ARGENTINA: Mosquito Invasion & more – 22nd Feb 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 22nd of February twenty twenty-four. A quick summary of what's going down in Argentina.

If you’re anywhere in the Buenos Aires province or city, you may want to stay at home — and no, we’re not talking about the high temperatures this time, nor a new pandemic. There’s a mosquito invasion affecting various areas, especially the city of La Plata, where fumigation schedules are already out.

According to specialists, the recent rains triggered the invasion by flooding new areas where mosquito eggs, laid possibly in January, hatched. The invasion may last about twenty days, since that’s the lifespan of adult mosquitoes. However, the surge typically diminishes within ten days, depending on whether it rains again.

The good news is that these mosquitoes aren’t the dengue virus carriers, so they don’t present great risks for humans. Still, authorities recommend upping all preventive measures: using repellents, mosquito nets and wearing long-sleeve clothing when the weather allows it.

The second topic making the headlines this week is the deregulation of health insurance. What does that mean? According to Manuel Adorni, the presidential spokesperson, workers will now have the freedom to allocate their contributions to the social welfare or private health insurance of their choice from the start of their employment contracts.

This move breaks away from the longstanding practice where many individuals were obliged to stick with the social welfare program affiliated with their sector or union, either permanently or during a specific timeframe.

Another announcement has to do with pensioners. Economy Minister Luis Caputo said that in March, retirees will receive a thirty percent boost in their benefits through the current mobility formula along with a compensatory bonus.

The minister took the opportunity to emphasize that the current formula is not enough. Why? Because it determines pension adjustments based on fifty percent of the quarterly increase in the revenue of ANSES (the National Social Security Administration) and fifty percent of the variation in salaries, which overall is below current inflation rates. The government had included a new scheme in the Omnibus law, but it went nowhere when negotiations with the opposition stalled.

For the time being, the minimum pension will rise to 138,000 monthly pesos (some 125 dollars at the parallel exchange rate), supplemented by a 55,000 pesos bonus (about fifty dollars.)

On a related topic, negotiations for the minimum wage between unions and business chambers didn’t reach an agreement. Nevertheless, the government plans to roll out a thirty percent increment in two phases, hitting 180,000 monthly pesos (160 dollars) in February and 200,000 pesos (180 dollars) in March. This figure primarily serves as a benchmark and falls short of the demands put forward by union leaders.

In other words, it’s a tough time for workers and pensioners, though there may be a light at the end of the tunnel — or so the president says. In a recent interview, Milei discussed the economic outlook for the coming months, foreseeing the most challenging period around March and April before a rebound. He described the economy as potentially following a “V-shaped” recovery, echoing estimates from the International Monetary Fund.

He also anticipated the lifting of currency exchange restrictions around mid-year, expecting a significant economic upturn after.

One thing we know for certain is that Argentina celebrated the first financial surplus in twelve years. This stems from a remarkable 260 percent increase in tax revenues during the inaugural month of the new government, coupled with reductions in public spending.

The Economy Minister emphasized a steadfast commitment to a zero deficit, which the president celebrated on Twitter.

If you haven’t come across that post, it might be because Milei has also been embroiled in an online feud with the popular singer Lali Espósito, which drew significant attention. While the dispute has been going on for some time, it reached its peak when Milei singled out Espósito during an interview last week, criticizing the payments made to her for concerts as contributing to the country’s fiscal deficit. In turn, she responded with an open letter, highlighting her twenty-two-year career and the positive impact of cultural events on job creation and community identity.

During last year’s elections, Lali hinted at her disapproval of the current administration, potentially explaining the president’s animosity toward the singer. However, she isn’t the only artist to express dissent. Amidst the president’s supporters inundating social media with criticism, negative remarks, and even harassment, numerous artists rallied to Espósito’s defense.

Despite the tumult, she concluded her response with well wishes toward Milei and the nation. Want to read the open letter or know more about the feud? Link in the show notes!

Artists aside, people online were frustrated with the feud as there are more pressing matters at hand. For example, the fact that a recent report from the Social Debt Observatory at the UCA (the Pontifical Catholic University of Argentina) revealed that poverty has surged to a twenty-year peak, now standing at fifty-seven percent and impacting around twenty-seven million individuals.

The study attributes the rise to increased costs of basic necessities, coupled with stagnant household incomes, exacerbated by the peso’s sharp devaluation in December.

On a similar note, the INDEC statistics bureau revealed the price of the upbringing basket, for the month of January, covering early childhood, childhood and adolescence. This index not only assesses the monthly costs of essential goods and services for child welfare but also considers the time required for caregiving at different age ranges. Moreover, it aims to serve as a reference point for judicial disputes over child support payments.

For children under one year, the minimum in January was 209,000 pesos per month (190 dollars). For those between one and three, it was 249,000 pesos (230 dollars), a number that slightly decreases to 212,000 (a bit over 190 dollars) for children aged four to five but goes up to 266,000 pesos (240 dollars) for those aged six to twelve.

With the price hikes in the last two months, there’s been a shift in shopping trends. In northern provinces like Misiones, which borders Paraguay, and Jujuy, which shares a border with Bolivia, people are now crossing over to find cheaper prices. In Paraguay’s Ecarnación, for example, Argentine shoppers are buying school supplies, backpacks, shoes, and uniforms at significantly lower prices compared to Posadas in Misiones.

With the school year approaching, there’s a heightened demand for these items. Additionally, people are taking advantage of lower prices in Bolivia for items like tires, rice, sugar and even bikes and air conditioners.

Speaking of Paraguay, President Milei and Defense Minister Luis Petri are considering changes to legislation concerning the role of the Armed Forces in Argentina, inspired by Brazil’s and Paraguay’s armies.

During a recent meeting between Paraguay President Santiago Peña and Milei, Peña shared details of a joint operation between Paraguayan and Brazilian armies targeting organized crime, leading to significant seizures of drugs and illegal resources. Argentina is also considering deploying its armed forces to combat terrorism and organized crime, with Petri advocating for changes in existing regulations to empower military action against external threats beyond conventional aggression.

Back to the topic of the start of the school year, the president said during a radio interview that he’s still planning to launch the vouchers. The educational vouchers were a key element in his electoral campaign, and aimed to help students pay for their education by handing over the budget to them instead of the schools. In other words, the government finances the demand instead of the supply.

And to close this edition, the Argentine footballer Estefanía Banini has been honored with the Best Ibero-American player award for her outstanding performance at Atlético Madrid, marking the first time an Argentine player has received this accolade from the Spanish news agency EFE.

Aaaand that’s it for this week!

Thank you so much to everyone who filled in the survey over the past few weeks, we really appreciate your comments and ideas. Many of you mentioned you would like to get some more in depth episodes and interviews, is that something you would like? Do you have any topics in mind? Something specific about Argentina that you want to know more about for us to do a special show on? We want to do some new things very soon! Please email us at info@rorshok.com. The survey is still linked in the show notes if you are interested in that as well.

¡Nos vemos la próxima semana!