Streets on International Women’s Day

Activists demand an end to austerity measures, growing poverty and worsening food insecurity under President Milei.

Argentinian women from all walks of life will take to the streets nationwide on 8 March, International Women’s Day, as part of a feminist strike calling for an end to the country’s growing poverty, which already affects 57% of the population of 46 million.

The protesters’ “most important demand” is a solution to Argentina’s “food emergency”, said María Claudia Albornoz, an activist from La Poderosa, a group that defends the rights of the five million people living in the country’s 6,500 slums, or villas miseria (misery villages).

Three months after right-wing libertarian president Javier Milei took office, Argentina’s ever-increasing food inflation has reached 56%, according to the latest analysis from La Poderosa. Government data shows the country’s annual inflation rate is 254%.

Real-terms wages and pensions are deteriorating, and people go to supermarkets not knowing whether the money in their pockets will be enough to buy foods they could afford just a few days ago.

Shoppers have one certainty, though: what were once basic goods such as shampoo are now luxury items. The small local grocery stores that allow their customers to pay on an informal trust-based credit system now keep track of only the items and quantities purchased, no longer bothering to note down the prices that are constantly rising.

The spiralling cost of living has been worsened still by Milei’s cuts to ‘ollas populares’, community kitchens run by social, civil and religious organisations, which are a last resort for the most impoverished families.

There are around 44,000 of these kitchens across Argentina, which were able to produce around 10 million meals a day last year.

Since then, Milei’s administration has stopped the government packages of non-perishable food staples, such as pasta, rice and yerba mate (a traditional herbal drink) being sent to these kitchens, arguing that it must conduct an audit on how they use these resources.

The cuts have led to “a very desperate situation”, said Albornoz, whose group La Poderosa runs 158 kitchens nationwide.

“Without these basic food staples, we cannot cook,” she said. “This causes us enormous distress, sadness and pain, because we can’t feed our families, a role that is very much attached to women and gender non-conforming people.”

Protesters have taken to the streets nationwide to demand the cuts are reversed, but the government has doubled down.

Ministers claim the kitchens’ volunteers — many of whom are part of larger groups of organised unemployed, informal workers and leftist activists known as ‘picketers’ — are committing “extortion” by using food to lure people to their protests. They say they made the cuts to end this practice, advising people to enrol in the government’s food support program rather than relying on the community kitchens.

The minister of human capital, Sandra Pettovello, even mocked protesters as they gathered outside the ministry, saying: “Boys, are you hungry? Come one by one and I’ll write down your ID number, your name, where you’re from and you’ll receive help individually.”

But four days later, as more than 10,000 people lined up to meet her, Pettovello signed a $210,000 food assistance agreement with the Christian Alliance of Evangelical Churches of Argentina. “No longer will the picketing organisations be in charge of distributing food and social plans paid for by the national state with the money contributed by working Argentines,” she said.

Shifting Priorities

It is primarily the austerity measures, growing poverty and worsening food insecurity that the 8M feminist strike will denounce this week.

For the first time since feminists began holding open decision-making assemblies in 2015, participants have agreed to make tackling hunger the demonstration’s priority.

Organisers have drafted a manifesto to read out during the demonstration, which includes statements aiming to challenge ‘libertarian’ ideas advocated by Milei, such as: “With hunger and without rights, there is no freedom” and “Enough of austerity and repression”.

Assemblies allow any civil society group or individual to present their concerns to be discussed. They have achieved something that no other social movement in Argentina has managed to: working together to tackle issues of reproduction of domestic and community life, as well as formal and informal work.

But in previous years, the assemblies’ middle-class feminists, who are more likely to be educated, have sought to give priority to protests on issues such as access to abortion, femicides and gender-based violence.

Now, as the country’s economic situation has worsened, their goals have shifted. They are now in agreement with working-class feminists, who have long argued that food security must be their top concern.

“What seems to me to have changed this year is that we are a priority,” Albornoz said. “Feminists were able to begin to reach a consensus on issues that we, the slum dwellers — the people who cannot cover the basic food basket — consider a priority.”

The food basket Albornoz referred to are the essential food items required to sustain an adult for a month. These cost $110 when converted from pesos at the official exchange rate, more than half the average monthly earnings of a person living in an urban area ($218).

The assemblies allow villeras (women who live in slums), feminist academics, trade unionists and LGBTIQ people to share their lived experiences and political thinking, which has enabled the feminists to agree on strategies of resistance.

This is more important than ever, as the misogynist discourse Milei regularly touted during his election campaign has in recent months materialised as an avalanche of regressive measures stripping away the rights of women and LGBTIQ people.

The president has scrapped the Ministry of Women, Gender and Diversity, replacing the entire department with an undersecretariat for protection against gender violence in the newly created Ministry of Human Capital.

His government has also ended two support programmes for victims of gender violence — one that sought to strengthen their economic independence, and another that provided psycho-social and legal help — and fired many of the public employees who worked on the hotline for counselling and assisting victims.

It also closed the National Institute against Discrimination, Xenophobia and Racism, and banned the use of language that is inclusive and gender-neutral in public offices or documents. Defending the move, presidential spokesman Manuel Adorni said inclusive language was being weaponised as “a political business”.

The government has further plans to weaken or dismantle legislation that feminists fought for, such as the 2019 Micaela Law, which introduced mandatory training in gender and gender violence for all public servants and the Law on the Voluntary Interruption of Pregnancy, which legalised abortion in 2020.

Ministers claim these closures and austerity cuts are needed to fix the ailing economy, but the main attacks on women and LGBTIQ people have come from the president himself.

In his speech at the World Economic Forum in Davos in mid-January, Milei spoke of “the cruelty of the bloody agenda of abortion”, said gender inequality no longer exists and branded feminism “a ridiculous and unnatural fight between men and women”.

Feminists fear the president’s misogyny, combined with his cuts, mean Argentina is “heading towards a scenario of worsening violence in general and gender violence”, according to Raquel Vivanco, who founded the Observatorio Ahora Que Sí Nos Ven (the Now That They See Us Observatory), which tracks femicides in the country.

“These structural conditions of extreme poverty and unemployment, as they increase inequalities, create more violence that can in turn increase numbers of femicide statistics,” said Vivanco.

There were 42 femicides in Argentina in January and February of this year. The observatory recorded the highest-ever number of femicides (297) in 2019, which was rightist president Mauricio Macri’s last year in office and was characterised by austerity policies that were harsh but not as extreme as those being introduced by Milei.

“Left With Absolutely No Rights

Though widespread hunger and attacks on women’s rights are the protesters’ main priorities, they also want Milei to address his measures of ‘economic terror’ and his denials that gender inequalities exist in Argentina.

Lucía Cavallero, a sociologist and researcher at the University of Buenos Aires and a member of Ni Una Menos (Not One Less), a group that fights gender violence, told openDemocracy about the dire economic situation in Argentina.

“There is an unprecedented devaluation of the peso, a deliberate freezing of wages and social subsidies, so inflation is brutal, and a perverse discourse of warning that it could be worse,” she said. “Added to all this is the deregulation of the economy in almost all areas.”

The government’s own data shows that one million people fell into poverty every month for the past three months. Albornoz believes these figures are an underestimate, though, telling openDemocracy that La Poderosa’s analysis indicates an increase of six million impoverished people in the past two months.

Argentina’s school year recently started, forcing many families to try to find creative solutions to not being able to afford school supplies, which cost an average of $150, or uniforms.

The best case scenario saw children reuse items from previous years or pick up supplies from the donation drives that took place across the country. At worst, though, “mothers said they would have to choose which children to send to school because they don’t have the school supplies or the smocks to send them all,” said Cavallero.

The effects of this economic and political turmoil are also being seen in housing, particularly since the government repealed the law regulating the rental market on 29 December.

“It left us tenants with absolutely no rights,” said Tamara Lescano, an activist from the social movement Inquilinas Agrupadas (Tenants United). “The lack of a legal framework enables real estate abuse”.

Rental contracts now have no minimum period and are able to be terminated at landlords’ discretion, without a need to consult the tenants or give a reason for the eviction — which was previously illegal. Landlords can also include unreasonable clauses in the tenancy agreements.

Lescano said the private rental sector in Argentina, which already encompasses some 10 million people, is growing — yet fewer and fewer landlords own more properties than ever.

Inquilinas Agrupadas receives an average of between 40 and 50 requests for advice every day, mainly from women with dependent children, pressured by their mostly male landlords.

“They Are Coming For Us”

The 8M strike faces a fresh challenge this year. Four days after Milei took office, his government outlawed any public protest involving the blocking of roads with a new ‘anti-picketing’ protocol that contains specific clauses allowing the police to criminalise, persecute and stigmatise protesters.

“They identify you in the marches, they take pictures of you, they film you. When we mobilise, the police, who are very violent, quickly repress us,” said Albornoz.

“This has already happened at various times,” she added, referring to hundreds of protests against Milei’s austerity measures that have been organised by different social organisations across the country in recent months.

The protocol also allows the government to issue protest organisers with hefty fines, deprive demonstrators of social aid, and punish parents or guardians who take minors to the marches.

These measures are attempts to intimidate the poorest, many of whom are women, said Gabriela De la Rosa, a member of the Polo Obrero, a social organisation affiliated to Argentina’s Trotskyist Workers’ Party, which runs 3,000 community kitchens nationwide.

“The movement of the unemployed is made up mostly of women comrades, who mobilise with their entire families because they have no one to leave their children with in order to demand food for their children,” De la Rosa told openDemocracy. “On the picket lines, in the encampments, in the mobilisations, the families often have a pot to eat, and at home, they don’t.”

As well as the risk of harsh policing, Argentinian feminists worry their protest could turn violent — fearing Milei’s repeated attacks, coupled with food insecurity and the general uncertainty caused by inflation and low wages, have set the stage for social unrest.

“There is fear of what might happen in the 8 March demonstration,” Albornoz acknowledged. “We have been holding assemblies to dispel this fear and to make the women understand that if we don’t take to the streets and defend our rights, we are going to lose much more than we have already lost.”

The feminists “will take all possible precautions” to avoid violence in the 8 March demonstration, said economist Candelaria Botto, the director of Economía Feminista, which seeks to expose gender inequalities in the world of work and business.

“But we know that we have to be there, on the streets, because they are coming for us.”

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Who has opposed Milei's proposed layoff order?

The president has threatened to take away social welfare rights from protesters, which has sparked concerns about the impact of his reforms on human rights and social justice.

Despite these concerns, Milei's administration remains committed to its economic reforms, which are intended to reduce the country's debt and stimulate economic growth.

Title:

Content: Millie is facing the minefield of the economy, politics and society of Argentina
Argentina ’ s president-elect Javier Milley ’ s sweeping reform package overcame the first parliamentary hurdle, winning public approval on the third day of debate in the House of Representatives, while the initiative, which included economic, social and political areas, sparked strong protests from the opposition and the Argentine street.
Argentina has been embroiled in a long-running conflict with severe economic crises that have led its citizens to turn their attention to Mili, who won a resounding victory in last October ’ s election.
As a result of public discontent over decades of economic instability, with annual inflation surpassing the 200 percent threshold and poverty levels rising to 40 percent, Milley embarked on a “bold path to redefining Argentina ’ s future. ”
Massive opposition.
Tens of thousands took to the streets in defiance of Milley ’ s austerity measures, which included cuts to the balance sheet.
The demonstrations disrupted parliamentary debates, leading to confrontations between law enforcement forces and protesters.
Police fired rubber bullets and tear gas, and sprayed protesters with water cannons, with reports of injuries and arrests among protesters.
The leftist opposition withdrew from parliament, denouncing what it saw as a severe police crackdown on protesters.
Opposition MP Mariano del Canio told the AP that "we can't work this way", stressing that protesters should be heard before they return to the hearing after a period of suspension.
Parliamentary manoeuvres
In a strategic move to bolster his program, Milley secured IMF approval to disburse nearly $4.7 billion to Argentina.
The package of reforms, dubbed Omnibus, spans across different sectors, from electoral and cultural reforms to privatization, penal code amendments, and changes to the status of football clubs.
The House of Representatives, by 144 votes to 109, granted general approval, paving the way for the next phase of negotiations in the Senate.
The bill ’ s 664 clauses, which sum up the complex fabric of Melli ’ s reforms, will be subject to close scrutiny and possible amendments.
Although the House of Representatives has generally approved Melli ’ s reform bill, negotiations are on the horizon.
The complex details of the bill, which include economic, administrative, criminal and environmental areas, will be subject to strict scrutiny, according to a pro-plan parliamentary description.
Lawmakers, some of whom have expressed reservations about specific articles on privatizing state companies and delegating legislative powers to the president, are due to participate in detailed discussions.
Milley ’ s challenge is not just to overcome ideological differences, but to build consensus within a fragmented political landscape.
The upcoming recess will provide a break before crucial negotiations resume, marking a pivotal stage in Milley ’ s ambitious agenda for his program.
Millie's presidency is at a crossroads.
Milley ’ s presidency, marked by libertarian principles and capitalist ideals, faces the complex challenge of balancing economic liberalization with societal expectations.
Austerity measures and privatization plans were not without opposition, leading to protests and even a general strike.
The president ’ s swift measures, including a 50 percent devaluation of the peso, cuts in subsidies, and deep cuts in ministries, reflect his confrontational approach to tackling the government ’ s budget deficit and fighting inflation.
However, these actions have aroused resentment, as protesters have questioned the potential impact on the most vulnerable groups in society.
The course of Melli's reforms will shape the country's economic and social landscape.
Experts say that the fine line between government initiatives, parliamentary negotiations and street reactions highlights the multifaceted nature of Argentina ’ s current socio-political reality.
As Argentina grapples with historic economic challenges, observers expect Milley ’ s presidency to be a decisive chapter, with the split between economic liberalization and social welfare taking center stage with every decision that resonates in the corridors of power and crowded streets.
Source: Al Jazeera + Associated Press

What issue did Milei want to address without printing money?

However, the implementation of these reforms may be challenging, particularly in the context of Argentina's high inflation rate, which exceeds 200%.

As of 2024, what are the statistics regarding poverty?

annual inflation rate of 211% is highest in 32 years

What economic issue did Milei want to address?

The International Monetary Fund has approved a $4.7 billion disbursement to Argentina, which will help to support the country's economic reforms.

Overall, Milei's administration faces significant challenges in ensuring that its economic reforms do not exacerbate social and economic inequalities in Argentina.

How will Milei's reforms impact workers?

The government's plans to reduce government subsidies and privatize state-owned companies may have a disproportionate impact on vulnerable populations, particularly in regards to access to essential services such as healthcare and education.

What does Milei promote in terms of healthcare and education?

It is unclear how Milei's administration will mitigate the potential negative impacts of its reforms on social and economic inequalities in Argentina.

The IMF's support for Milei's economic reforms may impact Argentina's economic sovereignty, as the organization has significant influence over the country's economic policies.

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Content: 【 Printing 】
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Editorial: Davos Forum has a new challenger
Related LINKS http: / / www.CRNT.com 2024-01-19 00: 05: 56
President Millet of Argentina
Beijing, January 19 (commentator Qiao Xinsheng) The 2024 Davos Forum invited Argentine President Milai to give a speech, which can be said to be a groundbreaking event.
As Argentina ’ s new president, soon after he took office, he began his own neoliberal experiment, not only by cutting government departments, but also by loosening monetary controls, with financial support from the International Monetary Fund.
The Argentine president went all the way to the Vos Economic Forum to promote his policy ideas.
In his speech, he attacked socialism and criticized collectivism, arguing that "collectivism is never the solution to the problems that plague the citizens of the world, but the root cause".
He believes that there is no so-called market failure, but because the neoclassical model does not match reality.
The introduction of regulation under the pretext of the so-called market failure will only lead to distortions in the price system and hinder economic calculations, thereby hampering savings, investment and growth.
He stressed that "the solution proposed by collectivism is not greater freedom, but greater regulation".
On the surface, the Argentine president is attacking socialism, but a careful analysis of the content of the speech will reveal that for European Union officials who are passionate about market regulation, the Argentine president ’ s speech seems to be pointing at the nose and shouting.
Market fundamentalism has gradually declined around the world, because the spread of neoliberalism has brought about not progress but regression in many countries.
As a test ground for neoliberalism, Russia ’ s economy has made great strides backward under neoliberal policies.
Without economic troubles, Russia would not have chosen Putin as its president. More than 20 years later, Argentina ’ s president is still promoting his own neoliberalism, and it ’ s not hard to see why Latin American countries have periodic shocks, with powerful political balls coming to power.
The economist, who has just assumed the presidency of Argentina, does not seem to have seen the effects of the reforms.
It may not take long for people to find out what the so-called free market really is.
When he preaches “prosperity ” from“ free enterprise capitalism ” in Davos, perhaps the officials in Brussels should realize that the Argentine president has something else to say.
In recent years, the European Union has introduced a series of policies that contradict the Argentine president ’ s claims.
Brussels has tens of thousands of laws in place to protect the European Union market.
These legal documents not only restrict the financial and monetary policies of the members, but also make specific provisions for the industrial policies and trade policies of the members. The European Union is like a medieval monastery, not only formulating a large number of physical rules, but also emphasizing red tape in the process, so that the European Union market has lost its vitality, and many countries of the European Union economy has fallen into recession.
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Related Topics: Social Commentary
【 Printing 】

Milei's policies aim to roll back capital controls and trade restrictions, which could have significant implications for Argentina's trade relationships.

The US is the biggest investor in Argentina and has significant influence over the IMF, which could shape the organization's support for Milei's economic reforms.

What are some of the "liberal democracies" that the Milei administration prioritizes partnerships?

Argentina has vast lithium reserves, which are crucial for electric cars, and the US is exploring investment opportunities in these reserves.

The IMF has warned of a 2.8% economic contraction in Argentina, and the country faces high debt loads and inflation over 200%.

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Content: 'No obstacle' to Argentina mega reform bill in Congress, government says

By Walter Bianchi

BUENOS AIRES (Reuters) - Argentina's government said on Tuesday that it was confident its sprawling economic reform bill, known as the "omnibus bill", would gain approval in Congress after it made concessions removing some divisive sections from the legislation.

The bill is a central plank in libertarian President Javier Milei's aims to overhaul the South American country's economy that is buckling under high debt loads, inflation running at over 200% and myriad capital controls to protect the peso.

"There should now be no obstacle for the law to be approved," presidential spokesman Manuel Adorni said in a daily press conference on Tuesday. "As we understand it is going to get approved, with the first half of that this week."

Milei took office in December after a divisive campaign in which he pledged a "chainsaw" plan to slash back the size of the state and cut spending with an austerity drive he argues is necessary to put the country's finances back on a firm footing.

That has gone down well with markets and investors, including major creditor the International Monetary Fund (IMF), though he has warned of tough months ahead for regular Argentines with a likely economic contraction this year.

The omnibus bill - a major part of Milei's reform plan - is expected to be debated in the lower house of Congress on Wednesday after the government yanked the key fiscal section following opposition to tax hikes and pension reforms.

While marking a significant concession by the government -- which still intends to push those fiscal plans separately -- the move was seen as likely to help avoid the bill failing in Congress where Milei only has minority support.

That helped the S&P Merval stock index edge up 1% on Tuesday, with sovereign bonds very slightly up on average.

The government still faces a major challenge to meet pledges for a zero deficit this year, while turning around an expected economic contraction estimated by the IMF at 2.8%.

"As soon as reality and the situation allows it, of course we are going to reverse this drop," Adorni added.

In popular parallel currency markets, used to get around strict capital controls and where people pay a large premium for dollars, the exchange rate was over 1,200 pesos per dollar on Tuesday, well away from the 826 peso controlled official rate.

In futures markets dollars were trading at 1,273 pesos by the end of June, reflecting expectations of a sharp slide.

(Reporting by Walter Bianchi; Editing by Adam Jourdan and Alison Williams)

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What economic issue did Milei want to address?

Milei's economic reforms have sparked nationwide protests and market boosts, and the IMF has predicted a gradual deflation with the implementation of these policies.

Title:

Content: RAE Argentina to the world
RAE Mandarin Program January 12
Welcome to RAE Argentina to the world of Chinese program, I am the host Lina JI.
Our website: www.rae.com.ar, where you will find shortwave radio programming schedules, you can listen to the AM, FM and RAE signals of most Argentine national radio stations due to the daily streaming.
You are welcome to send the report to qslrae @ gmail.com, we would also like to receive the audio and video of you listening to RAE, so you will receive an electronic QSL card from Argentina to the world.
Songs: Beto Cuevas - Háblame / La Beriso - Como olvidarme / Alejandro Lerner - No hace falta que lo digas / Raly Barrionuevo, Lito Vitale - Pescador de hombres / Gardel - Aquellas Cartas
Argentina recibirá un desembolso de 4.700 millones de dólares del FMI
Argentina receives $4.7 billion from the International Monetary Fund
.....
A month after Millet took office, his government ’ s “comprehensive law ” is being debated.
......
FIFA severely sanctions Argentina
.....
Ecuadorian President Joaquim Noboa says Ecuador is "practically at war" with drug terrorists
....
The International Monetary Fund (IMF) reported that it had reached an agreement with the Argentine government on the seventh review within the framework of the Extended Facilitation Programme (SAF) agreement.
That would give Argentina a $4.7 billion allocation.
Economy Minister Luis Caputo detailed at a news conference on Jan. 11 that the allocation would be used to "pay for the corresponding capital maturities in December, January and April."
The IMF document predicts that "with the implementation of policies and the rebuilding of credibility, a gradual process of deflation should begin."
"This is accompanied by further strengthening of reserves and an eventual recovery in production, demand and real wages," the report detailed.
The reserve accumulation target for 2024 is $10 billion.
......
On January 10, Javier Milei completed a month-long presidential term in Argentina.
At the same time, Congress began to discuss a package of measures proposed by the president, known as the "Comprehensive Law", in which he proposed sweeping reforms in the economic and state spheres to reduce state participation.
Mile wants approval by the end of January to grant the government legislative powers in economic, financial, fiscal, security, defence, energy prices, health, administrative and social affairs by declaring a public emergency.
Meanwhile, on Thursday, the National Statistics and Census Bureau (INDEC) released its inflation rate since the Liberals took power.
One of its first measures was to devalue the Argentine peso by 54% against the dollar, which accelerated the rise in prices.
Millet ’ s government ’ s pursuit of economic reforms to deregulate the state and allow the market to exert its influence has sparked fierce public debate between supporters and opponents.
Critics include trade unions, which have announced that the first national strike against liberals will be held on January 24.
It will be the third social and political mobilisation the government has faced in a month in office.
.....
The FIFA Disciplinary Committee decided to sanction Argentina by allowing only 50% of the seats to be sold for the next match.
This is due to an incident that occurred during Argentina's match against Brazil in Rio during the 2026 World Cup qualifier between the United States and Canada.
The Argentine team must also pay 50,000 francs for the investment in the anti-discrimination programme and another 20,000 francs.
The FIFA disciplinary body's decision also includes economic sanctions against Brazil, Bolivia, Ecuador and Peru.
Chile will have to close 50 percent of its stadium for the next match due to discrimination by fans.
In addition, Chile must pay 80,000 francs.
Colombia will play its next home game with 25% of stadium seats closed and have been fined 30,000 francs for delays in the September match against Chile and discriminatory attitudes by fans.
Uruguay will have to close at least 25 percent of its stadiums for the next qualifier and pay 30,000 francs for delays against Colombia and Brazil and discrimination by fans against Argentina.
Brazil, meanwhile, was fined 5,000 francs for delays and break-ins in September against Bolivia, 15,000 francs for team misconduct (five individual penalties) against Uruguay in October, and 50,000 francs for failing to ensure order on and off the pitch against Argentina in November.
....
The streets of Ecuador are experiencing unprecedented violence unleashed by criminal gangs and drug traffickers since January 8, killing at least 11 people and leaving nearly 140 police and prison staff in captivity.
In addition to this, there have been numerous armed attacks and around 70 detainees, a situation that President Daniel Noboa has defined as "fighting for peace in order to combat terrorist organizations."
As a result of the internal armed conflict, the country was in a state of emergency, and an executive order in Noboa provided for the identification of criminal groups as "terrorist organizations and militant non-State actors".
This means widespread mobilization of the armed forces, police and other security forces.
Noboa warned on Wednesday (01 / 10) that Ecuador's "moderate government is over" and acknowledged that we are going through "very difficult times."
For the president, who took office on November 23 last year, the wave of violence was "not an accident" but occurred "when the security plan began to be implemented."
“Judges and prosecutors who support these terrorist organizations will also be considered part of these organizations. ”
He said the warning was also aimed at members of the national police and armed forces who "obstruct any movement."
Offences launched by criminal organizations linked to the Mexican and Colombian cartels included an unusual break-in recorded live on public television channels on Tuesday's noon news program, with criminals threatening with explosives and long weapons.

What economic issue did Milei want to address?

What economic issue did Milei want to address?

The IMF deal with Argentina is a 30-month extended fund facility worth $45 billion, which aims to lay the foundations for fiscal consolidation and reserves accumulation.

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Argentina's IMF deal 'light', analysts say, as Congress debate starts

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BUENOS AIRES — Argentina’s newly struck $45 billion staff agreement with the International Monetary Fund (IMF) will start to move through Congress on Monday, with expectations lawmakers will approve the bill despite some push-back on both sides of the aisle.

The agreement should avert a default on billions of dollars of repayments to the IMF due this year, a balm for the South American country’s embattled economy with inflation soaring, international reserves low and bonds scraping distressed levels.

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The deal is a 30-month extended fund facility (EFF) which pushes payments back until 2026-2034, replacing a failed 2018 program. It needs approval from the IMF board and Argentina’s Congress, where the conservative opposition is strong.

“The agreement should help reduce pressure on the parallel exchange rate markets, and overall uncertainty about policy-making,” Barclays said in a note, adding that it expected lawmakers to approve the bill.

“But it is not an inflation stabilization plan, and is unlikely to deliver reserves accumulation.”

Delphos Investment said that the deal would help lay the foundations for a gradual process of fiscal consolidation and accumulation of reserves, though added it was “not very ambitious” in terms of more lasting structural changes.

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“Now we know the details of the agreement with the IMF, there is little doubts that it is a light deal. Nonetheless, it will not be easy to meet the terms of the agreement,” said Roberto Geretto of local investment firm Fundcorp.

The deal comes with an economic plan that sets out targets for growth, slowly lowering inflation, moving towards positive interest rates, building up foreign currency reserves and cutting central bank funding to the Treasury.

“There are reforms that are intended to improve economic growth and reforms that are intended to improve fiscal solvency,” said Daniel Artana at the FIEL Foundation.

“The government has not advanced on either of the two fronts, beyond the fact that it has made a commitment to reduce subsidies to electricity and gas rates.”

The major grains producing country will likely benefit from high global commodities prices, though this will be tempered by increased costs of energy imports, with Consultancy ABECEB estimating a trade surplus of $12 billion this year.

(Reporting by Walter Bianchi; Additional reporting by Gabriel Burin; Editing by Adam Jourdan and Andrea Ricci)

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The deal will reduce pressure on parallel exchange rate markets and sets targets for growth, lowering inflation, and positive interest rates.

What economic issue did Milei want to address?

Argentina is expected to benefit from high global commodities prices, and the trade surplus is estimated at $12 billion this year, despite energy import costs.

The IMF's support for Milei's economic reforms has been criticized, with some arguing that it will undermine Argentina's economic sovereignty and lead to a loss of control over the country's economic policies.

Milei's plans to eliminate the nation's central bank and replace the currency with the US dollar have been met with resistance, and international economists have warned that these proposals are risky for Argentina.

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Argentina presidential election: A runoff of economic ideals

Tobias Käufer
November 17, 2023

Argentina's Economic Minister Sergio Massa and libertarian Javier Milei face off in a nail-biting presidential runoff. The two candidates have radically different solutions to Argentina's economic woes.

https://p.dw.com/p/4YuiH

Economic policy is the key issue in Argentina's runoff election on Sunday, as voters decide between the economic policy of current Economy Minister Sergio Massa and his rival Javier Milei, a far-right libertarian economist known for his radical free-market liberalism.

Argentina's dire economic figures recently reported by the National Statistics Institute (INDEC) may speak for a change after the depressed Latin American country's cost of living surged a staggering 142.7% over the year. The poverty rate in September stood at 38.9%, according to the Buenos Aires-based Pontificia Universidad Catolica (UCA).

Argentina unveils new 2,000-peso bill as inflation bites

Milei's radical ideas for Argentina's economy

Argentina has for decades been plagued by financial chaos and weak economic growth which opposition candidate Javier Milei says is the result of successive left-leaning governments and their failed socialist economic policy.

"Those who have led us into inflation and poverty are now trying to instigate fear [among the population]. Argentina was a world power at the end of the 19th century, then came the decline under the socialist governments," Milei said this week at a campaign event in Rosario in the province of Santa Fe.

He's repeatedly accused his center-left rival of running a fear campaign that would denounce him as an ultra-right hardliner who would seek to undo basic rights and democracy in Argentina. In his campaign, Milei is styling himself as the defender of the country against populism as he aims to "reduce privileges, not rights."

Milei has attracted a lot of attention for his promises to radically overhaul the Argentine government and economy with a plan to eliminate the nation's central bank and replace its currency with the US dollar. He wants to significantly reduce the state apparatus, lift laws and regulations on the economy, and privatize state services. Other controversial proposals from his camp include liberalizing organ trade and privatizing Argentina's territorial waters.

With his radical free-market orthodoxy, Milei hopes to spur economic growth and subsequently lift more Argentines out of widespread poverty.

Massa's gentler economic reforms for Argentina

Sergio Massa is a veteran of Argentine politics and the new leader of the Peronist political movement which is based on the left-wing ideas of former President Juan Peron, who ruled Argentina several times between the 1940s and 1970s. The so-called Peronists have won nine of the last 12 free and fair presidential elections.

Massa has replaced Alberto Fernandez as the Peronist frontrunner after the hapless president voluntarily resigned in April this year. He was the winner of the first round of voting in October after making a surprise comeback from poor pre-election polls capturing nearly 37% of the vote, compared with 30% for Milei.

Massa, who has led Argentina's economy for more than a year, pushed through several policies in support of his candidacy, including programs that return sales tax to certain workers and eliminate income tax for others. He has promised to maintain some economic policies that conservative economists criticize, such as large subsidies for Argentines' energy costs.

In addition, he hopes to generate enough tax and trade surpluses to help negotiations with the International Monetary Fund (IMF) on restructuring Argentina's massive debt.

Argentina's untapped economic potential

Argentina has much to offer to the rest of the world but has yet to leverage it for the benefit of the entire population. This includes large lithium deposits crucial for the transition to e-mobility, as well as offshore oil reserves and abundant natural gas reserves. Moreover, it has the potential to produce green hydrogen, its farming sector is competitive, and the country has a young, well-educated population.

"The biggest challenge for the next government is to develop an initial stabilization plan and then push through a series of structural reforms to profoundly change the economic system," Agustin Etchebarne, director of the Libertad y Progreso Foundation in Buenos Aires, told DW.

Etchebarne is part of a group of economists who condone radical structural changes to the economy to lift Argentina out of its current crisis. Others, including about 100 renowned international economic experts, are more skeptical.

In an open letter recently, some high-profile economists the likes of Thomas Piketty from France, Jayati Ghosh from India, and the former Finance Minister of Colombia, Jose Antonio Ocampo, have warned Milei's proposals are "full of risks that could potentially be very harmful to the Argentine economy and the Argentine people."

This article was originally written in German.

dollarizing the Argentinian currency
closing the central bank

The IMF's role in supporting and shaping Milei's economic reforms will be crucial in determining the success of these policies and their impact on Argentina's economic sovereignty and trade relationships.

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Content: Updated 21 mins ago - Economy

Argentine President Milei's plan to remake the economy with a wrecking ball

If your economy is broken, you can try to fix it — or you can essentially just throw it in the trash and try to build something new from scratch.

Why it matters: The latter is, broadly, the plan of anarcho-capitalist Argentine president Javier Milei, while the former is the plan of Zambian president Hakainde Hichilema.

Where it stands: Milei came in like a wrecking ball after he took office in December. He slashed the official value of the currency in half, introduced a "mega-decree" scrapping 366 separate rules, and laid off 5,000 government employees.

  • Alejandro Werner, the former head of the International Monetary Fund's Western Hemisphere department, explains that this course of "shock therapy" carries enormous risks, both to the upside and the downside.
  • The devaluation, at least for the next few months, increases the Argentine inflation rate, which was over 200% in 2023. Milei's budget cuts will also cause a plunge in household income, as well as a deep recession.
  • The economic pain will embolden Milei's opposition — including in the courts, which have already suspended many of his early decrees. A general strike is planned for Wednesday.

What we're watching: Werner is hopeful that Congress will be at least minimally cooperative, that a good agricultural harvest will help replenish foreign reserves, and that inflation will fall to an annualized rate of 50% by the end of the year.

  • Argentina being Argentina, however, Werner notes, it's entirely possible that Milei's opponents in Congress will block most of his policies and devastating hyperinflation will result.

Reality check: Argentina's action stands in stark contrast to the zugzwang in Zambia, which is trying to restructure the old-fashioned way. There, creditors find themselves in a standoff without any obvious resolution — and where even the IMF seems powerless to move things forward.

Between the lines: Milei was quite the toast of the Davos elite this week, notwithstanding the fact that he's on the record calling climate change "a socialist lie."

  • "The Argentine economy is in such bad shape that it has to be shaken up. President Milei and his team are doing exactly that," said IMF chief Kristalina Georgieva in a CNN interview.
  • Milei returned the favor, saying that the CEOs assembled for his speech were "social benefactors" and "heroes."
  • "Let no one tell you that your ambition is immoral," he added.

The bottom line: For the time being, Milei seems to be able to draw on a wellspring of support and goodwill from the international community.

  • The IMF has restarted its program in the country, which means $4.7 billion in international funds have been unlocked and default isn't imminent.
  • All the same, Argentina's bonds are still trading at roughly the same level as those of Spirit Airlines. Some kind of default remains more likely than not — just pitched as part of a bold recovery plan, rather than being draped in anti-creditor rhetoric.
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