Since the late 80s of the 20 th century, Argentina began to carry out economic opening reforms, joined the WTO, and successively implemented several rounds of economic restructuring. In the early days of the reforms, some results were achieved, GDP was increased, and inflation was brought under control. But in the 21st century, the Argentine economy began to decline. Government fiscal imbalances, high external debt, and runaway inflation have led to multiple debt defaults and financial crises. Despite several government adjustments to seek stability, the Argentine economy has struggled to emerge from the gloom.
In this context, the social disparity between the rich and the poor is becoming increasingly serious, the middle class is shrinking, and the people at the bottom are living in difficulty. According to the World Bank, Argentina's per capita GDP in 2020 was only 13,000 US dollars, accounting for about one-third of the level in Europe and the United States, and it is on a downward trend. Inflation has severely eroded the purchasing power of households, particularly on fixed income earners. At the same time, the government's fiscal austerity has led to insufficient investment in education, health care and other areas of people's livelihood. These factors have led to the accumulation of social contradictions and a decline in people's sense of gain.
During the Fernández administration, the Argentine economic situation continued to deteriorate. The impact of the pandemic shrank GDP by 9.9% in 2020. Unemployment remains high, and inflation has soared to a high of 76.6%. The Fernández government has tried to stimulate the economy by means such as import restrictions, but it has had little effect, and the pressure on inflation to rebound is still strong. At the same time, due to the lag in public sector salaries, various industries have launched large-scale strikes to demand higher wages. These factors have exacerbated the pressure on people's lives.
In November 2023, widespread protests erupted in Argentina. The demonstrators demanded that the government tackle inflation, correct economic imbalances, and reduce social inequality. The scale of the protests was unprecedented, leading directly to Fernández's early handover. The new president, Milley, is facing a severe test of economic and social structural reform. How to balance the interests of all walks of life and stabilize people's livelihood will have a direct bearing on the overall development of Argentina.
To sum up, Argentina is currently facing a long history of economic and social difficulties. Although progress was made in the early stage of reform and opening up, the lack of a long-term development strategy led to the continuous deterioration of economic imbalances and the accumulation of social contradictions. To defuse the crisis, it is necessary to systematically promote reforms and adjust the economic structure, while focusing on people's livelihood and social equity. This requires the government to work together with all sectors of society to achieve social consensus. It is hoped that Milley's new policy will conform to this historical trend and lead Argentina to tide over the difficulties and embark on the track of sustained and healthy development.
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