Javier Milei and Argentina’s Reform Trial

Can a basket-case economy escape from a 25-year socialist decline? That’s the drama now unfolding in Argentina, where new President Javier Milei is pushing a big-bang economic reform to make the once-rich nation prosperous again. The political question is whether his reforms can take hold before the public loses confidence in his efforts.

Mr. Milei won a mandate for his agenda with 56% of the vote in November, but his reward is to inherit a bankrupt country. The economy is in recession and more than 40% of Argentines live below the poverty line. Government debt is 85% of GDP and the country owes the International Monetary Fund some $46 billion, making it the fund’s largest debtor.