In the heart of South America, a new president has been elected in a country crippled with economic crises and desperate for a revival of its collapsing and highly indebted economy. On the 19th of November 2023, Argentina voted in a right-wing, libertarian and economist Javier Milei to serve as the country’s new president for the next 4 years: a landslide victory over Sergio Massa, the country’s left leaning Minister of the economy.
Javier Milei will assume the presidency on the 10th of December this year.
Only emerging into the world of politics since 2021, Milei has won over the people of Argentina with his anarcho-capitalist ideals, with an impressive 56% of the votes. The president elect has been given the nickname “El Loco” in the media because of his outbursts and aggressive rhetoric, claiming he seeks counsel from his dogs and leading election campaigns holding a chainsaw - to symbolize how he aims to “slice up” the Argentinian government and the central bank. He rose to fame after 2018, when he was invited to various TV shows not just to talk about economics, but to entertain audiences. Often being compared to former US President Trump and former Brazilian President Bolsonaro, they closely share their populist, right wing views and are all monumental supporters of each other.
Milei has pledged radical reforms that he wants to pass, all targeted around reviving the economy. With a current inflation rate of more than 140% and the value of the peso steadily decreasing, eliminating public deficit, scraping taxes and regulations for businesses and abolishing the central bank of Argentina stand at the very top of his political agenda! However, the anarcho-capitalist does not want to stop there. Dollarisation of the economy is his controversial solution to fight and control the raging inflation rate. This idea has been acclaimed by many, but has faced harsh criticisms at the same time, as Argentina doesn’t have nearly enough dollars in its central bank and this proposal comes with great risk for such a large country. Growing fear that he will not have enough support in congress to pass these reforms may also stand in the way of his dream of this great Argentinian recovery.
The staggering inflation rate in Argentina in the last 30 years.
There is great speculation about how an economist like Milei, with no prior experience in politics and with his rockstar persona, managed to rise to power so quickly. Leading in the polls throughout this election campaign and coming first in the primary elections in August emphasise how he has easily managed to charm the people of Argentina. But why is support for his far-right views so widespread? With an inflation rate that may hit 200% by the end of this year, the peso currency is rapidly erasing the real value of peoples’ salaries and savings, leaving the country in a state of utter desperation. Argentina also owes by far the most to the International Monetary Fund with a current outstanding loan of $44 billion. With 40% of Argentinians living in poverty, it seems to them that Milei is their last hope, the vote of absolute urgency. With his promises to break down the government system that has failed them and left them in this despairing situation, along with his inflammatory, burn-it-all-down rhetoric, “El Loco” has managed to win over the support of the large number of people who want completely different policies and agendas from all the previous politicians and governments.
On the matter of social issues, Javier Milei has very similar ideas to former US President Trump. Loosening gun control is a subject he firmly supports, as he believes that every Argentinian should have access to weapons. The populist also stands against climate change, calling it a “lie of socialism” and is against gay rights, but holds an extremely controversial view of favoring the sale of human organs. The crucial issue of abortion is where his libertarianism suddenly ends, as he has spoken about repealing the legalization of abortion in Argentina, which was only achieved in 2020. Milei holds a reputation of being very publicly critical of opponents and labelling them as “leftists,” even calling Pope Francis a “filthy leftist” – a comment which sparked international outrage.
In the geopolitical arena, Milei’s election is a fantastic outcome for the United States, as he has proven to be very pro-America. However, America may prove to be a great ally for the new Argentinian government too, as it is in their best interest to help Milei economically, replacing the increasing influence of China and Russia in the region.
Javier Milei has been characterized by his pledges for economic prosperity and fiscal responsibility. But Argentinians have heard these prelection promises many times before and the critical question remains: will Milei successfully pass the necessary reforms needed to stabilize an economy and country that have suffered immensely for decades? We will soon see if he has what it takes to withstand the pressures inherited by government.