Description
Argentina, the third-largest economy in Latin America, has struggled with chronic high inflation and economic instability. It has defaulted on its sovereign debt nine times, most recently in 2020. A succession of mostly left-wing governments failed to address inflation and persistent economic contractions, leading to a dire crisis in 2023. The exhausted Argentines were ready to embrace a disruptor.
Enter Javier Milei, an economics professor who won the presidency on a platform promising a radical overhaul of the economy through market-based solutions and governance changes. His program draws on principles that have historically driven global prosperity and reduced poverty. Despite cautioning citizens that his “shock treatment” would initially worsen conditions, President Milei quickly tamed inflation in 2024 by slashing public spending. His administration initiated a major privatization program for inefficient public utilities and enacted other fundamental reforms.
However, the president faces significant challenges in his goal of “dollarization,” the process of replacing the Argentine peso with the U.S. dollar for long-term stability. Transitioning to the dollar requires a new loan program, but the International Monetary Fund has been reluctant to assist due to Argentina’s rich history of financial mismanagement. President Milei believes Argentina can overcome these hurdles independently by building central bank reserves over time. Ultimately, the success of his reforms may depend on the upcoming legislative elections in October 2025, which present both challenges and opportunities to strengthen his political support.
What’s inside?
- Reading sample
- File format: PDF
- Number of pages: 20
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