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Nobel Economist Philippe Aghion Praises Milei’s Deregulation, Sees Chance to Escape Middle‑Income Trap

At a CAF regional forum he argued that curbing red tape, paired with anti‑corruption efforts, can open space for innovators.

Overview

  • Speaking via video at CAF’s Foro Económico Internacional in Panama, Aghion cited Argentina as a case moving to remove bureaucratic barriers.
  • He said the Milei administration’s push against corruption and heavy regulation is making entrepreneurship and innovation more viable.
  • Aghion expressed hope that Argentina could exit the middle‑income trap if these changes are sustained.
  • He outlined prerequisites for innovation‑led growth that include macroeconomic stability, strong education, clear property rights, competition policy, and access to finance and venture capital.
  • He warned that vested corporate interests and lobbying can block new entrants and urged action to keep markets open to competition.