ARGENTINA: Venezuelan elections repercussions & more – 1st Aug 2024

¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 1st of August twenty twenty-four. A quick summary of what's going down in Argentina.

We kicked off the week with news of the Venezuelan elections, which made waves across Latin America, especially in Argentina, which is home to a large Venezuelan community. In Buenos Aires, thousands gathered outside their embassy, hoping María Corina Machado, the opposition leader, would clinch victory. Instead, they were disappointed as Nicolás Maduro claimed the win.

After the news broke, President Milei took to TikTok to call out Maduro for alleged election fraud. In his video, Milei criticized socialism as a harmful and impoverishing system and urged Venezuelans to keep fighting for freedom and prosperity. During his celebration, Maduro lashed out at Milei, calling him a cowardly traitor and mocking his appearance.

Officially, the Argentine government rejected the election results, condemning Maduro’s actions and calling for a comprehensive review by independent observers to ensure the vote reflects the people’s will. Milei’s administration also instructed the Argentine diplomats in Caracas to abstain from the official proclamation of Maduro’s victory.

On the topic of ex-pats, the province of Mendoza has become the second Argentine province to start charging foreign nationals for medical care in public hospitals, following Salta. According to the new regulation, non-residents, defined as foreign nationals with temporary or provisional residency, will need to cover their medical expenses, which they can later claim from their home country’s health system. Salta’s experience shows a significant drop in foreign patients, with a ninety percent reduction in visits from Chilean, Paraguayan, and Bolivian nationals. This measure aims to reduce healthcare costs.

If you are a temporary resident, one thing you can do is open a bank account. In fact, the Buenos Aires Herald news outlet published an article that explains how to do so. The Central Bank’s guidelines state that foreigners with the right documentation—like a passport, Mercosur Identity Card, or DNI—should be able to open an account. However, actual experiences vary, with some foreigners only succeeding after showing additional paperwork or trying with different banks and branches. To read the article, follow the link in the show notes.

Speaking of the Central Bank, Fitch, the credit rating agency, has warned that Argentina is likely to default on its foreign currency bonds despite government assurances to the contrary. The credit rating agency pointed to increasing uncertainty about financial stability, especially after some of Argentina’s gold reserves were moved abroad. The agency expressed doubts about the effectiveness of Economy Minister Luis Caputo’s plans and noted that recent policy changes could make it harder for Argentina to regain access to global capital markets.

At the Argentine Rural Society Annual Exhibition in Buenos Aires, President Milei assured rural producers that all export taxes would eventually be eliminated, asking them to be patient as his economic plan takes time. He praised producers for their contributions, calling them “heroes who feed 500 million people.” He also promised to lower the PAIS tax, a surcharge applied to foreign currency exchange operations, in September and eliminate it by December.

From agriculture to fuel, the state-owned energy company YPF has decided to invest a massive thirty billion dollars in a liquefied natural gas plant in Sierra Grande, Río Negro, instead of Bahía Blanca in Buenos Aires. YPF cited several reasons for choosing Río Negro, including shorter gas pipeline distances from the Vaca Muerta shale patch, better maritime conditions for shipping, and ample available land with minimal interference from other economic activities. However, Axel Kicillof, the governor of Buenos Aires, reacted strongly to the decision, saying this was a politically motivated decision and claiming that Milei’s administration prioritizes ideology over production and jobs.

In other news, the government announced the creation of a new agency called the Artificial Intelligence Unit for Security to enhance the prevention and investigation of cybercrimes. Using AI, this unit will monitor social media, apps, websites, and the deep web to investigate crimes and identify threats. It will also use facial recognition, machine learning algorithms, and drones for surveillance, analyze security camera footage, and process large data volumes to profile suspects and detect patterns.

Ironically, the Buenos Aires Province has fined the Worldcoin Foundation, founded by Sam Altman, the CEO of OpenAI. This organization is a cryptocurrency project that uses iris scans for identity verification to distribute its digital currency globally. The BA province accused them of mishandling this biometric data and violating local laws, including inadequate protection of sensitive data and predatory contract clauses. Worldcoin argues the fine is based on misunderstandings and plans to appeal.

We just came out of the winter break and the country saw a noticeable economic downturn, with spending down 22% from last year. According to the Argentine Confederation of Medium-sized Enterprises, despite nearly five million tourists traveling, people stayed for shorter periods, averaging four days. While ski resorts remained popular, other activities like cultural events saw lower attendance. Buenos Aires had a 10% drop in tourist numbers, and Bariloche, a top winter destination in the South, saw hotel occupancy fall to 70% from 95% last year.

You know what’s not seeing any drop in occupancy? Therapists’ couches. The French newspaper Le Monde published an interesting article in English that dives into Buenos Aires’ exceptionally high concentration of therapists. With more psychologists per capita than anywhere else in the world, mental health care is deeply ingrained in daily life. Plus, the article describes how therapy and psychoanalysis are integral to the city’s culture, even influencing popular media. Check out the link in the show notes!

Since we’re talking about Le Monde, we have some news from Paris. On Wednesday the 31st, José “Maligno” Torres claimed a gold medal in BMX Freestyle, marking Argentina’s first medal of the tournament. The twenty-nine-year-old athlete delivered a remarkable first run, surpassing competitors from Britain and France.

Also, Argentina’s women’s hockey team, Las Leonas, won all three of their group-stage games and secured their spot in the quarterfinals. In men’s tennis, Sebastián Báez was knocked out of the tournament in the round of sixteen, and Francisco Cerúndolo is now the only remaining Argentine in the singles competition. In the 10m Air Rifle final, Julián Gutiérrez, a twenty-three-year-old shooter from the Catamarca province, made waves by breaking Argentine and South American records and finished in eighth place. Despite not medaling, his performance was impressive.

A match that made the headlines was the men’s sub-twenty-three football debut against Morocco, which ended in a draw overturned almost two hours later. The Argentine team came back from a 2-0 deficit and scored a controversial equalizer in added time, but the organizers disallowed the goal after the game was suspended due to a pitch invasion and fireworks. The Argentine Football Association is set to lodge a formal complaint with FIFA’s Disciplinary Committee.

One thing to keep in mind before we wrap up is that the national government has extended the registration deadline for the Social Tariff for electricity and gas subsidies until the 4th of September. Make sure to sign up if you want to keep getting financial help, or your bill could increase significantly. If you’re unsure whether you qualify, don’t worry. Visit the government’s website or use the Mi Argentina app to apply, and you’ll get all the information you need. A quick tip: If you think you’ve already filled out this form but it's been a few months, choose the option to edit the application and fill it out again. That’s the best way to ensure you’re considered for this round.

Last but not least, Time magazine has named a Buenos Aires hotel and a destination in the Corrientes province among its World’s Greatest Places twenty twenty-four. The hotel, Casa Lucía, is located in the historic Mihanovich building on Arroyo Street. Time praises Casa Lucía for its blend of past and present Argentine creativity and its nod to the capital’s maritime history. The destination, Esteros del Iberá in Corrientes, is highlighted for its vast freshwater reserve and diverse wildlife. The magazine also applauds the successful efforts of the Rewilding Argentina Foundation in reintroducing the jaguar, which has inspired conservationists worldwide.

Aaand that’s it for this week! Thank you 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, the Ocean Update, about the 70% of the earth covered in salt water, and the Multilateral Update about all 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 to see the full list and find the link in the shownotes as well.

¡Nos vemos la próxima semana!