Presidential hopeful vows to overhaul Argentina's economy

Argentine presidential hopeful Patricia Bullrich would swiftly implement economic reforms if elected president in October.

“Our idea is that we will have to tackle these reforms from the beginning to establish the conditions for economic growth with a couple of key structural reforms that will try to promote investment, employment and deregulation,” Luciano Laspina, a senior economic adviser to Bullrich’s campaign, told a webinar hosted by the Wilson Center.

Laspina said the key lesson from the Mauricio Macri administration (2015-19) – in which Bullrich served as security minister – was that structural changes can’t be delayed. 

Bullrich’s economic program would focus on lifting capital controls, reducing public spending and fighting inflation.

Laspina said the Juntos por el Cambio coalition has potential to win the presidency and control of both legislative chambers, which would mark the first time since the return to democracy that a non-Peronist party gained a majority in either.

One proposal entails central bank reform to ensure independence from political intervention, prohibiting the institution from transferring funds to the treasury, and banning capital controls.

Abandoning capital controls was key, Laspina said, adding that although they are unconstitutional in countries like Chile, Bullrich wouldn’t open the Pandora’s Box of constitutional reform. 

“Capital controls … basically mean the default of the currency,” he said, alluding to erratic exchange rates, which led to the emergence of parallel markets. 

The Bullrich campaign was also drafting an investment protections bill with tax incentives for projects over US$180bn, according to Laspina.