Reform by chainsaw and tirades
In his first 100 days in office, Javier Milei has implemented drastic austerity measures and reforms in Argentina, leading to a significant increase in poverty. However, his structural reforms are facing obstacles, partly due to his own actions.
Santiago Figueroa takes pride in serving around 100 portions of food daily from his soup kitchen, Comedor, in Buenos Aires. However, as private donations decrease, it becomes increasingly challenging for his team to fill the pots. The rising costs of meat and cooking gas add to the financial strain, leading to a significant decline in private donations.
The number of individuals seeking warm meals from soup kitchens around Buenos Aires is on the rise, even in middle-class areas like Saveedra where Santiago’s soup kitchen is located. Veronica Lucente, a single mother working in a restaurant, expresses struggles to make ends meet due to stagnant wages amid soaring inflation.
Under Milei’s presidency, Argentina has seen a 13% increase in poverty, as he aggressively slashes government spending and implements austerity measures. Despite facing criticism and pushback, Milei continues with his overhaul efforts, aiming for a balanced budget and economic stability.
While some applaud Milei for his efforts, others question the sustainability of his approach, which includes drastic cuts to subsidies, pensions, and social welfare programs. Despite initial optimism in the financial markets, doubts remain about the long-term impact of Milei’s reforms and his ability to navigate the challenges ahead.
Resistance on the Streets
There is also resistance from the streets. Unions and social movements have been mobilizing for weeks, often leading to clashes with the police using tear gas and water cannons. Tens of thousands took to the streets on International Women’s Day to protest against Milei’s austerity measures.
In his three months in office, the conservative-libertarian president has downgraded the Ministry of Women, Gender Equality, and Diversity to a sub-secretariat, dissolved the National Institute against Discrimination, Xenophobia, and Racism, and officially banned gender-sensitive language.
His party has also introduced a proposal to criminalize abortions, which have been legal in Argentina since 2021. “The women’s movement has made Argentina more democratic, so it’s no surprise that he has declared us public enemy number one,” says Clarissa Gambera, gender equality officer at the state union ATE.
Further Polarization
Milei is also engaged in an ideological battle, deepening the already existing divide in Argentina known as the Grieta, or the rift, says political scientist Ivan Schuliaquer from the University of San Martin. Those who did not vote for him now oppose him even more, while his supporters continue to stand by him, backed by the support of key business leaders. The real test for him will be if his supporters start losing faith due to the unsustainable situation in the country.
The International Monetary Fund is concerned about how long the patience will last if there is no economic recovery in the near future, especially with Argentina’s significant debt of over 44 billion dollars. Gita Gopinath, the first deputy managing director of the IMF who visited Buenos Aires in February, publicly supported Milei’s efforts to consolidate Argentina’s budget but also emphasized the need for a fair distribution of the adjustment burden.
Veronica Lucente, the restaurant employee, shares a similar sentiment, expressing her inability to wait months for the country to improve. She can only focus on getting through each day, with no clear vision for the future.