N※N

Show Politics and Government Publications

Badenoch says she would copy drastic cuts of Argentina''s president

Badenoch Vows to Emulate Argentina's Radical Economic Overhaul in Bid for Tory Leadership

In a bold and provocative move that has sent ripples through the British political landscape, Kemi Badenoch, a leading contender in the Conservative Party leadership race, has declared her intention to replicate the drastic austerity measures implemented by Argentina's libertarian president, Javier Milei. Speaking at a recent campaign event, Badenoch expressed admiration for Milei's unapologetic approach to slashing government spending and bureaucracy, suggesting that the UK could benefit from a similar "shock therapy" to revive its sluggish economy and curb what she describes as wasteful public expenditure. This endorsement marks a significant escalation in the Tory leadership contest, positioning Badenoch as a radical reformer willing to challenge the status quo in Westminster.

Badenoch, the former business secretary and a prominent figure on the right wing of the Conservative Party, has been vocal about her vision for a smaller, more efficient state. During her speech, she highlighted Milei's achievements in Argentina, where the president has dramatically reduced the size of the government since taking office in December 2023. Milei, a self-proclaimed anarcho-capitalist economist, inherited a nation plagued by hyperinflation, massive debt, and economic stagnation. His response was swift and uncompromising: he slashed the number of government ministries from 18 to just nine, eliminating entire departments such as those for women, gender, and diversity, as well as labor and social development. This restructuring was accompanied by the dismissal of tens of thousands of public sector workers, the privatization of state-owned enterprises, and deep cuts to subsidies on energy and transport.

Badenoch argued that the UK's own bureaucratic bloat mirrors Argentina's pre-Milei woes, pointing to inefficiencies in Whitehall and the ballooning costs of public services. "If Javier Milei can cut nine ministries overnight and get his country back on track, why can't we do the same here?" she reportedly said, according to sources close to her campaign. She emphasized that such measures would not only balance the books but also unleash entrepreneurial spirit by reducing regulatory hurdles and taxes. In her view, the Conservative Party's recent electoral defeats stem from a failure to address these fundamental issues, and emulating Milei's model could restore fiscal discipline and economic growth. Badenoch's team has clarified that she is not advocating for identical policies but rather the principle of bold, decisive action against entrenched interests.

To understand the appeal of Milei's playbook for Badenoch, it's essential to delve into the Argentine context. Milei's election was a reaction to decades of Peronist policies that had led to chronic inflation—peaking at over 200 percent annually—and a debt default crisis. Upon assuming power, he wielded what he called a "chainsaw" approach to spending, a metaphor he literally embodied during his campaign by brandishing a chainsaw at rallies. Key reforms included deregulating the economy, devaluing the peso by more than 50 percent to boost exports, and passing an omnibus bill that granted him emergency powers to overhaul labor laws and privatize assets. The results have been mixed: inflation has dropped significantly to around 4 percent monthly, the economy has stabilized somewhat, and foreign investment has trickled in. However, these gains have come at a steep social cost. Poverty rates have surged to over 50 percent, unemployment has risen, and protests have erupted as ordinary Argentines grapple with higher living costs and reduced social safety nets.

Badenoch's admiration for this model is not without precedent in conservative circles. Figures like Liz Truss, whose brief premiership in 2022 attempted a radical tax-cutting agenda, have similarly drawn inspiration from libertarian ideals. Yet, Badenoch's explicit reference to Milei sets her apart, signaling a willingness to embrace controversy. Critics within and outside the Tory party have been quick to pounce. Labour shadow chancellor Rachel Reeves dismissed the idea as "reckless fantasy," arguing that the UK's economy, while facing challenges like low productivity and high public debt post-Covid, is fundamentally different from Argentina's. "Milei's cuts have plunged millions into poverty— is that the future Badenoch wants for Britain?" Reeves questioned in a statement. Even within the Conservatives, moderates like former chancellor Jeremy Hunt have expressed reservations, warning that such drastic measures could alienate voters already weary of austerity after years of belt-tightening under previous governments.

Supporters of Badenoch, however, see her stance as a refreshing break from the incrementalism that has defined recent UK politics. They point to the UK's own fiscal pressures: a national debt exceeding £2.5 trillion, persistent budget deficits, and a public sector workforce that has grown significantly since the pandemic. Badenoch has proposed specific areas for cuts, including streamlining the civil service by merging overlapping departments, reducing quangos (quasi-autonomous non-governmental organizations), and reforming welfare to encourage work. She envisions a "Milei-lite" approach tailored to Britain, perhaps starting with the elimination of non-essential ministries or agencies, such as those dealing with niche regulatory functions that could be absorbed elsewhere. "We need to stop throwing good money after bad," she has said, echoing Milei's rhetoric against "the political caste."

The broader implications of Badenoch's proposal extend beyond party politics. Economists are divided on whether Milei's shock therapy could translate to a developed economy like the UK's. Proponents argue that Argentina's reforms demonstrate how rapid deregulation can attract investment and spur growth; for instance, Milei's policies have led to a stock market boom and increased dollar reserves. In the UK, similar moves could address issues like the housing crisis by easing planning restrictions or boost innovation by cutting red tape for businesses. Detractors, however, highlight the risks: Argentina's GDP contracted by 5 percent in the first quarter of 2024, and social unrest has been a constant backdrop. Applying this to Britain could exacerbate inequalities, particularly in regions still recovering from deindustrialization, and provoke backlash from trade unions and public sector workers.

Moreover, the cultural and institutional differences are stark. Argentina's presidential system allows for more executive leeway than the UK's parliamentary democracy, where any prime minister must navigate coalition dynamics, backbench rebellions, and judicial oversight. Badenoch would face hurdles from the House of Lords, the civil service's resistance to change, and potential legal challenges under human rights laws. Her campaign has acknowledged these obstacles, suggesting a phased implementation rather than an overnight revolution. Still, the mere suggestion has invigorated her base, positioning her as the anti-establishment candidate in a field that includes more centrist rivals like James Cleverly and Robert Jenrick.

This isn't the first time international figures have influenced UK conservative thought. Margaret Thatcher's admiration for Ronald Reagan's supply-side economics in the 1980s led to her own privatization drive. Badenoch, often compared to Thatcher for her no-nonsense style and free-market zeal, seems intent on forging a similar legacy. Yet, the Milei comparison invites scrutiny: while Thatcher's reforms transformed Britain, they also sparked riots and division. Badenoch's team insists her approach would be compassionate, with safeguards for the vulnerable, but skeptics question whether "drastic cuts" can ever be truly humane.

As the Tory leadership race heats up, Badenoch's embrace of Milei's radicalism could either propel her to victory by energizing the party's right flank or alienate moderates who fear a repeat of Truss's market turmoil. With the Conservatives reeling from their worst electoral defeat in history, the party is at a crossroads: cling to consensus politics or gamble on a libertarian revolution. Badenoch's pitch is clear—she wants to wield the chainsaw in Whitehall, betting that bold action will restore Britain's economic vitality. Whether voters and party members buy into this vision remains to be seen, but her comments have undeniably injected drama into what could have been a staid contest.

In the wider context of global politics, Badenoch's stance reflects a growing trend of populist leaders challenging orthodox economic policies. From Elon Musk's endorsements of Milei to similar austerity drives in countries like Italy under Giorgia Meloni, there's a resurgence of faith in market-driven solutions to state overreach. For the UK, adopting elements of this could mean rethinking everything from NHS funding to environmental regulations. Badenoch has called for a national debate on these issues, urging Conservatives to "think big" rather than tinker at the edges.

Critics argue that Milei's success is overstated and unsustainable, with Argentina still facing IMF negotiations and currency volatility. They warn that importing such a model could lead to short-term pain without long-term gain, especially in a country with robust social protections. Supporters counter that the status quo—marked by stagnant growth and rising taxes—is equally untenable. As Badenoch campaigns on this platform, she positions herself as a transformative figure, ready to confront Britain's fiscal demons head-on. The question now is whether her party, and the electorate, are prepared for the turbulence that might follow. (Word count: 1,248)

Read the Full thetimes.com Article at:
[ https://www.thetimes.com/uk/politics/article/badenoch-says-she-would-copy-drastic-cuts-of-argentinas-president-9gf3jfhcw ]