Eduardo Gamarra Americas Insights

Supporting Fragile Reformers: Why Washington Must Stand with Milei — and with Bolivia’s New President By Eduardo A. Gamarra As Argentines head to the polls this Sunday, the future of President Javier Milei’s bold economic plan hangs in the balance. Elected on promises to rescue Argentina from persistent inflation and political deadlock, Milei has inherited one of the country's worst financial crises in modern history. His “shock therapy” strategy—rapid austerity, deregulation, and pursuit of dollarization—aims to fix decades of fiscal mismanagement. But as the midterm elections approach, Milei faces a tough choice: without widespread political support, even the clearest stabilization plan may fail. Milei’s problem is not with ideas but with governability. His coalition, La Libertad Avanza, holds only a minority in both chambers of Congress. Although he has some alliances with center-right groups, he still needs to negotiate with a hostile Peronist opposition that has blocked or eve...