Javier Milei, the president of Argentina, has introduced significant economic reforms aimed at overhauling the country's economy, which is struggling with high debt loads and inflation running at over 200%.

Milei's economic plan includes financial adjustment, monetary reform, and deregulation, with the goal of controlling chronic inflation in Argentina.

The International Monetary Fund (IMF) has endorsed Milei's shock therapy for Argentina's economy, which includes plans to slash the size of the state, cut public spending, and inflict economic pain.

Argentina owes the IMF $44 billion, making it the largest debtor to the IMF, and the country is expected to repay the loan in yuan.

Milei's government has implemented public spending cuts and inflation curbs, and the IMF expects inflation to slow to 232.8% average annual rate.

The IMF has praised Argentine authorities for maintaining stability and has supported Milei's economic reforms with financial aid, including a $7.5 billion disbursement.

Milei's economic reforms have been met with protests, with thousands demonstrating against his "economic shock therapy" and austerity policies.

The US has the most influence over the IMF, and the US supports the IMF's bailout and debt restructuring in Argentina.

Argentina's economy is in crisis and needs financing, and the IMF is part of Argentina's $43 billion program to reduce inflation and improve public finances.

The IMF aims to raise private-sector-led growth in Argentina and has discussed decisive measures with Javier Milei to address the country's economic challenges.

Milei has shared his fiscal plan with the IMF Director, and the IMF Managing Director has spoken with Javier Milei to discuss Argentina's economic reforms.

The IMF will help improve Argentina's public finances and support the country in reducing inflation, which exceeds 140 percent.

Argentina's decision to withdraw from the BRICS alliance may affect its trade relationships, particularly with China, which is a top market for Argentina's soybean and grains.

The country's withdrawal from BRICS has been met with a warning from China, which has stated that severing ties would be a "grave mistake".

Despite this, Argentina's foreign minister has dismissed the idea of a rupture in commercial relations with China.

The country's trade with BRICS countries, including China, accounts for 30% of its total exports, making the potential implications of withdrawal significant.

Milei's economic policies may lead to hyperinflation if the dollar devalues, and the country's inflation rate has been rising steadily since 2007.

The International Monetary Fund has rescued Argentina 22 times, and the country's economy is heavily indebted to the IMF.

Dollarization will limit Argentina's ability to manage internal adjustments, and the country's economy will be heavily reliant on the US dollar.

The government's "shock therapy" reforms, introduced to save the economy, have included devaluing the peso, reducing government spending, and halting public works tenders.

The medium-term goal of the administration is to implement dollarization, but no roadmap has been released yet.

The economic emergency declared in 11 provinces has led to austerity measures, including slashing government spending and reducing subsidies.

The government's policies aim to address decades of mismanagement, but economists warn that dollarization may lead to hyperinflation.

IMF officials have called for a quick economic restart, and Argentina's inflation has risen 140% in a year to a 32-year high.

President Milei's policies are expected to have significant implications for Argentina's governance and society, and the country's future is uncertain.

Javier Milei proposes deregulating government and privatizing state-run industries as part of his economic reform plan.

Milei aims to boost exports and investment through these reforms, which have sparked protests against his drastic public spending cuts.

The economic reform bill aims to privatize state entities and requires 37 votes to pass the Senate.

The bill passed the lower house of deputies in April, and the Senate debate is expected to continue late on Wednesday.

Milei launched an economic decree with 300 reforms, including privatization of state-owned enterprises and deregulation of key sectors.

The reforms will be discussed in a special parliament session, and Argentina faces a debt crisis with $44 billion owed to the IMF.

Argentina's president unveiled 300 deregulation measures affecting housing, customs, and tourism sectors, among others.

The law outlaws large-scale regulatory measures in several areas and amends regulations in aviation, healthcare, and pharmaceutical industries.

Javier Milei's government has no majority in Congress, but he has sent over 600 reform bills to Congress for a special session.

The reforms aim to address inflation above 200% and include amendments to tax and election laws.

Milei declared a two-year economic emergency with over 300 measures and proposed privatization of state-owned enterprises and deregulation.

He aims to reduce the government deficit to zero by 2024 and cut subsidies and funding to local governments.

The Argentine President introduced "shock therapy" reforms to save the economy, aiming to reduce the fiscal deficit and control inflation.

The government reduced departments from 18 to 9, reduced subsidies for energy and transportation, and halted public works tenders.

Javier Milei became Argentina's president in December 2023 and promises "drastic" measures to temper the inflation crisis.

Milei's agenda includes privatization of state-owned enterprises, and he issued an 83-page Necessity and Urgency Decree repealing over 300 laws and regulations.

The decree enables the government to carry out reforms quickly and declares a state of public emergency until 2025.

Javier Milei plans to amend 300 regulations and controls, allowing privatization of public companies and repealing the rent law to ease the real estate market.

The labor law will be modernized for job creation, and the company law will be amended for football clubs.

The Argentine government, under the leadership of President Javier Milei, plans to abandon the peso and adopt the US dollar as its official currency, a policy known as dollarization.

This move aims to combat the country's high inflation rate, which stood at 109% in April 2023 and 94.8% in 2022.

The peso has lost significant value, with 250 pesos required to buy $1, and it has fallen 27.1% against the US dollar this year.

To stabilize the economy, the government has agreed to a new program with the International Monetary Fund (IMF) and aims to accumulate foreign exchange reserves through exports.

The Argentine Central Bank has raised its interest rates, and the government hopes to decrease inflation by 60% in 2023.

However, the transition to a dollarized economy will require significant funding, estimated to be between $35 billion and $50 billion.

The US Federal Reserve will control interest rates in a dollarized economy, and Argentina's economy will be vulnerable to external US dollar shocks.

The government plans to mitigate potential risks by tightening import rules, requiring importers to certify financial resources and use a single bank account for foreign trade.

Additionally, the government aims to reduce public spending, privatize state-owned enterprises, and introduce free market policies.

President Milei's economic policies may lead to hyperinflation if the dollar devalues, and the country's inflation rate has been rising steadily since 2007.

The International Monetary Fund has rescued Argentina 22 times, and the country's economy is heavily indebted to the IMF.

Dollarization will limit Argentina's ability to manage internal adjustments, and the country's economy will be heavily reliant on the US dollar.

The government's "shock therapy" reforms, introduced to save the economy, have included devaluing the peso, reducing government spending, and halting public works tenders.

The medium-term goal of the administration is to implement dollarization, but no roadmap has been released yet.

The economic emergency declared in 11 provinces has led to austerity measures, including slashing government spending and reducing subsidies.

The government's policies aim to address decades of mismanagement, but economists warn that dollarization may lead to hyperinflation.

IMF officials have called for a quick economic restart, and Argentina's inflation has risen 140% in a year to a 32-year high.

President Milei's policies are expected to have significant implications for Argentina's governance and society, and the country's future is uncertain.

Javier Milei proposes deregulating government and privatizing state-run industries as part of his economic reform plan.

Milei aims to boost exports and investment through these reforms, which have sparked protests due to proposed public spending cuts.

The economic reform bill aims to privatize state entities and requires 37 votes to pass the Senate.

The bill passed the lower house of deputies in April, and the Senate debate is expected to continue late on Wednesday.

Milei launched an economic decree with 300 reforms, including privatization of state-owned enterprises and deregulation of key sectors.

The reforms will be discussed in a special parliament session, and Argentina faces a debt crisis with $44 billion owed to the IMF.

Argentina's president unveiled 300 deregulation measures affecting housing, customs, and tourism sectors, among others.

The law outlaws large-scale regulatory measures in several areas and amends regulations in aviation, healthcare, and pharmaceutical industries.

Javier Milei's government has no majority in Congress, but he has sent over 600 reform bills to Congress for a special

Javier Milei, the president of Argentina, has introduced significant economic reforms aimed at overhauling the country's economy, which is struggling with high debt loads and inflation running at over 200%.

Title:

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 plan includes financial adjustment, monetary reform, and deregulation, with the goal of controlling chronic inflation in Argentina.

Title:

Content: Off course.
Anarchist president could not be "planted" on the dollar - RIA Novosti, 29.11.2023
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Off course.
The anarchist president could not be “hooked ” on the dollar
Argentina ’ s new president makes first visit to the United States
© AP Photo / Natacha PisarenkoJavier Miley, who won the presidential elections in Argentina, during a speech to his supporters
Javier Miley, who won the election of the President of Argentina, during a speech to his supporters.
Archive photo
Read ria.ru in
MOSCOW, 29 Nov — RIA Novosti, Renat Abdullin.
The winner of the presidential elections in Argentina, Javier Miley, arrived on a visit to the United States to establish contacts.
However, in Buenos Aires, judging by some reports, already refuse excessive rapprochement with Washington.
About what has changed, in the material RIA Novosti.
"Spiritual" trip
Before the inauguration more than a week, however, Miley already felt himself the owner of the country and actively took up work.
© AP Photo / Natacha PisarenkoJavier Miley
Javier Miley
The libertarian (as he positions himself) came to power with a far-right populist agenda, tied primarily to the economy.
This is a big problem in the country - inflation has exceeded 60% only since the beginning of the year.
Miley promised to literally destroy the Central Bank and move from the peso to the dollar.
He is also against joining the BRICS, which was agreed in August.
Now it's in question.
It is symptomatic that Miley made his first foreign visit to the United States.
However, as noted by the publication La Nacion, the main purpose of the trip is “spiritual ”, namely, a visit to the grave of the leader of the Lubavitcher Hasidim Menachem Mendl Schneerson in New York.
Miley has repeatedly spoken of his closeness to Jewish faith and traditions.
Then he plans to go to Israel.
The dollar will wait.
The company he was made by the former Minister of Finance of Argentina Luis Caputo (who is expected to be the head of the Ministry of Economy), as well as Nicolas Posse (likely Prime Minister).
The delegation met with representatives of the US Treasury, the International Monetary Fund (IMF), White House National Security Advisor Jake Sullivan and the US Deputy Assistant Secretary of State for Western Hemisphere Affairs.
Shortly before the trip, Miley had a telephone conversation with IMF Managing Director Kristalina Georgieva.
The parties did not disclose the details of the conversation, but they have something to talk about: Buenos Aires owes the fund $44 billion.
On the postponement of payment in 2018 agreed Mauricio Macri, then the President of Argentina, and now one of the main allies of Miley.
As for the US representatives, according to AFP, citing sources in Buenos Aires, the purpose of the conversations with them was “to explain the economic plan of the new (Argentine) administration, including financial adjustment, monetary reform, state reform and deregulation. ”
There is no question of loans or any kind of mutual preferences.
In addition, Miley had lunch with Bill Clinton, who “is pretty much on the other side of the ideological barrier, ” notes U.S. News.
The meeting was "a particularly unexpected part of the first overseas trip."
This behavior of Miley went against his recent rhetoric and promises to switch to the dollar.
Moreover, according to the Financial Times, this idea can be shelved at all.
As the FT reminds, the newly elected president wanted to appoint Emilio Ocampo, an ardent supporter of dollarization, as head of the Argentine Central Bank.
Now, says a source close to the economist, the candidacy was withdrawn from consideration.
So, Miley does not intend to “change ” the peso to the US currency in the short term.
"Communists" - non-alternative partners
This is not the first signal about softening the position of the president compared to pre-election plans.
At the end of last week, his office called the rumors about the promised "destruction" of the Central Bank false and not negotiable.
The head of state himself noted that before the transition to the dollar, it is necessary to study "whether the situation (this) allows."
The layout on the outer perimeter also changes.
If recently Miley called the President of Brazil Lula da Silva “a communist with whom he would not deal ”, now called to the inauguration on December 10.
Foreign policy adviser Diana Mondino went to Brasilia with the appropriate invitation.
“The main message is that we are fraternal countries.
And we will remain them, ” — said the diplomat. — We must work hard together to ensure the growth of both countries. ”
“It is one thing to criticize ideology, and another to criticize the person, ” Mondino quotes Bloomberg.“ We must separate the state, the government and the people. ”
© AP Photo / Eraldo PeresPresident of Brazil Luiz Inácio Lula da Silva
President of Brazil Luiz Inácio Lula da Silva
However, she did not tell whether she discussed with her Brazilian colleagues the Argentine future in the BRICS.
She added: “We are already working with almost all countries (associations). ”
One such state is China, which was also the target of criticism of the new Argentine leader.
"I am a defender of freedom, peace and democracy.
Communists, the Chinese do not relate to this, ” he said in September in an interview with American journalist Tucker Carlson.
Now Miley has changed his anger to mercy.
The other day in the social network X (former Twitter), he thanked President Xi Jinping for congratulating on his election and sent "the most sincere wishes for the well-being of the Chinese people."
Brazil and China are the main trading partners of Argentina, so the desire to maintain relations with them is understandable.
The question is how the United States will react.
Washington is used to seeing Latin America as a backyard.
But the last bet on Miley, even nicknamed the local Trump, obviously does not work yet.
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What economic issue did Milei want to address?

The International Monetary Fund (IMF) has endorsed Milei's shock therapy for Argentina's economy, which includes plans to slash the size of the state, cut public spending, and inflict economic pain.

Title:

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 the IMF $44 billion, making it the largest debtor to the IMF, and the country is expected to repay the loan in yuan.

Title:

Content: IMF approves $7.5 billion disbursement to Argentina
Cairo - Center Gate Wednesday 23 August 2023, 09: 55 pm
The International Monetary Fund (IMF) on Wednesday approved a new tranche of $7.5 billion for Argentina, a spokesman for Argentina ’ s economy minister said.
The amount corresponds to the fifth and sixth reviews of the aid program for the South American country, which were approved at the end of July under an agreement between the Argentine government and the International Foundation.
This brings the amount Argentina has received so far to $36.3 billion since the aid program began in March 2022.
Total aid to Buenos Aires worth $44 billion
In total, the 30-month program is based on total aid to Buenos Aires of $44 billion (about SDR 32 billion, the IMF ’ s unit of account based on a basket of currencies).
It is the largest aid program currently implemented by the IMF.
Argentina depreciates currency after surprise primary election results
Argentina to repay IMF loan in yuan
The agreement is important for Argentina ’ s Economy Minister Sergio Massa, who is the candidate in the October presidential election for the Union for the Fatherland coalition, which brings together parties supporting the outgoing centre-left government of Alberto Fernandez.
Massa was in Washington on Wednesday where he met privately with IMF Managing Director Kristalina Georgieva.
On August 13, the presidential primaries surprised Javier Milley, a 52-year-old ultra-liberal economist, with 30 percent of the vote.
Massa came in third with 27% of the vote.
Argentine authorities reduce peso value by 20%
Argentine authorities devalued the peso by about 20%, in order to protect it from potential market reaction after the primaries.
The central bank announced an increase in deposit rates from 97% to 118%.
For its part, the IMF praised "the recent actions and commitment of the (Argentine) authorities in the direction of maintaining stability, rebuilding foreign exchange reserves and improving the budget system," said International Monetary Fund spokeswoman Julie Kozak, who did not explicitly refer to the IMF's decision.
The agreement signed in March 2022 between the IMF and the government, the 13th between them since 1983, is specifically aimed at controlling chronic inflation in the country.
The IMF expects Argentina to grow by just 0.2% in 2023, with inflation expected to fall to 88% by the end of the year.
But inflation was 115.6 percent year-on-year in June, according to data from the National Institute of Statistics.
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Milei's government has implemented public spending cuts and inflation curbs, and the IMF expects inflation to slow to 232.8% average annual rate.

Title:

Content: IMF cuts Argentina's 2024 growth forecast
International News
2024-06-17 | 14: 51
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IMF cuts Argentina's 2024 growth forecast
The International Monetary Fund (IMF) lowered its growth forecast for Argentina in 2024, but expected inflation to slow faster than expected amid wide-ranging economic reforms being implemented by Argentina ’ s new president, Javier Mille.
Argentina ’ s economy is expected to contract this year by 3.5%, according to the IMF ’ s updated economic forecast, 0.75 percentage points more than previously forecast.
The IMF pointed to a "deeper contraction" expected in non-agricultural production.
On the other hand, inflation is set to slow much more than expected this year: the IMF expects the average annual rate to be 232.8%, 20 percentage points lower than its previous forecast in January.
The IMF said in its report that expectations of a slowdown in inflation "are supported by improvements in the framework of monetary and exchange rate policy and a recovery in demand for the peso."
Far-liberal President Javier Milley has vowed to halt Argentina ’ s economic decline and cut its budget deficit to zero.
Since taking office in December, he has embarked on a programme to cut public spending and curb inflation, which remained at an annual rate of more than 275 percent last month.
The IMF board gave the green light on Thursday to disburse a tranche of about $800 million to Argentina as part of a $44 billion deal.
Argentina ’ s Senate has adopted a package of regulatory reforms proposed by Javier Mille, despite objections.
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International Monetary Fund (IMF)
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What economic issue did Milei want to address?

The IMF has praised Argentine authorities for maintaining stability and has supported Milei's economic reforms with financial aid, including a $7.5 billion disbursement.

Milei's economic reforms have been met with protests, with thousands demonstrating against his "economic shock therapy" and austerity policies.

Title:

Content: More than 300 economic reform measures in Argentina rebounded, new president ignored: urged Congress to speed up deliberation
Written by external sources (international)
Published: Updated:
After becoming president of Argentina, Javier Milei, known as the “Trump of Argentina, ” launched a“ shock therapy ” and issued an economic decree with more than 300 reforms, including privatization of state-owned enterprises, an end to export restrictions and deregulation.
According to the US media "New York Times", Reuters and other foreign media reported on December 23, Argentina's national inflation has accelerated rapidly in the past two weeks, and more than a dozen provinces have declared a state of economic emergency.
In recent days, people across Argentina have taken to the streets to show their dissatisfaction with the Mirai government.
However, Millet remained unmoved and called for a special session of parliament to speed up the implementation of the reform policy.
“High inflation has become synonymous with Argentina, and people are used to rising prices.
But after Millet took office, people ’ s lives became more painful. ”
The New York Times reported on the 23rd that in the past two weeks since Millet became president, prices in Argentina have soared at a dazzling rate.
The owner of a bar in the Argentine capital Buenos Aires has seen the price of beef soar by 73% and the price of cucumber by 140%; a Uber driver says she now pays 60% more for filling the tank; and a father says he pays twice as much for diapers as he did last month.
The report quoted government data as saying that the price of gasoline has recently soared by 60%.
There are also analysts who predict that Argentine house prices will rise another 25% to 30% in the near future; from now until February next year, house prices will continue to rise 80%.
Argentine President Javier Milei announces economic measures in a televised speech in Buenos Aires on December 20, 2023.
This is a screenshot of a video released by the Argentine government.
(ARGENTINE GOVERNMENT TV / via REUTERS TV / Handout via REUTERS)
“We ’ ve been worried since Milai won, ” said Fernando Galli, 36, who was pessimistic about the situation.
He is a high school philosophy teacher in Buenos Aires and is raising two young daughters (one 6 years old and one 18 months old).
The New York Times said that most Argentines are struggling to figure out how to make ends meet, and every time they buy necessities, it is like taking a complicated economics course.
As President, Argentina is in the midst of a severe economic crisis, with a cumulative inflation rate of 142.7% and a poverty rate of more than 40% over the past 12 months.
Argentina is also facing a debt crisis, with more than $44 billion owed to the International Monetary Fund.
Since this year, Argentina ’ s inflation rate has peaked at 8.4% in April, and some experts predict that Argentina ’ s gross domestic product will shrink by 3.1% this year and another 0.2% in 2024.
During his presidential campaign, Millet made "astonishing remarks" and proposed a number of "surprising" policy proposals. He promised to cut the central government departments from 18 to 8 and cut them to 9 on his first day in office, and quickly fulfilled this campaign promise.
In addition, he has promised to adopt so-called “economic shock therapy, ” advocating the“ burning up ” of poorly managed central banks, abolishing the peso, shifting to “dollarization ” across the board, slashing spending, allowing open carry of firearms, legalizing organ trade, and restricting abortion.
Milley himself issued an early warning.
At his inauguration ceremony on Dec. 10, Mr. Millet said publicly that he would reduce the size of government and rebuild the economy, something that would hurt at first, but “I would rather tell people the uncomfortable truth than the comfortable lies. ”
In Buenos Aires, Argentina, on December 21, 2023, demonstrators protest against the new policies of Argentina ’ s new president, Mirai, outside the parliament building. (Reuters)
Two days after taking office (12), Millet began to engage in "shock therapy", taking a series of measures, including cutting government spending, reducing consumer subsidies, and stopping tenders for new public works, in an attempt to reduce the fiscal deficit and control inflation.
Argentina ’ s economy minister announced on the same day that the new government lowered the official exchange rate to 800 pesos per US dollar, a 54% devaluation.
On December 20, Millet signed an emergency economic decree announcing more than 300 reforms, including the privatization of state-owned enterprises, the end of export restrictions and the relaxation of regulations, in order to achieve the "liberalization" of the Argentine economy.
The New York Times quoted economists as saying that although Millet's measures are necessary to solve Argentina's long-term financial problems, they also cause short-term pain.
At the same time, some analysts question the lack of safeguards for the poorest people in Argentina.
One Argentinian put it bluntly: “It is impossible for people ’ s wages or incomes to adapt to this rate of inflation. ”
Thousands of people, led by representatives of the unemployed, took to the streets of Buenos Aires on Monday to stage the first mass protest since the Mirai government came to power against the new government ’ s “economic shock therapy ” and austerity policies, demanding more support for the poor.
Demonstrators hold flares outside the parliament building in Buenos Aires, Argentina, on December 21, 2023, to protest against the new policies announced by Argentina ’ s new president, Miguel Millay. (Reuters)
In the face of public dissatisfaction, the Milai government did not move.
On the day of the protests, the Argentine government deployed a large number of police to stop protesters from blocking roads.
The Millet government has also threatened to take tough action against any group of organisations trying to thwart its plans through disruptive protests, and those blocking roads could lose their right to state benefits.
Manuel Adorni, a spokesman for Millet, also responded that higher inflation is an inevitable process to repair Argentina ’ s “distorted economy. ”
"There are many difficult and unresolved problems in Argentina, and we have to start solving them," he said.
We will inevitably experience months of high inflation, "he said.
On the evening of the 22nd local time, Millet said that he had submitted the law to the Argentine parliament on the same day, and called on the parliament to convene a special session between December 26 and January 31 to discuss the relevant issues.
Reported that the current parliament is in recess, the next meeting is scheduled for March next year.
This article is authorized by the Observer Network

How will Milei's reforms impact workers?

Who has opposed Milei's proposed layoff order?

The US has the most influence over the IMF, and the US supports the IMF's bailout and debt restructuring in Argentina.

Argentina's economy is in crisis and needs financing, and the IMF is part of Argentina's $43 billion program to reduce inflation and improve public finances.

Title:

Content: IMF seeks to reduce inflation with Argentina
T + T - normal size
IMF Managing Director Kristalina Georgieva and Argentina ’ s President-elect Javier Milli Ole discussed in a telephone conversation the conditions of Argentina ’ s economy amid three-digit inflation and the devaluation of the local currency.
In a tweet, Gorgiyeva said: “We discussed the significant challenges facing the Argentine economy and the decisive political measures needed. ”
The IMF will support efforts to reduce inflation in the country, which exceeds 140 percent, improve its public finances and raise private-sector-led growth.
Argentina avoided delaying payments to the International Monetary Fund (IMF) after paying $2.6 billion in October as part of its $43 billion program.
The Argentine president wrote on X about the call, saying the IMF is ready to help find the structural solutions Argentina needs.
The liberal economist stated that he had spoken with Gorgiyeva about his fiscal adjustment plan and monetary program.
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What economic issue did Milei want to address?

What issue did Milei want to address without printing money?

The IMF aims to raise private-sector-led growth in Argentina and has discussed decisive measures with Javier Milei to address the country's economic challenges.

Title:

Content: IMF seeks to reduce inflation with Argentina
T + T - normal size
IMF Managing Director Kristalina Georgieva and Argentina ’ s President-elect Javier Milli Ole discussed in a telephone conversation the conditions of Argentina ’ s economy amid three-digit inflation and the devaluation of the local currency.
In a tweet, Gorgiyeva said: “We discussed the significant challenges facing the Argentine economy and the decisive political measures needed. ”
The IMF will support efforts to reduce inflation in the country, which exceeds 140 percent, improve its public finances and raise private-sector-led growth.
Argentina avoided delaying payments to the International Monetary Fund (IMF) after paying $2.6 billion in October as part of its $43 billion program.
The Argentine president wrote on X about the call, saying the IMF is ready to help find the structural solutions Argentina needs.
The liberal economist stated that he had spoken with Gorgiyeva about his fiscal adjustment plan and monetary program.
Email

Milei has shared his fiscal plan with the IMF Director, and the IMF Managing Director has spoken with Javier Milei to discuss Argentina's economic reforms.

Title:

Content: IMF seeks to reduce inflation with Argentina
T + T - normal size
IMF Managing Director Kristalina Georgieva and Argentina ’ s President-elect Javier Milli Ole discussed in a telephone conversation the conditions of Argentina ’ s economy amid three-digit inflation and the devaluation of the local currency.
In a tweet, Gorgiyeva said: “We discussed the significant challenges facing the Argentine economy and the decisive political measures needed. ”
The IMF will support efforts to reduce inflation in the country, which exceeds 140 percent, improve its public finances and raise private-sector-led growth.
Argentina avoided delaying payments to the International Monetary Fund (IMF) after paying $2.6 billion in October as part of its $43 billion program.
The Argentine president wrote on X about the call, saying the IMF is ready to help find the structural solutions Argentina needs.
The liberal economist stated that he had spoken with Gorgiyeva about his fiscal adjustment plan and monetary program.
Email

The IMF will help improve Argentina's public finances and support the country in reducing inflation, which exceeds 140 percent.

Title:

Content: IMF seeks to reduce inflation with Argentina
T + T - normal size
IMF Managing Director Kristalina Georgieva and Argentina ’ s President-elect Javier Milli Ole discussed in a telephone conversation the conditions of Argentina ’ s economy amid three-digit inflation and the devaluation of the local currency.
In a tweet, Gorgiyeva said: “We discussed the significant challenges facing the Argentine economy and the decisive political measures needed. ”
The IMF will support efforts to reduce inflation in the country, which exceeds 140 percent, improve its public finances and raise private-sector-led growth.
Argentina avoided delaying payments to the International Monetary Fund (IMF) after paying $2.6 billion in October as part of its $43 billion program.
The Argentine president wrote on X about the call, saying the IMF is ready to help find the structural solutions Argentina needs.
The liberal economist stated that he had spoken with Gorgiyeva about his fiscal adjustment plan and monetary program.
Email

What economic issue did Milei want to address?

Argentina's decision to withdraw from the BRICS alliance may affect its trade relationships, particularly with China, which is a top market for Argentina's soybean and grains.

Title:

Content: Argentina election: Javier Milei's radical proposals face test of reality

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Javier Milei, the anti-establishment politician who cruised to victory in the Argentine presidential election last week, has courted intense controversy with radical, provocative policy proposals and statements.

This led many detractors of the self-styled "anarcho-capitalist" to call his candidacy a "leap into the void".

Now, with the mop-haired president-elect only two weeks away from taking over Latin America's third-largest economy, many are asking, how will his policies and positions face the test of reality?

Taming inflation takes time

Javier Milei had proposed to dollarise the economy and eliminate the Argentine Central Bank as a strategy to "kill" hyper-inflation. This meant making the US dollar the national currency in place of the Argentine peso, whose value, Mr Milei said, had been "melting like blocks of ice in the Sahara".

One obstacle is that ditching the Central Bank and making the US dollar legal tender would need approval from the Argentina's Congress and could even require changing the constitution.

Although Mr Milei convincingly won the presidency, his Libertad Avanza (Freedom Advances) movement is barely the third largest political force in Congress. This suggests difficult negotiations might be in store.

Some economists have also questioned whether Mr Milei's plans are feasible, saying they would weaken his government's ability to manage domestic monetary policy.

Having the US dollar as the Argentine currency would effectively leave interest rate policy in the hands of the US Federal Reserve. Argentina's economy would be more vulnerable to external shocks involving the US dollar, for example sudden rises in prices for oil and fuel imports, which could make internal adjustments even more painful inside the country.

Sceptics also point out that Argentina would need to have in hand the US dollars to replace the pesos. Experts believe this could require anywhere between US $35bn to $50bn which indebted Argentina currently does not have and may not be able to borrow easily.

Mr Milei himself has admitted his "shock adjustment" economic stabilisation recipe could actually take up to two years to bring down inflation. "Saying anything else is lying," he said.

A climate sceptic?

Another topic that had made media headlines was Mr Milei's apparent declaration of himself as a climate change "sceptic", that is, someone who denies the role of humans in global warming.

"I do not deny climate change. What I am saying is that there is a temperature cycle in the history of the Earth... Therefore, all those policies that blame humans for climate change are false," Mr Milei said during a presidential debate last month, causing much commentary and criticism.

In his proposed government programme, one of the numerous ministries he had said he planned to axe would be the existing environment ministry.

Such apparent climate scepticism risked putting Mr Milei sharply out of tune with an international majority of governments and leaders who plan to gather at the COP28 climate conference in Dubai soon to seek urgent solutions to the problems of climate change and global warming.

Pragmatism and the Pope

Before he was elected, Mr Milei virulently attacked Argentine Pope Francis, calling him a "Jesuit who promotes communism", and even the "representative of the evil one [the Devil] on Earth".

Such statements caused frictions with the local Catholic Church and the Vatican.

However, this antagonism appeared to miraculously dissipate only days after his election win, when Mr Milei had what he called a "very friendly" phone call with the Pope, whom he addressed as "Your Holiness", inviting him to visit Argentina in 2024.

Asked in a TV interview about this change of heart, Mr Milei conceded that, when one is president, "there are some things that require greater doses of pragmatism".

No break with China and Brazil

Before his election, Milei had signalled he could freeze ties with Brazil and China, Argentina's two top trading partners, on the grounds that he did "not make pacts with communists".

"I am going to be aligned with the United States, Israel, and the free world," he said.

Not surprisingly, this assertion caused consternation in Beijing and Brasilia, as well as in Argentina.

A Chinese foreign ministry spokesperson was quoted as warning that it would be a "huge foreign policy mistake" for Argentina to cut ties with countries such as China and Brazil.

Mr Milei's predecessor, outgoing left-wing President Alberto Fernández, had carefully nurtured ties with Beijing and had welcomed an invitation to join Brics, the China-led group which also comprises Brazil, Russia, India, and South Africa.

Experts questioned the wisdom of dismantling a relationship that clearly brought benefits to Argentina, and not only by China being a top market for Argentina's soybean, meat and grains.

China was also helping to prop up Argentina's financial reserves with a major currency swap deal - significant support for a country already heavily indebted to the International Monetary Fund (IMF).

Days after the election, however, there seemed to be clear signs that no major break in relations was planned. The president-elect received a personal letter of "congratulations and good wishes" from Chinese President Xi Jinping and Mr Milei himself made a point of thanking Xi on social media.

Mr Milei's pick for foreign minister, Diana Mondino, also dismissed as "nonsense" any suggestion that there would be a rupture in "commercial relations" with China or Brazil.

In Brazil, Mr Milei's invitation for former President Jair Bolsonaro to attend his 10 December inauguration was interpreted as "unfriendly" towards Brazil's current left-wing President Luiz Inácio Lula da Silva.

But Milei has since said Lula would be "well-received", if he wanted to come.

Dictatorship denial

Mr Milei and his vice-presidential running-mate Victoria Villarruel also ignited intense controversy during the campaign with their position regarding Argentina's 1976-83 military dictatorship.

Defying traditional positions held by Argentina's government and society for the last 40 years, Mr Milei caused outrage by contesting the generally accepted estimate of those abducted and "disappeared" in the dictatorship - 30,000 - asserting the actual number was closer to 9,000.

The candidate argued that the political violence of the 1970s in Argentina was a two-sided "war" in which "the forces of the state committed excesses but the terrorists [anti-government guerrillas] ... [also] committed crimes against humanity".

This equivalence of presentation of the two sides raised howls of protest from groups like the Plaza de Mayo mothers and grandmothers of disappeared persons.

This was just another striking way in which the Milei-Villarruel duo were trying to shake up the political status quo in Argentina. The next four years will show if they can do it.

The country's withdrawal from BRICS has been met with a warning from China, which has stated that severing ties would be a "grave mistake".

Title:

Content: Chinese Foreign Ministry spokeswoman Mao Ning told a news conference on Tuesday that Argentina would make a "grave mistake" at the diplomatic level if it severed ties with major countries such as China or Brazil.
China is an important trading partner for Argentina, whose elected government attaches great importance to relations with it, Reuters reported.
Asked by reporters to comment on the remarks of Diana Mondino, an economist nominated for foreign affairs in Argentina ’ s new government, Mao said: “The two countries have strong economic integration and huge potential for cooperation.
China intends to continue cooperation with Argentina to promote the stability and long-term development of bilateral relations.
Milly's statement.
The announcement comes just after the election of hard-line liberal Javier Miley as Argentina ’ s new president, who won a surprise with 55.95 percent of the vote.
In his speech, Milley criticized China and Brazil, saying he would not deal with "communists" and would prefer to strengthen ties with the United States.
Stressing the end of the period of decline "and the start of the" reconstruction of Argentina ", he warned that there will be no" half-solutions ", according to" AFP ".
Mondino
RIA Novosti news agency quoted Diana Mondino, an economist who is a candidate to become foreign minister in the Miley administration, as saying her country would not join the BRICS.
Argentina was among six countries invited to join the BRICS bloc, which includes Brazil, Russia, India, China and South Africa.
Asked whether Argentina would encourage exports and imports with China and Brazil, Mondino replied that Argentina would "stop doing business" with the governments of those countries.

Despite this, Argentina's foreign minister has dismissed the idea of a rupture in commercial relations with China.

The country's trade with BRICS countries, including China, accounts for 30% of its total exports, making the potential implications of withdrawal significant.

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Monday, 04.09.2023
19: 06 Putin refused Erdogan to resume the “grain deal ”.
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18: 17 Rishi Sunak can not stop the fall of Tory popularity, - Dim.Moiseev
18: 14 Fourth school director detained in Bishkek for illegal fees
17: 54 Washington Post: Why Burn the Quran?
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17: 52 Putin will continue hookah diplomacy with Erdogan, - Jenk Bashlamysh
China urged the world to unite, not conflict - Wang Yi
15: 36 There is a risk that Argentina will not become a member of the BRICS
15: 33 Druze in southern Syria began to build their mini-state
15: 32 Foreign exchange revenue from the sale of Russian oil and gas remains abroad
14: 51 Putin again talks with Erdogan: who is he?
The head of the newly created Ministry of Water Resources of Kazakhstan became the former cloud Nurzhan Nurzhigitov
09: 45 Timur Sulymenov - new head of KazNational Bank
09: 35 India threatens Russia with reduction of oil purchases for two reasons...
09: 26 Aidarbek Saparov headed by the Ministry of Agriculture of Kazakhstan
08: 57 US Targets Central Asia: Why Release Fukuyama? - V.Prokhvatilov
08: 48 New Minister of Defense of Ukraine becomes "good friend" Abramovich - Crimean Tatar Umerov
Turkish businessman Halit Arabaji, who supplied Kiev with body armor, found dead
Less $481 billion: China is rapidly getting rid of US government debt bonds
00: 39 How they conquered the highest point of the USSR - Stalin Peak (history)
00: 37 NATO has two years left to live - The Atlantic
00: 36 New appointments in the Administration of the President of Kazakhstan: the preponderance of signage departments
00: 35 The last stronghold of Macron ’ s influence in Africa has fallen.
France is no longer needed here - Francois Baird
Newsweek: The Earth has become too crowded - the United States is preparing to fight in space
00: 29 War of attrition.
The United States analyzes the current results of the conflict in Ukraine
00: 26 Eschatology of the multipolar world, - A.Dugin
00: 21 China could not allow the "curse of Chubais"
00: 16 Geopolitics of underwater communications, - Leonid Savin
00: 06 Gastarbeit-business is ready to come out of the shadows, - Ekaterina Trifonova
Sunday, 03.09.2023
22: 10 Shavkat Mirziyoyev visits the mausoleum of Islam Karimov
21: 37 In the Swedish Malmö again publicly burned the Koran in the city square
20: 01 Work at Kazakhstanskaya mine on coal mining and mine excavation stopped for an indefinite time
Today, for the first time, Russia officially celebrates Victory Day over Japan
12: 38 How Igor Kolomoisky was detained.
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11: 50 Die Welt: China strictly forbids NATO to expand in Asia according to the “Ukrainian ” model
11: 46 Chen Feng: Go all-in or retreat?
Both options threaten Zelensky with disaster
11: 43 The conditions of life in Ukraine resemble slavery.
The triumph of Western "democracy" in the 21st century - Al Mayadeen
11: 42 The fate of PMC "Wagner": a series of uncomfortable questions about the staged death of Prigozhin and the facts
11: 38 Media unleashed an open information war against the new Kyrvlasti, - K.Kozhoev
11: 37 The President of Kazakhstan instructed to increase the minimum wage from January 2024
11: 35 Ukraine is fueling a fire in the global oil market
08: 37 Last soldier of legendary Panfilov division dies in Almaty
07: 42 Abdukodir Rustam, editor of the book of the arrested "enemy of the people" Kholikzod, detained in Dushanbe
07: 16 UK authorities have disclosed data on real estate Nazarbayevs in London worth more than $50 million
03: 13 Time to collect yuan: trading volume of Chinese currency increased by 6.5 times
02: 27 Without Russian gas - nowhere.
Why EU countries, despite sanctions, increased LNG purchases from Russia - A. Sokolov
00: 25 Hungarian "Rhapsody" Orban.
Budapest can start the process of leaving the European Union? - Valery Panov
00: 18 Conflict in Gagauzia: will Chisinau be able to liquidate national autonomy? - Alexander Korinenko
The trap of Vladimir Putin and Xi Jinping is waiting for “Western partners ”
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CenterAsia |
There is a risk that Argentina will not become a member of the BRICS
15: 36 04.09.2023
VALENTIN KATASONOV
The likely future president is set to change the current vector of foreign policy of the Latin American country
The next BRICS summit has ended in South Africa.
The main decision of the summit is the admission of new members.
On August 24, South African President Cyril Ramaphosa announced that from January 1, 2024, Saudi Arabia, the United Arab Emirates, Iran, Ethiopia, Egypt and Argentina should become full members of the BRICS.
But for Argentina, it was immediately doubtful that she would take advantage of the invitation.
The application to join the organization was submitted by the current government and President of Argentina Alberto Fernandez.
But just a week or so before the BRICS summit, Argentina held a primaries, a preliminary round of presidential elections.
And according to the results of the primaries, it became clear that a radical “change of the guard ” could occur in the country.
The best chance of becoming the next president of the country was demonstrated by Javier Miley, representing the movement under the beautiful name "Forward to Freedom".
Miley received 30.04% of the vote.
The government alliance "Union for the Homeland", which is nominated by the Minister of Economy, Agriculture and Industrial Development Sergio Massa, was supported by 27.27% of voters.
The Alliance "Together for Change", which nominated two candidates for the primaries, received a total of 28.27% of the vote.
Bullrich will represent him in the election.
Mileus, in his ideological position, is a “libertarian, ” that is, he adheres to views close to anarchism.
He seeks for the sake of "freedom" to rid a person of an excess of state guardianship and supervision.
He chose the United States as the “standard of freedom. ”
Javier Miley in the presidential race is actively supported by former security Minister Patricia Bullrich, who has a good chance to take third place in the election.
And then give their votes to Miley, having received from him at least the post of vice president.
Elections are due to take place on October 22.
According to the regulations, there are two rounds.
But if a convincing victory is recorded in the first round (at least 45% of the votes), then a second round will not be required.
Miley ’ s supporters are confident that their protege will be announced as president in the first round.
For the authorities, the first place of Javier Miley was a complete surprise.
Almost no one knew about Miley for another six months.
This new politician very successfully used all the problems that have accumulated in the country to date.
Miley blamed them on the incapacity of the ruling party, President Alberto Fernandez and Vice President Cristina Kirchner.
He promises to put the latter on trial for corruption as soon as she is deprived of her official immunity.
As for socio-economic problems, these are mass poverty (40 percent of the country ’ s population is classified as poor), galloping inflation (this year it reaches 115%), growing public debt and the threat of a new default, high unemployment, etc.
Miley is determined to change the current vector of Argentina ’ s foreign policy.
He has already said loudly that he does not need BRICS.
There is no need not only for membership in the organization, but also for further deepening of trade and economic relations with the BRICS countries.
The bloc currently accounts for 30% of Argentina ’ s exports.
Today, for 8-10 provinces of Argentina, the main direction of supply is China, a lot of agricultural products go to India.
Brazil is the traditional main trading partner of Argentina.
Javier Miley is not going to get closer to either Beijing or Moscow.
He accused Russia and China of creating “problems for all free countries. ”
In addition, he promised to deal with “refugees ” from Russia.
These are those who left our country after February 24, 2022, as well as after the September mobilization of last year, and, taking advantage of the visa-free regime, settled in Argentina.
There are about 35,000 such people today.
Here Patricia Bullrich fully supports Miley.
"We must ensure the safety of Argentines from external influence.
And the representatives of those countries that threaten the United States, threaten Argentina, ” she said.
And with whom does this candidate for president of Argentina intend to approach?
with the United States and Israel.
Miley, in particular, said: "Stop flirting with those who create chaos and instability in the world.
“The freest country in the world is the United States, and we will work closely with them on all key international issues. ”
Also in an interview with El Pais, he said: “My natural allies are the United States and Israel.
I do not want to deal with the communists of Cuba, China and North Korea.
What does that mean?
Trade with whomever you want, but I will not strengthen relations with them. "
And what is Javier Miley going to do inside the country?
What any libertarian would do in his place.
The politician said that “the state should not interfere in the life of citizens – freedom should be complete and unconditional. ”
Accordingly, he proposes to sharply reduce budget expenditures, conduct almost 100 percent privatization of state-owned enterprises, reduce the state apparatus and liquidate a number of ministries (primarily the Ministry of Labor and the Ministry of Education), abolish the severance payments to employees upon dismissal, etc.
And also to introduce the free sale of weapons.
As the politician noted, “we should have everything as in the United States, then there will be order and corruption will disappear. ”
But Javier Miley is not an ordinary libertarian.
He promised the Argentines something that other libertarians would never have thought of.
For example, to legalize the free trade in children and human organs.
“Who are you to determine what a person does with his life? ” the politician answers the question, whether such trade is permissible.
Unorthodox ideas Javier Miley also expresses about the problems of financial, currency and monetary credit.
He proposed, first, to liquidate the Central Bank of Argentina.
Second, cancel the Argentine peso and define the US dollar as the national currency.
In Argentina, Miley famously said, “Central banks fall into four categories: bad, like the Fed; very bad, like in Latin America; terribly bad; and the Central Bank of Argentina. ”
As Javier Miley said, the latter "has no reason to exist."
In an interview with El Pais, the politician explained his position on the Central Bank: “Argentina became the richest country in the world when it did not have a Central Bank.
From 1880 to 1935, average inflation was 0.9% per year.
In 1935, the Central Bank was created as a way to deceive people and benefit those close to power: inflation then jumped to an average of 6% per year.
And the abandonment of the peso in favor of the US dollar will deprive the ruling class of Argentina of the opportunity to print money: "You take away the printing machine from politicians...
This is what will end inflation.
Because inflation is everywhere and always a monetary phenomenon generated by an excess of money.
However, in addition to the dollar as the official currency, the country will allow the free use of private cryptocurrencies, primarily bitcoin.
Miley believes that bitcoin is a reaction to central bank scammers.
True, if all the world ’ s central banks, according to Miley, are crooks, why does he agree to deal with the dollar, which, following the logic of politics, is also created by a fraudulent structure called the “US Federal Reserve ”?
Miley cites as examples worthy of imitation countries such as Ecuador, El Salvador and Panama, where there are no national currencies, and the dollar, in his opinion, provides these countries with financial stability.
However, if you look at these countries, the situation there is not very different from the situation in Argentina.
When asked about the problems that Ecuador faces today, the politician replied that the reason for this is the populist policy of former President Rafael Correa.
The Argentine politician calls not all countries and jurisdictions that do not have national currencies, but the US dollar instead.
To the list should be added Puerto Rico, the American Virgin Islands, the Northern Mariana Islands, Guam, American Samoa, Micronesia, American Samoa, Zimbabwe East Timor and something else by little.
Of all the countries that have adopted the US dollar, the largest in terms of population are Ecuador (18 million people) and Zimbabwe (16 million people).
More than 46 million people live in Argentina.
In terms of economic development (GDP), it is the third country in Latin America after Brazil and Mexico.
Of course, the transition of Argentina to the US dollar would be a real sensation, not only for Latin America, but for the whole world.
Especially considering that the prospects for the US dollar are not so rosy.
And yet Miley is a supporter of the US dollar: “What does it matter to us that dollars are printed in the US?
The main thing is that we will no longer wake up and see what the peso to the dollar exchange rate was yesterday and what it will be tomorrow.
The US dollar will bring financial order to our country.
And by doing so, we will end the games of socialism and the groveling before the trade unions. "
This is the logic of the contender for the presidency of Argentina.
In order to achieve financial stability in the country, to end the games of socialism and stop squabbling in front of the trade unions, Javier Miley is ready to sacrifice such a "trifle" as the national sovereignty of Argentina.
P.S. In social networks, there is a discussion of the question: what guided the participants of the summit in South Africa, when they made the decision to accept Argentina as a member of the BRICS?
The results of the primaries were already known to them.
One version is that in a similar way, the summit participants tried to provide indirect support to the government alliance “Union for the sake of the Motherland ” in the October elections.
After all, the alliance is unequivocally in favor of Argentina ’ s membership in the BRICS.
It is also important that, according to opinion polls, the majority of Argentine citizens also support the idea of   the country's membership in the BRICS.
Source - Strategic Culture Foundation
Permanent address of the article - https: / / centrasia.org / newsA.php? st = 1693830960
News of Kazakhstan
- Working schedule of the head of state
- Address of the Head of State Kassym-Jomart Tokayev to the people of Kazakhstan
- Decree of the President of the Republic of Kazakhstan dated September 1, 2023 No. 318
- Personnel reshuffles
- Maulen Ashimbayev: "The Senate is ready for legislative support of the reforms proposed in the Address"
- The President's Message
- The first plenary session of the new session was held in the Mazhilis
- "The Government has set ambitious but achievable goals"
Inflation in the Republic of Kazakhstan
- Children at the UMC Maternity and Childhood Center were congratulated on the Knowledge Day
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Milei's economic policies may lead to hyperinflation if the dollar devalues, and the country's inflation rate has been rising steadily since 2007.

Title:

Content: November 25, 2023

Following Sunday’s election results, Javier Meili is set to become Argentina’s president on December 10. Among other things, President-elect Miley has vowed to replace the peso with the US dollar, a policy known as dollarization. Some critics have argued that dollarization would deplete the Argentine central bank’s US dollar reserves, making dollarization excessively costly and ultimately resulting in hyperinflation. However, in leveling this criticism, they misinterpret Argentina’s current economic situation and fail to consider real-world cases of dollarization during an inflationary crisis.

The risk of hyperinflation in Argentina is not due to Javier Miley’s advocacy of dollarization. Instead, it is the result of years of bad monetary policies. Inflation has been rising steadily since 2007, long before Miley proposed dollarization (and almost anyone in Argentina even thought about the possibility of dollarization).

Some experts argue that, by international standards, Argentina is already experiencing hyperinflation. According to Philip Kagan’s seminal 1956 study, most economists define hyperinflation as an inflation rate greater than 50 percent monthly. To put this in perspective, the average annual inflation rate in Europe between 1950 and 1955 was 5.1 percent. In Kagan’s words, a hyperinflation country experienced monthly price increases that were ten times greater than the price increases experienced by a typical European country in a normal year.

The monetary policy landscape is very different today than in the years immediately preceding Kagan’s study. Over the five-year period ending January 2020, just before the pandemic, the EU’s average annual inflation rate was just 0.98 percent. Using Kagan’s ratio, this would mean that a country experiencing at least 9.8 percent inflation per month has hyperinflation. Argentina saw monthly inflation rates of 12.7 percent and 8.3 percent in September and October, respectively. Therefore, adjusting Cagan’s hyperinflation threshold to reflect general improvements in monetary policy elsewhere would reveal that Argentina is already experiencing hyperinflation. While there is certainly potential for further decline, critics of dollarization need to acknowledge just how serious Argentina’s inflation is in the context of the modern global economy.

International experiences show that dollarization and hyperinflation are interconnected issues, but this is not the case according to critics of dollarization. For example, Ecuador adopted dollarization in January 2000 to prevent hyperinflation. Ecuador’s dollarization proved effective. Dollarization immediately brought Ecuador’s inflation rate into alignment with that of the US and then kept it stable over the next decade, despite economic challenges and two sovereign debt defaults. Another compelling example is Zimbabwe, which adopted dollarization in January 2009 to combat hyperinflation. The result was also successful, with inflation reaching US levels by January 2010. As these cases show, dollarization may be a solution to hyperinflation. Argentina could also either resort to dollarization to prevent hyperinflation, or avoid it if inflation gets out of control.

The risk of hyperinflation in Argentina stems not from an intention to create a dollar but from a central bank that appears unable or unwilling to exercise restraint. Argentina’s historical record shows that central bank independence is absent and not easily secured. For better or worse, dollarization offers the safest path to avoid monetary collapse. This provides Argentina with an opportunity to implement much-needed reforms and move forward on a sustainable development path. Dollarization may make things worse before they get better. But to argue that monetary reform that is supposed to tame inflation will lead to hyperinflation is a distorted view of Argentina’s economic reality.

nicholas kachanowski

Dr. Kachanowski is Associate Professor of Economics and El Paso Woody L. Hunt is the director of the Center for Free Enterprise at the University of Texas in the College of Business. He is also a Fellow of the UCEMA Friedman-Hayek Center for the Study of a Free Society. He served as President of the Association of Private Enterprise Education (APEE, 2021-2022) and on the Board of Directors of the Mont Pelerin Society (MPS, 2018-2022).

He received his Licentiate in Economics from the Pontificia Universidad Católica Argentina, his M.A. in Economics and Political Science from the Escuela Superior de Economía y Administración de Empresas (ESADE), and his Ph.D. M.A. in Economics from Suffolk University, Boston

Dr. Kachanowski is the author of Reflexions sobre la economia argentina (Instituto Acton Argentina, 2017), Monetary balance and nominal income targeting (Routledge, 2019), and co-author Austrian Capital Theory: A Modern Survey of Essentials (Cambridge University Press, 2019), Capital and Finance: Theory and History (Routledge, 2020), and Dollarization: Una Solution for Argentina (Editorial Claridad, 2022).

Dr. Kachanowski’s research has been published in outlets such as Journal of Economic Behavior and Organization, public choice, Journal of Institutional Economics, Quarterly Review of Economics and FinanceAnd Journal of the History of Economic Thought among other outlets.

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Source: www.aier.org

The International Monetary Fund has rescued Argentina 22 times, and the country's economy is heavily indebted to the IMF.

Title:

Content: International News

Who Is Javier Milei?

Alex Paszkowicz

Brandishing a chainsaw throughout his electoral campaign, the libertarian and self-proclaimed ‘anarcho-capitalist’ Javier Milei won the Argentine general election on 19th November 2023. Milei’s policies and personality cause controversy, so who is the television pundit turned politician?

Beating his rival Sergio Massa with 14.4 million votes to Massa’s 11.5 million, Milei will begin his 4-year mandate starting on 10th of December. After winning a majority of just 4 out of the twenty-four Argentine provinces, Massa conceded defeat at the Unión por la Patria‘s campaign house before the results were officially published.

The centre-left finance minister admits that “obviously these are not the results we hoped for, and I have spoken to Javier Milei to congratulate him because he’s the president that the majority of Argentines have chosen for the next four years”.

Massa has also hinted that he will retire from front-line politics.

The Peronist political movement has been pushed out of government

Milei’s victory has dismantled the left-wing political establishment, even ending Argentina’s 2-party political system. Created in the 1940s by Juan and Eva Perón, the Peronist political movement has been pushed out of government, despite ruling for sixteen out of the last twenty years. His campaign fell short despite Massa continuously appealing to voters’ fears surrounding Milei’s volatile character and risky economic policies.

Compared with Massa, and judging by the election result, Milei is seen as the lesser of two evils in Argentina, as the previous Peronist government could not provide economic stability.

The third-largest Latin American economy has almost reached inflation of 150%, and 40% of Argentina’s 45 million population is in poverty. Furthermore, the International Monetary Fund has rescued the Argentine state twenty-two times, with the most recent loan of $44 billion in 2018.

Milei used his platform […] to circulate conspiracy theories

Economist Sergio Armella believes, “it is indisputable that a swift change from the failed economic policies of the past is imperative. The accumulated economic imbalances have grown too large and must be addressed promptly”.

Nicknamed ‘El Loco’ and before running for president, Milei used his platform on television to circulate conspiracy theories around election fraud and Argentina’s economic problems.

Combined with his extravagant personality and viral TikTok videos, he targeted a younger audience who had grown up through economic hardship and strict Coronavirus lockdowns. Milei’s camp is also known to question the national consensus, which has lasted four decades, over the crimes of its 1976 to 1983 dictatorship, which killed around 30,000 people.

“The reconstruction of Argentina begins” [Milei]

The man with five cloned dogs, each named after a different right-wing economist, claims that with his new mandate, ‘“the reconstruction of Argentina begins”. Calling the result a “miracle” in his victory speech, he says that the result “marks the end of decadence in Argentina”.

He believes Argentina will return to being a “global power”, while alluding to those conspiracies he supported in his past where previous governments, “shared the state amonpoliticians and their friends”.

Although he abandoned his chainsaw to improve his public image, the symbol refers to his promise to decrease inflation by cutting public spending by 15% and privatising state companies, while reducing fuel and electricity subsidies.

Milei wants to abolish the central bank and adopt the US dollar as its official currency, to stop the country from printing more money like previous governments. If the dollar’s value continues to devalue, then inflation could rise with a risk of hyperinflation, which could return after three decades.

Aims to sever ties with China

Milei has no interest in joining the BRICS alliance, and aims to sever ties with China to help move towards privatising state-led companies like the oil industry.

According to economist Elizabeth Bacigalupo, this includes an estimated $10 billion in annual savings on energy imports through a new gas pipeline in Vaca Muerta. Also, this year, the drought in Argentina reduced its agricultural exports from $39 billion in 2022 to $23 billion. But with next year’s predictions, exports could be up to $40 billion.

The problem Milei faces is how fragmented the Argentine Congress is. The coalition he formed with the conservatives after the first round only has 10% of the Senate and 15% of the lower house, meaning he will have to negotiate with his political rivals to push through his complicated reforms.

Any delay in economic progress could lead to more inflation and social unrest.

Despite insults hurled at Brazil’s President, Luiz Inácio Lula da Silva, by Milel throughout his campaign, he wished him support on social media, saying “democracy is the voice of the people and must always be respected”.

Donald Trump believes Milei will “Make Argentina Great Again”

Former US president Donald Trump believes Milei will ‘Make Argentina Great Again’. Businessman Elon Musk expressed a similar sentiment and posted, ‘prosperity is ahead for Argentina’.

Reactions from Milei supporters are varied, with voters desperate for change. A supporter named Michelle Chelsea in Buenos Aires says, “economic policies have led us to this situation. Today, more than half of the population has voted for a different option, and I hope that things will change a lot”.

A Food Service Worker, Alejandro Bravo, is hopeful for the future. “It’s an incredible joy. It’s the end of a never-ending decline, so to corrupt politicians, we say, “get lost”‘.

“We’ve had enough corruption, enough insecurity, enough inflation, enough poverty. We were very tired, we wanted something new, we wanted to see new faces”, states supporter Barbara Rubin.

Alex Paszkowicz

Featured image courtesy of Angelica Reyes via Unsplash. Image license found here. No changes were made to this image.

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Dollarization will limit Argentina's ability to manage internal adjustments, and the country's economy will be heavily reliant on the US dollar.

The government's "shock therapy" reforms, introduced to save the economy, have included devaluing the peso, reducing government spending, and halting public works tenders.

Title:

Content: 【 Printing 】
【 Page 1 Page 2 】
International observation _ "shock therapy" caused prices to rise in Argentina
Related LINKS http: / / www.CRNT.com 2024-01-17 16: 45: 02
BEIJING, Jan. 17 (Xinhua) -- In the more than a month since he took office, Argentine President Emile Millet has introduced a series of “shock therapy ” reforms aimed at saving the economy, with a view to reducing the fiscal deficit and controlling inflation.
Since the introduction of the new policy, prices in Argentina have soared and the quality of life of the population has declined, and opposition parties and trade unions have raised doubts.
In his inauguration speech last December, Millet said Argentina faced a “critical ” economic situation, with high inflation, rising poverty and difficulties in obtaining external credit support.
Argentina needs “shock therapy ” to save the economy.
In the early days of his administration, Argentina will face a period of "stagnation", during which economic data will be worse than before.
The Millet government introduced a series of policies to reduce the deficit, including reducing the number of government departments from 18 to 9, reducing government subsidies for energy and transportation, and halting tenders for new public works.
The new government also devalued the official exchange rate of the Argentine peso from about 400 pesos to about 800 pesos to the US dollar and eased import controls.
In addition to direct fiscal and economic measures, the Milai government is also promoting the repeal and amendment of more than 200 laws to ease government and legal controls on domestic economic sectors and to facilitate import and export trade.
In addition, Millet and his team have said that "dollarization" is the medium-term goal of his administration, but so far has not released a "dollarization" roadmap.
After a series of new policies, prices in Argentina have risen sharply.
Argentina ’ s National Institute of Statistics and Census released a report on the 11th, saying that the country ’ s inflation rate reached 25.5% in December 2023 and the cumulative inflation rate in 2023 reached 211.4%, both setting records since 1990.
Food prices in Argentina have almost doubled since December 2023.
For example, in early December, the supermarket price of a kilogram of beef in Argentina was about 4,000 Argentine pesos (about RMB 35), and in early January, it has risen to about 8,000 Argentine pesos (about RMB 70).
Many families have had to switch to cheaper pork and chicken because of the soaring price of beef.
In an interview with local media, an executive at a food company in Argentina said the retail price of its products rose by an average of 40% to 50% after the new policy was announced.
【 Page 1 Page 2 】
【 Printing 】

The medium-term goal of the administration is to implement dollarization, but no roadmap has been released yet.

The economic emergency declared in 11 provinces has led to austerity measures, including slashing government spending and reducing subsidies.

Title:

Content: Argentina ’ s 11 provinces declared a state of emergency: employees can ’ t be paid
Author: Au Jingluo
Published: Updated:
Argentine Economy Minister Luis Caputo announced a series of economic measures on December 12 to launch “shock therapy ”.
Argentina ’ s 11 provinces declared a state of economic emergency on Wednesday in response to the central government ’ s sharp cuts in spending.
Eleven provinces, including San Diego del Estero and San Luis, have declared a state of economic emergency.
The St. Louis provincial government said it was severely short of funds to operate and couldn ’ t even pay its employees ’ December salaries.
Some provincial governments said they would not follow the central government in adopting austerity measures.
Argentina ’ s new government announced the launch of “shock therapy ” on the 12th to try to solve the economic crisis, including devaluing the currency peso by 54% and slashing government spending.
These include reducing the number of government departments from 18 to 9, reducing government subsidies for energy and transportation, and stopping tenders for new public works.
The government says economic reforms will help lift the country out of the economic crisis, but Argentines will have to endure months of pain, with prices expected to rise 20% to 40% in the coming months.
Argentine Economy Minister Roberto Caputo said on Wednesday that the goals of the dollarization plan promised by President Javier Milei during his campaign remain unchanged, stressing that the idea is still valid even if the future is painful.

What issue did Milei want to address without printing money?

The government's policies aim to address decades of mismanagement, but economists warn that dollarization may lead to hyperinflation.

Title:

Content: Javier Milei is elected president of Argentina.
Libertarian Javier Milei, who won the presidency of Argentina on Sunday, promised a radical overhaul to address decades of policy mismanagement, but his radical and bold ideas also raised doubts.
According to the official electoral body, after Sunday ’ s runoff, 99% of the votes were counted, and Milei received 56% of the votes, beating the 44% of the votes of Sergio Massa, the current economy minister.
The number of votes he won was unexpected, and Massa conceded the defeat before the results were announced.
Speaking to Argentines on Sunday night, Milei said his victory marked the beginning of "the reconstruction of Argentina."
“Today Argentina ’ s decline is beginning to end, ” he said.
“Today, the pattern of poverty in a country that is everywhere is over, one that benefits only a part of the population, while the majority suffers. ”
In the capital, Buenos Aires, hundreds of Milei ’ s supporters honked their horns, set off fireworks and sang his popular song against the political elite, “Get them all off! ”.
Milei ’ s main campaign promises include abandoning the peso and switching to the dollar and shutting down the central bank, while slashing public spending in an attempt to get the country of 46 million people out of trouble.
However, Milei ’ s shock therapy could also set Argentina on an uncertain path, with some economists warning that dollarizing the $622 billion economy while international reserves run out could plunge the South American country into another round of hyperinflation.
At the same time, IMF officials called on the next administration to restart the economy quickly, stressing that there was no time for progressive policies.
Argentina last week released its latest October inflation figures, which rose more than 140% a year to a 32-year high.
Milei will take office on December 10.
Related Posts

IMF officials have called for a quick economic restart, and Argentina's inflation has risen 140% in a year to a 32-year high.

What economic issue did Milei want to address?

President Milei's policies are expected to have significant implications for Argentina's governance and society, and the country's future is uncertain.

Javier Milei proposes deregulating government and privatizing state-run industries as part of his economic reform plan.

Title:

Content: Streets of Argentina Ablaze with Dissent as Milei’s Controversial Reforms Ignite Outrage

In a stunning turn of events, Argentina has become a battleground for public discontent following President Javier Milei’s introduction of a series of controversial proposals. Thousands of Argentinians have taken to the streets, enraged by the president’s push for drastic cuts to public spending.

Milei’s latest measures, unveiled on Wednesday evening, aim to revolutionize Argentina’s struggling economy through a variety of initiatives. These include deregulating the government and opening up state-run industries for privatization in order to spur both exports and investment.

However, the people’s outrage has manifested in widespread protests, often met with a heavy police presence. Gathering in front of the Argentine Congress, hundreds of demonstrators made their opposition to Milei’s proposals known.

Undeterred by the dissent, Milei appeared on national television to defend his agenda and offer reassurances of a prosperous future. He asserted, “Our objective is to rebuild our nation, restore individual freedom and autonomy, and dismantle the myriad of regulations that have impeded our economic growth for far too long.”

Acknowledging the mounting protests, Milei’s security minister, Patricia Bullrich, announced new measures aimed at maintaining public order. These measures grant federal forces the power to disperse protesters blocking streets without requiring a judicial order, and authorize the police to use video or digital evidence to identify and hold accountable those obstructing public thoroughfares. Moreover, the legislation empowers the state to apportion the costs of mobilizing security forces to the protesters themselves.

Milei’s presidential victory was built upon a campaign centered around reducing public spending. Since assuming office, he has already made significant changes to the country’s financial landscape. The value of the Argentinian currency has been adjusted, contracts of public employees with less than one year of service have been terminated, and the prices of basic services and public transportation have seen notable increases.

FAQ:

Q: What are President Milei’s proposals?

A: President Milei’s proposals include deregulating the government and allowing the privatization of state-run industries to boost exports and investment.

Q: Why are Argentinians protesting?

A: Thousands of Argentinians are protesting against Milei’s proposals due to their belief that the drastic cuts to public spending will adversely impact their lives.

Q: How is the government responding to the protests?

A: In response to the protests, the government has announced new measures to maintain public order, empowering federal forces to disperse protesters without a judicial order and enabling the identification of those obstructing public thoroughfares through video or digital means.

Q: What changes has Milei already implemented?

A: Since taking office, Milei has adjusted the value of the Argentinian currency, terminated contracts of public employees with less than one year of service, and increased the prices of basic services and public transportation.

(Sources: Information gathered from local news outlets)

Milei aims to boost exports and investment through these reforms, which have sparked protests against his drastic public spending cuts.

The economic reform bill aims to privatize state entities and requires 37 votes to pass the Senate.

Title:

Content: Argentina's Senate in Deadlock: Economic Reform Bill Ignites Protests

Argentina's Senate is deeply divided as it debates President Javier Milei's economic reform bill aimed at privatizing state entities and boosting investment. Protests erupted outside Congress, leading to clashes with police. The bill requires 37 votes to pass the Senate, with a tie possibly broken by the vice president.

Reuters | Updated: 13-06-2024 04:50 IST | Created: 13-06-2024 04:50 IST

Argentina's Senate began debating a sprawling bill on Wednesday that is key to libertarian President Javier Milei's economic reform plans, while protesters set fires and clashed with police in the streets outside Congress. The upper house, which is divided almost down the middle over the bill, which is designed to boost investment by privatizing state entities and providing incentives for businesses, is set for a marathon debate. The bill passed the lower house of deputies in April following many changes after it was rejected in a first vote in February.

Milei's government, which controls only a minority of seats in both chambers, has been bargaining to win over allies. It knows the bill will be modified, but is hoping to at least get general approval. Outright rejection would be a major blow. Local legislators and media outlets estimated that senators were evenly split. The bill needs 37 votes out of the 72 total legislators in the chamber to get a majority.

"It is a very even vote: it's 36 and 36," Guadalupe Tagliaferri, a conservative lawmaker from the government-allied Together for Change, told reporters. She said the vote could come down to the vice president, who presides over the Senate, to break the tie. The main left-leaning Peronist opposition bloc, closely allied to the unions, is likely to vote down what is known as the "bases" bill and a separate fiscal package. The main bill includes plans for privatizing public firms, granting special powers to the president and spurring investment.

"Argentine people's lives are at play. We've drunk this poison several times: to have zero inflation with zero economic activity," protester and social leader Luis D'Elia said as thousands protested the planned reforms. "This poison has failed several times in Argentina and we won't allow this to carry on."

Reuters footage from the streets of Buenos Aires showed a car set on fire, with scattered protesters throwing rocks and bottles, while police with riot gear used tear gas, water hoses and rubber bullets. Milei's office issued a statement congratulating the security forces for holding back "terrorist groups" armed with sticks and grenades who "tried to perpetrate a coup d'etat." It did not provide further evidence.

'CHANGE ARGENTINA' Milei, a brash economist and former pundit who has clashed with lawmakers and regularly called Congress a "nest of rats," has tied a lot to the bill. His government says it is key to undoing a major economic crisis that it inherited.

"We are going to change Argentina. We'll make a liberal Argentina," Milei said on Wednesday, adding that if his reforms didn't get through Congress now he'd try again in 2025. A government official speaking on condition of anonymity said that they expected the bill to get general approval in the Senate, but would be "more altered than we would like". If it is approved with changes it will go back to the lower house.

"If the Bases law is passed, it accelerates the growth process, mainly by getting investment into the country. If it is not passed, we keeping going, though perhaps more slowly," the person said. Argentina has annual inflation near 300%, myriad capital controls that stymie business and trade, depleted foreign currency reserves and a high debt load that needs servicing. The economy is in recession and poverty is rising.

The Senate debate is expected to continue late on Wednesday, with voting potentially set to take place in the evening. "They are going to have to buy popcorn," La Libertad Avanza Senator Francisco Paoltroni told local channel C5N. "It is going to be a long night of trying to break the deadlock."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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The bill passed the lower house of deputies in April, and the Senate debate is expected to continue late on Wednesday.

Milei launched an economic decree with 300 reforms, including privatization of state-owned enterprises and deregulation of key sectors.

The reforms will be discussed in a special parliament session, and Argentina faces a debt crisis with $44 billion owed to the IMF.

Argentina's president unveiled 300 deregulation measures affecting housing, customs, and tourism sectors, among others.

Title:

Content: International
International news.
Argentina pushes 300 economic loosening measures, thousands of people take to the streets
Libertarian Argentina ’ s new president, Manuel Mirai, on Wednesday unveiled a wide-ranging emergency decree authorizing more than 300 deregulation measures in different sectors, including housing, customs and tourism, in an effort to revive the economy.
In his prerecorded speech, Miley said it was the first step toward ending Argentina ’ s “pattern of decline. ”
Earlier on the same day, there was the first large-scale demonstration after Miley came to power, and left-wing organizations mobilized thousands of people to take to the streets to demand the end of Miley's "layoff plan".
The law will directly outlaw large-scale regulatory measures in Argentina such as housing leasing, export customs arrangements, land ownership, food retailing, etc., and amend regulations in the aviation, health care, pharmaceutical and travel industries to encourage competition. It will also reduce employee compensation programs and extend the probation period for new employees.
The new rules will also change the legal status of state-owned enterprises so that they can be privatized.
Following the broadcast of Mirai ’ s pre-recorded speech, some residents of the capital, Buenos Aires, immediately protested in accordance with tradition, with hundreds of people even temporarily demonstrating outside the parliament building, chanting “Our country is not for sale! ”
Opposition Beronists have accused Miley of circumventing parliament by issuing a new mandate by decree — his party holds less than 10% and about 15% of the seats in both houses, respectively.
According to the Constitution, the President has the power to issue “urgent and necessary decrees ” in most policy areas other than tax, penal and electoral matters and party rules.
(Financial Times)
Related words: Regulation of Javier Milei, Argentina
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What industries were affected by Milei's deregulations?

The law outlaws large-scale regulatory measures in several areas and amends regulations in aviation, healthcare, and pharmaceutical industries.

Javier Milei's government has no majority in Congress, but he has sent over 600 reform bills to Congress for a special session.

Title:

Content: Argentine lawmakers approve Mili reform package after marathon debate - Sunrise Gate
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Argentine lawmakers approve Melli reform package after marathon debate
DBA
Published on: Saturday 3 February 2024 - 9: 22 AM | Last updated on Saturday 3 February 2024 - 9: 22 AM
Argentina ’ s House of Representatives has approved in principle a comprehensive package of legislation presented by the ultra-liberal government led by President Javier Milley, after a three-day marathon session.
After nearly 30 hours of debate, 144 MPs voted in favor of the reform package on Friday, against 109 who voted against it.
The package, which includes some 300 laws, provides for the transfer of part of the government's legislative powers for two years, the privatization of several state-owned companies, and amendments to tax and election laws.
Once the package is approved in principle, the debate on individual laws will begin next week.
The bill must also be approved by the Senate.
Milley does not have a majority in Congress and has had to conduct intensive negotiations in recent weeks to get MPs and other parties to back his bill.
“History will remember with respect those who understood the historical context, chose to end class privileges and did something for the people who fell into poverty and hunger for years because of the political class. ”
Economist Mille, who took office in mid-December, announced radical reforms in the country amid a severe economic crisis, with inflation above 200% and about 40% of the country ’ s population living below the poverty line.
Argentina, South America ’ s second-largest economy, suffers from a bloated administrative apparatus, low industrial productivity and a vast shadow economy that denies the country crucial tax revenues.
The Argentine currency, the peso, continues to lose more value against the US dollar, and the volume of debt is steadily expanding.
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The reforms aim to address inflation above 200% and include amendments to tax and election laws.

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?

Milei declared a two-year economic emergency with over 300 measures and proposed privatization of state-owned enterprises and deregulation.

Title:

Content: Why did Argentina give up on joining the BRICS?
You don't have to be too serious about the new president, Millet.
Author: Ye Dehao
Published: Updated:
December 29 is the last government working day in 2023.
The Argentine government issued a letter to the BRICS countries as early as the 22nd, indicating that Argentina is not suitable for joining the BRICS at present, saying that its foreign policy is very different from the previous government.
Argentina ’ s new president, Javier Milei, a far-right liberal who was sworn into office on December 10, has been highly pro-American and pro-Israel, and his formal decision to forgo joining the Golden Brick, which is seen as close to China, comes as no surprise.
Negotiations are fruitless?
After Millet ’ s victory in the second round of voting at the end of November, Chinese Ambassador to Argentina Wang Wei quickly met with then-Foreign Minister Diana Mondino, and Millet himself released a Spanish translation of a personal letter sent to him by Chinese President Xi Jinping, thanking Xi Jinping for holding up a letter of “common interest ” between China and Argentina.
Although Millet, who had indicated during the election that he would not talk to communist countries (for Millet during the election campaign, this included China and Brazil), expressed goodwill, the foreign minister said publicly on social media in early December that he would not join the BRICS.
Subsequently, at the invitation of Argentina, China sent special envoy of President Xi Jinping and Vice Chairman of the Standing Committee of the National People ’ s Congress Wu Weihua to Buenos Aires to attend the inauguration ceremony of Milai on December 10, and met with Milai with Wang Wei the following day.
Mirai later wrote back to China, which Argentine media said contained references to a currency swap agreement between China and Argentina, when one of Argentina ’ s loans to the International Monetary Fund (IMF) was due to be repaid.
Later, Chinese officials also met with Milay ’ s nominee for governor of Argentina ’ s central bank (although Milay had stated during his campaign that the central bank would be abolished and fully dollarized), as well as his economy minister, Luis Caputo.
Ukrainian President Leonid Zelensky also attended the inauguration ceremony of Millet.
(Reuters)
In the end, there seems to be no progress on the currency swap agreement and the related issues of joining the BRICS.
By December 14, Reuters had reported that Milay had reached a loan agreement with the Development Bank of Latin America and the Caribbean (CAF), allowing Argentina to repay the IMF as scheduled on December 21.
On December 19, Argentine media revealed that China had suspended the currency swap agreement with Argentina, saying that Beijing had recalled Wang Wei to Beijing the previous day.
The letter from Argentina renouncing its accession to the BRICS came on the 22nd.
Argentina ’ s renunciation of BRICS membership has been widely interpreted as a setback for China ’ s efforts to “expand ” solidarity with the global South at the BRICS summit in South Africa in August 2023.
At that time, the BRICS decided to invite the United Arab Emirates, Saudi Arabia, Iran, Argentina, Egypt, and Ethiopia to join the BRICS.
However, to put it another way, Millet ’ s renunciation of joining the Golden Brick was just an act of symbolic significance greater than practical significance, and his attitude toward China and even his right-wing libertarian stance have weakened significantly since his election.
Foreign Minister Guido Mondino has made it clear that he will not abandon diplomacy with China and Brazil (Argentina ’ s first and second largest trading partners, respectively).
Millet has quickly appointed a new ambassador to China, and his letter to the BRICS states that he hopes to deepen bilateral relations and increase trade and investment contacts with other countries, and hopes to meet with the leaders of the BRICS countries.
On December 10, Millet addressed supporters after he was sworn in as president. (Reuters)
During the campaign, there were fears that Millet would behave badly when he came to power.
However, the majority of those who were elected were on the right wing.
For example, Economy Minister Caputo is a member of former President Mauricio Macri ’ s Juntos por el Cambio party, and Central Bank governor Santiago Bausili was Finance Minister from 2015 to 2019.
The Adventures of Shock Therapy
Of course, after coming to power, Millet quickly pushed for “shock therapy ” economic reforms, immediately devalued the Argentine peso by half (but its exchange rate remained below the black market), and declared a two-year economic emergency, proposing more than 300 measures in the form of presidential decrees, from loosening controls on food retailers to loosening the use of foreign exchange, from privatization of state-owned enterprises to deregulation of proprietary medicines, from labor protection to employee restrictions. All strikes are complete.
Unions in Argentina have mobilized a revolt, but the scale of the demonstrations has not reached enough to worry Millet.
Security officials from the Milai authorities also issued a stern warning against the demonstrations, which seemed to have a degree of deterrent effect.
On December 29, the economic emergency in Milai came into effect, with demonstrators gathering in the streets of Buenos Aires to protest against economic reforms.
(Reuters)
At the end of the year, Millet also sent more than 600 reform bills to Congress, asking Congress to initiate a special session from December 26 to January 31 to help Argentina move forward quickly with reforms.
The bill includes legalizing Millet ’ s previously declared economic emergency, abolishing the primary election system, increasing penalties for various protest-related crimes, protecting the right to self-defense and strengthening the police, listing state-owned enterprises that can be privatized, allowing the legalization of undeclared property, modifying policies related to the oil industry (such as the government will not impose price limits), and temporarily handing the president more legislative powers on taxes, pensions, security, and other items.
Millay ’ s government says it wants to reduce the government deficit to zero by 2024 (which would have been about 5% of GDP), thereby drastically reducing the size of the government, cutting subsidies for electricity and transportation, cutting funding to local governments, and temporarily raising import taxes and increasing benefits such as the value of food cards to help those most in need.
With only 40 of the 257 seats in the Brazilian Chamber of Deputies and 7 of the 72 seats in the Senate, Millet ’ s party, even with less than half of the traditional right-wing “working together to change ” support, is hoping to use popular opinion to put pressure on Congress to show that if Congress is unwilling to pass his reform bill, it will resort to the law (no law). Binding) referendum.
[Here: Chainsaws are a symbol of Millet ’ s reformist economy, and he often picks them up to campaign events.]
Millet ’ s “crazy ” economic reforms, and the voters ’ support for him, are understandable. After all, Argentina ’ s economy has been a tragedy for more than a century, and its per capita GDP was higher than that of Germany and France 100 years ago, but it is now several times behind them, from advanced countries to developing countries.
According to statistics, its ratio of negative growth to positive growth has been worse than that of war-torn Iraq and Sudan since 1950, and it is now the largest recipient of IMF assistance since its inception.
Not to mention that Argentina has an inflation rate of more than 100%.
Millet has long shown that his shock therapy will bring economic pain, but voters have limited tolerance for the pain, and the pain is likely to grow.
The street demonstrations are not threatening Millet at this point, but if Millet ’ s new deal doesn ’ t work, the situation will be very different in a few months.
In the midst of a crisis-ridden march of economic reform, Millet ’ s foreign policy will remain at the symbolic level, and will never dare to do anything that will really negatively affect the Argentine economy.
Giving up on joining the Brick is just one example.
We don ’ t have to read this diplomatically too seriously — it ’ s just the political norm in Latin America, where the ideologies of the right and the left are fiercely opposed.

He aims to reduce the government deficit to zero by 2024 and cut subsidies and funding to local governments.

What issue did Milei want to address without printing money?

The Argentine President introduced "shock therapy" reforms to save the economy, aiming to reduce the fiscal deficit and control inflation.

The government reduced departments from 18 to 9, reduced subsidies for energy and transportation, and halted public works tenders.

Javier Milei became Argentina's president in December 2023 and promises "drastic" measures to temper the inflation crisis.

Title:

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).

What economic issue did Milei want to address?

Milei's agenda includes privatization of state-owned enterprises, and he issued an 83-page Necessity and Urgency Decree repealing over 300 laws and regulations.

The decree enables the government to carry out reforms quickly and declares a state of public emergency until 2025.

Javier Milei plans to amend 300 regulations and controls, allowing privatization of public companies and repealing the rent law to ease the real estate market.

Title:

Content: Argentine President Announces Major Plan to Liberalize Economy
Cairo - Center Gate Thursday 21 December 2023, 09: 53 am
Argentina is awaiting a presidential decree to liberalize the struggling national economy announced by hard-line liberal President Javier Milley on Wednesday in a televised speech aimed at starting the path of rebuilding the country, restoring freedom and independence for individuals, and disarming the myriad regulations that have hampered economic growth.
In his speech, Milley said he would amend or repeal more than 300 of the current restrictions, regulations and controls, including those related to rents and labor laws.
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Argentine President Meets Biden Advisers
The president, who was elected in November, said one of the measures to be included in the decree would be the repeal of the rent law “so that the real estate market starts to run smoothly again and so that rent is not a problem. ”
Privatization of public companies
Laws prohibiting the privatization of public companies will also be repealed, he said, noting that all such companies will be transformed into limited liability companies in preparation for their privatization.
Milley also announced his intention to “modernize the labor law to facilitate the process of creating real jobs, and amend the company law so that football clubs can become limited liability companies. ”
The decree amends and removes a long series of other regulatory restrictions in sectors ranging from tourism, satellite internet, pharmacy, agriculture and international trade.
For the decree to enter into force, it must be published in the Official Gazette, and then examined by a joint committee of the House of Representatives and the Senate to determine whether or not it should be repealed.
Constitutional lawyer Emiliano Vitaliani told AFP that the decree would only be revoked if it was rejected by the Senate and the House of Representatives.
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What industries were affected by Milei's deregulations?

The labor law will be modernized for job creation, and the company law will be amended for football clubs.

The Argentine government, under the leadership of President Javier Milei, plans to abandon the peso and adopt the US dollar as its official currency, a policy known as dollarization.

This move aims to combat the country's high inflation rate, which stood at 109% in April 2023 and 94.8% in 2022.

Title:

Content: Lionel Messi's Argentina Is Tanking

It is a deja vu, to the point where it leaves the international community apathetic.

The economic situation of Argentina, one of the giants of South America, along with Brazil, is alarming.

A few months ago, the world marveled at the country's victory against France in an epic final of the soccer world cup. The team was led by Lionel Messi, considered the best soccer player in history. But in the background of this achievement was the sinking of Argentina into a new economic crisis that continues to worsen.

All signals are red. The country is once again overwhelmed by a wave of inflation that began 10 years ago and has gradually intensified. In April 2023, the inflation rate stood at 109%, with an upward trend.

In 2022, Argentina declared an annual inflation of 94.8%, among the highest in the world. The previous record, dating from 1991, marked the end of a cycle of recessions and periods of hyperinflation (3,100 % inflation in 1989, 2,300% in 1990).

It Takes 250 Pesos to Buy $1

The rise in commodity prices has accelerated since the beginning of 2022, in connection to the Russian war in Ukraine. While it has made it possible to sustain Argentine economic growth in 2022, especially since it has been combined with a gradual recovery in tourism and a gradual return of international confidence linked to the signing of a new aid program of the IMF in March 2022, it will also accentuate pre-existing inflationary pressures.

The IMF estimates that imported inflation is high: a 10% increase in food and energy prices could generate an increase in Argentine inflation of around 1.6% over 12 months, with these two items of expenditure representing more than 30% of the household consumption basket.

This economic slump has led to the collapse of the Argentine peso for several months. This year, the peso is down 27.1% against the U.S. dollar. The peso to the U.S. dollar rate was $0.0040 at the time of writing. This means it takes 250 pesos to buy $1. In 2010, the exchange rate was 4 pesos for $1.

The local press indicates that the population no longer trusts the national currency and wish to keep their assets in a stable currency. As the exchange is limited -- each person cannot change more than $200 per month -- a thriving black market has emerged. U.S. dollars are so coveted that in Argentina people are willing to pay almost twice the official amount to get them, according to the local press.

General Elections in October

In addition, the country lost two new lawsuits in April brought by disgruntled investors. Hedge funds, including Palladian Partners, sued Argentina in London after they encountered losses related to the country's growth-linked securities. They were challenging the change in the way Argentina calculates its gross domestic product.

In this complicated economic context, the Argentine authorities, led by leftist President Alberto Fernandez, elected in 2019, reached an agreement with the IMF on a new program in March 2022. This, the 22nd in the country's history, does not solve Argentina's structural problems, but proposes adjustments to stabilize the economy.

Among the various measures to be put in place, budgetary consolidation, i.e. the reduction of the public deficit, is the first anchor point. This budgetary consolidation would make it possible to limit the financing of the public deficit by issuing money from the Central Bank in order to gradually restore confidence in the country, and to begin, very gradually, to reduce inflation.

The government is also counting on the accumulation of foreign exchange reserves (via the increase in exports) to limit the pressures on the peso and the risk of devaluation.

The Argentine Central Bank is also raising its interest rates.

The government and the IMF are betting on a decrease of the inflation by around 60% for 2023.

View the original article to see embedded media.

The general elections scheduled for October 22, could, however, lead to a reorientation of Argentine economic policies. It is likely, experts say, that the party which will inherit power this year -- whether it is the current coalition or a new political group -- will seek to renegotiate certain elements of the agreement with the IMF.

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What economic issue did Milei want to address?

The peso has lost significant value, with 250 pesos required to buy $1, and it has fallen 27.1% against the US dollar this year.

To stabilize the economy, the government has agreed to a new program with the International Monetary Fund (IMF) and aims to accumulate foreign exchange reserves through exports.

The Argentine Central Bank has raised its interest rates, and the government hopes to decrease inflation by 60% in 2023.

However, the transition to a dollarized economy will require significant funding, estimated to be between $35 billion and $50 billion.

The US Federal Reserve will control interest rates in a dollarized economy, and Argentina's economy will be vulnerable to external US dollar shocks.

The government plans to mitigate potential risks by tightening import rules, requiring importers to certify financial resources and use a single bank account for foreign trade.

Title:

Content: Argentine economic ministry sources said on Saturday that the country would further tighten its import rules to prevent fraud and keep dollar reserves.
Sources said the new system would include certifying that importers ’ import requirements are in line with financial resources, requiring importers to set up only one bank account for foreign trade, and requiring more precise timing for importers to buy hard currency from the central bank.
It is reported that the Argentine government will announce more details in the coming days, and it is expected to enter into force on October 17.
"This will bring order to the system and avoid chaos," a person familiar with the situation said.
# System # Importer # Tightening # Import # Sources

Additionally, the government aims to reduce public spending, privatize state-owned enterprises, and introduce free market policies.

President Milei's economic policies may lead to hyperinflation if the dollar devalues, and the country's inflation rate has been rising steadily since 2007.

The International Monetary Fund has rescued Argentina 22 times, and the country's economy is heavily indebted to the IMF.

Dollarization will limit Argentina's ability to manage internal adjustments, and the country's economy will be heavily reliant on the US dollar.

The government's "shock therapy" reforms, introduced to save the economy, have included devaluing the peso, reducing government spending, and halting public works tenders.

The medium-term goal of the administration is to implement dollarization, but no roadmap has been released yet.

The economic emergency declared in 11 provinces has led to austerity measures, including slashing government spending and reducing subsidies.

Title:

Content: Argentina ’ s 11 provinces declared a state of emergency: employees can ’ t be paid
Author: Au Jingluo
Published: Updated:
Argentine Economy Minister Luis Caputo announced a series of economic measures on December 12 to launch “shock therapy ”.
Argentina ’ s 11 provinces declared a state of economic emergency on Wednesday in response to the central government ’ s sharp cuts in spending.
Eleven provinces, including San Diego del Estero and San Luis, have declared a state of economic emergency.
The St. Louis provincial government said it was severely short of funds to operate and couldn ’ t even pay its employees ’ December salaries.
Some provincial governments said they would not follow the central government in adopting austerity measures.
Argentina ’ s new government announced the launch of “shock therapy ” on the 12th to try to solve the economic crisis, including devaluing the currency peso by 54% and slashing government spending.
These include reducing the number of government departments from 18 to 9, reducing government subsidies for energy and transportation, and stopping tenders for new public works.
The government says economic reforms will help lift the country out of the economic crisis, but Argentines will have to endure months of pain, with prices expected to rise 20% to 40% in the coming months.
Argentine Economy Minister Roberto Caputo said on Wednesday that the goals of the dollarization plan promised by President Javier Milei during his campaign remain unchanged, stressing that the idea is still valid even if the future is painful.

What issue did Milei want to address without printing money?

The government's policies aim to address decades of mismanagement, but economists warn that dollarization may lead to hyperinflation.

IMF officials have called for a quick economic restart, and Argentina's inflation has risen 140% in a year to a 32-year high.

What economic issue did Milei want to address?

President Milei's policies are expected to have significant implications for Argentina's governance and society, and the country's future is uncertain.

Javier Milei proposes deregulating government and privatizing state-run industries as part of his economic reform plan.

Milei aims to boost exports and investment through these reforms, which have sparked protests due to proposed public spending cuts.

The economic reform bill aims to privatize state entities and requires 37 votes to pass the Senate.

The bill passed the lower house of deputies in April, and the Senate debate is expected to continue late on Wednesday.

Milei launched an economic decree with 300 reforms, including privatization of state-owned enterprises and deregulation of key sectors.

The reforms will be discussed in a special parliament session, and Argentina faces a debt crisis with $44 billion owed to the IMF.

Argentina's president unveiled 300 deregulation measures affecting housing, customs, and tourism sectors, among others.

What industries were affected by Milei's deregulations?

The law outlaws large-scale regulatory measures in several areas and amends regulations in aviation, healthcare, and pharmaceutical industries.

Javier Milei's government has no majority in Congress, but he has sent over 600 reform bills to Congress for a special

Javier Milei's government has no majority in Congress, but he has sent over 600 reform bills to Congress for a special

Javier Milei's government has no majority in Congress, but he has sent over 600 reform bills to Congress for a special