ARGENTINA: Supporting Israel & more – 18th Apr 2024

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 18th of April twenty twenty-four. A quick summary of what's going down in Argentina.

On Saturday the 13th, President Milei had to abruptly end his international trip due to Iran launching over a hundred drones and missiles at Israel. As soon as the news broke, Milei rushed back to spearhead a response team and reaffirm Argentina’s support for Israel.

The team he assembled included Eyal Sela, Israel’s Ambassador, who thanked Argentina for its swift condemnation of the attack. President Milei’s response was both passionate and predictable, given his outspoken commitment to Judaism and his desire to strengthen ties with Israel.

However, this represents a shift from Argentina’s usual neutral stance in foreign policy, which could have repercussions. In response to concerns over past terrorist attacks in Buenos Aires linked to Iranian-backed groups, Jorge Macri, the Mayor of Buenos Aires, promptly put a terrorism contingency plan into action.

On Monday the 15th, two days after the attack, the president met with conservative American commentator Ben Shapiro to discuss this and other issues. Primarily, Milei elaborated on his commitment to libertarian policies and explained his decision to move Argentina’s embassy to West Jerusalem. He also shared insights into how his background as a soccer goalkeeper influenced his personality and discussed his stringent economic measures.

Perhaps the reason why Milei is capturing the attention of foreign media is that he secured a spot on TIME magazine’s list of the 100 Most Influential People of twenty twenty-four. He was recognized in the leaders' category as a prominent figure representing the right-wing globally.

TIME describes him as an anarcho-capitalist who vehemently opposes Western socialism, and it’s his rise to power without prior government experience that has drawn considerable interest. Alongside Milei, TIME recognized political figures such as Li Qiang, the Chinese premier, and Ajay Banga, the World Bank president, for their influential roles in shaping global politics and economics.

Shapiro is not the only controversial figure the president met with this past week. He also made his way to Austin to see Elon Musk at the Tesla factory. They discussed their mutual appreciation for free markets and technology’s role in development, while agreeing to hold an event in Argentina to promote liberty ideals. Their discussion also covered ways to diminish bureaucratic obstacles to lure investors, and Milei offered to help Musk with the legal issues his social media platform X, formerly Twitter, is facing in Brazil.

It’s unclear how that would happen, as the president doesn’t have a close relationship with his Brazilian counterpart. In fact, Diana Mondino, the Foreign Minister, is currently working on strengthening those ties. She traveled to Brasilia this week to have discussions with Geraldo Alckmin, Brazil’s Vice-President, and Mauro Vieira, the Foreign Minister, emphasizing areas of mutual interest such as energy integration, particularly regarding gas supply from Argentina’s Vaca Muerta shale formation.

In other news, March saw a slowdown in inflation, with consumer prices rising by eleven percent — a significant decrease from previous months. Over the past year, inflation has surged by almost 290 percent. This data coincides with the central bank’s decision to lower its benchmark rate to seventy percent. Looking ahead, analysts foresee a further decline in April.

The International Monetary Fund, or IMF, is also looking ahead and it has maintained its economic outlook for Argentina, projecting an almost 3% GDP decline in twenty twenty-four and forecasting a slight decrease in inflation to approximately 150 percent.

What’s interesting about the increases in consumer prices is that in less than four months, cross-border shopping trends shifted. The price gap between Uruguay and Argentina, for example, has narrowed substantially, meaning fewer Uruguayans are crossing the border to do their shopping. At the same time, Argentine consumers are seeking more affordable options across the border in Chile. Thousands of Argentines crossed into the country over the Easter weekend in search of cheaper goods, highlighting the widespread acknowledgment that Argentina has become pricey in US dollars.

When it comes to other groups like digital nomads, this situation poses a threat to the country’s tourism revenue. Foreigners who were drawn by Argentina’s previously affordable cost of living, now opt for other destinations.

Amidst the economic situation, beef consumption in Argentina is reaching its lowest level in thirty years. According to the meat industry chamber, Argentinians consumed nearly ten kilograms less of beef per person in the first quarter of twenty twenty-four compared to the previous year. Consumers are now leaning towards cheaper cuts and alternative meats.

Speaking of cuts, the government announced they’re slashing 140 billion pesos (about 135 million dollars) from the Ministry of Health. They’re cleaning house, cutting sixty percent of political staff, axing subsidies for some private health companies, and pulling the plug on contracts with more than 600 consultants. Manuel Adorni, the presidential spokesperson, called it dismantling the “poverty-inducing” state.

The presidential spokesman also announced that the president has decided to stop using commercial flights due to security concerns, particularly related to his pro-Israel stance amidst the ongoing Middle East conflict. This follows the advice from Patricia Bullrich, the Security Minister, who presented a confidential security report outlining potential risks. Milei initially preferred regular flights to cut costs and had previously considered selling the presidential fleet, including the aircraft purchased under the previous administration.

Instead, the current administration finalized a deal to purchase twenty-four F-16 fighter jets from Denmark, valued at around 300 million dollars. Luis Petri, the Defence Minister, traveled to Copenhagen for the signing and praised Milei for guiding Argentina “out of decades of decadence.” While Milei was unable to attend in person due to recent international tensions, he participated via videolink, expressing gratitude to his Cabinet for their support.

The delivery is expected in the coming years, and despite criticisms of defense spending amidst austerity measures, Petri asserts the importance of the acquisition in bolstering Argentina’s air defense capabilities.

Moving on, the General Confederation of Labor, or CGT, Argentina’s largest trade union federation, has announced plans for a twenty-four-hour general strike on the 9th of May. Essential services like transportation, healthcare, and public utilities may be disrupted. Additionally, businesses and workplaces may close or operate at reduced capacity due to the absence of workers participating in the strike.

The CGT also intends to participate in a protest against state university budget cuts on the 23rd of April and the traditional 1st of May march for International Workers’ Day. The reasoning behind the strike is that austerity measures disproportionately affect vulnerable groups. The Labor Secretariat’s refusal to validate wage increases agreed upon in collective bargaining agreements is also fueling the protest.

On that note about the protest against state university budget cuts, the University of Buenos Aires, or UBA, is facing budget problems, leading to significant adjustments. These include measures such as not using air conditioning in buildings, turning off lights during the day, reducing elevator usage, among others. The university’s Superior Council declared a budget emergency, aligning with the upcoming 23rd of April march.

The government is not stepping in there, but they are intervening in private healthcare costs. Since December of last year, the major providers have made excessive increases, averaging 150 percent because of the deregulation of private healthcare under President Milei’s extensive decree. Now, the government is implementing a six-month capping system to reverse the increases.

To end the episode on a positive note, four Argentine films have been chosen for the Cannes Film Festival’s sidebar programs. Federico Luis' Simon of the Mountain competes in Critics’ Week; Hernán Roselli’s Something Old, Something New, Something Borrowed in Directors’ Fortnight; Agustina Sánchez Gavier’s Our Own Shadow in its short films competition, and Iair Said’s Most People Die On Sundays in the ACID section.

Despite the absence of Argentine films in the main competition, the country’s film industry celebrates the international recognition and the resilience of its professionals amid budget cuts.

And that’s it for this week! Thanks for joining us!

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

¡Nos vemos la próxima semana!