As libertarian Javier Milei celebrates a year since assuming the Argentine presidency, other countries may be studying his experience closely. Fiscal challenges are a problem that all have recently faced, or will face in the future, and Mr Milei’s brand of heterodox shock therapy offers policymakers with a new perspective on how to balance the books.
At the turn of the 20th century, Argentina was one of the richest countries in the world in terms of per capita income, and the future was bright for the South American state. However, over the course of the past 130 years, it has become the poster child for many economists for how political instability, corruption, and economic mismanagement can precipitate a rapid decline in living standards.
In 2023, Argentina’s public debt was around 100 per cent of its GDP, consumer prices were growing at almost 300 per cent annually, and GDP per capita was approximately at its 2008 level. While these figures – especially the inflation – represented a recent nadir in terms of economic performance, the reality is that Argentina has been struggling economically for decades, with the new millennium alone witnessing three sovereign debt defaults.
Given the historical dominance of left-leaning populists in Argentina’s political landscape, and the cumulative fatigue that the population felt toward the failure of their politicians to deliver economic prosperity, the stage was set for a radical alternative. Mr Milei campaigned effectively, conveying a distinctly libertarian economic plan revolving around deregulation, liberalisation and shrinking government. One year on, he has balanced the budget on the back of a 30 per cent decrease in government spending, inflation has decreased sharply, and the economy is beginning to attract foreign capital.
In 2023, a mere 24 per cent of Argentines expressed confidence in their government, while 73 per cent disapproved. Mr Milei succeeded in raising the first figure to 43 per cent, and shrunk the disapproval rate down to 53 per cent.
Before describing the somewhat jarring way he delivered these improvements, it is worth noting why so much of the world should be paying attention. Up until the early 20th century, orthodox government policy was to balance the budget unless extreme circumstances such as wars arose.
However, following the Great Depression in the early 1930s, economic thinking and political systems changed in tandem, leading to a situation where governments were comfortable perennially realising budget deficits and seeing their public debts rise seemingly without constraint.
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The unsustainability of such arrangements is self-evident, but the negative impacts of ignoring the risks differ in the speed at which they materialise. Countries that were forced to default, such as Greece and Sri Lanka, experienced a loss of confidence in the economy and, with it, rising poverty.
Larger economies, such as Japan and the US, remain in the risky situation of having high levels of debt to GDP but for the time being they continue to be able to kick the proverbial can down the road. In the case of the Gulf countries, the 2014 oil price crash reminded all six a taste of diversifying their fiscal revenues and economies away from hydrocarbons.
Fiscal sustainability has much in common with its environmental cousin: the impact of imprudence is rarely immediate, and it takes a collective sacrifice for success. Humans are not very good at co-operating when the benefits are amorphous and will be reaped many years later, setting the stage for societies to delay the necessary reforms whatever the governing political system.
In Argentina’s case, society’s natural antipathy toward fiscal belt-tightening was overcome by the collective exasperation at previous failures. This allowed Mr Milei to effect radical policies, such as closing 16 out of 24 ministries, curtailing energy and transport subsidies, the elimination of rent controls and the dismissal of 24,000 federal employees. He plans to eliminate 90 per cent of existing taxes and cut an additional 50,000 federal government jobs.
One year on, he has balanced the budget on the back of a 30 per cent decrease in government spending, inflation has decreased sharply, and the economy is beginning to attract foreign capital
For countries – including many in the Middle East, where a great deal of national spending lies in the public sector – there is great value in studying Milei’s experiment, both operationally and in terms of securing the public’s support.
Businesses in the region regularly complain about excessive red tape, sometimes spawned by having a surfeit of ministries operating without a clearly defined mandate. Of course, the risky nature of drastic reforms to public sector spending makes it even more beneficial to begin by closely observing Argentina’s trail-blazing.
The large investments that countries such as Saudi Arabia and the UAE have made in the energy transition demonstrate the government’s ability to overcome disincentives and lead the way in adopting environmentally friendly policies. This bodes well for their ability to make bold fiscal decisions when required, as occurred when Saudi Arabia raised value-added tax from 5 per cent to 15 per cent during the Covid-19 pandemic.
One of the best things policymakers anywhere can do is harvest knowledge from the experiences of other countries. Dramatic moves can offer more acute lessons. In this regard, through his aggressive reforms, Mr Milei is serving not just the Argentine people, but the whole world.
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Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
MEYDAN%20RACECARD
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Killing of Qassem Suleimani
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
KILLING OF QASSEM SULEIMANI
Pakistan World Cup squad
Sarfraz Ahmed (c), Fakhar Zaman, Imam-ul-Haq, Abid Ali, Babar Azam, Haris Sohail, Shoaib Malik, Mohammad Hafeez(subject to fitness), Imad Wasim, Shadab Khan, Hasan Ali, Faheem Ashraf, Junaid Khan, Shaheen Shah Afridi, Mohammad Hasnain
Two additions for England ODIs: Mohammad Amir and Asif Ali
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Killing of Qassem Suleimani
Dubai Creek Open in numbers
- The Dubai Creek Open is the 10th tournament on this year's Mena Tour
- It is the first of five events before the season-concluding Mena Tour Championship
- This week's field comprises 120 players, 21 of which are amateurs
- 15 previous Mena Tour winners are competing at Dubai Creek Golf and Yacht Club
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Mohammed bin Zayed Majlis
The years Ramadan fell in May
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5
The studios taking part (so far)
- Punch
- Vogue Fitness
- Sweat
- Bodytree Studio
- The Hot House
- The Room
- Inspire Sports (Ladies Only)
- Cryo
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SPECS
Mini John Cooper Works Clubman and Mini John Cooper Works Countryman
Engine: two-litre 4-cylinder turbo
Transmission: nine-speed automatic
Power: 306hp
Torque: 450Nm
Price: JCW Clubman, Dh220,500; JCW Countryman, Dh225,500
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
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LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
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if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
Ticket prices
General admission Dh295 (under-three free)
Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free
Buy tickets at: wbworldabudhabi.com/en/tickets
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Six large-scale objects on show
- Concrete wall and windows from the now demolished Robin Hood Gardens housing estate in Poplar
- The 17th Century Agra Colonnade, from the bathhouse of the fort of Agra in India
- A stagecloth for The Ballet Russes that is 10m high – the largest Picasso in the world
- Frank Lloyd Wright’s 1930s Kaufmann Office
- A full-scale Frankfurt Kitchen designed by Margarete Schütte-Lihotzky, which transformed kitchen design in the 20th century
- Torrijos Palace dome
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Oppenheimer
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Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
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Race card
6.30pm: Handicap (TB) $68,000 (Dirt) 1,200m
7.05pm: Meydan Cup – Listed Handicap (TB) $88,000 (Turf) 2,810m
7.40pm: UAE 2000 Guineas – Group 3 (TB) $125,000 (D) 1,600m
8.15pm: Firebreak Stakes – Group 3 (TB) $130,000 (D) 1,600m
9.50pm: Meydan Classic – Conditions (TB) $$50,000 (T) 1,400m
9.25pm: Dubai Sprint – Listed Handicap (TB) $88,000 (T) 1,200m
Zayed Sustainability Prize
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About Karol Nawrocki
• Supports military aid for Ukraine, unlike other eurosceptic leaders, but he will oppose its membership in western alliances.
• A nationalist, his campaign slogan was Poland First. "Let's help others, but let's take care of our own citizens first," he said on social media in April.
• Cultivates tough-guy image, posting videos of himself at shooting ranges and in boxing rings.
• Met Donald Trump at the White House and received his backing.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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Mohammed bin Zayed Majlis
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Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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Cryopreservation: A timeline
- Keyhole surgery under general anaesthetic
- Ovarian tissue surgically removed
- Tissue processed in a high-tech facility
- Tissue re-implanted at a time of the patient’s choosing
- Full hormone production regained within 4-6 months
KILLING OF QASSEM SULEIMANI
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
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A Dog's Journey
Directed by: Gail Mancuso
Starring: Dennis Quaid, Josh Gad, Marg Helgenberger, Betty Gilpin, Kathryn Prescott
3 out of 5 stars
Killing of Qassem Suleimani
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
