IMF-backed austerity reforms feed industrial action in Argentina
Protests are expected in Buenos Aires today over the Argentine government’s non-renewal of 15,000 contract jobs.
This decrease in public employment comes soon after an IMF report, which recommends reduced government spending and increased privatization. The report is largely in line with President Mauricio Macri’s recently implemented conservative policies, which aim to reinvigorate the country’s economy.
Among these is last month’s pension reform, which increased the retirement age to 70 and is estimated to save the government $3.2 billion next year. Macri also attempted to weaken the country’s unions in the hopes of attracting foreign investment. Now, as the administration cuts government employment, protesters will march again.
As austerity reforms are employed in the coming months, expect protests to continue. However, Argentina’s economy is swiftly recovering and the president’s policy changes have strong international backing. Barring a significant escalation in unrest, Macri is likely to stay the course and continue his push for economic liberalisation.
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