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Jerusalem Post Opinion


MILEI’S MAVERICK MOVE FOR ARGENTINA AND ITS LESSONS FOR ISRAEL - OPINION


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.

By ILAN ALON
DECEMBER 24, 2023 04:20
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ARGENTINA’S PRESIDENT Javier Milei waves to supporters, as his sister Karina
Milei looks on, after his swearing-in ceremony in Buenos Aires, earlier this
month.
(photo credit: AGUSTIN MARCARIAN/REUTERS)

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.



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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.


Argentine president-elect Javier Milei addresses supporters after winning
Argentina's runoff presidential election, in Buenos Aires, Argentina November
19, 2023 (credit: REUTERS/AGUSTIN MARCARIAN)

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.


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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.





Related Tags
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Judaism
argentina
Javier Milei

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