In an open letter, economists such as Thomas Piketty, Jayati Ghosh and former World Bank head Branko Milanović warn of the risk of the far-right candidate’s proposals
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Current Brazil Network – Nine days before the presidential election in Argentina, a group of more than 100 influential economists around the world points out that the victory of far-right candidate Javier Milei will cause “devastation” and social chaos in the country. The warning is mentioned in an open letter, released this Wednesday (8), in which economists claim to understand the population’s “deep desire for economic stability”, given Argentina’s frequent financial crises and constant high inflation.
However, experts warn that “while seemingly simple solutions may be appealing, they are likely to cause more real-world devastation in the short term while severely reducing political space in the long term,” they note. Among the influential economists who signed the document are Frenchman Thomas Piketty, Indian Jayati Ghosh, Serbian-American Branko Milanović, former head of the World Bank, and former Colombian Finance Minister José Antonio Ocampo.
The letter also highlights that Milei’s proposals are presented as a “radical departure from traditional economic thinking”. When, in fact, they are based on “economic laissez-faire”, of non-intervention by the State in the economy. And they are “full of risks that make them potentially very harmful to the Argentine economy and the Argentine people”.
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Milei is ‘door to inequalities’ – An ultraliberal outsider, Milei sought throughout the campaign to stand out for his anti-politics and anti-institutional speech. In addition to being an advocate of unconventional measures, such as the dollarization of the Argentine economy and the closure of the Central Bank. The extremist, who declares himself anarcho-capitalist, also has denialist speeches and is compared to former presidents Donald Trump and Jair Bolsonaro. Which led him to earn the nickname “Argentine Bolsonaro”, including among the local population.
For economists, the far-right candidate’s dollarization and fiscal austerity proposals “ignore the complexities of modern economies”, they point out. “They ignore the lessons of historical crises and open the door to accentuating already serious inequalities.” The group of experts adds that a large reduction in government spending, with Milei’s idea of cutting social investments, would “increase the already high levels of poverty and inequality, and could result in a significant increase in social tensions and conflicts”.
Milei received the most votes in this year’s Argentine electoral caucuses and was considered the favorite for the election. The far-right candidate, however, ended up coming second in the first round, losing to the current Economy Minister and government candidate Sergio Massa. For this second round, scheduled for November 19, the two candidates appear to be technically tied in most of the polls. The ultra-rightist has also been decreasing his distance in relation to the Peronist.
Vote by vote dispute – The Argentine newspaper Pagina 12 released, this Monday (6), a survey showing Massa ahead, with 42.4% of voting intentions, compared to 39.7% for Milei. On October 22, the difference between the two was 8 points and now it is 3. An average from the La Política Online portal indicated a tighter result, with the ultra-rightist with 42.9% and the Peronist, 42.8%. The assessment is that the Argentine election will repeat what happened in Brazil, with a vote-by-vote dispute between former president Jair Bolsonaro (PL) and current Luiz Inácio Lula da Silva (PT).
The head of the Brazilian Executive has even been targeted by the right-wing candidate. In an interview, Milei stated that, if elected, he will not meet with Lula because he is “corrupt” and “communist”. The federal government decided, however, not to take a stance. A minister on the team told Folha de S. Paulo that the statement will be “ignored”. And he accused the candidate of wanting to “pick a fight” and then accuse the president’s mandate of “interference”. “A bravado,” he summarized.
Without presenting evidence, Javier Milei has been accusing Lula of interfering in the neighboring elections. This week, the candidate even accused the PT member of financing his opponent’s campaign.
