Argentina’s Transformation: 1880-1930 – Economic and Political Shifts

Posted on Dec 13, 2024 in History

Challenges in Pre-1880 Argentina

By 1880, Argentina’s development project was underway. The nation was endowed with abundant natural resources but lacked a unified national state. A significant portion of the territory was occupied by Indigenous peoples, and the country had no presence on the world market or a single currency.

• Natural Resources: Argentina possessed vast fertile lands, making it a major grain producer (soybeans, corn, wheat) and earning it the title of “the breadbasket of the world.“
• Lack of a Capital: Following the Battle of Cepeda, Rivadavia passed a law establishing Buenos Aires as the capital. This sparked clashes between the provinces, reducing Argentina to a collection of autonomous regions.
• Territory Occupied by Indigenous Peoples: Until 1880, the Chaco and Pampas regions were occupied by Indigenous peoples. Measures were implemented to displace and eliminate Indigenous populations, creating a barrier to expansion that shifted according to political circumstances.
• Absence of a Single Currency: The lack of a universal currency hindered international recognition. Only bonds and coins bearing the faces of regional warlords circulated.

Economic and Political Changes Post-1880

After 1880, agricultural production began to improve, leading to significant changes in various aspects of Argentine society.

In 1870, a protectionist movement emerged to safeguard local products. The Customs Act of 1875 further reinforced protectionism. Domestic production of yerba mate, sugar, wine, and sheep thrived, while the primary activity in Buenos Aires was the salting of meat. During the presidencies of Julio Argentino Roca and Miguel Celman, secular laws were imposed, including those establishing common education, civil registration, and civil marriage. The governments of the 1880s aimed to increase immigration, attract foreign investment, and develop agricultural production through measures that favored immigrants. These governments were controlled by an elite group.

Between 1880 and 1890, foreign investment, primarily from Britain, flowed into Argentina in two forms: loans and direct investments in infrastructure. These investments brought innovations and new trends, including the replacement of salting with refrigeration (improving beef quality and leading to a boom), port improvements, and enhanced agricultural production. In 1913, settlements began to focus on the food industry, construction, and headgear production.

Presidents of Argentina (1880-1916)

Julio Argentino Roca (1880-1886)
Miguel Celman (1886-1890)
Carlos Pellegrini (1890-1892)
Luis Sáenz Peña (1892-1895)
José E. Uriburu (1895-1898)
Julio Argentino Roca (1898-1904)
Manuel Quintana (1904-1906)
José Figueroa Alcorta (1906-1910)
Roque Sáenz Peña (1910-1914)
Victorino de la Plaza (1914-1916)

Social and Political Unrest

By the late 19th century, economic liberalism had exacerbated social class differences. The elite held the greatest purchasing power, leading to the emergence of new ideas and groups, including socialists, anarchists, and Catholic reformists. A dispute also arose over strategic trade areas between England and Germany.

Key Events and Developments:

1. Roca assumed the presidency during a time of crisis, prioritizing “peace and administration.” He focused on advancing the agricultural export model and enacting laws for monetary union, common education, national territory, and the creation of municipalities. He addressed major issues like establishing Buenos Aires as the capital, resolving the “Indian problem,” and consolidating national power.
2. Celman’s presidency largely mirrored Roca’s but with an exaggerated concentration of power known as “Unicato”—the merging of the presidency and leadership of the National Autonomist Party (PAN). This ultimately led to his resignation. Both presidents were free traders and held an oligarchic view of power.
3. A severe economic crisis in 1890, linked to currency devaluation and rising unemployment, was attributed to administrative corruption and excessive government money printing.
4. The relative calm of 1880 was disrupted by protests stemming from the economic crisis, corruption, fraudulent political mechanisms, and the discontent of the middle and lower classes. This led to the formation of the Civic Youth Union, later the Civic Union, which expressed its dissatisfaction through large-scale demonstrations.
5. Despite losing the revolution, the movement forced President Juárez Celman’s resignation. His successor, Carlos Pellegrini, known as the “Pilot of the Storm,” tackled the economic crisis and fostered a climate of passivity.
6. Domestic policy was shaped by social unrest and a division between Pellegrini, who sought to eliminate fraud, and Roca, who opposed this. This disagreement led to Roca withdrawing his support. Electoral reform was finally achieved in 1912 under Roque Sáenz Peña, establishing universal, secret, and compulsory suffrage, with a military registry and minority representation.
7. Roca’s second term was characterized by external peace. Argentina pursued a foreign policy to assert itself as a regional power, defending South American independence against U.S. claims of dominance.
8. Conservative groups resorted to fraud to win the 1904 elections, but the opposition, the Radical Civic Union (UCR), organized an uprising led by Hipólito Yrigoyen. President Manuel Quintana’s death due to illness led to his replacement by Figueroa Alcorta, further escalating the political crisis.
9. Anarchists staged violent actions, prompting the government to pass the Law of Residence (allowing the deportation of foreigners suspected of subversive activities) and the Law of Civil Defense (permitting the persecution of anarchist associations). The government believed that foreign agitators were responsible for the increased conflict.

Social Reforms and Labor Movements

Ensuring Social Order: In the early 19th century, there were no labor laws. In 1904, a draft Labor Code was created to address issues affecting workers, aiming to improve working conditions and prevent revolutions.

Weakening of Institutions: In 1890, political power remained concentrated in the hands of a few, with voting still restricted. Prominent figures began to denounce this situation.

Federal Intervention: In 1906, Figueroa Alcorta attempted to break the radicals’ abstention. The head of radicalism maintained his position, demanding electoral reforms to ensure free elections, a military registry, and federal intervention in the 14 provinces.

New Sectors: Anarchists and socialists differed in their views on working-class participation in political life and the significance of the general strike. Anarchists rejected political participation, believing the state was responsible for the workers’ plight and that the general strike was a means to achieve social revolution. Socialists advocated for political participation and urged foreign workers to acquire citizenship, viewing the strike as a tool for immediate improvements rather than revolutionary transformation.

In 1905, the first labor law, proposed by Alfredo L. Palacios, was passed, establishing mandatory rest, an eight-hour workday, and other provisions.

Latin American Context

In Mexico, Porfirio Díaz’s oligarchic regime (Porfiriato) was overthrown by Francisco Madero, whose plan focused on social reforms to address disorder and instability. The Mexican Revolution of 1910, sparked by an agrarian crisis, involved a diverse alliance, including Pancho Villa in the north and Emiliano Zapata in the south-central region, who led the agrarian reform (the Zapatista movement). A new constitution was established in 1917, emphasizing secular education and land nationalization. In 1924, Plutarco Elías Calles assumed power, facing opposition from the Cristeros (conservative Catholics). Mexico stabilized under President Lázaro Cárdenas in 1934.

In Peru, the oligarchic regime known as the “Civilian Republic” (1895-1919) faced conflict due to social issues involving workers, university students, and peasants. Augusto Leguía’s “Oncenio” (1919-1930) followed, but despite some social reforms, it descended into authoritarianism and a strong concentration of power. This period saw the rise of the American Popular Revolutionary Alliance (APRA), founded by Raúl Haya de la Torre in 1924. APRA aimed to unite all popular sectors against imperialist exploitation and oligarchies. Another significant figure was José Carlos Mariátegui, founder of the Communist Party of Peru, who viewed the working class and peasantry as the main drivers of a future social revolution. APRA became a central political actor in Peru during the 20th century. In the context of the 1930 crisis, major Peruvian economic groups, particularly export sectors, supported a coup, as occurred in many Latin American countries in January 1930.