Argentina’s Poverty Rate Soars to 52.9% Under Javier Milei’s Government

Argentina’s poverty rate has skyrocketed to 52.9% during the first half of 2024 under the leadership of President Javier Milei. This marks the highest poverty rate since 2003 and reflects a sharp 11.2% increase compared to the previous six months. This alarming statistic was released by Argentina’s national statistics agency on Thursday, shedding light on the growing economic struggles faced by the South American country.

Rise in Extreme Poverty

The number of individuals living in extreme poverty has surged, with an estimated 3 million more people slipping below the extreme poverty line in just six months. The agency calculates poverty by comparing household income against the cost of a basic basket of goods, currently estimated at around R4,628. Argentina’s persistent inflation, though slightly improving, continues to rank among the highest in the world, with annual inflation rates exceeding 230%.

Government’s Stance on Poverty Crisis

In response to the report, Milei’s administration attributed the worsening poverty figures to the economic mismanagement of prior governments, stating that the current leadership had inherited an economy on the brink of collapse.

Presidential spokesperson Manuel Adorni remarked, “The government inherited a disastrous situation. They left us on the verge of becoming a country where nearly all its inhabitants are poor. The best way to fight poverty is, first and foremost, to fight inflation. We are doing everything we can to change this situation.”

Milei’s Austerity Measures and Recession

Since taking office, Milei’s government has implemented a series of austerity measures aimed at curbing the country’s financial crisis. These measures include cutting social assistance programs, freezing the education budget, halting public infrastructure projects, reducing energy and transportation subsidies, and laying off thousands of public workers.

While these cuts have been praised by international markets and the International Monetary Fund (IMF) – to whom Argentina owes R824 billion – they have led to a severe recession. The IMF welcomed the steps as necessary for stabilising Argentina’s finances after years of fiscal deficits, but the social impact has been devastating for millions of citizens.

Public Protests and Calls for Economic Reform

The cuts and deepening recession have triggered mass protests across the country, with thousands of Argentinians taking to the streets in recent months. They are demanding relief from the rising cost of living and more equitable solutions to the poverty crisis.

Sociologist Santiago Coy from the University of Buenos Aires told AFP, “A solution is needed that balances growth with distribution. Only then can we reverse this trend of increasing poverty.”

Despite the growing unrest, Milei’s administration remains committed to its current course of austerity, arguing that long-term economic stability is the only way to reduce inflation and eventually alleviate poverty.

Conclusion

The worsening poverty situation in Argentina, exacerbated by soaring inflation and strict austerity measures, paints a grim picture for the country’s near future. While the government is focused on stabilising the economy, the human cost of these policies has sparked national unrest, with many calling for more inclusive economic solutions. Argentina’s ability to navigate this crisis will depend on striking a balance between economic recovery and social welfare, a task that will test Milei’s government in the coming months.