The year tends to end very similarly to the previous year: With a strengthened government and an opposition divided, self-absorbed and resigned, it is devising survival tactics in the face of the renewed violet wave. This unique climate occurs as a result of the surprising electoral result, even though the government has achieved only modest achievements. A large portion of voters preferred to believe that this was a result of the obstacles that had been put in place, especially in Congress starting in the second quarter, and not of blatant blunders committed by the ruling party itself, including events that might imply possible acts of corruption. In short, a powerful first minority of liberal voters chose to see Miley as a victim of “class” rather than a president with a troubling tendency to commit bullshit. With immeasurably better numbers in both chambers, the government now faces the challenge of removing doubts and demonstrating effectiveness and strength in the process of promised and fundamental structural reforms. However, it is a political program that reeks of mothballs: since the beginning of the 1990s, it has been known as the “Washington Consensus”, thanks to the impetus of John Williamson, the famous economist who succeeded in organizing the experience accumulated in a large number of countries to combat inflation and adapt the macro- and microeconomic rules of the game to a world undergoing the process of globalization.
Argentina partially executed some of the recipes in the first half in that decade, but then abandoned efforts to improve the country’s systemic competitiveness because of Carlos Menem’s obsession with achieving re-election for a second time. This means that we have ignored for nearly three decades the list of economic policies adopted by practically all democratic and developed countries in the past half century, with disastrous consequences in terms of stagflation, increasing poverty, and reduced quality of life. Very few countries have seen a similar reversion toward state-centered populism (Venezuela, Bolivia and Ecuador partly despite maintaining dollarization). Mexico suffered a partial political and economic decline with the arrival of AMLO first and Claudia Sheinbaum later, although Morena’s new policy implied a slow decline, except for a resounding failure in matters of public security.
Debate about reforms It has achieved remarkable progress both in the region and in the world. It is spoken Now from the London Consensus 2025, a set of principles for the 21st century presented in a recent volume edited by Tim Beasley, Irene Bocelli, and Andrés Velazco, professors at the London School of Economics, that arose from critical thinking about the Washington Consensus to ignore the social and institutional factors essential to promoting inclusive and sustainable economic progress. The authors emphasize the issue of well-being from a holistic (not just material) perspective. They include issues such as social status, respect and public recognition, partly linked to the existence of rights and access to justice. They also point to the importance of innovation policies to promote growth and the need to develop capabilities that are resilient to external fluctuations and shocks. Therefore, the “best” mix of economic reforms will not have the desired effect without a good political system that ensures the validity of the rule of law. The best example of the limitations imposed by this outdated economic bias is Peru: the monetary and financial system is dominant, but it suffers from the lack of a minimally stable and effective political system. Developed countries have also been discussing new industrial policies for some time. Turkish economist Dani Rodrik offers very suggestive proposals in this regard, which are far from classical protectionism.
None of these problems It is part of the current debate in our environment. The president declares his belief in structural reforms, but without progress. The government focused on a stabilization plan that allowed, intermittently, a slowdown in inflation, which had long been Argentina’s main concern. Now the rate is about 30% per year, a threshold about seven times higher than the average in the region, excluding Venezuela. Bolivia is experiencing an economic crisis that is considered a terminal crisis, which explains the collapse of the monetary policy led by Evo Morales, as a result of an inflationary dynamic similar to the levels that our country is experiencing: what our neighbors consider an understandable horror, generates a quiet feeling of reassurance for us. The task of achieving economic stability is still far from complete, and specialists confirm that the most complex stage is coming: first reaching a single annual figure and then reducing it as much as possible until it approaches the global average.
In parallel, Govt He also did not fulfill the promises of real commitment With deregulation: it was a fragmented, winding and partial march due to, among other things, a series of precautionary measures and parliamentary rejections that reversed or froze liberal impulses. The Ministry of Deregulation and Privatization, led by Federico Sturzenegger, served as a torchbearer pointing in the direction in which Maile intended to go with the utopia he envisioned for a ruined society. With fleeting efforts and limited influence on practice, he made progress in several areas. In some of them, such as the aviation industry (open skies policy), imports of hybrid and electric cars, the ridiculous car registration system or e-commerce, rapid and relevant effects have been achieved. But once the delegation of powers granted under the so-called Basic Law expires, the balance becomes meager. For example, regarding the privatization policy, progress was only made with Embasa in February this year (it was nationalized during the previous government to avoid bankruptcy). More: It turns out that this administration will review plans to privatize military industries, looking for specific partnerships with the private sector. It is worth noting that Donald Trump is promoting the North American country’s entry as a shareholder in leading companies in the technology field, including artificial intelligence. Will Miley seek to emulate his North American counterpart in this aspect as well?
But expectations are focused In structural reforms. The President has asserted several times that his administration has already implemented hundreds of them, in a questionable or downright incorrect use of a term that, according to the specialized literature, has a more restricted application: fiscal/tax, monetary, trade, finance, pension, labor, and public administration policy. The issue of health can be included due to its enormous impact on public spending and, in federal states, on the system that distributes resources with regional states. At most, dozens of policy areas. What is striking is that with all the power accumulated and facing a year without elections, Miley is limited to promoting tax and labor reforms. Beyond the headlines, the approach in both cases is reportedly very gradual. Why has the discussion on the issue of retirement, a crucial factor financially, been postponed? The “deep libertarian revolution” tends to look more like a quasi-Menshevik reformist government programme. Explicit larretism scenes.