Buenos Aires, Argentina – Amid ongoing controversy surrounding Argentine President Javier Milei's radical reform policies, clashes erupted yesterday (the 21st) between protesters demanding pension increases and security forces outside the Argentine Congress, resulting in dozens of injuries. This incident is a snapshot of the weekly demonstrations that have been ongoing for months, protesting President Milei's austerity measures and radical economic reforms. The protests have grown in scale, with not only retirees participating but also labor unions, local civic groups, and even local football fan clubs joining the ranks.

Despite this, the prevailing analysis suggests that the overall support for President Milei among the Argentine public remains remarkably solid. Elected in the 2023 presidential election on the aspirations of a populace weary of extreme economic instability, President Milei campaigned on strict austerity and radical economic reforms. At the time, many observers predicted his policies would face strong opposition in Argentina, where society had already been mobilized due to prolonged economic instability.

However, contrary to expectations, President Milei's approval rating has consistently held firm, and his political moves are showing signs of gaining momentum. In the local elections held last Sunday in Buenos Aires, the far-right libertarian party led by President Milei, 'La Libertad Avanza (LLA),' demonstrated its strength by securing the most votes in traditional strongholds of the center-right.

 
Persistent Protests and Milei's 'Shock Therapy'

President Milei's reform policies have been characterized as intense 'shock therapy' since the beginning of his term. The devaluation of the peso, the abolition of energy and transport subsidies, large-scale public sector layoffs, and the push for privatization of state-owned enterprises were his bold gambits to stabilize the Argentine economy, which had been suffering from severe inflation and chronic fiscal deficits.

These policies inevitably entail social hardship, placing a significant burden, especially on vulnerable groups and pensioners. The weekly protests are a manifestation of this discontent. In March, protests against pension reform escalated, with even Argentina's passionate football fans joining in, leading to more intense clashes with the police. With more than half of pensioners receiving the minimum pension, the pension increase rate failing to keep pace with inflation, and the government's austerity stance are further exacerbating their already difficult lives.

 
The Backdrop to Solid Approval Ratings: Hope for 'New Attempts'

Nevertheless, the unexpectedly robust support for President Milei stems from the deep frustration of the Argentine people and a strong desire for 'change.' Decades of recurring economic crises, chronic high inflation and poverty, and fatigue with entrenched political establishments have led the public to give an opportunity to new alternatives rather than existing political forces.

Indeed, since the beginning of his term, the Milei government has focused on resolving fiscal deficits and curbing inflation through unprecedented austerity measures. Some observers evaluate that these policies are showing positive signs, such as a slowdown in inflation rates in the short term. According to data from Argentina's National Institute of Statistics and Census (INDEC), monthly inflation rates have shown a gradual slowdown. Furthermore, there is also an assessment that visible achievements have been made, such as achieving a fiscal surplus for the first time in 15 years by streamlining government ministries and reducing public sector jobs, thereby increasing fiscal efficiency. The international community, including the International Monetary Fund (IMF), has also generally reacted positively to the Milei government's fiscal policies.

Of course, behind these achievements are severe side effects such as an increase in poverty rates, a rise in unemployment, and a contraction in consumer sentiment. In the first half of 2024, the poverty rate exceeded 50%, reaching its highest level since 2003, raising concerns about the collapse of the middle class. However, the Argentine people, who have suffered economic hardship for a long time, seem to harbor a glimmer of hope that Milei's 'chainsaw reforms,' even if they entail short-term pain, could stabilize Argentina's economy in the long run.

 
The Test of 'Partial Success'

President Milei's extreme libertarian policies are bringing unprecedented changes to Argentine society. Whether his policies will bear successful fruit remains uncertain. The situation so far can be described as 'partial success.' While some progress has been made in curbing inflation and securing fiscal soundness, the social costs that the public must bear in return are also immense.

President Milei is expected to continue to proclaim his strong will for reform, adhering to the stance that 'there is no Plan B.' However, the divided Congress (where the opposition holds the majority) and social resistance he faces could pose significant obstacles to his reform efforts. How long the 'window of opportunity' granted to Milei by the Argentine people will last depends on the actual economic recovery brought about by his policies and the improvement in the quality of life for the public. Argentina's 'far-right libertarian' experiment will continue to unfold under the close scrutiny of the international community.