Argentina’s crisis shows the limits of technocracy

IF YOU CAN’T beat them, join them. That seems to be Mauricio Macri’s response to his crushing defeat in presidential primary elections on August 11th. He won 32% of the vote against the 48% secured by the Peronist slate of Alberto Fernández and Cristina Fernández (no relation), a populist former president. At first Mr Macri blamed the outcome on the voters for “believing that returning to the past is an alternative”, a scolding for which he later apologised. Then the blame shifted to his finance minister, Nicolás Dujovne, who had been slashing the budget as demanded by the $57bn agreement the government negotiated with the IMF last year. Mr Dujovne resigned on August 17th after Mr Macri scrapped VAT on staple foods, increased hand-outs and temporarily froze petrol prices in a desperate effort to placate Argentines. These are the kind of measures typically associated with his Peronist opponents, and they are contrary to the IMF agreement.

Mr Macri is not quite beaten yet. The presidential election is not until October 27th. But in Argentina’s peculiar system, the primaries are a dress rehearsal. Few think he can overturn a 16-point deficit in nine weeks. The fact that the peso crashed after the primary result will add to inflation of 50% a year and makes his task even harder.