The Transformation of Argentina: From Export Economy to Political Upheaval

Posted on Aug 14, 2024 in Geography

Argentina: The Export Economy

Argentina’s dynamic growth was due to three factors:

  1. The emergence of a large market in Europe for its meat and wheat production
  2. The influx of immigrants, who provided cheap labor for agriculture
  3. The influx of large quantities of foreign investment capital, which funded railroads, expanded cultivation, and established food processing plants.

Foreign investment, while fueling economic growth, also created economic difficulties. The major shipping lines, railroads, and meat-packing plants were owned and operated by British or U.S. companies.

Male employers preferred women workers because they were cheaper, more reliable, more efficient, and more docile than men. Children employed in industry received half the wages of women, who received half of men’s wages.

Argentine Society

Argentine society was divided into three classes:

  1. The upper class, which controlled politics
  2. The urban middle class, which depended on trade
  3. The lower class

The Struggle for Progress and National Unity

  • 1816: Independence of the United Provinces of the Rio de la Plata
  • Buenos Aires imposed hegemony over the interior, increasing exports of meat and hides and the value of land. This benefited its territory but led to losses in the interior due to imports from Europe. The interior desired independence or autonomy from Buenos Aires.
  • This conflict led to revolts between the federales (federalists) and the unitarios (Unitarians). By 1820, the federales triumphed, dividing the territory into independent republics.
  • Bernardino Rivadavia (1821): Implemented a program of educational, social, and economic reform. He founded the University of Buenos Aires, abolished ecclesiastical jurisdiction, suppressed monasteries, developed industry and agriculture, encouraged British investment, and distributed public lands at fixed rentals, fostering an agrarian system and a strong estanciero (farmer) class. Rivadavia aimed to unify Argentina under a central government but faced opposition from the gauchos when he proposed federalizing Buenos Aires.
  • Juan Manuel Rosas (1829): Allowed provinces to manage their affairs while controlling trade over the Rio de la Plata. He formed alliances with caudillos to control the interior, improved wheat farms and artisan industry, and expanded his own estanciero holdings. Rosas, representing rural masses against the aristocracy, pressed for indigenous territory expansion. His rule was characterized by discipline enforced through punishment and torture by “The Mazorca” organization, symbolized by a red ribbon. He was eventually defeated by Urquiza.
  • Justo José de Urquiza (1852): Proposed a loose union of provinces sharing revenues from Buenos Aires. The Constitution of 1853 established the former United Provinces as a federal republic. As “first president of Argentina,” Urquiza focused on legislative functions, Catholicism (while granting freedom to non-Catholics), and intervention between provinces. The liberals’ refusal led to two Argentinas: the Argentine Confederation under Urquiza and the province of Buenos Aires. Urquiza improved the economy, education, and immigration but was defeated by Mitre in 1859.
  • Bartolomé Mitre (1859): Advocated for national unity and agreed to Buenos Aires as the capital. He promoted economic growth, federalization of the capital, railway and telegraph construction, increased immigration, and established public schools. However, the “Paraguayan War” remained a challenge.

Progress and Development Under Sarmiento

  • Significant economic improvement, increased foreign investment, and expanded immigration. However, the economic infrastructure reinforced a colonial pattern of dependence on a foreign commercial center (London).
  • Concessions of territories (Chaco, Formosa, and Misiones) after the Paraguayan War.
  • Sarmiento, a gifted essayist, sociologist, and statesman, promoted technological change, railway expansion into the interior, and salted meat exports to Europe. This fueled labor demand and immigration. He also expanded the public school system and introduced teacher-training institutions.
  • Sarmiento’s dislike for indigenous people and gauchos led to an extermination campaign against indigenous populations and repressive measures.

The Rise of the Radical Party (1916-1930)

  • Growing social inequality led to unrest among the urban middle class, strengthening the Radical Party, led by Hipólito Yrigoyen, with its local urban organization.
  • The First Radical Government: Yrigoyen, 1916-1922: The Radicals won the 1916 presidential elections. Yrigoyen’s ability to distribute Argentina’s wealth to the middle class without alienating the oligarchy was key to the Radicals’ hold on power.
  • The Second Radical Government: Alvear, 1922-1928: Marcelo de Alvear became president, leading to a party split. Law 11.317, passed in 1922, established an 8-hour workday and a 48-hour workweek for women and prohibited night work for them. Two years later, another law allowed women to pursue professional and personal goals without their husband’s approval.
  • Yrigoyen’s Second Term, 1928-1930: Yrigoyen won a second term in 1928, but the Great Depression hit Argentina in October 1929.

The “Infamous Decade,” 1930-1943: Military Intervention and the State

A coup in 1930 marked the end of Argentina’s experiment with democracy and the military’s entry into national politics, ushering in an era of harsh repression and corruption. Lieutenant General José Uriburu became the leader. The military abolished prostitution in 1934, controlled the radio, and censored electronic broadcasts. The economy improved after 1934, and the crisis passed by 1936.