NUNZIUM

News That Matters

21/03/2024 ---- 20/04/2024

Since assuming office in November last year, President Javier Milei of Argentina has encountered substantial challenges in his endeavor to drastically reform the country's economy. Milei's ambitious "mega decree," a deregulatory reform package consisting of over 600 articles intended to alter or abolish more than 300 existing regulations, recently suffered a setback when it was turned down by the Senate in a 42-25 vote. However, the decree may still survive as it requires rejection from both legislative chambers to be fully discarded.

President Milei, a self-proclaimed libertarian and "anarcho-capitalist," took office with a commitment to curtail government spending as a solution to Argentina's economic plight characterized by high inflation and rampant poverty. His reform agenda includes a 50% devaluation of the peso, cuts in transport and energy subsidies, and a pause on infrastructure projects. This recent legislative defeat comes on the heels of another setback last month when the "Omnibus Law," another reform package, was also rejected. The Omnibus Law is expected to be revisited in another round of voting after revision.

In a controversial move, Milei has proposed shutting down the public news agency Télam, labeling it a "Kirchnerist propaganda agency." This follows the dissolution of the National Institute against Discrimination, Xenophobia, and Racism (INADI), which Milei criticized as "the thought police" and a haven for "paid political activists." Other public media outlets, including the TV Pública channel, are also at risk of closure. This has raised concerns, especially among smaller news outlets that depend on these services for reliable information.

The proposed reforms have stirred up unrest in Argentina, leading to protests and strikes. Six petroleum-producing provinces have even threatened to halt supplies in response to Milei's funding cuts. Despite domestic opposition, Milei's government has gained international endorsement. The International Monetary Fund (IMF) recently sanctioned a $4.7 billion disbursement to bolster Argentina's reforms, commending the "bold actions" of Milei's administration.

Internationally, Milei has found an ally in former US President Donald Trump. Both politicians spoke at the Conservative Political Action Conference (CPAC) in Washington, echoing Trump's signature MAGA (Make America Great Again) slogan. Trump extolled Milei as a "great gentleman" and a champion of the MAGA philosophy.

Despite domestic and international hurdles, Milei remains steadfast in his austerity measures, which he believes will revitalize Argentina's economy. However, the IMF has revised its forecast for Argentina's GDP in 2024, predicting a contraction of 2.8%, largely due to the anticipated impact of the new government's proposed reforms. As the lower house of Congress commences deliberations on Milei's mega-bill, the future of Argentina's economy hangs in the balance.

In summary, Milei's path to economic reform is riddled with opposition and hurdles, but he remains unyielding. His reform plans' success or failure will undoubtedly mold Argentina's economic prospects and potentially reshape its role on the global stage. As Milei navigates this challenging reform journey, the world keenly observes.

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The Caribbean island of Haiti is currently grappling with a surge in gang violence and political instability. The capital city, Port-au-Prince, has been trapped in a web of escalating violence since February 29, 2024. This turbulence has driven more than 33,000 residents to flee, according to the U.N.'s International Organization for Migration (IOM) report on March 22, 2024. The violence has also resulted in numerous fatalities, left around 17,000 homeless, and facilitated the escape of over 4,000 inmates from Haiti’s two main prisons.

The National Police of Haiti, outmanned and overwhelmed, have been unable to counter the gangs' potent firepower. The violence has reached such a peak that police officers in Port-au-Prince have been unable to receive their salaries for nearly a month. Meanwhile, cities like Les Cayes, Jérémie, and Léogâne in the southern region of Haiti have become a sanctuary for those fleeing the violence, adding to the existing 116,000 displaced individuals who had previously escaped gang violence.

In the political sphere, Prime Minister Ariel Henry has expressed his intention to resign once a transitional presidential council is formed. However, his return to Haiti is currently hindered by airport closures due to the ongoing gang violence. This political instability follows the assassination of President Jovenel Moïse in July 2021, which plunged the nation into a state of flux. The current wave of violence has been particularly destructive, with heavily armed gangs targeting police, state institutions, and even prisons.

Despite the grim circumstances, there are signs of potential relief. A multinational force, led by Kenya, is expected to assist in curbing the gang problem. Furthermore, the establishment of a US-backed transitional council of seven members is reportedly nearing fruition.

Yet, the situation remains dire for many Haitians, as exemplified by the plight of Sarah Molin, a 20-year-old former computer science student. Forced to abandon their home due to the violence, Sarah and her family now live in an abandoned cinema with around 100 other families, devoid of basic amenities like sewerage or running water. Their daily struggle for food underscores the harsh reality for many of Haiti's internally displaced people.

Adding to the crisis, the Bank of the Republic of Haiti (BRH) in Port-au-Prince, one of the few functioning institutions, was recently attacked by a criminal group, leading to at least three deaths. Police are striving to regain control of areas under the control of notorious gang leader Jimmy Chérizier, known as "Barbecue," escalating the violence further.

The international community is closely monitoring the situation, with the United States evacuating embassy staff from Port-au-Prince and planning a rescue flight for remaining US citizens. Other countries like Germany have followed suit, evacuating their embassy staff due to the ongoing violence.

The crisis in Haiti underscores the vulnerability of political institutions and the destructive power of gang violence. As Haiti attempts to reclaim stability, the resilience of its people is being severely tested. The coming weeks and months will be pivotal in shaping the future of this embattled Caribbean nation.

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