Javier Milei plans an extreme reform of the State that seems to take up the liberal ideology of the Generation of â€˜80. It contemplates the elimination of eleven ministries to return to the historical number of eight portfolios, in addition to the closure or privatization of all state-owned companies and the reduction of political positions to almost zero.
The libertarian's plan was presented a few days before winning the primaries. Now it takes on another purport. If he is elected president, he will only retain Economy, Justice, Interior, Security, Defense, Foreign Affairs and Infrastructure. The only ministry he would create is that of Human Capital, which would absorb Health, Social Development, Labor and Education.
Although he still does not have a confirmed cabinet, Milei has "models" in the main areas that can give clues as to who his ministers will be. MartÃn Krause, the reference for Education, Ricardo Inti Alpert for Housing, Alejandro Cosentino for Innovation and Eduardo Filgueira Lima as a reference for Health. Carlos RodrÃguez is the head of economic advisers, although the libertarian acknowledge that Diana Mondino could be Minister of Economy or Foreign Affairs.
The mark of his proposal that causes the most commotion and generates concern even on Wall Street is the elimination of the Central Bank "to end inflation forever."
"Argentine politicians have shown that if they have the possibility of issuing pesos to finance the exorbitant expenses, they will do it," Milei's government program states. "There is no other alternative to end inflation forever other than the elimination of the Central Bank as agent of monetary issue," it adds.
The program explains that to eliminate the Central Bank, it is necessary to rescue the liabilities that are in the bank's balance sheet. "We develop alternative plans to rescue those liabilities and also, after the elimination of the bank, Argentines can trade in the currency they prefer," says the plan. Milei has been announcing that if he becomes president he will dollarize the economy, a plan that is based on the proposal of the economist Emilio Ocampo, who plans to send the debt of the Central Bank to a trust in the United States.
Milei says that the IMF's adjustment program is insufficient. That is why he plans a much more drastic reduction in public spending than that proposed by the IMF, which for this year is satisfied with a deficit of 1.9% of GDP.
"We aspire to reduce expenses by 15% of GDP," the program states. It also stipulates the elimination of 90% of current taxes "which only have an impact of around 2% of the GDP in terms of collection, but they hinder the functioning of the Economy."
The libertarian also plans to privatize or close all state-owned companies and especially mentions TÃ©lam, TV PÃºblica, INCAA, INADI and "all other organizations that are used as a refuge for political phantom employees."
As LPO revealed at the time, Milei plans a comprehensive reform of the country, which could take three decades and is designed in sections. The first one is the most urgent: monetary and fiscal to end inflation. An important point of the plan is that social assistance will be maintained while the reforms progress.
Then the labor reform would come, based on the Uocra agreement model, in which workers contribute to a kind of unemployment fund for when they are out of work. And finally the Education and Health reforms that would stop having a public coverage.
In the field of Education, Milei's plan takes the Trumpist model of School Vouchers. "An elective and competition model through the use of the voucher system, so that Argentines have education at no cost but can choose in which institution their children will study," the proposal states.
The chapter dedicated to Justice is just as radical. It proposes total economic autarky to the Judicial branch - today they have to negotiate the budgets with the Ministry of Economy - and fill vacancies in the Supreme Court and the Prosecution with career judges and prosecutors. It also proposes to modify the Judicial Council to minimize the incidence of politics.
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