Economic Crisis in Argentina

Context:

• This article is based on an Editorial “What Javier Milei’s win in Argentina’s Presidential election means” which was published in the Indian Express. Javier Milei, a libertarian and self-proclaimed political outsider, is set to be Argentina’s new President after winning 56% of the vote in the national elections.

Economic Crisis in Argentina 

• Collapse of Economy: Argentina has long been trapped in recurring cycles of deep and destructive economic contractions, due to decades of economic mismanagement and corruption. 
• Grave Situation: It currently faces nearly 150% inflation, the collapse of the Argentinian peso (a dollar is now equivalent to 1,000 pesos), rising poverty, and near-empty government coffers.

Challenges Ahead

• No Clarity on Actions: Fed up with economic miseries and hungry for political change, voters voted for him. But there is no clarity on what his untested libertarianism has to offer to fix the chronic economic conditions. 
• Threat to Democracy: As a President who is at constant war with the country’s institutions, he could weaken Argentina’s democracy while worsening its economic problems — just as in Brazil under Mr. Bolsonaro. 

Conclusion:

Testing times are ahead for South America’s second-largest country. It’s a hope, that this new Government, in collaboration with other institutions and international support, could achieve positive results in reference to democracy and the economy.

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