In an effort to combat the worst economic crisis Argentina has seen in decades, Argentine President Javier Milei has announced a raft of sweeping economic reforms.
His new reforms include the privatization of state-owned companies, as well as moving to eliminate limits on exports and loosen price controls to render markets more free.
Describing himself as an anarcho-capitalist, the newly elected president released a presidential decree on Wednesday which included over 300 measures he is putting into effect as part of his “economic shock therapy” for the national economy of Argentina.
In a televised address, Milei said, “I’m signing an urgent decree that will kick-start the process of economic deregulation that Argentina needs so much.”
He added, “The objective is to return freedom and autonomy to individuals and start dismantling the enormous amount of regulations that have impeded, hindered, and stopped economic growth.”
Milei released a list of initial changes to governmental policy he intends to implement, which include a “modernization of labor law to facilitate the process of creating real jobs” as well as a series of additional deregulatory measures which would affect tourism, satellite internet services, pharmaceuticals, wine production, and foreign trade.
One week ago, his new government announced it was devaluing the peso 54%, cutting energy and transportation subsidies, and freezing spending on major state programs.
He is also reportedly planning to increase the taxes on Argentina’s grain exports, which are crucial to the world market’s supply of processed soybeans, corn, and wheat. The increased taxes would serve to encourage the sale of the grain domestically, helping to drive down food prices.
Agriculture groups were quick to criticize the move, warning that the increased taxes would harm the sector. The export of grain internationally is a major generator of foreign currency reserves, which are used by the nation’s central bank, and are required to finance the import of goods and repay debts.
Already the changes have sparked controversy, with thousands taking to the streets of Buenos Aires Wednesday to protest the austerity plans of the government and demand it increase financial support to the impoverished.
The third-largest economy in South America, Argentina has been wracked by a massive economic crisis following decades spent under leaders who pursued policies of increasing debt, and employed financial mismanagement, as yearly inflation numbers passed 160%, leaving 40% of the nation’s citizens living below the poverty line.
