The Idb Supported Javier Milei's Government in Argentina's Entry Into the Oecd

The Inter-American Development Bank (IDB) confirmed this Thursday its financial support for the Government of Javier Milei for 2025 and expressed its support for the incorporation of Argentina into the Organization for Economic Cooperation and Development (OECD), amid negotiations with the International Monetary Fund (IMF).

This occurred within the framework of the G20 summit, which is taking place in Cape Town, South Africa, the main intergovernmental forum for global economic and financial coordination.

"Our program for 2025 includes operations that consolidate fiscal management, drive reforms for the competitiveness of the private sector, and support the Strategic Plan for retirees and pensioners," stated Ilan Goldfajn, president of the entity.

After a meeting with the Secretary of Finance, Pablo Quirno, Goldfajn highlighted that the IDB is "ready to support Argentina's accession to the OECD."

Argentina had already formally started the incorporation process previously and, although in 2022 it received an official invitation to begin its accession to this forum, it was not attended by the Kirchnerist government of Alberto Fernández, which did not consider it a priority, according to the Rosario Stock Exchange (BCR).

On May 2, 2024, during the Ministerial Council Meeting of the forum, the roadmap for Argentina's accession was presented. This document establishes the terms, conditions, and the incorporation process, and highlights the priority areas that OECD members have identified for Argentina to be part of the Organization.

However, Mathias Cormann, Secretary-General of the OECD, commented last August: "This is a process initiated by President Milei, but it will take time to complete" and added that "it will transcend the mandate of a single government." He also warned that Argentina will need "broad political support" in Congress to advance its accession.

In the absence of the Minister of Economy, Luis "Toto" Caputo, the Argentine mission, which also includes the President of the Central Bank, Santiago Bausili, has a bilateral meeting scheduled with Ajay Banga, President of the World Bank. This institution, considered "sister" of the IMF, usually provides financing to countries with ongoing agreements.

Both the World Bank and the IDB committed to providing around USD 8.8 billion in the coming years. This amount will be allocated to key areas such as social protection, education, and support for the most vulnerable sectors, in order to make transportation and electricity rates more accessible.

This financing also includes IDB Invest's support for the private sector, with more than 1.4 billion dollars in investments.

In an article published in the Financial Times, Goldfajn expressed that a lasting transformation of Argentina depends on the interaction between a "brave" private sector that seizes opportunities to generate employment and foster growth, and a public sector that provides adequate regulation and strong social protection, which would contribute to creating a cycle of stability and sustained growth. "The past," he concluded, "doesn't have to be a prologue for Argentina."