Javier Milei is the hope of the region

By: Hugo Marcelo Balderrama - 06/01/2025

Guest columnist.
Share:     

In the middle of the first decade of the 21st century, I was able to read a report prepared by Rolf Linkohr, an expert on Latin American affairs from the European Parliament. The work contradicted the speeches that, at that time, populist leaders used to captivate their nations, for example, the patriotic triad of businessmen, workers and the State to develop Bolivia that Álvaro García Linera said on January 22, 2006. Linkohr considered that, in reality, the region was entering a phase of authoritarian governments that would not allow us to take advantage of the benefits of globalization and of an increasingly competitive world in the midst of a technological revolution.

Almost two decades have passed since that document was issued, and reality shows us that, although it may hurt many, Linkohr was quite right, since poverty was the only thing we generated in more than two decades of hegemony of 21st Century Socialism. In this regard, economist Hermes Pérez, in an interview for Diario de las Américas, expressed the following:

Venezuela has three times the number of poor people than Haiti, the Latin American country that has historically suffered the most from economic, political and inequality crises. There are 18.5 million poor people in Latin America, half of the poor in the entire continent are in Venezuela. There are more poor people here than Haiti, a nation that has 3.7 million poor people. We have 9.3 million, three times that number. A country that in 1974 had the highest per capita income on the planet.

A similar case occurred in Argentina under the Kirchner Fernández couple, where poverty reached 58% of Argentines and annual inflation for the year 2023 reached 211.4%. Not to mention the crime rates and the low educational level of state schools.

That is to say, the fight against poverty was present, and still is, in the harangues of populist rulers, but totally absent in public policies, or, in any case, they were fighting to end the poverty of their own families, as shown by the cases of Hugo Chávez, Evo Morales or Luis Arce Catacora.

In this scenario of collapse and misery, in the mid-2010s, an eccentric economist appeared, yes, swearing, against the system and the politicians. His figure went viral on social networks, radio and TV channels. There was no shortage of controversies due to some misinterpretations of Javier's words, such as the famous case with the model Sol Pérez. However, the common man on the street, the one who has to get up to work twice as many hours to earn less and less, began to feel empathy for Milei. Nicolás Márquez - in his book: Milei: the revolution they didn't see coming - says that it was some businessmen who encouraged Javier to enter the always dark world of party politics. There must not be a case in the world of such success, since Javier, in just three years, first achieved a seat in the House of Representatives and then the presidency of the nation.

Javier has not changed his attitude one bit, he has always been honest. Compare the phrase from his first presidential speech: “Unfortunately, I have to say it again: there is no money. The conclusion is that there is no alternative to the adjustment and there is no alternative to the shock,” versus the unrealistic offers of free health care and education from the populists.

One year into his administration, with difficulties in Congress and attempts at violence by picket gangs, according to the latest report prepared by CB Public Opinion Consulting, the Argentine president reached first place in the ranking of positive image among South American presidents in December.

In my humble opinion, there is one variable that explains the positive image of Milei's management: the fall in inflation, which by November 2024 had been reduced to a very low 2.4%.

It turns out that for wage earners and other individuals with fixed incomes, the fall in the price level benefits them for two reasons: 1) their salary is worth more in real terms and 2) their levels of uncertainty in the future are reduced, because their ability to save increases. In simple terms, I no longer have to run around looking for bread and milk, and I can also save a cash balance for, for example, potential health problems.

Finally, Milei's management is a setback for our political rivals, because the libertarian is demonstrating that economic openness, low taxes, inflation control and improved competitiveness are favourable for the poorest in society.

Long live freedom!

«The opinions published herein are the sole responsibility of its author».