(CLO) At Argentina's Ministry of State Reform and Transformation, two thick stacks of documents detailing regulations to be eliminated sit on a table, next to a small statue of President Javier Milei holding a chainsaw – a symbol of his policy of streamlining the state apparatus.
These drastic reforms not only shook the Argentine economy but also attracted the attention of US President Donald Trump and billionaire Elon Musk, who are pushing for a trend of downsizing the federal government in the US.
Under President Milei, Argentina has halved the number of ministries, downgraded agencies such as Education , Culture, and Labor, and reduced the number of public sector employees by 10% last year. A series of "fitness" tests were implemented to determine who would be dismissed. The pass rate for the tests was 96% as of December, easing some concerns.
These measures helped Argentina reduce its fiscal deficit and control triple-digit inflation, but they have not been able to completely solve the problem of poverty, which remains high despite falling by more than 50% last year.
President Javier Milei holds a chainsaw – a symbol of Argentina's policy of streamlining its government apparatus. Photo: GI
Elon Musk and President Milei have met several times in recent months, with the billionaire praising Argentina's policies as a model for the United States.
He shared a video of a discussion with Deregulation Secretary Federico Sturzenegger, calling the measures "great." Meanwhile, the Trump administration, through the Department for Government Effectiveness (DOGE), is also seeking to cut federal bureaucracy in a similar way.
Despite some similarities, the two countries' contexts are vastly different. Argentina is grappling with economic recession, depleted reserves, and massive public debt, while the United States maintains financial stability. Milei lacks firm support in Congress, forcing him to rely on conservative allies to push through reforms.
The Argentine government has eliminated a range of regulations aimed at encouraging competition, from rent controls to taxes on agricultural exports and electric vehicles. At the same time, Milei cut funding for social programs but increased direct financial support for the poor to reduce the risk of protests.
However, this policy also faced opposition. Former Economy Minister Silvina Batakis argued that shrinking the government should not harm the most vulnerable groups. "I support balanced fiscal policy and an efficient state, but that cannot be achieved by taking away medicine from cancer patients or weakening the pension system," she said.
Despite the controversy, Milei has maintained considerable support. According to an Atlas Intel survey in January, 47% of respondents approved of his administration, up from 43% in July of last year. The president maintains that his policies have boosted market confidence and attracted investment, although much of Argentina's recovery still depends on agricultural and energy exports.
In his office, Secretary Sturzenegger points to two thick stacks of documents bound with blue and white ribbons – regulations he believes need to be eliminated or amended. He is using the remaining time in Congress's emergency decree to accelerate reforms, with a countdown clock in his office reminding him that only "161 days" remain to complete the goal.
"Now it's time to bring the chainsaws in deeper," he said. "We'll go through each section and ask, 'What are you doing?' If it's not necessary, we'll close the door."
Ngoc Anh (according to Reuters, ET, Newsweek)
Source: https://www.congluan.vn/chinh-sach-cai-cach-bo-may-nha-nuoc-tu-argentina-cho-den-my-post334220.html
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