Milei Triumphs In Argentina Alongside His Free-Market Agenda
Despite recent economic challenges, Argentinian President Javier Milei maintains strong support, notably among the youth and middle class, fueled by a consensus that a return to previous radical leftist populist policies would lead to further economic disaster. this support is coinciding with demonstrable improvements in key economic indicators and a shift in the regional political landscape.
According to the recently released International Property Rights Index, Argentina has considerably improved its protection of property rights, climbing 11 positions from 95th place in 2023 to 84th in 2025. This progress is occurring alongside numerous reforms undertaken by Milei’s administration,which are reshaping the historically unionized argentine economy.
The government has implemented a historic 30% reduction in public spending in real terms (equivalent to 5% of GDP), undertaken state reforms, and pursued economic normalization and deregulation. These measures have driven down annual inflation from 211.4% in 2023 to 31.8% by September 2025. Furthermore, Argentina has achieved both primary and fiscal surpluses, alongside a 6.3% year-over-year growth rate in the second quarter of 2025, signaling a “V-shaped” economic recovery.
These economic improvements are translating into social gains. The poverty rate has fallen from 52.9% to 31.6%, and the extreme poverty rate has decreased from 18.1% to 6.9%, lifting 3.3 million people out of extreme poverty. While challenges remain, the stabilization plan is largely considered successful, and the economy is trending towards sustained normalization and growth. This progress has been recognized by international credit rating agencies,with Moody’s upgrading Argentina’s credit rating from Caa3 to Caa1.
this shift in Argentina mirrors a broader trend across Latin America, suggesting the decline of the twenty-year wave of leftist governance. Recent events, including the awarding of the Nobel Peace Prize to Venezuelan opposition leader Maria Corina Machado and the victory of centre-right candidate Ricardo paz in Bolivia, point to a regional rejection of “Socialism XXI º Century” – a wave of authoritarian-populism and radical socialism initiated by Hugo Chavez in 1998 and subsequently supported by leaders like Rafael Correa in Ecuador, Evo morales in Bolivia, and the Kircheneristas in Argentina until 2023.
The upcoming electoral cycle in Chile, with a vote scheduled for November 16th, further illustrates this trend. Conservative candidate Jose Antonio Kast currently leads polls among center-right candidates with 23%,positioning him favorably against communist candidate and former Minister of Labor jeannette Jara in a potential run-off. A victory for Kast could usher in a new political cycle in Latin America focused on economic liberalism, open markets, and subsidiarity policies, potentially increasing the region’s competitiveness and integration into the global economy. The emerging political narrative across Latin America appears to be centered on “pupulismo nunca mas” (no more populism), prioritizing economic freedom, rule of law, accountability, property rights, and prosperity.
