In November, we discussed here the case of the former president of Estonia, Mart Laar, who at the age of 32 took on the challenge of transitioning from an authoritarian political system with a communist economy to a liberal democracy with a market economy. Laar was able to lay the foundations for a successful transition in just two years, having what is essential in leaders who succeed in making important changes: clarity of purpose and determination to implement the necessary measures.

Leaders can be effective in bringing about important changes for the fortunes or misfortunes of the country. In the case of Ecuador, not so long ago we had a leader with clarity and determination in Rafael Correa. It is a pity that his goal was not to achieve a society of free and responsible people, but an authoritarian project that revolves around his figure. In just two years, he transformed the rules of the game and radically shifted the axis of public policy debate to the left and statist collectivism.

OECD: strategic purpose

In Argentina we now see a leader with the clarity and determination to take steps towards a free society. In less than a month since he assumed the presidency, the National Emergency Ordinance (DNU) has already come into effect containing ambitious reforms, to name a few: the repeal of the gondola law that limited the freedom of businesses to decide what is displayed on hangers, liberalization of the credit card market, repeal of the Tenancy Act, contracts can be denominated in foreign currency, abolition of various price controls, flexibility of the labor market, abolition of restrictions on the purchase of rural land by foreigners, adoption of the open skies policy, and measures that will enable the conversion of state-owned companies and football clubs into joint stock companies.

Parallel crises

Although DNU can be impeached by an absolute majority in both Congress and the Senate, and can also be suspended in whole or in part by the judiciary – as actually happened this week with regard to labor reform – Milei predicted that an omnibus bill containing reforms of this regulation added to many others. We are not saying here that all of this will turn out well. In fact, as an editorial in The Wall Street Journal points out this week, Miley’s entire liberal reform project could collapse without a stable currency and “so far, his reform plan does not include a way to put the peso out of its misery. “That doesn’t even make the US dollar legal tender.”

Guillermo Lasso campaigned with a plan in which the goal of a society of freer people was clear, but as soon as he came to power he had neither the determination nor the conviction to implement it. The goal that Daniel Noboa’s administration is aiming for seems to be nothing more than trying to achieve re-election in 2025. This could explain why his first law does not contain any important reforms and the popular consultation looks like an unnecessary exercise given that most of the issues They can be treated as reforms of existing norms in the National Assembly. The current government seems to have no direction. (OR)