Davos 2026: President Javier Milei’s Blueprint for Global Capitalism and Argentine Recovery

On January 21, 2026, between 16:30 and 17:00 CET, Argentine President Javier Milei delivered a high-profile presentation at the World Economic Forum titled "Special Address by Javier Milei, President of Argentina." This session focused heavily on the intersection of geoeconomics and political philosophy, emphasizing the moral superiority of market-driven systems. Observers noted a shift toward a more academic and measured tone compared to his previous appearances, as Milei prioritized theoretical defenses of unregulated capitalism over aggressive social commentary.

The President’s discourse was deeply rooted in intellectual history, drawing upon the works of renowned economists and philosophers such as Thomas Sowell, Murray Rothbard, Adam Smith, Hans-Hermann Hoppe, and Jesús Huerta de Soto. Milei also integrated biblical references and classical philosophical texts to bolster his arguments for economic liberty. This multidisciplinary approach served to frame his policy decisions not merely as political choices, but as ethical imperatives.

A central theme of his address was the rejection of the perceived dichotomy between ethics and efficiency. Declaring that "Machiavelli is dead," Milei challenged the traditional separation of morality from political governance. He argued that justice and efficiency are inherently linked, stating that what is truly just cannot be inefficient, and conversely, what is efficient cannot be unjust. This perspective, influenced by Huerta de Soto, suggests that a dynamic analysis of society reveals these two concepts to be inseparable components of a functional civilization.

Milei provided a staunch defense of free enterprise as the only truly moral economic system while offering a scathing critique of socialist ideologies. Citing Thomas Sowell, he remarked that while socialism often possesses a superficial appeal, its practical application invariably leads to catastrophic outcomes. He pointed to Venezuela as a cautionary tale, noting an 80% collapse in its Gross Domestic Product alongside rampant corruption and what he described as a brutal narco-dictatorship.

The distinction between natural law and positive law was another pillar of his speech. Milei advocated for universal natural rights—specifically life, liberty, and property—as defined by John Locke. He emphasized the non-aggression principle, which demands an absolute respect for the life projects of others. In his view, the primary role of any just society is the protection of these fundamental rights against the potential injustices of human-made positive law.

Drawing on the foundations of Roman law, Milei referenced the jurist Ulpian to define justice as the constant and perpetual will to render to each his due. He argued that capitalism is the only system that embodies this principle through the mechanisms of private property, competitive markets, and voluntary exchange. By allowing individuals to reap the rewards of their own labor and innovation, the market naturally fulfills the requirements of classical justice.

Regarding economic efficiency, the President discussed both static and dynamic models. He invoked Adam Smith’s "invisible hand" and Hans-Hermann Hoppe’s proofs regarding Pareto optimality in the absence of state intervention. Furthermore, he highlighted the importance of dynamic efficiency, which is driven by entrepreneurial creativity, the division of labor—referencing Smith’s famous pin factory—and the accumulation of capital through technological advancement.

Milei also addressed the necessity of stable institutions to reduce global uncertainty, citing the work of Douglas North. He argued that the most responsible action politicians can take is to stop obstructing those who are actively improving the world through innovation. This sentiment extended to his views on emerging technologies, where he cautioned against the premature regulation of growth sectors like Artificial Intelligence.

The speech transitioned into a report on Argentina’s domestic progress since 2023. Milei detailed the implementation of 13,500 distinct reforms aimed at dismantling state bureaucracy. These measures have successfully eliminated a 15% GDP deficit and facilitated a dramatic reduction in inflation, which plummeted from 300% to approximately 30%. Furthermore, he reported that poverty rates in Argentina have seen a significant decline, falling from 57% to 27% under his administration.

Reflecting on the role of values, Milei asserted that capitalism is deeply aligned with the Judeo-Christian, Greek, and Roman roots of Western civilization. He described a shift in Argentina’s social policy from dependency to empowerment, stating that the government has moved away from simply providing assistance and toward teaching citizens how to thrive independently. He also referenced Deirdre McCloskey’s "bourgeois virtues" to refute the claim that market competition erodes public morality.

The President concluded his address with a stern warning about the threats facing the West, specifically naming socialism and "wokeism" as deceptive forces. Despite these challenges, he expressed optimism, suggesting that the world is beginning to awaken and that the United States will serve as a guiding light for the Western world. He ended with a metaphor from the Torah’s Parshat Bo, comparing the struggle for liberty to the confrontation with Pharaoh, and finished with his signature rallying cry: "Long live freedom, damn it!"

In subsequent interviews at Davos, Milei clarified Argentina's international trade stance, specifically regarding China. He described China as a "great trading partner," noting that Argentine exports to the country surged in 2025. China currently stands as Argentina's second-largest market, trailing only Brazil. Milei emphasized that maintaining strong ties with Beijing does not conflict with his friendship with the United States, asserting that open trade is a matter of national survival and growth.

The President reiterated his commitment to free-market principles on a global scale, criticizing protectionism and tariffs. While he avoided direct criticism of specific world leaders, he argued that closing off markets is a recipe for economic stagnation. He advocated for "open trading relationships" with all nations willing to engage, stressing that Argentina cannot afford ideological boycotts that would jeopardize its economic recovery.

On the topic of monetary policy, Milei adopted a pragmatic stance regarding the Argentine Peso. He confirmed that the country is not yet prepared for a fully floating currency. Instead, the current strategy involves a controlled crawl and the accumulation of foreign reserves to mitigate volatility. This gradual approach is intended to build public confidence and stabilize the economy before transitioning to a more flexible exchange rate system.

Milei’s discussions also touched upon the broader landscape of global uncertainty, including geopolitical tensions and energy transitions. He maintained that the best way to navigate these challenges is through reduced state intervention and the protection of entrepreneurial spirit. He indirectly praised the resurgence of libertarian ideals in the United States, viewing it as a positive development for global stability.

Ultimately, Milei’s presence at Davos 2026 served to reinforce his image as a leader committed to radical economic transformation. By combining rigorous theoretical defense with empirical evidence from Argentina’s recent successes, he sought to convince the global elite that the path to prosperity lies in the uncompromising pursuit of liberty. His message was clear: the Argentine experiment is proving that the principles of the free market can indeed reverse decades of economic decline.