In the swirling global milieu where Norway, North Korea, China, and Russia view Israel through a lens of skepticism, if not outright hostility, due to its actions in Gaza, one South American country emerges as a contrarian: Argentina. The April 2023 election of libertarian Javier Milei as president of Argentina is a development worthy of a deeper dive, especially from an Israeli perspective.
Milei, a fiery economist turned political disrupter, pledges warmer ties with Israel and the US, distancing Argentina from its erstwhile allies in the socialist bloc. “My allies are those who stand against socialism globally,” declares Milei, pinpointing socialism as the adversary. His depiction of Argentina’s old-guard politicians as a self-serving elite, fattening themselves at the public’s expense, resonates with a populace weary of a paternalistic welfare state.
Flashback to the early 20th century, and Argentina was a beacon of prosperity, ranking among the world’s top ten wealthiest nations per capita. Fast forward through a century marked by Peronist governance, an ideology steeped in governmental control, economic insularity, and a tilt away from the West, and we find a nation whose global economic stature has significantly diminished. Peronism, the brainchild of Juan and Eva Perón, has oscillated between leftist populism and rigid protectionism, driving the country into economic malaise.
Enter Milei, riding the crest of public disenchantment with a stagnant private sector, soaring public employment, and an inflation rate that turns the economy into a perpetual motion machine of devaluation. Blame, in his eyes, falls squarely on corrupt politicians and a Central Bank that, since its nationalization in 1946, has been a puppet to political whims rather than an economic stabilizer. The result? A labyrinth of black markets, recurrent sovereign debt defaults, and a precariously balanced relationship with the IMF.
Milei’s prescription is radical: a lean government focusing on fundamental societal pillars like defense and judiciary; privatization of loss-making state enterprises; slashing of subsidies; halving the number of ministries; championing private over public spending; dismantling pension privileges; promoting school choice through vouchers; dollarizing the economy; liberalizing gun laws; and pulling out of [the Southern Common Market bloc] Mercosur in favor of European trade alignments.
For Israel, Milei’s ascendancy and his reform agenda are instructive. With its own labyrinth of 28 ministries, often reshuffled as political bargaining chips, Israel might ponder whether economic efficiency is being sacrificed at the altar of bureaucratic expediency. Could Israel streamline its governance model, taking a leaf from Milei’s book, to unleash greater economic dynamism?
Milei’s affinity for Israel and Judaism
Moreover, on the cultural and diplomatic front, Milei’s affinity for Israel and Judaism is clear. His inaugural visit to the US included a symbolic gesture to Jewish heritage, and his unvarnished critique of Argentina’s Pope as a “socialist” underlines his ideological stance. His intent to move Argentina’s embassy to Jerusalem aligns him with a select group of nations recognizing the city as Israel’s capital.
Thus, Israel stands at an intriguing crossroads. In Milei’s Argentina, it finds not just a diplomatic ally but a case study in bold, if controversial, economic reform. As nations often learn best from each other’s experiments, Israel might find in Argentina’s libertarian pivot, under a president who defies convention, a wellspring of inspiration for its own economic and political pathways.
The writer is dean of the School of Economics at the College of Management Academic Studies.