Harsh austerity measures aimed at correcting years of fiscal mismanagement are in place. The country led by conservative President Javier Milei is undergoing a dramatic transformation adversely impacting the livelihood of the common people..
Coming down to brass tacks, one has to admit the plight of millions of Argentines struggling to make ends meet. It does not matter much to them that the austerity measures have earned kudos from international markets.
For it is the economically challenged section of the Argentines who have to bear the brunt of austerity measures.. The new policies prioritise restoring state finances over immediate relief for the people. The situation is grave in the low income areas. The rapid rise in poverty is a direct consequence of Milei's policies
Argentine economy is in shambles to say the least. It has little alternative but being medicated with a bitter pill of cutting back on spending. People are working for longer hours. Yet at the end of the day, they are unable to meet the basic needs. This is the human toll of these policies. There is no denying the fact that social fabric of Argentina is fraying as a fallout.
Funding of key social programmes have been slashed. The affected section of the populace blame the Milei dispensation for it though these measures have been initiated at the dictate of the international monetary fund.
One of the projects affected by the belt tightening measure is reaching aid to the poorest of citizens. In the face increasing economic hardship, Child Allowance and Food Card programmes have turned out to be insufficient.
Countless families are in a precarious state. After all, social safety nets which kept the vulnerable population afloat have been withdrawn. The austerity measures were aimed at addressing the national debt and reducing inflation. But the country's recession has deepened post introduction of these measures.
Poverty rate has risen with some signs of stabilisation in the recent months. But it is small comfort to those who have lost their jobs or seen their income shrink as the cost of living sky rocket. Drastic measures are sought to be justified by the Milei government as a fallout of fiscal irresponsibility of previous dispensations. But they cut little ice for the man in the street.
The daily reality of hunger, unemployment and uncertainty look the populace in the face. They are least bothered with the official explanation picturesque though it is which states that Argentina is left with "economic bombs" which need to be deactivated lest bigger problems visit the country's economy.
A balanced approach is the need of the hour. It will be a combination of fiscal responsibility and target social support to help Argentina navigate through difficult waters. There is no denying of the importance of the austerity measures to bring the Argentine economy on the rails. But the present measures appear to be hurting most the poorest rather than the well off people.
Argentina cannot balance its books at the cost of a large section of its marginalized population. The economic recovery must consider the human cost. The economy is for the people. It can never be the other way round. (IPA Service)
ARGENTINA’S REFORM MEASURES HIT THE POOREST PEOPLE SPARING THE RICH
REAL INCOME OF WORKERS DECLINE UNDER CONSERVATIVE PRESIDENT JAVIER MILEI
Tirthankar Mitra - 05-10-2024 10:31 GMT-0000
Better known for the wizardry of its footballers, all is not well with Argentina. Its economic crisis has reached an alarming point with poverty rates expected to surpass 50 per cent. Poverty was higher in the first half of this year coupled with inflation. Health care is costlier and as for economic activity, construction, financial intermediation and trade have recorded steep decline.