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The limits of the ‘Donroe doctrine’
America’s attention is turning to its own backyard, but it is discovering that it still can’t go it alone.
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As US President Donald Trump is discovering, offering a helping hand to his Argentine counterpart Javier Milei (left) can upset his supporters such as American farmers.
PHOTO: AFP
Rana Foroohar
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To get a sense of how tricky it is for the US to move from a world of laissez-faire neoliberalism to one in which state control of markets is of much more importance, consider the great power competition going on in Argentina right now.
With the peso in freefall following a corruption scandal in President Javier Milei’s government (which is ideologically aligned with Mr Donald Trump’s administration), the US is trying to orchestrate a US$20 billion (S$26 billion) bailout for the country, which it hopes will remain a key regional ally. On Oct 9, the US Treasury said it had bought Argentine pesos in a bid to boost the currency.
