Argentina’s economic shock therapy Milei’s austerity policies and the road ahead

Argentina’s political and economic landscape has oscillated between neo-liberalism and neo-developmentalism over the past two decades, each model failing to deliver sustained prosperity (Öncü 2024). After the 2001 economic crisis under neo-liberal policies, the country shifted to neo-developmentalism under Néstor and Cristina Fernández de Kirchner. This approach emphasised state intervention, social inclusion, and capital controls, aiming to foster economic growth and reduce inequality. Argentina experienced significant economic growth during the earlier years of the Kirchner governments, achieving average annual growth rates of 8.8% between 2002 and 2007 and 6.3% between 2002 and 2011, driven by neo-developmentalist policies. However, the model’s inability to address structural challenges, coupled with external shocks, led to its eventual decline.