Milei is the New President & more – 23rd Nov 2023

¡Buenos días from Greenway Parks! This is the Rorshok Argentina Update from the 23rd of November twenty twenty-three A quick summary of what's going down in Argentina.

After a long process that spanned at least three months, the elections are over and the libertarian candidate Javier Milei has won the country’s presidency with nearly fifty-six percent of the votes. This marks a rightward shift for Argentina, prompted by the country’s economic woes, soaring inflation, and a depreciating currency.

His main proposals include plans to cut public spending and taxes, close the Central Bank, replace the national currency with the US dollar, ban abortion, loosen gun laws, and align with nations combating socialism. His victory is seen as a win for the global far-right movement. However, some still argue his rise reflects public demand for big changes rather than a genuine support for right-wing ideology.

Because of these proposals and more, Milei has been compared to figures like Donald Trump, so it’s no surprise he garnered support from prominent right-wing figures in the Americas, including Trump himself, Jair Bolsonaro, and Elon Musk. Trump even draw parallels between Milei’s victory and his own slogan, stating that the new president will “make Argentina great again.” Plus, Milei’s foreign policy, which focuses on “America, Israel, and the free world,” aligns with the interests of the US in countering China’s influence in the region.

Milei will take office on the 10th of December, and in the meantime, he will be meeting with the current president Alberto Fernández to discuss the transfer of power. On Monday the 20th, he welcomed Milei at the Quinta de Olivos presidential residence for a two-and-a-half-hour meeting focused on reviewing the international agenda and initiating the handover of teams. This marked Milei's first visit to the Quinta de Olivos, where he plans to work and reside, breaking from the tradition of using the presidential office at Casa Rosada. The residency is located in the district of Vicente López, which is in the northern suburbs of Buenos Aires.

Someone he hasn’t met with yet is his former adversary, Economy Minister Sergio Massa. News broke on Sunday the 19th that Massa would resign from his post immediately instead of waiting until the 10th of December, but he later dispelled the rumors. In a meeting on Monday the 20th, he named a four-person economic transition team tasked with overseeing the final days of President Fernández’s administration before Milei takes office. He did, however, announce he would retire from politics once the transition period is over.

Speaking of economics, Wall Street expressed mixed sentiments following Milei’s victory. Analysts and investors welcome the potential radical change, but caution about the profound challenges the president-elect faces. US-listed shares in Argentine companies surged, but experts emphasize the need for details on how he plans to reshape the economy.

On that note about challenges, according to the Institute of International Finance (or IIF), Argentina will experience a severe recession next year. The IIF anticipates a one percent contraction in the twenty twenty-four country’s economy, with an unavoidable currency depreciation.

Another challenge is inflation. Milei had already anticipated that his plans to tackle it could take between eighteen and twenty-four months.

Another thing to keep in mind is that Argentina is facing a soy shortage following the worst drought in six decades. Soybean factories are either operating at reduced capacity or shutting down, which translates into fewer exports and a severe economic hit estimated at sixteen billion dollars.

This situation will bring repercussions in the next few months. However, there may be light at the end of the tunnel. The agricultural sector is anticipating a strong rebound for the twenty twenty-four season, reaching a 150% increase in production. The optimistic outlook is based on improved weather conditions, which are crucial for addressing inflation, food prices, poverty, and replenishing foreign reserves.

Also on the topic of business, the energy firm YPF, state broadcasters TV Pública and Radio Nacional, and the Télam state news agency are facing imminent changes. Argentina’s president-elect has confirmed his plans to privatize them all. He said this has to do with an economic reform, but he also criticized these companies for being biased and for spreading propaganda, which may have something to do with his decision.

Someone who’s not happy with the results of the election is Lula Inácio da Silva, Brazil’s president. He said he would not attend Milei’s inauguration following the presidential runoff results, stating that he felt personally offended when Milei called him a “thief” and an “angry communist.” The Brazilian Minister of Social Communication demanded an apology from Milei. In the meantime, the neighboring country will send representatives to the inauguration but not the head of state.

From burning bridges to building them, the Inter-American Development Bank has given the green light for two loans totaling almost one and a half billion to finance the construction of a new bridge that will connect the provinces of Chaco and Corrientes. The project aims to benefit nearly 900,000 residents in the area, with 90,000 people expected to use the bridge daily.

Back to the topic of Brazil, Argentina’s National Football Team secured a 1-0 victory against the neighboring country in their very own Maracaná stadium in Rio de Janeiro on Tuesday, the 21st. As part of the twenty twenty-six World Cup qualifiers, this was the last match of the year and represented both a crucial and historic win. In over fifty matches played on home soil, Brazil had never lost in the qualifiers. Plus, Argentina welcomed the win after losing against Uruguay the previous Thursday.

Unfortunately, the kickoff for the match against Brazil faced a thirty-minute delay due to disruptions during the anthems. The Brazilian fans met the Argentine anthem with jeers, sparking heated arguments with the few Argentine fans on site, which led to a harsh police response. In solidarity, the Argentine players intervened to protect fans who were being beaten up by the police and then temporarily left the field as a means of protest.

In the end, the match took place and Argentina now tops the standings with fifteen points, while Brazil sits in sixth place with seven points. For the first match in the next round in twenty twenty-four, the national team will face Chile.

That said, the post-victory bliss was tarnished by the coach’s statements. In a surprising turn of events, Lionel Scaloni hinted that he might step down from his role, stating that he needs to think about what he’s going to do, as the team needs a coach with all possible energy. He expressed gratitude to the players but noted the challenges of maintaining the high standards. The unexpected revelation left both players and officials uncertain about Scaloni’s future with the team.

Moving on, the Argentine producer Bizarrap snagged three trophies at the Latin Grammys. With six nominations, he won the Best Urban Song award for his hit with Spanish artist Quevedo, and both the Best Pop Song and the prestigious Song of the Year awards for his collaboration with Shakira. Other Argentine winners included Dante Spinetta for Best Alternative Song, and the Astor Piazzolla Quintet secured Best Tango Album.

Speaking of music, Buenos Aires is gearing up to become the pop-rock capital this month with a star-studded lineup including Roger Waters, The Cure, Pet Shop Boys, Blur, Pulp, Beck, and Red Hot Chili Peppers gracing the city’s stages. The return of Red Hot Chili Peppers coincided with the Primavera Sound festival, which is taking place this weekend, on the 25th and the 26th of November.

For a while, Roger Waters’ performance was in question due to an issue with the hotel hosting him and his team in the city. After the musician’s declarations against Israel, the Faena and Alvear hotels refused to host him, which meant he had to fly in from Brazil. In Waters’ words, this was a boycott against him organized by the Israeli lobby.

Before we go, remember that another holiday is coming up in two weeks. The 8th of December marks Immaculate Conception Day, a catholic holiday that is a public one as well.

And that’s it for this week! Ads are the villains in podcasts, be the hero and save the audience from listening to a mediocre ad about a beverage you won’t try. So go ahead and tell your friends about us!

Remember you can also help us financially by making a donation with the link in the show notes. We would really appreciate it.

¡Nos vemos la próxima semana!