Neoliberal Reforms under Menem Presidency
📌 The transition from Alfonsín to Menem saw the implementation of two key laws: the Economic Emergency Law and the State Reform Law, aiming for a pure neoliberal state.
📌 Key features of this neoliberal state included labor flexibility, privatization of public service companies, and reduction of public spending.
📌 The Economic Emergency Law ended subsidies and state interventionism, leading to a large number of state layoffs.

Privatization and Economic Measures
📞 The first major privatization was the national telecommunications company, ENTel, led famously by María Julia Alsogaray.
💲 Domingo Cavallo implemented the Convertibility Plan starting in April 1991, establishing a 1 Peso = 1 Dollar parity (initially $10,000 Australes per dollar), replacing the previous Austral.
📉 This plan regulated currency issuance by tying it to reserves and began a process of economic deregulation by significantly reducing import tariffs, which impacted domestic industry.

Economic Outcomes (1991-1994)
✨ The period from 1991 to 1994 is described as an economic boom or "bonanza," characterized by increased consumption and higher tax collection.
📉 A major downside, despite the initial success in controlling inflation, was a significant increase in unemployment resulting from privatizations and state cutbacks.

Key Points & Insights
➡️ The shift under Menem implemented pure neoliberal policies contrasting with the previous military interventionism.
➡️ The Convertibility Law (1 Peso = 1 Dollar) was central to stabilizing the economy, ending the high inflation associated with currency emission.
➡️ While the initial economic results (1991-1994) showed growth in consumption and revenue, this prosperity eclipsed the crucial issue of rising unemployment.

📸 Video summarized with SummaryTube.com on Oct 10, 2025, 17:43 UTC