Public Debate: Latin America in a Changing World Order

The Liberal Institute and the Strategeo Institute held a public debate at Anglo-American University, called “Latin America in a Changing World Order”. They discussed power dynamics in Latin America, international relations, natural resources and their global importance, economic reforms, and related issues.

Panelists who spoke at the debate included: Jiří Schwarz, President of Anglo-American University in Prague; Lourdes Daza Aramayo, Director of the Latin American & Caribbean Business and Studies Center; Roman Joch, columnist and Director of the Civic Institute; Jakub Kuneš, economist and Director of the Liberal Institute; and Ivan Pilip, former Minister of Finance and Director of International Relations at Casla Institute.

You can find a photo report of the event here.

Lourdes Daza Aramayo commented on Javier Milei’s “Chainsaw” Reforms, published by Hospodářské Noviny in Czech. Below is the full article translated into English:

Relations between the Czech Republic and Argentina have significantly intensified in recent years, and the phenomenon of Argentine President Javier Milei has become a symbolic expression of this rapprochement. It is within this context that Argentina’s transformation over the past two years deserves particular attention.

When Javier Milei took office in December 2023, deep skepticism prevailed among economists and political analysts. The radical “shock therapy” that the new president openly promised was seen by many as politically unsustainable and socially explosive. Two years later, however, it is clear that Argentina has undergone extraordinarily rapid macroeconomic stabilization that has fundamentally transformed not only the internal functioning of the economy but also its international standing.

The most visible success of the Milei administration is the taming of the chronic inflation spiral. From a dramatic 211% in 2023, thanks to drastic budget cuts symbolically referred to as the “chainsaw” policy, annual inflation was reduced to around 30% in 2025. The key lay not only in the figures themselves, but in a change in the mechanism: the state stopped financing spending through monetary issuance and disrupted the long-standing fiscal dominance over monetary policy.

In 2025, the government achieved a primary budget surplus exceeding 1% of GDP, and after a deep recession in 2024, the Argentine economy returned to growth. This trajectory follows the typical pattern of stabilization programs: a short-term contraction and correction of price distortions, followed by a gradual recovery in private-sector expectations and confidence. However, stabilization alone does not guarantee long-term development. That will depend on investment, productivity gains, and institutional certainty.

The transformation, however, was not painless. In the first phase of the reforms, poverty rates rose sharply, and social tensions intensified. Although the situation has gradually stabilized, the standard of living of a significant portion of the population remains low and precarious. From a political economic perspective, it is, therefore, crucial that this course acquire democratic legitimacy: the parliamentary elections in October 2025, in which the La Libertad Avanza coalition won more than 40% of the vote, suggest that a substantial segment of society views short-term sacrifices as the necessary price for restoring economic rationality.

Milei’s shift is not confined to the domestic economy. Equally significant is the transformation of Argentine foreign policy. The country has moved away from long-standing Peronist isolationism and aligned itself clearly with the Western world. Argentina has strengthened ties with the United States and Israel, and President Milei has announced plans to relocate Argentina’s embassy to Jerusalem. Consistent with its vision of an open economy, Argentina is also pursuing OECD membership, which could serve as an important institutional anchor for reform.

From a Czech perspective, this geopolitical and values-based shift is highly significant. Under Prime Minister Petr Fiala and President Petr Pavel, the Czech Republic has become one of Argentina’s closest European partners and actively supports its OECD candidacy. A symbolic expression of this closeness was Milei’s visit to Prague in June 2024 at the invitation of the Liberal Institute and Anglo-American University, during which he met with senior state representatives and received the annual award of the Liberal Institute. The visit also included the signing of a memorandum of cooperation, including in the field of defense.

Milei also openly embraces the legacy of Václav Havel and sees the Czech Republic as an inspiring example of successful post-communist transformation. He expressed this value dimension in a letter he sent to the Liberal Institute at the turn of 2025 and 2026. In it, he called on Czech society to continue defending freedom as the foundation of human development, human dignity as an inalienable natural right, and capitalism as the moral and economic system underpinning Western civilization.

“I therefore call on you to continue this mission, which unites our countries and strengthens the spirit of every prosperous and free society,” said the Argentine President in his dedication, sent through the Embassy of the Argentine Republic.

Read in a broader context, this appeal is not mere rhetoric; it is the key to understanding Milei’s project.

Economic stabilization, geopolitical reorientation, and a renewed commitment to liberal values form a coherent whole: an effort to return Argentina to the ranks of countries whose prosperity rests on solid institutions, fiscal responsibility, and respect for individual freedom. Whether this ambitious project can ultimately succeed will depend on the next phase: the ability to translate macroeconomic stability into long-term, socially sustainable development.

The author is the director of the Latin American & Caribbean Business and Studies Center at Anglo-American University in Prague.