Argentina faces an urgent dilemma. On one hand, the nation is burdened by deep historical and structural problems. On the other, it is attempting to overcome them with drastic measures of fiscal adjustment and massive deregulation. While this path aims to achieve short-term economic stability, it risks exacerbating the very imbalances it seeks to resolve. In this context, the Earth4All agenda gains crucial relevance, warning us about the deeper consequences of remaining trapped in the inertia of austerity.
The paradox of crisis and adjustment
In Argentina, recurrent macroeconomic instability marked by high inflation and exchange rate volatility, coupled with a lack of stable consensus on development manifested in a pendulum of contradictory policies, hinders the long-term planning of state policies.
Fighting poverty and inequality remains particularly complex given the structural nature of these challenges. They are the result of a convergence of multiple factors: income inequality, unequal access to healthcare, education, housing, and quality employment—all of which are further aggravated by macroeconomic instability.
In this context, the drastic fiscal adjustment implemented by President Javier Milei’s government over the last two years aims for short-term macroeconomic equilibrium. But what is the cost? Continuous adjustment diminishes the state’s capacity to intervene, invest, and, fundamentally, plan for structural solutions—precisely the ones that could break the cycle of recurring crises. Today, the pursuit of fiscal balance stands as an immediate priority, yet it collides with an uncomfortable truth: perpetual austerity undermines the capacity for future interventions.
The warning simulation: Continuous Austerity
Many might wonder: Is it realistic to promote a systemic change agenda such as the one proposed by Earth4All in a country solely focused on managing crisis?
This question guided the work of the National Engagement Programme in Argentina and is condensed in the forthcoming report, Earth for All: Argentina. The local team analysed the situation across Earth4All’s five extraordinary turnarounds, proposed a series of key measures for the “Great Leap” in the country, and furthermore, formulated a “Continuous Austerity” hypothesis, simulating the persistence of public budget adjustment policies over the coming decades.
The results were compelling: maintaining this course would not only drastically limit the state’s capacity to respond to social and environmental crises but would also deepen existing inequalities. The conclusion is clear: inaction or regressive policies do not stabilise the system; they make it more fragile and more costly in the long run.
The key role of civil society
In a context of state retreat, civil society assumes a central role as a driver of change. Communities, social organisations, and sub-national governments are demonstrating that it is possible to sustain inclusive and sustainable development agendas even in adverse scenarios.
However, scientific evidence and civic will alone are not enough. Isolated initiatives fade unless they are paired with sustained political leadership, institutional coordination, and a long-term vision that transcends immediate economic urgency.
Argentina once again stands at a crossroads. A comprehensive policy roadmap for structural transformation is in place, backed by an emerging consensus across sectors. The challenge now is to translate that framework into decisive political will.
The Earth4All agenda offers a compass for envisioning a more equitable and resilient future, even in times of austerity. But it requires a profound paradigm shift: moving away from considering social and environmental spending as a cost and understanding it as an essential investment for long-term stability and wellbeing.
The challenge is significant, yet the alternative is even more costly. The question that remains open is as simple as it is urgent: will we have the audacity to define a political agenda based on evidence, focused on people and the planet?
To explore this issue in greater depth, stay tuned for the release of the new report Earth for All: Argentina, developed by the Argentine Chapter of the Club of Rome, the Alimentaris Foundation, and a team of specialists working in collaboration with key civil society actors.
