Milei warns of disasters caused by socialism in Davos speech

President Javier Milei defended the need for countries to engage in free enterprise capitalism and drop what he called “socialist” policies while speaking at the World Economic Forum in Davos, Switzerland. Similarly to his past speeches at Davos and other international forums, Milei used his time to speak about libertarian economic theory and question socialism, which he said has caused “disasters and suffering.” Milei said that the “terrible damage” those policies caused in Venezuela under the Chavista governments led not only to an 80% collapse in GDP “but something far worse: the establishment of a bloody narco dictatorship whose terrorist tentacles spread across our entire continent.” “Today, more than ever, in the face of unethical and moral degradation affecting the West as a result of the new socialist agenda, it is necessary to once again promote the ideas of freedom,” Milei said, adding the latter hold higher ethical and moral standards. Milei cited what he called the “enormous achievements” his government reached under his libertarian ideological model, such as “eradicating fiscal deficit,” reducing inflation, lowering country risk and poverty, and “restoring economic growth.” Part of how his government achieved this, he said, was by carrying out over 13,500 structural reforms, which have allowed his administration to “have a more dynamic and efficient economy” and for the economy to grow. “That is, to make Argentina great again,” he stated, quoting United States President Donald Trump’s famous motto. “Economic policy should aim to identify and remove all artificial barriers that hinder the entrepreneurial process and voluntary exchanges,” Milei said, adding that “there is no justification for intervention” from states over businesses and individuals. “Intervention constitutes a violation of property rights, and by punishing profits, the economy’s potential growth declines,” he opined. State intervention and regulation, he said, “are dynamically inefficient because they are violent and therefore unjust.” “Regulation kills growth” Milei also defended the development of artificial intelligence, saying that it is “a catalyst for increasing returns and, thereby, a catalyst for greater growth and well-being.”  “The most responsible thing states can do regarding this issue is stop pestering those who are creating a better world. All fears associated with dystopian scenarios are nonsense,” he said. Milei’s speech was part of the third day of the Davos forum and took place right after United States President Donald Trump’s presentation, which extended further than planned, delaying the rest of the scheduled activities.  Trump insisted that his country “needs” to get control over Greenland due to its “strategic national security and international security” importance to the U.S. This years’ programme is centered around key themes involving cooperation amid global conflict and polarization, the challenges brought to the workforce and industries by the exponential development of artificial intelligence, and the need to pursue economic growth while protecting the environment. Controversial speeches This was Milei’s third speech at Davos. The last time he spoke at the conference, in January 2025, he caused controversy by making comments against gender equality policies and by accusing the LGBTIQ+ community of being pedophiles. His comments were met with a large protest in Buenos Aires days later. “In its most extreme version, gender ideology simply and plainly constitutes child abuse. They’re pedophiles,” he said at the time. In 2024, just a month after he became president, Milei used his debut at the Davos Forum to warn the businesspeople and world leaders present about the “dangers” of socialism, feminism, and climate activism. The climate crisis was a key theme of the forum that year. “2026 is the year in which I bring you good news: the world has begun to awaken,” he said after mentioning his previous Davos speeches. “The best proof of this is what is happening in the Americas, with the re-birth of the ideas of liberty. Therefore, the Americas will be the beacon of light that will once again illuminate the entire West.” Davos 2026 President Milei arrived in Davos, Switzerland, on Tuesday along with his sister and presidency secretary Karina Milei, Foreign Minister Pablo Quirno, Economy Minister Luis Caputo, and Deregulation and State Transformation Minister Federico Sturzenegger. In line with his self-proclaimed rockstar attitude, Milei posted a video that shows him flying in a helicopter from the airport to Davos wearing a national oil company YPF jumpsuit. The video was accompanied by the Rocky IV soundtrack song “Burning Heart,” by Survivor. On Wednesday, before taking part in the forum, Milei met with a group of CEOs from international banks and finance firms, including the leaders of Citigroup, BlackRock, and BBVA. This is a developing story, check back for updates