Flashback Friday: The rise of Javier Milei should not be seen in isolation. Here's why

On December 10, Argentina will have a new president. Javier Milei, a maverick Libertarian pitching himself as an outsider, has promised to reimagine the Argentine economy.

The rise of Milei, who has promised extensive privatisation of state-run firms, adoption of the US dollar and the abolition of the central bank, cannot be seen in isolation.

Argentina is worthy of being a case study in economic history. The country's economy has seen the highs and lows that few have experienced since the Industrial revolution.

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Argentina was once among the 10 wealthiest countries before the advent of World War I, thanks to six decades of unprecedented economic growth. In fact, some estimates suggest that Argentina was at par with the United States.

However, long periods of political instability — the country had over 30 heads of state and six military coups between 1930 and 1983 — became the speed-breaker of Argentina's road to economic success.

The five decades following World War I and the Great Depression can be called the lost decades of Argentina. In The Economist's words, the South American country isthe only country in modern history to have "achieved development and then lost it again".

'Argentina Paradox' is now a well studied phenomena in political economy, where an advanced country transitions into a developing country while mimicking a West-like polity.

Critics keep blaming 'Peronism' for much for Argentina's problems in the last eight decades. The term, derived from the political ideas of Juan Peron, who ruled Argentina between 1946 and 1955, encompasses Left-wing populism with a strong tinge of social welfare and economic independence.

Peronists have had a near monopoly over power,winning 10 of the 14 elections held since 1946. Even whenout of power, they have exerted their influence with varied success.

Peronists have been credited for bringing the working class into the economic mainstream, improving their working conditions, and ensuring minimum wages. However, they have been blamed for the poor management of peso, elevated debt levels, and protectionist trade policies which put Argentinian goods at a disadvantage on the global stage.

The critics are not wrong. Their populist policies, aided by weakening checks on power, have hinderedeconomic growth and fueledsky-high inflation. In fact, inflation has now become a hallmark of Argentina's economic mismanagement.

When inflation breaches the roof, it accompanies deep recession. According to the World Bank, Argentina has spent more time in recession than in periods of growth. No other country comes even close to Argentina in experiencing recession.

But it would be wrong to pin the blame of economic mismanagement solely on the Peronists. The economy had performed badly even during the long stints of the military and non-Peronist parties.

In fact, Fernando de la Ruanon, a non-Peronist, was elected President in 1999 — amid an economic depression. But he had to quit in December 2001 after failing to curb the economic downturn. Thus, it won't be wrong to say that Argentina's economic crises are deeply systemic, which cannot be resolved via "quick fixes".

Given Argentina's perennial economic struggles, which canturn the most optimistic economists into pessimists, Milei's victory would not surprise those who closely trackthe country.

People are looking for an alternative to the dominant Peronist way of handling the economy. Milei promises to offer unconventional solutions to Argentina myriad problems. But there is a catch - many of his predecessors tried to break the mould but either failed or became indistinguishable from the Peronists.