Getting to Know Javier Milei, the Argentine President Who Successfully Created a Surplus in His Country

Kapanlagi.com - Javier Milei, President of Argentina since December 2023, has made a breakthrough that has transformed the face of the country's economy. In a historic move, he successfully created Argentina's first fiscal surplus in more than ten years. With an anarcho-capitalist approach and bold reforms, Milei dares to take risks to turn around the economy that has been devastated by high inflation and prolonged fiscal deficits.

In less than a year, Milei managed to reduce the inflation rate from almost 13% per month to just 3.5%. This extraordinary achievement has undoubtedly garnered praise from various corners of the world. Not only focused on budget savings, Milei also undertook massive restructuring of the state bureaucracy. He eliminated 12 ministries, cut thousands of government employees, and closed several agencies deemed inefficient.

The transformation initiated by Milei is not just a series of technical steps but a fundamental change in Argentina's economic and political system. With his courage and sharp vision, he demonstrates that significant change is possible even in the face of heavy challenges. Here is the figure of Javier Milei, summarized by Kapanlagi.com, Monday (20/1).

1. From Senior Economist to Crisis Manager

Javier Milei was born in Buenos Aires on October 22, 1970, and studied economics at the University of Belgrano. Before entering the political arena, Milei was known as a senior economist who worked at several major institutions such as HSBC Argentina and Maxima AFJP. In addition, he was also active in writing economic books and speaking at various national events.

Milei's ambitious personality and unconventional views made him stand out in the political landscape. He often criticized traditional policies that he deemed ineffective in addressing Argentina's economic issues. With a firm and confident speaking style, Milei built a strong support base among the Argentine public.

According to BBC reports, when Javier Milei was inaugurated in December 2023, Argentina was in a worrying economic situation. Inflation reached 13% per month, while the fiscal deficit stood at 5% of GDP. The mounting national debt further exacerbated the situation, creating a risk of hyperinflation that haunted the populace.

Milei began his leadership with a promise to improve Argentina's economy through strict fiscal policies. He immediately took drastic measures to reduce government spending, including cutting budget items deemed unproductive. In the first month of his leadership, he managed to reduce debt issuance, a significant initial step in tackling inflation.

2. Radical Economic Reform Strategy: Implement Significant Austerity

After being officially inaugurated as president, Javier Milei immediately launched a series of bold austerity measures to tackle inflation soaring to 300% in 2023.

In his initial step, he cut the budget by reducing the number of ministries from 21 to just 9, and laid off 5,000 government employees to balance the budget.

Not only that, Milei also eliminated over 380,000 outdated regulations, opened the oil sector to investment, and dissolved ministries related to gender and diversity to enhance efficiency.

Support from Economy Minister Luis Caputo emphasized the importance of strict fiscal discipline, which not only succeeded in reducing the deficit but also created a budget surplus of 1.76 trillion pesos, equivalent to 0.3% of GDP.

3. Impact of Policies on Economic Stability

The success of Milei's policies in Argentina is like a beacon of hope in the midst of economic darkness, clearly evident from the impressive fiscal surplus and the dramatic decrease in inflation—from 54% to just 0.8% in a year! This stability has successfully restored the confidence of both the market and the previously pessimistic public.

Furthermore, the poverty rate, which had soared to 55%, has now been reduced to 38%, while Milei's initiative to open the oil sector has also contributed significantly to state revenues. With a projected economic growth of 5% by 2025, Argentina seems to be moving towards sustainable recovery.

However, behind this success, challenges still lurk; the budget cuts have caused a spike in poverty in the short term, demanding serious attention from Milei's government to address the emerging social issues.

4. International Recognition and Global Influence

Javier Milei's achievements have captured the world's attention, especially after he was awarded the Titan Award for Economic Reform by the Latino Wall Street community in Washington DC, in recognition of his success in overhauling the Argentine economy. In his passionate speech, Milei emphasized his noble mission to "return power to the citizens" through bold reforms.

His courage and innovative policies have not only inspired other world leaders, such as US President Donald Trump who dubbed him the "favorite president," but also attracted the attention of visionary entrepreneurs like Elon Musk, who sees Milei's reforms as a potential model to be applied in other countries.

However, some experts remain skeptical, considering Argentina's unique context and the challenges of the economic crisis it faces, which raises significant questions about the applicability of such reforms in other countries with better stability.

5. Challenges Ahead for Milei's Leadership

Although Javier Milei has received much praise, significant challenges still lie ahead. One crucial issue he must face is how to ensure that the reforms he implements can promote equitable and inclusive economic growth.

With increasing social inequality due to budget cuts, swift action to address this issue is essential for maintaining political and social stability.

Milei is also required to sustain the momentum of reform without losing public support, which is currently above 40%, giving him the opportunity to implement sustainable long-term policies.

However, he must remain vigilant against pressure from the opposition and external challenges such as global market fluctuations that could hinder his progress.

If he can overcome all these obstacles, not only will Argentina's history be recorded, but the world will also be inspired by Milei's bold and visionary leadership.

6. What makes Javier Milei successful in creating a fiscal surplus?

Milei succeeded through radical reforms such as the elimination of ministries and reduction of public spending.

7. What is the impact of Milei's reforms on Argentine society?

Milei's reforms reduced inflation and poverty but also created social challenges in the short term.

8. What makes Milei's policies unique compared to previous Argentine presidents?

Milei employs an anarcho-capitalist approach and focuses on bureaucratic efficiency and regulatory reduction.

9. What is the influence of Milei's policies on Argentina's international relations?

Milei's policies gained international recognition and increased Argentina's appeal in global markets.

10. What is the biggest challenge for Milei ahead?

The main challenge is to create inclusive economic growth and maintain social stability amid reforms.

(kpl/rmt)