Argentina's new ** Milley quickly took a series of actions after taking office, including cutting half of the ** departments and cutting public spending. Through these measures, he tried to reform the institutional system and reduce fiscal spending. However, he faced a number of significant challenges.
The first challenge is his relatively weak support in Congress. Despite his election victory, the party he created had limited seats in Congress. His major economic reform policies required congressional support to be implemented. Thus, despite Milley's strong desire for reform, it remains to be seen how much he will be able to achieve.
The second challenge is that his initiatives could lead to the loss of a large number of public officials. In addition, he plans to cut various economic subsidies and drastically reduce expenses. These actions could harm the interests of the working class, especially the Argentine people at the lowest level. Historically, Argentina has had a fierce tradition of street politics, and Milley's series of radical policies could trigger mass demonstrations and even social unrest.
The third challenge is that Milley's reforms will require significant external capital support, especially in the US dollar. However, Argentina is currently facing a serious debt problem and its foreign exchange reserves are close to negative. The International Monetary Organization**, the United States** and the American consortium are cautious about lending to Argentina. Milley wants to seek more U.S. support, but Argentina is not an important partner for the U.S. As a result, Milley needs to face the dilemma of external funding.
Milley took office at a time when Argentina was facing a severe economic crisis. Over the past 12 months, the cumulative inflation rate has reached 1427% and a poverty rate of over 40%. At the same time, Argentina is also facing a debt crisis, with a debt to the International Monetary Organization** already exceeding $44 billion. In his inaugural speech, Milley made it clear that Argentina needed to make a major adjustment because the country did not have enough money to solve the current economic problems.
The "economic shock**" announced by Milley is actually an approach to radical economic policies aimed at reviving Argentina's economy through spending cuts and institutional reforms. However, this practice is not without risks and uncertainties.
First, Milley's reforms need the support of Congress, where his party has limited seats. This means that he may not be able to move forward smoothly with reforms, and may even face opposition and resistance.
Second, cutting half of the institutions and cutting various economic subsidies could lead to massive unemployment and social discontent. Argentina has a rich tradition of street politics, and people tend to have a strong stance on the reform policies of the country. If the policy causes large-scale social unrest, it will bring greater uncertainty to Argentina's stability and development.
In addition, Milley will need to enlist the support of external capital in order to implement the reforms smoothly. However, he faced certain difficulties in obtaining international funding. Without adequate external funding, the process of implementing reforms may be limited.
Economic shock** is an economic policy that combines both risks and opportunities. In Argentina's current economic woes, major reforms are necessary, but they also need to be implemented carefully. Milley's challenges are not to be underestimated, and he needs to find a balance between politics, economics, and society.
Historically, similar shocks** have been successful in some countries, effectively driving economic recovery and development. In other countries, however, such policies have exacerbated social tensions and economic hardship. The success of Milley's reforms remains to be seen by time.
It is worth mentioning that Argentina's economic development not only relies on the best reform policies, but also requires the efforts and cooperation of the whole society. ** While reforming, we should strengthen investment in education, innovation and science and technology to promote industrial upgrading and sustainable development.
Finally, it is hoped that Milley will provide strong leadership and decision-making to effectively address Argentina's economic challenges. The stability and prosperity of the Argentine economy can only be achieved if the people work together.