Argentina Reaches One Year Under Milei’s Rule
A homeless person in Buenos Aires, Argentina, X/ @JorgeGestoso
December 10, 2024 Hour: 1:00 pm
Currently, 87% of families face food insecurity in low-income areas across 16 Argentine provinces.
Tuesday, December 10, marks one year since Javier Milei assumed the Argentine presidency, a period during which he has implemented an economic plan focused on reducing the size of the State as a means of achieving macroeconomic balance and controlling inflation.
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Previously, on Monday night, he issued messages where the far-right politician once again echoed the aggressive and triumphalist libertarian rhetoric that brought him to power.
One of his videos celebrates the triumph of the “all-or-nothing war against the cursed caste,” the “honor of our Armed Forces,” the “power of social media,” and “loyalty to defend the leader.” It includes images of Milei on a tank or wielding a chainsaw, another one with tech entrepreneur Elon Musk, and several photos showing him at campaign events surrounded by supporters.
“The honest and brave right won. Austerity won. Order in the streets won. Patriots won,” Milei declared, closing his message with his well-known phrase: “Long live freedom, damn it!” (Viva la libertad, carajo!).
Economic and social indicators, however, reveal a less optimistic scenario. The Scalabrini Ortiz Center for Economic and Social Studies (CESO) published a report highlighting the economic sectors that have gained and lost under the Milei administration.
The report notes significant disparities in the performance of various economic sectors. On one side are thousands of economic agents producing under adverse conditions for the domestic market, which is experiencing relentless contraction. On the other are bankers, private service providers, and major entrepreneurs linked to the export of agricultural goods, minerals, and hydrocarbons.
Over the past year, Milei’s policies have favored growth in the mining sector (+13.2%) and agriculture and livestock (+5.1%). The most affected sectors include construction (-16.9%), fishing (-14.8%), commerce (-8.4%), and manufacturing (-8.2%). In these sectors, real wages and employment levels have fallen.
Higher education was also severely impacted by Milei, who vetoed a law aimed at improving university funding, triggering protests across the country. In the past year, the Argentine president eliminated 13 ministries, shut down public institutions, and cut budgets allocated to science, culture, and education. Around 28,000 public officials were forced to leave their posts through layoffs or voluntary retirements.
According to a study by the organization Neighborhoods Standing, in low-income areas across 16 Argentine provinces, 87% of families face food insecurity, and 61% experience severe food insecurity.
The libertarian politician has also failed to fulfill one of his flagship campaign promises: dollarizing the economy. He has shifted his rhetoric, arguing that Argentina will develop “endogenous dollarization,” meaning the economy will dollarize itself if few Argentine pesos remain in circulation.
Another clear sign of inconsistency in public policy is seen in the realm of international relations. Before taking office, Milei claimed he would “never do business with communists,” referring to China. Later, however, in an interview with The Economist, he stated that “relations with China are excellent,” seeking to secure support from the Asian country for Argentina’s severe external financing challenges.
According to the Argentine Center for Political Economy (CEPA) and the Association of Budget and Public Financial Administration (ASAP), public spending has decreased by 30% year-over-year in real terms, adjusted for inflation. However, the burden of this reduction has been unequally distributed among different social groups.
“In real terms, the largest cuts have affected public works (-77.6%), followed by Transfers to Provinces (-67.5%), Subsidies (-30.3%), Public Employment and Salaries (-22.2%), and Transfers to Universities (-20.2%). However, due to their scale, the most significant cuts have impacted Social Benefits (-36%), with retirees and pensioners bearing the brunt (-22%),” CESO summarized.
Currently, in Argentina, 65.5% of children under 18 live in poverty and 20% of that group is in extreme poverty. In this South American country, 50% of the population – 23 million – is below the poverty line, according to the Catholic University of Argentina (UCA).
teleSUR/ JF Source: CESO – Pagina 12
