Spotlight on Argentina's bold economic reforms

Five years of action research into Argentina’s economy by Professor Héctor Rocha of IAE and Dominic Houlder, Adjunct Professor of Strategic and Entrepreneurial Management at LBS, highlights the country’s ambitious reforms under President Javier Milei. The administration is shifting from a consumption-driven, state-supported economy toward export-led growth, productivity, and private investment. Key measures include fiscal stabilization, deregulation, and labor reform aimed at reducing hiring risk, expanding formal employment, and restoring credibility with global investors.

Strategic sectors show mixed outcomes. Agro-industrial exports, lithium, and shale gas have boosted output and revenues, but employment gains remain modest due to mechanization and capital intensity. The knowledge economy has shown resilience, while domestic-demand sectors, manufacturing, and construction have contracted, raising unemployment concerns.

Rocha and Houlder argue that long-term success depends on ecosystem collaboration across firms, universities, regional governments, and institutions, turning capital-intensive growth into broader social and economic benefits. Historical lessons, such as the Malbec wine industry’s transformation, highlight the value of coordinated innovation, skills development, and trust-building for sustainable development.

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