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Ian Explains: What's so radical about Argentina's new president (besides his cloned dogs)?
Argentina's new libertarian president, Javier Milei, is not like other Argentine presidents. He's not like anyone else, for that matter. But it's not his penchant for dressing up as a superhero and singing about fiscal policy that sets him apart. Nor is it his cloned dogs or bombastic approach to politics. Six months into his first year in office, it's his radical plan to save Argentina's economy that's truly radical. And here's the thing...so far it seems to be working.
Despite living in one of the largest and most resource-rich nations in Latin America, the average Argentine has endured one economic calamity after another. Milei has vowed to put an end to what he refers to as "100 years of decadence. But can he pull it off?
The self-proclaimed tantric sex guru with a mop of unruly black hair that he claims the invisible hand of the free market keeps in place campaigned for president last year by promising to take a chainsaw literally to government spending and to eliminate Argentina's Central Bank. He also derided climate change as a socialist conspiracy. He called the Argentine compatriot Pope Francis a "leftist S.O.B." He's known universally in Argentina as El Loco or the madman. And then back in November, he won the election in a landslide.
When he won, many experts expected that Milei's self-styled, anarcho-capitalism would be the death knell for an economy already in free fall. But after taking office in December, Argentina's 300% annual inflation slowed for five months in a row. His government did this by turning the 5.5% budget deficit that it inherited into the country's first surplus in over a decade. And all without destabilizing their currency and their financial markets.
But while Milei's shock therapy has been successful at balancing the budget and slowing inflation, the fiscal and monetary austerity has caused a deep recession, with economic activity shrinking almost 10% year-on-year back in March, unemployment rising, real salaries in Argentina hitting their lowest points since 2003. Mass protests against budget cuts to public universities back in June drew more than 400,000 people to the streets.
Can Milei save Argentina's economy before he destroys it?
Watch Ian's exclusive interview with Javier Milei on the full episode of GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airing nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don''t miss an episode: Subscribe to GZERO's YouTube channel and turn on notifications (🔔).
Argentina's Milei shares strong views on China and Israel
In an exclusive interview with Ian Bremmer for the latest episode of GZERO World, Milei defines his approach to foreign policy as one of democracies vs autocracies. And he makes clear that Argentina will always side with democracies. But how does he square that vow with the reality that Chinese trade is a critical part of Argentina's (not to mention Latin America's) economy? He answers by pointing to his staunch libertarian beliefs, and his desire to stay out of the free market's way. "If I were to limit that trade, which is free, would Argentines be better off or worse off?"
Milei also makes clear that his staunch support for Israel is a defining aspect of his foreign policy approach. When Bremmer asks him about the Gaza war, his answer is simple and unwavering. "I will continue to support Israel right to the end."
Watch the full interview on GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airing nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube and on our website. Don’t miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).
Argentina's radical new president, Javier Milei (Exclusive interview)
In an exclusive interview with Ian Bremmer for the latest episode of GZERO World, Argentine President Javier Milei defends his radical approach to saving Argentina’s struggling economy, his commitment to aligning with liberal democracies, and his pragmatic stance on international trade and alliances.
There's no getting around it: Argentina's new president, Javier Milei, is an odd duck. But beyond his penchant for cloned dogs, messy hair, and bombast, what’s truly radical about the South American leader is his plan to save Argentina’s economy. When he ran for office, the economics professor-turned-TV pundit-turned-presidential-candidate vowed to eliminate Argentina’s central bank and threatened to replace the Argentine peso with the American dollar. But once he came to office, a more pragmatic approach to economic reform emerged. And in just six months, his administration has managed to slow Argentina's 300% annual inflation and turn a budget deficit into a surplus. "We have actually completed the largest reform in the history of Argentina," he proudly tells Ian Bremmer in an exclusive new interview for GZERO World, highlighting the scale of his efforts to overturn what he calls "100 years of decadence."
(Note: Turn on closed captions for translation from Spanish to English or your preferred language.)
Milei's libertarian economic policies, although effective in some respects, have also led to significant hardships. "Life is going to be harder for the average Argentinian citizen," he acknowledges. Despite these challenges, Milei's popularity remains high, attributed to his honesty and transparency with the public.
In a wide-ranging interview with Bremmer, Milei also explains that his approach to foreign policy is marked by a mix of ideological commitment and pragmatic flexibility. He champions free trade and economic liberalization while acknowledging the complexities of dealing with autocratic regimes. "The world should be separated between liberal democracies and autocracies," Milei asserts. Yet, he does not shy away from engaging with China, recognizing the economic benefits such relationships can bring. "If I were to limit that trade, which is free, would Argentines be better off or worse off?" he asks Bremmer, advocating for a balanced approach that prioritizes Argentina's well-being.
Milei's staunch support for Israel is another defining aspect of his foreign policy. When Ian asks him about the Gaza war, his answer is simple and unwavering. "I will continue to support Israel right to the end."
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don''t miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).
Venezuelans gather to demonstrate during Venezuela's election voting day in Bogota, Colombia, July 28, 2024.
Venezuelans head to the polls as Maduro warns of a “bloodbath”
Venezuelans are voting in make-or-break elections as President Nicolás Madurotrails behind opposition leader Edmundo González by up to 30 percentage points in some polls. González – a retired diplomat who stepped in after the most popular opposition leader Maria Corina Machado was barred – might be the country’s best chance to restore democracy.
The background: Maduro’s 11 years in power have been marred with economic instability so severe as to cause mass malnutrition, violent political crackdowns, and America’s worst migration crisis in history. Over 7 million Venezuelans have fled repression and starvation since 2015. Maduro, currently under investigation by the ICC for alleged crimes against humanity, has led Venezuela to “the single largest economic collapse for a non-conflict country in almost half a century” according to the IMF.
How has he stayed in power? In past elections, Maduro has kept the crown by barring and jailing challengers – and using his thugs to intimidate voters. His actions have been met by US sanctions, and the last election was deemed illegitimate by the US, Canada, and 14 other countries.
Polls show an undeniable truth Maduro seems unwilling to accept: He cannot beat González in a free and fair election. This leaves Maduro – who most analysts presume will resist a peaceful transition of power – two options: mass electoral fraud and political crackdowns or making good on his warnings of a “bloodbath” and “civil war” if he loses. So far at least, the government has not reported any unrest at polling places.
For more on Venezuela’s election, check out GZERO’s Viewpoint interview with Eurasia Group expert Risa Grais-Targowhere.Argentine presidential candidate Javier Milei gestures during the closing event of his electoral campaign ahead of the November 19 runoff election, in Cordoba, Argentina, November 16, 2023.
Milei’s win raises pressure for completion of EU-Latin America trade deal
Javier Milei’s victory in Argentina’s presidential election could rapidly accelerate negotiations for a trade treaty between the Mercosur trade bloc and the EU. Milei, a self-declared anarcho-capitalist, vowed to pull Argentina from Mercosur altogether if he won. His victory raises questions about the future of the bloc and talks surrounding the treaty.
A trade pact between the bloc — Argentina, Brazil, Paraguay, and Uruguay — and the EU has been in the works for years, and the two sides reached an agreement in principle in 2019. But talks have been stalled ever since thanks to disagreements over environmental commitments pushed by the EU.
The Milei effect: There now appears to be a mad dash to complete an agreement before Argentina inaugurates Milei, a far-right libertarian who’s drawn comparisons to former US President Donald Trump. Diplomats involved in the negotiations told the Financial Times they’re hoping to wrap things up by early December.
“The talks are moving ahead fast,” a Brazilian official taking part in the negotiations told Reuters.
As a climate-change denier, the Argentine president-elect could complicate negotiations on environmentally related matters. While it would be tough to finalize the deal before his inauguration, this might be the incentive all parties need to get to the finish line. We’ll be watching to see whether they can reach a deal before Milei takes office on Dec. 10.
Industrial engineer and former lawmaker Maria Corina Machado holds up a Venezuelan flag as she reacts to the vote count after Venezuelans voted in a primary to choose a unity opposition candidate to face Venezuela's President Nicolas Maduro in his probable re-election bid in 2024, in Caracas, Venezuela October 23, 2023.
Oil exports or no, Maduro won’t let Machado win
Just two weeks after sealing a historic election pact with the opposition, the Venezuelan government announced Monday that it would suspend “all effects” of opposition primaries, thereby jeopardizing a six-month pause of US sanctions on Caracas’ oil.
The decision comes just days after strongman President Nicolás Maduro called the contests a “fraud” — but he’s really afraid of the winner, popular opposition leader María Corina Machado. The election deal was supposed to lift a ban on her and other opposition figures holding office until 2030, but state harassment evidently continues. Fortunately for the ordinary Venezuelans brave enough to go out and vote in an opposition primary, organizers say they destroyed the voter sheets, making state retribution more difficult.
So, will the US keep buying Venezuelan oil? Washington said it would swiftly shut off the taps if Caracas doesn’t follow through with its democratic commitments, but as we wrote earlier, leverage is limited. If Maduro’s options are keeping oil revenue and losing power, or accepting sanctions he’s survived for a decade to stay in control, which do you think he will choose?
Risa Grais-Targow, Eurasia Group’s director for Latin America, says the US will likely find discretion to be the better part of valor under these circumstances. Before snapping back sanctions, she continues, “the US will still wait and see if Maduro takes steps toward allowing candidates to participate in the general election, even if the ruling yesterday seems to go in the other direction.”Colombian President Gustavo Petro gestures after casting his vote during the elections for governors, regional lawmakers and mayors, in Bogota, Colombia October 29, 2023
Has Petro petered out?
President Gustavo Petro saw his allies lose elections across Colombia’s largest cities this weekend in what is widely viewed as a rebuke to the government and its reform agenda.
Petro, Colombia’s first left-wing leader, promised transformational change, but he has struggled to deliver. His frustration is tangible: When centrist Cabinet ministers opposed a controversial health care reform in April, the impasse broke apart his coalition, and Petro fired a third of his Cabinet, appointing ideological allies instead. He attempted to govern by emergency decree in La Guajira department, only to be stymied by the constitutional court, while his congressional priorities have slowed to a crawl. To make matters worse, his administration has been embroiled in separate corruption and wiretapping scandals.
Voters haven’t had it any easier. Colombia’s economy grew by 7.3% in 2022 but is expected to grow by just 1.7% in 2023, straining families in one of the world’s most unequal economies.
The weekend’s contests saw no widespread violence or irregularities, but voters are clearly displeased. The candidate Petro endorsed for mayor of the capital, Bogotá, often considered the country’s second most prominent political office, came in third, and Medellín and Cali elected some of Petro’s fiercest critics.
Petro himself can’t run for office again in 2026, and Eurasia Group’s Colombia expert Maria-Luisa Puig says the results portend ill for his chances of positioning a candidate to carry on his political legacy — but he’s not quite a lame duck.
“Despite the defeat at the local level,” she notes, “Petro can still secure enough votes in congress to advance aspects of his reform agenda,” which may allow for watered-down versions of his pension and health care programs to pass.
Supporters of Argentina's presidential candidate Patricia Bullrich of Juntos por el Cambio party attend the closing event of her electoral campaign ahead of the October 22 general election, in Buenos Aires, Argentina October 19, 2023.
Argentina’s wild presidential election
Argentines will vote on Sunday in the country’s most unpredictable, topsy-turvy election in recent memory.
The leading candidate is shaggy-haired firebrand Javier Milei, a social-media-savvy political outsider who describes himself as an “anarcho-capitalist.” Milei wants to radically shrink the government, adopt the US dollar, and ban sex education.
His more colorful proposals include legalizing the sale of human organs and converting to Judaism. Milei came in first in a presidential primary in August and is currently polling above 35%.
Argentines are fed up. Milei’s popularity, especially with younger voters, arises from widespread frustration with the established parties – and it’s not hard to understand why. Argentina is suffering through its worst economic crisis in decades: Inflation has topped 120%, three out of five Argentines now live in poverty, and the peso is one of the worst-performing currencies in the world.
“Milei has been able to capture this disenchantment as he lashes out at all political parties,” says Luciano Sigalov, an Argentina expert at Eurasia Group.
Ironically, Milei’s pledge to dollarize the economy has contributed to an even greater selloff of the peso, adding to precisely the economic woes that have helped to make him the frontrunner.
“His dollarization proposals sound increasingly attractive to many who see the value of their pesos rapidly evaporating,” Sigalov points out.
But Milei isn’t the only show in town. There are two other formidable candidates:
Former Security Minister Patricia Bullrich. She has built her campaign around a promise to “restore order” and is polling at 29%. Although Argentina’s homicide rate is one of the lowest in Latin America, several high-profile instances of violence by drug gangs in the port city of Rosario — one of which included a threat to soccer legend Lionel Messi — have put public safety on the ballot.
Economy Minister Sergio Massa. The candidate of the currently governing Peronist coalition is polling at 26%. As a moderate and technocratic voice within typically left-wing Peronism, Massa is seen as a safe pair of hands who has credibility with the private sector and has strong support from his own coalition.
The election rules are complicated. To win outright, the top candidate must get at least 45% of the vote OR must surpass the runner-up by at least 10 points. So, for example, you can win with 42%, but only if the runner-up has 32% or less.
If no one is able to meet either of these conditions, then the top two finishers will head to a runoff on Nov. 19.