After decades of stagnation, Argentina has chosen economist Javier Milei as its new president, giving a chance to a radical economic reform programme. Milei’s victory came amid public anger over high inflation and record poverty rates under the center-left Peronist coalition. A dramatic change is expected in the Latin American country’s economy and institutions.
Addressing the Argentines on Sunday night, November 19, 2023, Javier Milei said his victory would mark the beginning of Argentina’s reconstruction. President Milei made the following statements:[1]
“Today is the last day of Argentina’s fall. Today, the impoverishing model of the state, which benefits only a few, is ending.”
Javier Milei’s rival, Economy Minister Sergio Masa, said:[2]
“The results, of course, are not what we hoped, and I spoke to Javier Milei, congratulated him and conveyed my best wishes to him for being the Argentine majority-elected president for the next four years.”
Javier Milei, who describes himself as an “anarcho-capitalist”, promises radical reforms such as reducing public spending by 15 percent, abolishing the central bank and switching from the Argentine peso to the US dollar.
Javier Milei’s style resembles former US President Donald Trump. Javier Milei, an anti-political right, questioned the number of deaths in Argentina’s dictatorship and denied that people who criticized Pope Francis were responsible for climate change.[3]
Javier Milei’s attacks on the political class on corruption resonated with young men in Argentina, a Latin American country that has been dragged from economic crisis to crisis for decades due to rising poverty. The challenges Javier Milei will face when he takes office on 10 December 2023 include a $44 billion debt program with the International Monetary Fund (IMF) and inflation of up to 150 percent. He also faces a divided legislature that could limit his radical decision-making.[4]
Javier Milei’s most prominent promises include radical economic reforms, such as cutting public spending, abolishing the Central Bank and switching the Argentine peso to the US dollar. Such changes could shake the foundations of the economy and affect social equilibrium. Public expectations and their response to these reforms will determine the economic future of Argentina under Javier Milei.
Javier Milei’s attitudes on social issues, and especially his opposition to political correctness, can increase differences and conflicts within society. This could reflect the tension between social mobility and social change.
Javier Milei’s radical economic policies, such as converting the Argentine peso to the US dollar, could also have an impact on international relations. Moreover, Argentina’s debt problems and its relationship with the IMF could lead to uncertainty as to how to resolve them under Javier Milei’s administration.
With Javier Milei facing difficult economic conditions and a divided legislature, the risk of political instability is high. If radical economic reforms fail to find support among broad sectors of society, the legitimacy of the government could be questioned.
Javier Milei’s ideological stance, his controversial statements, especially regarding former administrations, and his positions on international relations may affect Argentina’s foreign policy dynamics. This may affect how the country is perceived in the regional and global context.
In conclusion, the election of Javier Milei may represent a radical change for Argentina. However, how these changes are received in society, the economic and social consequences, and the long-term effects of the Milei administration will determine future policy developments.
[1] “Argentina Elects Outsider Javier Milei on Platform of Radical Reform”, Al Jazeera, https://www.aljazeera.com/news/2023/11/20/argentina-elects-outsider-javier-milei-on-platform-of-radical-reform, (Access Date: 20.11.2023).
[2] Ibıd.
[3] Ibıd.
[4] Ibıd.
