Why Milei is spending more money on the Argentine military

Argentina is being hit by bitter austerity as the new president pushes through promised tough spending cuts in an attempt to tackle one of the world’s highest inflation rates.

Entire government departments — including the culture ministry — have been shut down and consumer spending has fallen across the board as Argentines find that their stacks of pesos don’t go as far as they once did. In a clear sign of the times, consumption of beef — raised by the country’s rural gauchos — fell by the biggest margin in three decades in the first quarter of 2024.

Milei is still trying to keep things together in Congress

One area of ​​civil society, however, has not been exposed to Javier Milei’s chainsaw in such a dramatic way. In fact, Milei has not only failed to cut military spending, but has promised to increase the budget for the armed forces from 0.5 percent of GDP to 2 percent over the next decade.

Why would he do this, when his motto has always been: no hay flat (there is no money)? Argentina has no significant or obvious military threats. It is far removed from the wars that engulf Eastern Europe or the Middle East. While it aspires to possession of the Falklands, it—and Milei—has shown no real desire to press its case so forcefully. This is reflected in its paltry military spending: currently the lowest as a percentage of GDP in South America.

The most obvious practical answer is to combat so-called “internal threats” (read: gangs). While Argentina has not suffered as much from drug cartel violence as some of its continental neighbors, serious violence has flared up in recent years in cities like Rosario, which serve as key stopovers on the cocaine route from northern South America to Europe.

Milei’s security minister, Patricia Bullrich, has promised a strong response, perhaps following the example of El Salvador, where “cool dictator” Nayib Bukele used the military to round up tens of thousands of young men, who are still being held without trial. Ecuador has used some of these tactics to stem the rising violence, and Milei may have a similar idea in mind.

Another explanation is simply that Milei wants to restore the Argentine military to its previously prestigious place in society. The political hero Juan Perón, who gives his name to the Peronist movement that has been synonymous with Argentine politics for the past seven decades, was a general, and many other prominent politicians came from the ranks of the military.

But the military also has an all-too-recent dark past. Many Argentines are old enough to remember the years of military dictatorship that only ended in 1983. Many will also remember friends or family members being forcibly disappeared during those years. Independent human rights groups estimate that the junta killed 30,000 political opponents, some of them being thrown to their doom from airplanes in the middle of the night. The public would likely be deeply suspicious of any attempt to use the military for policing.

Meanwhile, Milei is still trying to hold Congress together. His party, a relatively new creation in political terms, has only a handful of deputies, leaving him vulnerable and politically weak. In the latest setback, lawmakers last week approved a triple-digit increase in pension payments to keep pace with runaway inflation. The move puts Milei in the position of being the one to veto payments that many older Argentines say they need to stay afloat. Police clashed with pensioners protesting in the capital this week. The increase would require spending equivalent to a staggering 1.2 percent of GDP, and in a post on X, Milei said the bill’s goal was to “destroy the government’s economic program.”

The spat is a good indication of the scale of the challenge Milei faces in reshaping the country’s finances in his image—or that of the Austrian School economists he idolizes (and named his dogs after). The approach would be a reversal of much of the country’s economic history, and the all-powerful Peronist political machine will be working flat out to thwart him at every opportunity. Ten months into his tenure, the libertarian president is hoping that living standards will rise rapidly to give him a boost ahead of next year’s midterm elections.

Meanwhile, the reality on the streets for ordinary people remains grim. Nearly one in five Argentines live in extreme poverty, according to recent figures. While Milei hopes for an economic revival to boost his hopes of political success, most worry about how to put food on the table. As one of the protesting pensioners told the BBC: “We should be living quietly at home and drinking mate (the drink), instead I have to stay here and defend my income. It’s impossible to live like this.” If you were to ask them about their biggest worries these days, the prestige of the military wouldn’t rank high.

This article was originally published on The SpectatorBritish website.