ARGENTINA: A new stance on China & more – 3rd Oct 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 3rd of October twenty twenty-four. A quick summary of what's going down in Argentina.

According to government data published on Thursday the 26th, poverty surged to over 52%, a significant jump from 42% at the end of twenty twenty-three. Specialists attribute these results to the economic measures to combat inflation, including slashing public spending and removing price controls. Public backlash is growing as daily life has become harder for many, with strikes threatening the government’s reforms. President Milei’s administration insists these measures are necessary to stabilize the economy in the long run.

There are some minor signs of recovery, particularly in sectors like agriculture and manufacturing. Plus, in July, the economy grew by 1.7%, exceeding expectations. While year-over-year activity was still down by 1.3%, a recent uptick in consumer spending, manufacturing, and wage growth has provided some optimism. Inflation has been holding steady at around 4% for the past few months.

That said, concerns over unemployment are rising, and economic forecasts suggest a contraction of 3.7% for twenty twenty-four, with recovery expected in twenty twenty-five.

In a surprising shift, president Javier Milei has redefined his stance on China, now calling it an interesting trade partner and announcing a trip there in January for a meeting of the Community of Latin American and Caribbean States, known as CELAC. This marks a major reversal from his previous hardline position, where he refused to trade with China due to its communist regime, even calling its government “murderers.”

Milei’s tone seems to have softened, especially after China renewed a crucial five-billion dollar currency swap with Argentina.

Back to the topic of prices, October isn’t without its share of price spikes. These include a 3% rise in electricity bills and a 5% hike in water rates for Buenos Aires. Private health insurance is also going up, with some plans increasing by 8%, well above the inflation rate. On top of that, subway fares in Buenos Aires will jump to 750 pesos per ride (about sixty cents in US dollars at the parallel exchange rate).

Still, the government hopes that September's inflation will dip below 4%.

If you were surprised by the increases in subway fares, you may want to check out the WhatsApp channel that The Buenos Aires Herald has launched. They share timely and useful information for both visitors and residents in Argentina, all in English. If you want to know more, follow the link in the show notes.

YPF, the country’s largest state-run oil company, is lowering fuel prices. Gasoline has dropped by 1% and diesel by 2%, thanks to a dip in global Brent Crude Oil prices. Other fuel companies haven’t yet announced if they’ll also adjust prices based on international oil trends.

Since we’re talking about prices, President Milei plans to veto a bill that would increase funding for universities, arguing it contradicts his aim of achieving fiscal balance. This has triggered widespread protests, including one of the largest demonstrations since the president took office. On Wednesday the 2nd, students, staff from public universities, and labor union members gathered outside the Congress building in Buenos Aires, voicing their firm belief in the importance of accessible education for societal advancement. Protests also erupted in other parts of the country, such as Córdoba, which is a major educational hub in the country.

Speaking of the Córdoba province, wildfires have already ravaged over 40,000 hectares, with firefighters still battling an active focal point in the Salsacate area. More than fifty people have been evacuated and twenty homes have been destroyed, though no deaths have been reported. During a recent visit, President Milei attributed the fires to Kirchnerist activists, a remark that local authorities later denied. The main focus remains on controlling the fires, and officials emphasize that politicizing the situation only hampers efforts.

Authorities are monitoring another situation: the rise in monkeypox cases. The country recently reported eleven new cases, raising the total for twenty twenty-four to sixty-five confirmed infections, predominantly in men, with just one case in a woman. Most of these new cases have been found in Buenos Aires, affecting individuals aged twenty to fifty-six. Four patients have been hospitalized, but none are in intensive care, and there have been no reported deaths.

In other health related news, Mario Russo resigned as Health Minister, citing personal reasons, after facing criticism for his handling of the dengue outbreak and a mosquito repellent shortage earlier this year. Mario Lugones, a cardiologist who had been advising the ministry, will replace him.

Moving on, Argentina and the UK have agreed to resume monthly flights from Córdoba to the Malvinas (Falkland) Islands. The agreement also includes plans for relatives of Argentine soldiers killed in the nineteen eighty-two Malvinas War to visit the islands before the end of twenty twenty-four.

The deal aims to enhance cooperation on economic and humanitarian matters, but it has faced criticism from opposition figures who say it compromises Argentina’s sovereignty claims. Vice President Victoria Villarruel publicly criticized the Foreign Ministry for this agreement, accusing it of supporting the British occupation and enabling resource exploitation in the region. Villarruel’s father was a veteran of the Argentine military who played a significant role in the Malvinas War, which is one of the reasons why she usually echoes military-era sentiments.

Switching over to cultural news, MALBA, Argentina’s renowned Latin American art museum, has opened a new branch in the Escobar municipality in Buenos Aires Province after a ten million dollar investment. This new space called MALBA Puertos features works from sixty artists and allows public access to previously stored collections. Admission is free.

The San Sebastián Film Festival took place last week, and The Jockey won the prestigious Horizontes award for best Latin American film. What’s more, Luis Ortega’s film has been selected as Argentina’s official submission for the Academy Awards in the Best International Feature category, as well as for the Spanish Goya Awards.

The film, which premiered at the Venice Film Festival, follows the story of a troubled jockey named Remo and his pregnant partner, Abril, who both work for a dangerous mobster. After Remo accidentally kills a prized racehorse, the mobster puts out a hit on him, and Abril races to find him in Buenos Aires. The movie has gained attention for its compelling storyline and star-studded production team, which includes Benicio del Toro as an executive producer.

For music fans, and particularly fans of NPR’s “El Tiny” series, the Argentine trap duo Ca7riel and Paco Amoroso are set to perform a Tiny Desk concert in celebration of Latinx Heritage Month. The duo is known for blending trap with pop and techno, and will join the ranks of other Argentine artists like Trueno and Nathy Peluso who have appeared on the show. The release date for their performance has yet to be announced.

Before we wrap up, something funny that’s happening in Buenos Aires: A mysterious account called @Duende.BA has taken the city by storm, organizing treasure hunts where followers search for hidden cash. What started as a game between two university friends has gone viral, amassing around 270,000 followers and offering increasing cash prizes—now up to 100 dollars. The duo keeps their identities private but has turned the city into a treasure map, dropping hints and hiding money in public places like cemeteries and parks. Each hunt usually lasts about half an hour, and they encourage participants to share their finds on social media to keep the excitement alive.

Last but not least, just a quick reminder: next Friday, the 11th of October, is a holiday in Argentina for the Day of Respect for Cultural Diversity. Although this holiday typically falls on the 12th of October, it is often moved to create long weekends. Originally commemorating the arrival of Christopher Columbus in the Americas, it has since been redefined to promote recognition and respect for the cultural diversity of indigenous peoples and other communities in Argentina.

Aaand that’s it for this week! Thank you for joining us!

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¡Nos vemos la próxima semana!