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Economy and government: What Javier Milei, Argentina’s new president, is proposing?

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As of December 10, 2023, the Argentine economist, self-identified as an anarcho-capitalist or as a libertarian liberal, Javier Milei, will have the future of the Argentine Republic in his hands for the next four years (2023-2027). The leader of the ultra-liberal and ultra-conservative party, in equal parts, La Libertad Avanza (LLA) has been congratulated by Donald Trump, who trusts that Milei will make Argentina Great Again. But, also by Pope Francis, who in his capacity as Head of State of the Vatican and maximum representative of millions of faithful of the Catholic religion, telephoned the president-elect to congratulate him on his victory at the polls. Milei, who before the electoral contest had called the Supreme Pontiff “the representative of the evil one on earth,” has now invited the “leader of the Church” to visit Argentina.

Those who love him or consider him a “savior”, as well as those who would never have chosen him to lead the country’s destinies because they see him as a danger to democracy, call him “The Crazy One.” Milei has earned that nickname for his untidy appearance and the vehemence with which he defends his ideas, but especially for what he says and does: he has cloned his dog and, after the canine’s death, he has continued to communicate with his best friend using mediums. Up to this point, many readers – especially if they adore their four-legged children – may relate, however, the story does not end here. The leader of the libertarians maintains that he received a message through his dog-son, who since his physical disappearance has been in heaven near God, that the greatest creator entrusted Milei with the mission of “entering politics and not stop until you become president.

That mission has already been accomplished. Now, what is the government plan that Javier Milei proposes? And that – in the framework of an economic crisis worsened by a cultural, social and political crisis that is evident precisely with the arrival of Milei to the Argentine presidency – will have to be launched in just 20 days.

We will begin by saying that the liberal libertarian leader claims to be inspired by a prominent Argentine politician of the 19th century, Juan Bautista Alberdi (1810-1884), a time in which Argentina was a young republic that was projected as an economic power in the world concert of nations. “Today we once again embrace the ideas of Alberdi. Of our founding fathers who made us go from being a country of barbarians to being a power in 35 years,” Milei said in his first speech after learning that he had won the presidential elections, last November 19th. According to the Argentine historian, Felipe Pigna, Alberdi proposed for Argentina “a country with an internal market, based on the experience of the United States (…) and on the liberal theories of Adam Smith and David Ricardo.” Let’s see how “Alberdi’s ideas” are understood in two strategic areas of his vision of government.

State-Government

For capitalist anarcho, the State is the government, it is the set of the three powers – or the public policies of the governments sustained over time. For Milei, the State is the problem, and that is why it must be destroyed or reduced to a minimum. For the libertarian liberal, “the only model that works for a State to grow is the model of freedom”, from his vision this translates into a “Limited State, free trade, and respect for private property.”

Milei proposes to carry out a total reform of the Argentine State-government, first, it will seek to reduce the number of ministries of the Executive Branch, from 18 to 8, where only the portfolios of: Economy, Justice, Interior, Security, Defense, Foreign Relations, Infrastructure, to which will be added the creation of the Ministry of Human Capital, in which the ministries of Social Development, Health and Education will be merged or recycled.

Economy

Milei presents himself as “an economist specializing in issues of economic growth, with or without money.” The latter is important because Argentina precisely does not have money. The southern country is at the lowest levels of reserves, which – after the last payment made to the International Monetary Fund (IMF) at the beginning of the month – are below 22 billion dollars, the lowest figure since the government of Néstor Kirchner canceled the debt with the IMF. In economic matters, the first thing that Milei will try to do when he reaches the government will be a drastic reduction in public spending, for this he will review and eliminate 40% of the budget allocated to the social area.

The president-elect will seek to advance with a tax reform (tax reduction), a monetary reform (eliminate the Central Bank of the Argentine Republic-BCRA and dollarize the Argentine economy) and a pension reform (retirements). Milei points to a labor modernization that implies repeal of laws that protect the rights of workers. It is a total liberalization of the labor market, of foreign trade, that is, of the entire Argentine national productive sector. Those economic measures include:

  • Privatize public companies, including:
    • the state oil company YPF,
    • Argentinian airlines
    • Télam, the national news agency
    • INCAA, the Argentine national film institute
    • INADI, the institute against discrimination, xenophobia and racism
  • All public works in the hands of the State-government will be paralyzed
  • Repeal of the Rental Law, prices will be set freely
  • Free exchange of pesos for US dollars or any other currency

Through the elimination of social programs and plans, the elimination of the exchange gap and inflation as a result of the dollarization and disappearance of the Argentine peso (and the BCRA), the elimination of withholdings on exports and taxes to imports, as well as through a massive process of privatization of state companies, Milei proposes inserting Argentina among the first countries in the free world, his examples are the United States and Israel. The libertarian liberal has promised that Argentina will “become the breadbasket of the world again,” and concludes: “We did it in the 19th century, why can’t we do it now?” His followers also go crazy euphoric upon hearing these words.

Last thoughts

It is impossible to know if the next Argentine president will be able to carry out his government program (nor if his dog talks to God), but it is certain that in his attempt to Make Argentina Great Again, he will take away many social, political and economic rights, as a result of the struggle of a people who in many cases gave their lives for a democracy that is now fragile, eroded and threatened. The arrival of Javier Milei to the presidency of the Argentine Republic represents a revolution, a revolution from the extreme right, pushed by the most conservative sectors of the southern country. This situation forces us to study in more depth what is happening at the bases of Argentine society and culture.

The change has arrived, and now? Freedom advances, but where does it want to take us? Milei represents the certainty of something different and the guarantee of the unexpected, with a flavor of what is already known.

OPINION

On what terms can a fresh start be made with Greece?

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Prime Minister Kyriakos Mitsotakis travels to Ankara today to discuss a new chapter and a positive agenda with Greece. Technically, this is the counterpart of President Erdogan’s visit to Athens in recent months, but it does not look like an ordinary return visit. The Greek prime minister was interviewed by a Turkish newspaper (Milliyet, 12 May) and President Erdogan by a Greek newspaper (Kathimerini, 12 May). The tone of both leaders is cautious and attentive. Obviously, they are trying to achieve ‘something new’.

As someone who has been closely following the Turkish-Greek tensions, crises and periods of détente from time to time, I have no intention of adding water to the cooked pot; however, since I do not know exactly what the cooked pot is, for whom, how and by whom it is being cooked, I would like to share some of my concerns and my thoughts/evaluations on how these problems, which I have been pondering for years, can be resolved.

First of all, it is necessary to analyse why and how this period of softening was reached. As you may recall, after a series of crises in the second half of 2020 (the Idlib crisis with Russia in January-February 2020 and the Libya crisis with Egypt in the summer of 2020), we found ourselves in a full diplomatic-military crisis with Greece. As a result of the wrong and ideological foreign policy that we have been insisting on for years, we have turned the whole region against us, made enemies of countries like Egypt and Israel, which have always been neutral in the Greek-Turkish issues, and even made Athens dream of taking us on militarily. Why not?

How and why did Greece go from confrontating Turkey in the Aegean to confront Turkey today?

If Turkey clashes with Egypt over Libya – a very serious scenario in the summer of 2020 – and Israel supports Egypt in the armed conflicts, why should Greece not carry out a fait accompli operation in the Aegean against Turkey, which seems to be feuding with Saudi Arabia and the United Arab Emirates at the same time? Moreover, in such a scenario, even France could ‘sell’ Greece enough Rafale fighters overnight. Even Armenia could have extended its front against Azerbaijan through Tovuz, and Turkey could have been shown the error of its ways. When the 15 July coup attempt took place in the summer of 2016, Athens complained that it was not sufficiently prepared to carry out such a military operation. I should also note here that in those years, when I tried to explain that such isolation was contrary to the spirit of the art of foreign policy and that we needed a serious review, I was subjected to a lot of lamentations by the so-called foreign policy experts (!).

In the end, Ankara had to realise that the flawed policies it insisted on pursuing, as if it were a finalist in a competition to create the best example of the worst foreign policy, were unsustainable. The rapid transformation of normalisation between Turkey and Russia into ‘rapprochement’ led to the historic victory of Azerbaijan, which Turkey had fully supported in the forty-four-day war, while Ankara quickly restored its relations with Saudi Arabia, the UAE, Egypt and even Israel. What is more, it did so in the space of a year. Although Syria remains the limping leg in this series, its remarkably balanced and cautious policy towards the upcoming Ukrainian war, especially since the second half of 2021, has once again shattered Greece’s crude dreams.

For Mitsotakis and Greece, an adventure in the Aegean against a Turkey that has restored its relations with Egypt and Israel in the Eastern Mediterranean, opened new and clean pages with Saudi Arabia and the UAE, and improved its relations with Russia in every field, while Athens’ relations with Moscow plummeted during the Ukrainian war, would have been literally suicidal. There is no doubt that Athens has studied what happened to Armenia when it attacked Tovuz. President Erdoğan’s statement that “we can come suddenly one night” should not be taken lightly. This is where the 2023 earthquake came to the rescue. Just as in 1999, this time Greece sent rescue teams, and both the Turkish and Greek media seized on the issue, making it the beginning of a positive agenda and a new page in politics.

New risks in a new period

In Turkey, where the Greek issue is not a serious agenda in domestic public opinion, decision-makers are always at ease when they talk about reconciling with Athens and solving the problems, because the problems with this country are not used to make a premium in our domestic politics. Even during the time of this government, which made foreign policy a domestic agenda, this issue was not used very much. But that is not the case with Greece. In what can be called an abuse of democracy, every party and every government has used the issue of Turkey to the hilt, publicising every problem with its content, Greek theses and red lines.

As a result, a negotiation process based on give and take has become almost impossible for Greek governments. That is why Greek governments always cling to this excuse. The worst thing is that Europe and America, which often mediated these negotiations, flattered all the politicians/decision-makers by saying ‘you are a big state, don’t compare yourself with Greece, you can be more generous’. This should not happen this time. If there is to be a positive agenda with Greece – and Athens knows very well that the reality of the multipolar world is in favour of Turkey and against Greece – then we should not allow our problems with Greece to be addressed within the Turkey-EU agenda or based on Turkey’s EU membership perspective, as if it actually exists. In short, the problems should be addressed through bilateral negotiations and outside the framework that has so far been polluted/poisoned by the Turkey-EU acquis.

As Dendias said in Ankara, the issue for Greece is simple: Ankara must recognise Greek Cyprus as the Republic of Cyprus, as enshrined in the EU-Turkey acquis through the efforts of Athens and with the complicity of all EU member states that do not want Turkey to become a member, and accept that the only problem in the Aegean, in line with Greek theses, is to refer the issue to the Hague Court of Justice or arbitration to determine where the continental shelf runs between the easternmost Greek-dominated islands and the Turkish mainland. Other issues, such as Greece’s claim to 12 miles of airspace in violation of international law, the arming of islands with non-military status, islands with undetermined status in the Aegean, the issue of adjacent islands and rocks, etc., are all fabricated by Turkey in order to open Greece’s rights to discussion, and Greece refuses to negotiate on these issues.

Wouldn’t it be nice to create appeasement?

It may be possible, but it also involves serious risks. For example, if we can achieve a détente with Greece in the Aegean, without compromising an inch on our thesis that the Cyprus problem should be solved on the basis of two states, so much the better! But such a détente should not take place if, as we have always done, we show unnecessary courtesy by saying that we should not frighten or offend Athens, and if we accuse each other internally of being those who want a solution and those who do not want a solution, And if we start accusing each other internally as those who want a solution and those who do not want a solution, because it will lead to compromising the steps to be taken towards the recognition of the TRNC, as well as justifying the thesis of the pro-federationists within the TRNC that ‘we told you so, Turkey will say a few words about two states and then take a step back’.

It should not be forgotten that in the last century of the Empire, Greece always managed to win both when it was at odds with the Ottoman Empire and when it was friendly with it. The reason for this is that Europe often took a pro-Greek stance. Atatürk put an end to this cursed period. After the Second World War, Ankara was always vigilant on the Cyprus issue and the Turkish-Greek problems that spread from there to the Aegean and did not allow the West to take initiatives in favour of Greece. However, it must be admitted that this policy could be maintained until the second half of the 1990s, when the EU issue was sold to Turkey through a massive media campaign, and in the two decades that followed, Turkey’s Cyprus and Greece policies were almost turned upside down within the European Union process. The recent caution and the advantages and benefits of multipolarity should not be wasted on a non-existent EU perspective.

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OPINION

Ukraine’s new $60 billion is ready: What changed Trump’s mind?

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7 months have passed… The phrase “as much as necessary” used by American officials has been replaced by “as much as we can”… American Congressmen, who would have rushed to the Congressional benches in the morning to vote for the aid package if Netanyahu had been allergic to spring, were no longer able to show the same enthusiasm when it came to Ukraine. At least some of the Republicans…

Over time, this particular group started to get in the good graces of the rest of the Congress. They said, “You’re throwing Putin a lifeline.” “You’re siding with the enemies of the United States,” they said. They probably also said “the arms industry is hungry”, but they said it quietly. But this conservative faction did not say “Noah says Noah”. They even sacked Kevin McCarthy, their own Speaker, who had hinted that he would make a deal with Biden for future packages, without blinking an eye. Meanwhile, time was running out. Ukraine was running out of ammunition and was retreating a little further on the ground every day.

CIA director Burns issued a grim prescription: “If this package is not passed now, Ukraine will not live to see 2025”.

As you know, the leader of this group was Donald J. Trump. The populist leader argued that the unconditional money given to Ukraine should be spent on issues of direct concern to Americans, such as border security and infrastructure needs, and many thought this stubbornness would be short-lived. “After the first of the year, Ukraine will begin to feel the lack of ammunition,” the Pentagon said. Then it would be resolved somehow in December, wouldn’t it?

The meetings in Congress were very heated. The Republicans wanted extra money for border security and tax cuts for the rich. Both were unacceptable to the Democrats. Mike Johnson, the new Republican spokesman, who had arrived after a lot of fighting within his party, was stamping rejection on Biden’s monthly packages before he even opened his eyes.

By December, there was no sound from the package. By February, Johnson was still calling the new proposals “stillborn”. Ukrainian President Zelenski had already raised the tone of his complaint. At this rate, a Russian summer offensive could lead to a serious disaster.

Persuasion tours

If the four years of Trump’s rule have taught his opponents anything, it is that he is not a man of principle. If the conditions were right, the former president could be convinced of anything. They started with Israel. They put support for Israel and Ukraine in the same package. But who were they fooling? How many brave Democrats could there be who would say no to aid for Israel? Of course, this could not be an offer that would “scare” the Republicans in return for support for Ukraine. And it didn’t. Support for Israel reached the White House without much fuss at the Congressional tables.

The border security issue was a dangerous adventure for the Democrats. Caving in to the Republicans would have alienated their own voters. The Muslim vote had already been lost on the Israel issue, and Biden could not risk more.

The picture that now emerged was grave for Biden’s plans for Ukraine. Obviously, Trump’s intention was to prevent the approval of this package until after the elections. Thus, Biden would go into the elections with the Ukraine disaster on his back and would surely be defeated.

Then something happened. First, Mike Johnson’s language changed. Suddenly he started talking about “what would happen if we left Ukraine in the middle”. When Marjorie Taylor Greene (MTG), known as the radical Trumpist of Parliament, smelled “betrayal”, she gave Johnson an ultimatum: “Don’t forget McCarthy, don’t you dare!”.

But unlike MTG, Trump thought differently this time.

The former president said: “We’re tired of giving gifts.We might consider lending money to Ukraine”. Although this comment suggests that Trump was somehow persuaded, it still sounded odd. As the war entered its third year, Ukraine’s economy was in shambles. To pay its soldiers, it had to receive $8 billion a month from the West. If the war ended today, it would take $500 billion to rebuild the country. If I went to a bank in my situation and asked for a loan, I would probably be laughed at. But Donald Trump, the author of The Art of the Deal, is obviously convinced.

Who am I kidding, of course he wasn’t convinced. But he must have got something out of it. But what was it?

What does Trump want?

We are in a period where Biden and the Republicans, who were in favour of supporting Ukraine, have realised that nothing can be done despite Trump. Whether they like him or not, there is a populist figure they have to convince. To understand what Trump might want, we need to go back five years, to the Ukraine issue that started the debate about Trump’s impeachment in 2019.

While there was talk of Biden running in the 2020 election, Trump started going through old notebooks.Remember the famous Biden son laptop incident? Hunter Biden was working for an oligarch’s energy company in Ukraine and used the power of his father, who was Vice President at the time (i.e. the whole of the US), to get rid of the prosecutor who was after the company’s owner. Trump was aware of this at the time and made plans to beat Biden in the election.

Meanwhile, just like today, aid packages for Ukraine were waiting in Congress. The amount of aid was much smaller and the public did not focus on it. But the package was not approved simply because Trump did not want it.

He called Zelenski. “You had a very fair prosecutor.It’s a shame,” he said.He asked Zelenski to appoint a prosecutor to go after Biden. It was the only way he could get the aid he was holding up in Congress released. The incident escalated.Because of that speech, the question of Trump’s impeachment erupted.But it told us what Trump could demand in such a position.

Fast forward to today. The Wall Street Journal reports that Trump has had two important visits in a month. One was, of course, Johnson, the Speaker of the House, and the other was Andrzej Duda, the former President of Poland. Duda, a leader known as a Trumpite, was also a good friend of Trump’s. They must have thought that a right-wing populist would understand the language of the right-wing populist, so they organised such a meeting. Duda explained the gravity of the situation to Trump. Johnson found a more effective vein.

In fact, Trump said: “If I am elected, I will bring peace in one day”. How would he do that if Ukraine were defeated today? Ukraine had to hold out at least until Trump took office. For some reason, CIA director William Burns said the package would keep Ukraine alive until 2025. If Trump wins, his inauguration will be in January.

Before we forget, there are also Trump’s ongoing lawsuits. It is rumoured that the money he has earmarked for his campaign could run out as a result of these lawsuits. Trump may have made a deal over Ukraine in order to avoid both financial damage and the blockage of his electoral path.

In conclusion, although Trump is popular today because of his isolationist and “America First” ideology, his policies are based on his personal interests. While 101 Republicans supported the package that Trump did not oppose, 112 voted against it. So despite everything, the isolationist wing does not even listen to Trump when it needs to. The former president’s order of importance is as follows: Trump first, then America, and Israel can squeeze in depending on the situation. Ironically, even in this equation, America is ahead compared to Biden’s order of importance.

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OPINION

Grassroots Democracy in China: A Field Study

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China is often portrayed as an “evil” communist dictatorship where allegedly no one can freely express their opinions. But is this really the case? How does democracy function in China? After all, China describes itself as a democratic state. A thorough on-site investigation is necessary to clarify these questions. – Christian Wagner (Beijing)

Expertise Instead of Activism: Democracy in Beijing’s Subdistricts

In March 2024, an investigation took place in subdistricts of Beijing (Haidian). Participants included local residents, lawyers, janitors, property management, sales representatives of the property, and a party representative who chaired the discussion. The topic was the introduction of mechanical speed limits to slow down cars, a discussion at the grassroots level in the neighborhoods. I had the opportunity to participate in the discussion and examine grassroots democracy in China.

In the Kongjia Community of the Haidian subdistrict of Beijing (Zhongguancunjiedao), the viewpoints of all participants were thoroughly discussed democratically. The party leadership only took on the role of facilitating the discussion and summarizing the results. It was interesting that it was not a classic debate aimed at overriding opinions. Rather, each participant sought to empathize with the perspective of others, including absentees such as children, the elderly, or drivers themselves. Both inclusive and psychological factors were considered, and a proportionality assessment took place. In the end, a solution was found that was in the best interest of all parties involved.

During a personal conversation with an elderly neighbor, it was strongly emphasized to me how crucial it is to involve experts. He said that “in China, every democratic discussion is characterized by an academic approach in which experts play a central role with their expertise. Political representatives who lack expertise in relevant areas face too great a challenge in analyzing complex issues adequately. Instead, they tend to argue purely based on their emotions, which ultimately serves no one. Therefore, it is of enormous importance that the party incorporates experts and acts as a mediator between the various sides. In this sense, the party acts almost like a wise father who gathers his children around a table to promote a factual and constructive discussion.”

In another small subdistrict with several tens of thousands of residents in the million-strong city of Beijing, called Huaqinyuan Community, there was a discussion on how local businesses and residents can live together in harmony. In China, companies also have local “citizen duties”. The Communist Party of China supported the organization, so a local research institute for the aerospace industry supported the construction of a small kiosk and a children’s playground.

I was able to attend the opening ceremony, where subsidized food was sold to retirees. In addition, employees of the research institute supported the repair of bicycles or other small tasks for the neighborhood population. In general, all neighborhoods have a shared office where both party members and neighborhood residents or members of other parties sit and take care of administrative tasks, order, coordination, bureaucracy, local development, or opinion formation.

At the opening, I asked a representative of the office about the current challenges in the community. He mentioned that the biggest problem was that fewer and fewer young people were interested in getting involved in the neighborhood, as they increasingly sit at home in their virtual world. I pointed out to him that similar challenges also exist in the West. However, he explained that the role of the party is crucial. Through its networks, it can help, and especially students from various social platforms volunteer.

 

Businesses and “citizen duties”: Investigation of the entire Haidian District

This was one of the numerous events in Beijing where representatives of local businesses and the seven democratic parties, under the organization of the Communist Party of China, came together from all subdistricts in Haidian (about 3 million inhabitants). Companies like Microsoft were also represented. Some companies presented how they want to improve the lives of everyone in the entire district together with the local government and citizens.

Presentations were also shown on how better cooperation between local businesses can be achieved. Topics such as the construction of a “Smart Infrastructure City”, an “Artificial Intelligence City”, and an “Intelligent Production and Supply Chain” were discussed in particular. Companies compete to demonstrate outstanding achievements in improving the local living conditions of the people and thereby receive special support from the government and party. It’s a win-win situation.

Exposed Illusions: Western Misconceptions about Communism and Democracy in China

There are still widespread misconceptions in the West about communism, often leading to the belief that it is supposed to take from the rich and redistribute to the poor, similar to Robin Hood. In reality, however, this notion is more of an extremism, which Lenin himself referred to as the “infantile disorder of communism”.

Mao Zedong emphasized in his work “On the Correct Handling of Contradictions Among the People” that it is naive to believe that contradictions between people can simply be eliminated. Rather, it is about finding ways for everyone to pull together. The Chinese concept of win-win cooperation stems from this idea. At the grassroots democracy level in China, this means that companies, the local population, the government, individuals, and all democratic parties work together to address issues of public interest. Public interest especially means that local people find work, are adequately supplied with affordable food, and have housing.

China has often struggled with poverty and hunger in the past, similar to many other developing countries. Therefore, it is of the utmost importance to stabilize this basic supply. Through these efforts, the People’s Republic has been able to lift over 800 million people out of poverty. It is a mistake to assume that companies are forced to do so. In fact, companies benefit greatly from their own investments and can test their own products in practice and conduct experiments, invest in the education of young people locally, or even improve their own structures, instead of just paying taxes.

China’s democratic system has two levels. On the one hand, there is the central government, which sets framework guidelines and laws from top to bottom. On the other hand, there is the “collective” or “inclusive” democracy on a horizontal level, where all participants of public space are involved in debates, especially experts. Therefore, activism is also frowned upon because activism is often associated with people arguing based on their feelings without considering the profound overall circumstances. Activism therefore takes place, among other places, in universities in the form of professional debates.

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