What Milei’s presidency means for Argentina
Many have projected an era of redemption for Argentina, Latin-America’s third largest economy, under the leadership of newly elected president, Javier Milei.
Milei was elected to the highest office on November 19, 2023, during the country’s polls, replacing his opponent Peronist Economy Minister Sergio Massa with some 56% votes against the 44% vote of his rival.
The right-wing libertarian Milei won the votes of many Argentinean citizens based on the hope and expectations that his radical views and expertise would come into play to salvage the current economic woes of the country.
The 53-year-old former television personality was inaugurated as president on December 10, 2023. In his speech, he highlighted a number of interventions expected to be rolled out under his administration to resolve the glaring challenges brought onto the country as a result of decades of economic mismanagement and corruption.
Argentina’s economic woes
Argentina is currently facing one of the worst economic crises globally with nearly 150% inflation, foreign currency reserves estimated at $10 billion, a $44 billion debt program with the International Monetary Fund (IMF), plummeting peso, and rising poverty among other things.
According to Reuters, reserves have dwindled and the main cash crops soy and corn have also been massively hit.
What Milei brings on board
Milei is known for his radical policies and views, earning him the title ‘Mad Man’ by some with others calling him Argentina’s Donald Trump. The president has pledged an economic shock therapy for the country.
Already, he has promised to deal with the country’s depreciating currency and inflation by dollarizing the system, a move that has raised some concerns considering this will be the first major economy to share a currency with the United States or any other nation. In his defence, the move is necessary to avoid worsening the situation.
“If not tamed, inflation could reach 15,000% annually," Milei warned in his speech, pledging to "fight tooth and nail", according to Reuters.
He has also indicated plans to shut the central bank, slash spending by 15% and deal with the country’s ridiculous debt excess, warning about a $100 billion debt "bomb".
Milei also in his election speech vowed a limited government, respect for private property and free trade, Reuters reported.
Milei is staunchly anti-abortion and is against human-driven climate change which he has described as a ‘socialist lie’ propagated by communists.
The president has also promised to loosen gun laws as well as legalise organ trade.
Milei is also expected to explore the country’s oil and gas potential and improve on agricultural produce to increase crop harvest in 2024.
Milei was elected to the National Congress for the Libertad Avanza (Freedom Advances) party in 2021 and in August 2022 won 30 per cent of the vote in the primaries.
