ARGENTINA: Funding Public Universities & more – 10th Oct 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 10th of October twenty twenty-four. A quick summary of what's going down in Argentina.

Just a few hours after the student-led protest across the country, President Milei vetoed the law that would have increased funding for public universities and raised staff salaries. He defended the veto by arguing that wage increases for educators were unwarranted.

However, on Tuesday the 8th, the government announced a 7% salary raise for university staff. Unions are rejecting it as insufficient, noting that it doesn’t come close to covering the losses caused by inflation. Some of them argue that workers have lost more than 60% of their purchasing power since Milei took office.

Protesters had hoped Congress would overturn the veto, but on Wednesday the 9th, the Lower House voted to uphold the president’s decision. After blocking the pension increase, this marks the second time Milei has used his veto power to block increased public spending, with support largely coming from the PRO party despite their previous criticism of the government’s handling of university budgets. The veto prevents the opposition from revisiting the bill until next year.

Outside Congress, protests erupted once more, with students and faculty expressing their frustration.

Speaking of budget cuts, workers at the Laura Bonaparte Mental Health Hospital in Buenos Aires have launched a vigil in protest against what they fear is the hospital’s impending closure. The Milei administration has denied plans to close the facility, stating it is undergoing a restructuring process to reallocate resources more effectively. However, hospital staff argue that the cuts will leave thousands of patients, including children, without proper mental health care.

Workers say no one fully informed them of the changes and are concerned about the future of the hospital’s services, as well as their jobs.

The good news is inflation in Buenos Aires slowed slightly to 4% in September, down from 4.2% in August. This brings the city’s annual inflation rate to approximately 220%, with prices having risen over 115% since the start of the year. Personal care items, healthcare, and transport saw the highest increase this past month at around 5%.

The data of Buenos Aires often reflects national trends, with the government aiming for a lower inflation rate of 3.5% in upcoming nationwide reports.

On that note about transport, keep in mind that a major transportation strike is set for the 30th of October. Unions representing trains, planes, and ships are committing to a twenty-four-hour walkout. Bus drivers might join, depending on whether they secure a pay deal by the 28th of October.

The strike is being called in response to rising inflation and income taxes affecting workers.

Back to the topic of prices, rent prices in Buenos Aires have surged 52% so far this year. According to a survey by the real estate site Zonaprop, the average apartment now costs over 500,000 pesos per month (some 420 dollars at the parallel exchange rate).

Still, the IMF has noted early signs of economic recovery, highlighting reductions in inflation and the fiscal deficit. However, recession, unemployment and poverty remain critical challenges. The IMF believes that ongoing efforts to lower inflation and reforms aimed at boosting jobs and investment will help improve wages and overall economic activity in the future.

In other news, Congress has approved the implementation of a single-paper ballot for national elections, starting with next year’s legislative vote. This new system will allow voters to select all their preferred candidates on one ballot, rather than using separate ballots for each party.

The majority of the opposition voted against it. Proponents argue that the new system will eliminate ballot theft, while critics express concerns about its potential to confuse voters and undermine established political parties. Experts suggest that the shift could lead to more blank or invalid votes and might not necessarily enhance transparency in the electoral process.

Another bill making progress is one aimed at lowering the age of criminal responsibility from sixteen to thirteen. Critics, including various institutions and human rights organizations, point out that only a small fraction of serious offenses involve young people, and they warn that the new law could exacerbate existing problems without addressing the root causes of juvenile crime. Meanwhile, proponents believe the change will enhance public safety and prevent the exploitation of minors by criminal gangs.

Since we’re on the topic of teenagers, the National Securities Commission has just opened up the capital markets to teenagers aged thirteen and older. Before this new regulation, minors could only manage their money in bank accounts or invest in mutual funds and fixed terms. Now, they can open sub-accounts to buy and sell various financial products, like stocks and bonds, but they’ll need their legal guardians’ consent and guidance.

The idea behind this shift is to encourage financial literacy and saving among youth, aligning with international recommendations to make financial systems more accessible for younger generations.

Next up, on Monday the 7th, thousands of people in Buenos Aires gathered to remember the victims of the Hamas attack on Israel that occurred last year. The president supported the event and emphasized the need for the release of hostages taken during the attack. The local Jewish community in Argentina represents the largest Jewish population in Latin America, and one of the largest in the world.

In contrast, a separate protest in Plaza de Mayo drew pro-Palestinian supporters calling for an end to the Israeli offensive in Gaza.

The British newspaper The Guardian published an article that discusses accusations against Javier Milei for allegedly plagiarizing part of his speech at the United Nations from the TV show The West Wing. A portion of Milei’s speech, where he emphasized the importance of freedom and opposition to tyranny, closely mirrors a monologue delivered by the fictional President Jed Bartlet, played by Martin Sheen, in an episode from two thousand three. A political columnist highlighted the accusations, sparking debate, especially given Milei’s right-wing stance and the progressive nature of the show’s character. The similarity might stem from Milei’s chief strategist, Santiago Caputo, who is reportedly a huge fan of the series.

Check out the link in the show notes to read the full article!

In some business news, the state-owned oil company YPF announced it will relocate its Vaca Muerta operations center to its headquarters in Puerto Madero, in Buenos Aires City. The move will centralize real-time decision-making for drilling and completion, following a model used by ExxonMobil to improve efficiency. Previously based in Neuquén, the new control center will help streamline operations for YPF’s 10,000 wells, cut costs by 30% and save up to 1.5 billion dollars annually. YPF has already reported a 20% increase in drilling speed and higher shale output this year.

All the cinéfilos, or film enthusiasts, out there probably know that the Mar del Plata International Film Festival is just around the corner. This event takes place every year in the coastal city of Mar del Plata, which is in Buenos Aires province, and it’s one of the top film festivals in Latin America. This year, it’s set for the 21st of November to the 1st of December. However, in a bold protest against the government’s recent policies, several film industry associations have decided to pull out of the festival.

In sports news, the Diego Lives, or Diego Vive, exhibit opened up in Barcelona. The exhibit offers an immersive journey through the life of the Argentine football legend Diego Maradona. It features interactive activities, a hologram, and a recreation of his childhood home. Visitors can step into his shoes, taking penalty kicks and even reenacting his infamous Hand of God goal from the nineteen eighty-six World Cup.

Other good news for football fans: River Plate’s Monumental Stadium in Buenos Aires has been selected to host the final of the twenty twenty-four Copa Libertadores, South America’s premier club football competition. The match is scheduled for the 30th of November.

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

Do you know that besides the Rorshok Argentina Update, we also do others? Our latest ones are the Arctic Update, about the area north of the Arctic Circle, the Ocean Update, about the 70% of the world covered in salt water, and the Multilateral Update, about the world’s major multilateral institutions. The other ones are all country updates, we have a selection of countries from Africa, Asia, South America, and Europe. Check roroshok.com/updates for the full list, the link is in the show notes.

¡Nos vemos la próxima semana!