{"id":3168,"date":"2023-11-23T11:57:45","date_gmt":"2023-11-23T08:57:45","guid":{"rendered":""},"modified":"2023-11-23T11:57:45","modified_gmt":"2023-11-23T08:57:45","slug":"economy-and-government-what-javier-milei-argentinas-new-president-is-proposing","status":"publish","type":"post","link":"https:\/\/harici.com.tr\/en\/economy-and-government-what-javier-milei-argentinas-new-president-is-proposing\/","title":{"rendered":"Economy and government: What Javier Milei, Argentina’s new president, is proposing?"},"content":{"rendered":"

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.<\/span><\/p>\n

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.<\/span><\/p>\n

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.<\/span><\/p>\n

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.<\/span><\/p>\n

State-Government<\/b><\/p>\n

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.”<\/span><\/p>\n

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.<\/span><\/p>\n

Economy<\/b><\/p>\n

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 N\u00e9stor 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.<\/span><\/p>\n

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:<\/span><\/p>\n