What happens to a nation when its leaders get in bed with the IMF? In this episode, Steve and his guest Daniel Kostzer look at the case of Argentina under President Javier Milei. Daniel is the Chief Economist of the International Trade Union Confederation.
They discuss the recent legislative wins by Milei's government, which have sparked mass protests and civil unrest in the country. The reform bill passed by the Argentine Senate includes sweeping austerity measures, privatization, and labor rights cuts.
The conversation delves into the factors contributing to the high inflation rate in Argentina, including the country's debt with the IMF, the impact of the pandemic, and external conditions such as the Ukraine-Russian war and drought. Daniel explains that Milei's approach to the economy is characterized by a belief in dollarization.
They also discuss the role of the IMF in Argentina and its pro-market, pro-capitalist ideology. They talk about the historical pattern of accumulation in the country, with a constant pendulum swing between the export-oriented neoliberal model and the industrial autonomous development model. Without a clear resolution of this conflict, Argentina will continue to struggle. However, they also highlight the resilience and fighting spirit of the Argentine society, with a strong union density and a comprehensive system of social protection.
Daniel Kostzer is the Chief Economist of the International Trade Union Confederation (ITUC-CSI) based in Brussels. He was the senior regional wage specialist for Asia and the Pacific at the INWORK Branch (Inclusive Labour Markets, Labour Relations and Working Conditions), International Labour Organization. Daniel does research in Labour Economics, especially wages and income distribution, poverty alleviation, and the linkages with the broad economic issues.
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