Argentina elects ‘shock therapy’ libertarian Javier Milei as president

Argentine presidential candidate Javier Milei gestures, as he visits a polling station to cast his vote, during Argentina's runoff presidential election, in Buenos Aires, Argentina November 19, 2023. (REUTERS)
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Updated 20 November 2023
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Argentina elects ‘shock therapy’ libertarian Javier Milei as president

  • Milei is pledging economic shock therapy. His plans include shutting the central bank, ditching the peso, and slashing spending, potentially painful reforms that resonated with voters angry at the economic malaise

BUENOS AIRES: Argentina elected libertarian outsider Javier Milei as its new president on Sunday, rolling the dice on an outsider with radical views to fix an economy battered by triple-digit inflation, a looming recession and rising poverty.
Official results showed Milei with near 56 percent versus 44 percent for his rival, Peronist Economy Minister Sergio Massa, who conceded in a speech. His candidacy was hampered by the country’s worst economic crisis in two decades while he has been at the helm.
“Obviously the results are not what we expected. I have contacted Javier Milei to congratulate him,” Massa said. “From tomorrow the responsibility of providing certainty belongs to Milei.”
Milei is pledging economic shock therapy. His plans include shutting the central bank, ditching the peso, and slashing spending, potentially painful reforms that resonated with voters angry at the economic malaise.
“Milei is the new thing, he’s a bit of an unknown and it is a little scary, but it’s time to turn over a new page,” said 31-year-old restaurant worker Cristian as he voted on Sunday.
Milei’s challenges are enormous. He will have to deal with the empty coffers of the government and central bank, a creaking $44 billion debt program with the International Monetary Fund, inflation nearing 150 percent and a dizzying array of capital controls.
Some Argentines had characterized the vote as a choice of the “lesser evil“: fear of Milei’s painful economic medicine versus anger at Massa and his Peronist party for an economic crisis that has left Argentina deeply in debt and unable to tap global credit markets.
Milei has been particularly popular among the young, who have grown up seeing their country lurch from one crisis to another.
“Our generation is pushing the presidency of Milei to stop our country being a pariah,” said Agustina Lista, 22, a student in Buenos Aires.
Milei’s win shakes up Argentina’s political landscape and economic roadmap, and could impact trade in grains, lithium and hydrocarbons. Milei has criticized China and Brazil, saying he won’t deal with “communists,” and favors stronger US ties.
The shock rise of the 53-year-old economist and former TV pundit has been the story of the election, breaking the hegemony of the two main political forces on the left and the right — the Peronists and the main Together for Change conservative bloc.
“The election marks a profound rupture in the system of political representation in Argentina,” said Julio Burdman, director of the consultancy Observatorio Electoral, ahead of the vote.
Supporters of Massa, 51, an experienced political wheeler-dealer, had sought to appeal to voter fears about Milei’s volatile character and “chainsaw” plan to cut back the size of the state.
“Milei’s policies scare me,” teacher Susana Martinez, 42, said on Sunday after she voted for Massa.
Milei is also staunchly anti-abortion, favors looser gun laws and has criticized Argentine Pope Francis. He used to carry a chainsaw in a symbol of his planned cuts but shelved it in recent weeks to help boost his moderate image.
After October’s first-round vote, Milei struck an uneasy alliance with the conservatives, which boosted his support. But he faces a highly fragmented Congress, with no single bloc having a majority, meaning that he will need to get backing from other factions to push through legislation. Milei’s coalition also does not have any regional governors or mayors.
That may temper some of his more radical proposals. Long-suffering voters are likely to have little patience, and the threat of social unrest is never far below the surface.
His backers say only he can uproot the political status quo and economic malaise that has dogged South America’s second-largest economy for years.
“Milei is the only viable option so we do not end up in misery,” said Santiago Neria, a 34-year-old accountant.

 


Afghan returnees in Bamiyan struggle despite new homes

Updated 58 min 44 sec ago
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Afghan returnees in Bamiyan struggle despite new homes

  • More than five million Afghans have returned home since September 2023, according to the International Organization for Migration

BAMIYAN, Afghanistan: Sitting in his modest home beneath snow-dusted hills in Afghanistan’s Bamiyan province, Nimatullah Rahesh expressed relief to have found somewhere to “live peacefully” after months of uncertainty.
Rahesh is one of millions of Afghans pushed out of Iran and Pakistan, but despite being given a brand new home in his native country, he and many of his recently returned compatriots are lacking even basic services.
“We no longer have the end-of-month stress about the rent,” he said after getting his house, which was financed by the UN refugee agency on land provided by the Taliban authorities.
Originally from a poor and mountainous district of Bamiyan, Rahesh worked for five years in construction in Iran, where his wife Marzia was a seamstress.
“The Iranians forced us to leave” in 2024 by “refusing to admit our son to school and asking us to pay an impossible sum to extend our documents,” he said.
More than five million Afghans have returned home since September 2023, according to the International Organization for Migration (IOM), as neighboring Iran and Pakistan stepped up deportations.
The Rahesh family is among 30 to be given a 50-square-meter (540-square-foot) home in Bamiyan, with each household in the nascent community participating in the construction and being paid by UNHCR for their work.
The families, most of whom had lived in Iran, own the building and the land.
“That was crucial for us, because property rights give these people security,” said the UNHCR’s Amaia Lezertua.
Waiting for water
Despite the homes lacking running water and being far from shops, schools or hospitals, new resident Arefa Ibrahimi said she was happy “because this house is mine, even if all the basic facilities aren’t there.”
Ibrahimi, whose four children huddled around the stove in her spartan living room, is one of 10 single mothers living in the new community.
The 45-year-old said she feared ending up on the street after her husband left her.
She showed AFP journalists her two just-finished rooms and an empty hallway with a counter intended to serve as a kitchen.
“But there’s no bathroom,” she said. These new houses have only basic outdoor toilets, too small to add even a simple shower.
Ajay Singh, the UNHCR project manager, said the home design came from the local authorities, and families could build a bathroom themselves.
There is currently no piped water nor wells in the area, which is dubbed “the dry slope” (Jar-e-Khushk).
Ten liters of drinking water bought when a tanker truck passes every three days costs more than in the capital Kabul, residents said.
Fazil Omar Rahmani, the provincial head of the Ministry of Refugees and Repatriation Affairs, said there were plans to expand the water supply network.
“But for now these families must secure their own supply,” he said.
Two hours on foot
The plots allocated by the government for the new neighborhood lie far from Bamiyan city, which is home to more than 70,000 people.
The city grabbed international attention in 2001, when the Sunni Pashtun Taliban authorities destroyed two large Buddha statues cherished by the predominantly Shia Hazara community in the region.
Since the Taliban government came back to power in 2021, around 7,000 Afghans have returned to Bamiyan according to Rahmani.
The new project provides housing for 174 of them. At its inauguration, resident Rahesh stood before his new neighbors and addressed their supporters.
“Thank you for the homes, we are grateful, but please don’t forget us for water, a school, clinics, the mobile network,” which is currently nonexistent, he said.
Rahmani, the ministry official, insisted there were plans to build schools and clinics.
“There is a direct order from our supreme leader,” Hibatullah Akhundzada, he said, without specifying when these projects will start.
In the meantime, to get to work at the market, Rahesh must walk for two hours along a rutted dirt road between barren mountains before he can catch a ride.
Only 11 percent of adults found full-time work after returning to Afghanistan, according to an IOM survey.
Ibrahimi, meanwhile, is contending with a four-kilometer (2.5-mile) walk to the nearest school when the winter break ends.
“I will have to wake my children very early, in the cold. I am worried,” she said.