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Hundreds of thousands of demonstrators on April 23 protested Argentine President Javier Milei’s budget cuts to public universities in one of the largest shows of public dissent over Milei’s austerity measures. University officials say they are unable to cover basic costs with stagnant budgets amid spiraling inflation and may need to close facilities. The protests are part of a growing trend—with labor unions set to call another general strike in early May. What do the protesters want, and to what extent is the rising tide of dissent and protests derailing Milei’s policy goals? What responsibility does the government have to bolster university budgets to balance out the impact of inflation? What impact will Milei’s budget cuts have on the quality of education in Argentina in the long term and on the country’s economic development?

Juan Cruz Díaz, managing director at Cefeidas Group: “The goal of the demonstrations was to stop the defunding measures that the new administration has imposed on public universities, which have been operating with the same budget since 2023, despite the acceleration of inflation that the country has experienced in recent months. Although Milei has faced many demonstrations since taking office last December, this was by far the most significant, not only because of the number of protesters who simultaneously took to the streets in different parts of the country but also because it was attended by people who had voted for Milei in the last presidential election. This was a clear indication of the prominent place that public universities occupy in the collective consciousness of Argentine society, especially among the middle class. The current administration is skeptical of public universities, and many of its members openly believe they should be privatized. President Milei has said on several occasions that they are institutions where students are indoctrinated with ‘leftist’ ideas, in addition to being a space conducive to political corruption. In this context, the massiveness of the demonstration constitutes a wake-up call for a government that still enjoys a certain sense of ‘invincibility’ after its unexpected victory in the last presidential election and believes that nothing the opposition could do would change the popular support for Milei. While it is too early to tell whether this protest will be a turning point, it is clear that the ruling coalition’s difficulty in reading some of the warning signs and better assessing the collateral damage caused by some of its policies may hurt its legitimacy sooner than expected.”

Carolina Costa, head of policy at Red Flag Global: “The historical context of free public higher education in Argentina underscores its significance as a fundamental aspect of the country’s societal fabric. The recent demonstrations against Milei’s budget cuts reflect the deep-seated value that Argentines place on this policy, as it represents a pathway to greater equality and access to education. The diverse coalition of individuals protesting against these cuts highlights the broad spectrum of society that is affected by these measures. From students to professors, trade union members, conservative politicians, private university administrators and right-wing television personalities, the unity in opposition to the austerity measures indicates a widespread recognition of the importance of maintaining investments in education and research. The consequences of drastic education budget cuts are far-reaching, affecting not only research institutions and educators but also the overall quality of education and research infrastructure. Furthermore, a poorly funded education system can lead to a loss of skills in the work force, ultimately hindering innovation and productivity. The question that needs to be asked now is: will the protests serve as a mechanism to pressure Milei and his administration to reconsider their approach to austerity measures? The reality is that finding a balance between fiscal responsibility and investments in human capital, education, and research is essential for Argentina’s sustainable development and competitiveness in the long term. By safeguarding the right to free public higher education and maintaining levels of investment in education and research, Argentina can ensure that it continues to progress and thrive economically and socially.”

Mariano Machado, principal analyst for the Americas at Verisk Maplecroft: “The protests highlighted that not all change is acceptable, echoing similar movements elsewhere in Latin America. This time, the primary catalyst for extensive demonstrations was a reduction in earmarked funds for public universities (down 74 percent year-on-year, equivalent to nearly 0.2 percent of GDP), sparking tension between nearly 75 institutions nationwide and the federal government. Despite the government’s efforts to portray these protests as being driven by what the president has termed ‘the country’s caste’ (a loosely defined, self-serving group attempting to preserve its privileges), the spin has failed to hit the mark. With nearly 800,000 mostly working- and middle-class people taking to the streets, and polls showing robust support for public education, the government has been forced to belatedly recognize the gravity of the issue, evidenced by a change of negotiators in the aftermath of the march. Now, despite Milei’s political success attributed to an acute understanding of societal discontent, this self-inflicted misstep evidences a growing detachment from public sentiment. The quest for quality education as an upward pathway resonates deeply with many middle-class families, navigating diminishing incomes and limited prospects. The call for increased investment in universities is therefore not merely about present funding, but rather future opportunities. Discussions about efficiency in higher education are very much needed. But merely slashing public university funding risks compromising Argentina’s ability to develop a skilled work force to match demand from sectors ramping up their development, to foster innovation and to maintain competitiveness around key clusters that will be vital for economic recovery.”

Phillip Leon Euell, of counsel at Diaz, Reus & Targ: “The large-scale protests against President Javier Milei’s budget cuts to public universities in Argentina highlight a significant disagreement over fiscal policy and educational funding within the country. Administration supporters argue that the protests against the cuts are overly politicized and do not fully appreciate the severe economic challenges Argentina faces, emphasizing that these austerity measures—including the reductions in university budgets—are vital to stabilize the economy and reduce the national debt, which has been inflated by years of fiscal mismanagement by previous governments. Many see Milei’s strategy as a necessary response to the Argentine economic crisis; the cuts are viewed as part of a broader initiative to curtail government spending that has already contributed to Argentina achieving its first quarterly fiscal surplus since 2008. These policies, however, have sharply divided public opinion, with many sectors supporting the government’s fiscal strategy in spite of the protests. Furthermore, critics of Argentina’s public university system argue that it has become inefficient and politically biased, suggesting that it often serves more as a platform for ideological indoctrination than for education. Thus, the Milei administration’s tough choices are seen as an attempt to reallocate resources more efficiently and align education with market needs and fiscal realities that will serve to bolster the Argentine economy in the coming years. In terms of economic development, proponents believe that reducing the fiscal deficit and stabilizing the economy will enhance conditions for private investment and foster long-term growth. These reforms are seen as necessary for securing a more prosperous future for Argentina.”

Graciela C. Römer, director of Graciela Römer & Asociados: “This massive protest, which is the most important in decades, seems to go beyond just the defense of free education. Beyond the opposition’s attempt to use it to gain attention, it gives voice to something that a segment of society is feeling—discontent with the government’s unfulfilled promises. During the campaign, the current government promised to cleanse the state of privileged sectors and dismantle a structure of impunity and privileges for a few. It also gave clear signals that there would be equity—as public education should have—in the social costs that this sacrifice implies in order to achieve a better country for all.”

Tobías Belgrano, international political consultant: “The events leading up to the massive protests against Javier Milei’s budget cuts to public universities have their roots in the 2023 primary election. After Milei’s unexpected victory, the libertarian wrote to his rival, former Economy Minister Sergio Massa, proposing that approval of the national budget should be postponed until after the election. Despite Massa’s acceptance, upon winning the presidency, Milei opted to maintain the 2023 budget approved in 2022. This decision kept public spending in line while inflation rose through a currency devaluation strategy termed the ‘blender.’ National universities were a target of the ‘blender’ strategy. Rectors of major universities warned the government that under these conditions, the public higher education system could not guarantee the provision of education for the second term of 2024 and that educational quality would suffer in the long term. With electricity bills having increased by 500 percent, universities had reached the point where they were conducting classes with the lights off. The protests were massive, with opposition figures from all parties participating. Although the government attempted to portray them as ‘biased,’ the size of the protests compelled Milei to release the funding hours before the mobilization. However, it would be inaccurate to frame these protests as part of a broader opposition movement. Despite his first political setback, Milei still enjoys high levels of popularity.”

Geoffrey Dennis, independent emerging markets commentator: “The economic reforms that libertarian President Milei is implementing will not succeed without major changes to the Argentine economy; ‘no pain, no gain’ would be an apt summary. Unfortunately, the pain comes first, and recent protests against cuts in public universities’ funding are just one example of the inevitable opposition to widespread reductions in government spending. The protesters simply want the cuts to go away. Clearly, such protests could derail Milei’s long-term policy goals, but I expect the new government to stay the course. There are some positive signs. Despite a very weak economy currently—GDP fell by 3.6 percent year-over-year in the first two months of 2024—the IMF expects a recovery to 5 percent growth in 2025. Although annual inflation soared to 288 percent in March, monthly inflation rates have plummeted from 26 percent in December to 11 percent in March. After a 54 percent devaluation in the official peso/dollar exchange rate in December, the currency’s fall has since slowed, with the black market rate gap narrowing. There is still much pain to come, especially in terms of fiscal cuts, and considerable further progress on reforms is required. Long-term budget improvements are needed and, in time, with the aid of a newly negotiated loan from the IMF, capital controls must be removed. Therefore, despite short-term pressures on the quality of education and the economy, the eventual benefits of these reforms and more orthodox macro policies will be a boost in the long-term performance of all areas of the Argentine economy.”

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