The Political Economy of Javier Milei’s Economic Reforms in Argentina: A Multidimensional Analysis

The analysis in this paper centers on the theoretical debate between shock therapy and gradual economic reform, with a focus on the ‘Washington Consensus’ model proposed by John Williamson and the critique by Joseph Stiglitz. The research scrutinizes Argentina’s economic reform trajectory, focusing on the 2001 crisis, Kirchnerist populism, and Levy Yeyati’s ‘reform cycle’ paradox, to underscore the ongoing socio-political costs and inherent challenges of such reforms.This study addresses the theoretical debate between shock therapy and gradual economic reform, focusing on the Washington Consensus model and its critiques. It examines Argentina’s economic trajectory since the 2001 crisis, including Kirchnerist populism and the ‘reform cycle’ paradox, to underscore the socio-political costs of reforms. Aiming to bridge a gap in the literature that overlooks social and political risks in favor of economic indicators, this research employs a political economy framework to assess President Javier Milei’s reforms. It critically evaluates the applicability of shock therapy in Argentina and enhances the understanding of complexities in economic reform processes.