Former Economy Minister, Paulo Guedes, from the government of former president Jair Bolsonaro (PL), congratulated the libertarian candidate Javier Milei on his victory in the presidential elections in Argentina last weekend. The economist highlighted his appreciation for someone who “embraces the values of freedom”, including representative democracy, the rule of law and the market economy.
Guedes, known for his pro-market positions, highlighted that a libertarian leader understands that prosperity comes from free enterprise and entrepreneurship, not from state intervention in the economy. The former minister noted that Milei inherits a country impoverished by decades of “dirigista governments that closed the economy to the world”.
“The uncontrolled increase in public spending has produced endemic inflation, snowballing debt, a dramatic increase in poverty and a profound erosion of Argentina’s enormous economic potential,” he said on social media.
Guedes states that Argentina’s stabilization, after years of economic challenges, will require not only economic changes, but also a debt renegotiation. The economist highlighted the need for coordination between monetary and fiscal reforms, citing that the measures could result in a solid recovery of the national economy.
“The empirical evidence of successful and decisive anti-inflationary efforts records a rapid stabilization of prices and the exchange rate, followed by the resumption of investments, a recovery in economic activity and a commercial reopening,” he wrote.
Like Guedes, Milei is a supporter of the policy of reducing the size of the State, with the privatization of state-owned companies and reform of the social benefits system.
However, the new Argentine president goes further and preaches, among other solutions, the end of the Central Bank, the dollarization of the economy and criticism of Mercosur’s actions – he intends to establish bilateral relations directly with other countries instead of the commercial bloc.