ARGENTINA
THE GREAT DEPRESSION
Kirusan
Achuthan
Raeesah
Saakethiya
BACKGROUND INFORMATION
Argentina
Location of Argentina

Argentina is in the southern part of South America.
The South Atlantic Ocean surrounds the east and
south of Argentina.
Map of Argentina
Government


The Radical Party took the place of the conservative
National Autonous Party (PAN)
Argentina grew as a democratic county until 1930
were a military coup occurred that kept Argentina
in a period of dictatorship until the 1980s
Government

In 1916, Argentina became a full democracy with
the election of the Radical Party, lead by Hipolito
Yirigoyen.
Economy

Between 1860 and 1930, Argentina had the
strongest economy in South America with an annual
growth that averaged at 6.3%.
Main Source of Income

Argentina’s main source of income during this time
came from exports of beef and wheat but the
economy was modernizing with the development of
local industries and handicrafts.
1880s

Beginning in the 1880s, Argentina began to
modernize and began to focus on domestic
buisnesses.
Views of the Public

These people wanted the government to focus on
economic nationalism rather than the traditional
economic system which focused on foreign trade
(especially with the UK).
Economic Ties

Argentina’s economy was closely tied with the
British economy because of Argentina’s exports of
meat and its imports of coal and petroleum.
Exports

Argentina had a variety of exports; wheat and
beef were its main export but it also exported
linseed and corn.
Reasons to Growth in Industrial and
Domestic sectors

WWI stimulated industrial growth but after the war
the country fell into a depression as its foreign
market came to a halt. This lead to further domestic
growth.
Effects of Economic Growth

With this economic growth came more urban workers
and immigrants. These people had revolutionary ideas
about the organization of labor and the use of strike
action to secure benefits. Many of the immigrant
leaders were expelled from the country but the
movement became larger during the 20th century.
Radical support for labor varied but during its highest
points, it was a positive turning point of the working
class.
EFFECTS OF THE GREAT
DEPRESSION &
STRATEGIES TO OVERCOME THE
GREAT DEPRESSION
Argentina
International Depression
Demand for
goods decreased
Debt
accumulation
Less inflow of
capital
Value of Latin
American
currency
decreases
Fall in foreign
investment
Unemployment
rises
Government
Effects of the Great Depression





Great Depression was one of the factors that led to the
dictatorship
military took power in Argentina, Brazil, Chile, Guatemala,
Honduras and Peru after the Wall Street Crash
This “infamous decade” was a period of political opposition,
electoral fraud and political fraud
In 1932, immigrants had to have proof of financial support
working before immigrating
Essentially, the militarily enforced government continued to exist
throughout the Great Depression
Foreign Relations/ Trade
Effects of the Great Depression



Immediate impact on Argentine export
due to dependency on foreign trade
Europe and the US implement
protectionist policies (keep their own
farmers)
Concordancia government followed
liberal trade until mid-1930s
Strategies to Overcome Issues
Roca-Runciman Pact 1933

Restrictions put on Argentina to restore
positive trade with the UK

Argentina was to promise to choose
British manufactured goods and protect
British corporations from nationalization

Led to closing private bus companies that
had emerged in Buenos Aires, which was
a disadvantage to Argentina
Import Substitution Industrialization

Wanted to be reliant on industries within
the nation, thus tried to expand internally
Unemployment
Effects of the Great Depression



Strategies to Overcome Issues
Businesses laid off workers

Civil servants had to be paid
little; customs duties provided
the government with no
income due to lack of
exports/imports

Was not a huge issue in
Argentina anyways
Public works were set up
despite government costs →
would benefit domestic
market
32 000 mile highways were
built, in comparison to the
previous 5000 miles → led to
motor industry → strayed
away from dependence on
British-owned railways
Unemployed men of Villa 31 in Retiro
(Buenos Aires)
Compare this situation to that of images that we have seen from the US, Canada
and other Latin American nations during the Great Depression.
Agriculture
Strategies to Overcome Issues


A series of policies were
created to facilitate primary
areas of income (livestock and
agriculture) with agricultural
regulatory boards that
lobbied protectionist policies
Create a self-supporting
nation with a method called
Import Substitution
Industrialization (ISI)
Results of Strategies

Caused situation to
worsen as encouraging
industrial growth
overpowered
agricultural growth
Argentine Industries
Effects of the Great Depression
Strategies to Overcome Issues
YPF
 State run oil company expanded
production to reduce
dependency on oil imports
 After seeing Mexico’s
nationalization of oil, private
companies dropped prices in
1934 in opposition to YPF reform
 Eventually, the government
negotiated that half of Buenos
Aires market went to YPF to
continue economic stimulation



Argentine entrepreneurs
found alternatives for lack
of imports by creating
new industries
Government protected
these industries with tax
incentives and tariffs
ISI and growth of
industries created jobs for
the unemployed
Economy
Effects of the Great Depression



In 1929, had the world’s 4th
highest GDP
Although sectors such as
unemployment were not as
affected as they were with the
other Americas, economic
expansion was permanently
brought to end
Peso was devalued which
increased competition in exports


1929: $1537 million in exports
1932: $561 million in exports
Strategies to Overcome Issues

Reforms to the credit
and banking system
took place
Economic Trends
GRAPH 2: Deposits, Loans (in Thousands of
pesos, left axis) and Shares Quotations (right
axis) 1925 – 1935
GOVERNMENT
Argentina
Political Leadership of
Argentina(1916-1943)
Leader
Year
Hipolito Yrigoyen
1916-22, 1928-30
Marcello Torcuato de Alvear
1922-28
Jose Felix Uriburu
1930-32
Augustin Justo
1932-38
Jose Maria Ortiz
1938-42
Ramon Castillo
1942-43
Background info


The period spanning from 1916 to 1930 in Argentina is
known as the Radical Phase , as it began with the
election of the Radical Civic Union (UCR) candidate
Hipólito Yrigoyen, ousting the long term conservative
National Autonnous Party.
Yrigoyen's second term, which started in 1928, was
lasted until 1930 when a combo of forces including the
great depression lead to a military coup that would
intro a period of militarism and dictatorship that lasted
until the 1980s.
Background Info



·
The Infamous Decade in Argentina is the name given to the
period of time that started in 1930 with the coup d'état (a sudden
decisive exercise of force in politics; especially: the violent overthrow
or alteration of an existing government by a small group) against
President Hipólito Yrigoyen by José Félix Uriburu.
This decade was marked by many small rural landowners leaving
their towns since they had been ruined by the Great Depression,
which in turn pushed the country towards import substitution
industrialization (a trade and economic policy that advocates
replacing foreign imports with domestic production) .
The poor economic results of the policy and popular discontent
among the public led to another coup in 1943, which was the
"Revolution of '43", by the Grupo de Oficiales Unidos , the
nationalist faction of the Armed Forces, against acting president
Ramón Castillo, which finally put an end to the Infamous Decade.
Uriburu



On September 6 1930, a military coup, forced Hipólito Yrigoyen from power, and
replaced him with José Félix Uriburu. Support for the coup was strengthened by the
Argentinian economy which had been in bad shape for quite a while now due to the
depression,
The military coup began the period known as the "Infamous Decade", which was
characterised by electoral fraud, persecution of the political opposition and
pervasive government corruption, against the background of the global depression.
During his brief term as president, Uriburu cracked down heavily on anarchists and
other far-left groups, which resulted in nearly 2000 illegal executions of members
of anarchist and communist groups. One of the most well-known and perhaps most
symbolic of anarchism's decay in Argentina at the time was the execution of
Severino Di Giovanni an Italian anarchist who immigrated to Argentina, who was
captured in late January 1931 and executed on the first of February of the same
year.
After becoming president through the coup, Uriburu attempted to create a
constitutional reform that would include corporatism in the Argentinian Constitution.
Justo


As previously mentioned Uriburu attempted to create a constitutional
reform that would include corporatism in the Argentinian Constitution.
This move toward fascism was viewed negatively by those who were
conservative and part of the coup and they turned their support to
the more moderate conservative general Agustín P. Justo, who won
the presidency in a 1932 election that was heavily fraudulent, and
where many accusations of election fraud were made.
Justo initiated a policy of liberal economic changes that advanced
mostly the nation's upper classes and permitted great political and
industrial corruption at the expense of national growth. One of his
most infamous decisions was the creation of the Roca-Runciman
Treaty between Argentina and the United Kingdom, which
benefitted the British economy and the wealthy beef
producers of Argentina at the expense of national interest.
Ortiz


n the presidential elections of 1937, Jose Maria Ortiz was the
official government candidate and won, though the opposition
accused him of participating in fraud. Ortiz never denied those
charges but once he took office he tried to make Argentine politics
more open and truly democratic.
During World War II, Argentina maintained the same neutrality it
had adopted during the first World War, which was advantageous
for Great Britain. Although the USA attempted to push the country
into the war, during the January 1942 Rio de Janeiro Conference,
with the support of the British Argentina resisted. A few months later,
in June 1942, Ortiz resigned because he was ill with diabetes and
died a month later.
Castillo



Ramon Castillo was vice president at the time and
replaced Ortiz
He began to work to launch the candidacy of
Robustiano Patrón Costas, vice-president of the Senate
and sugar entrepreneur, who had supported him in
1938
On 4 June 1943, the nationalist faction of the army,
gathered around the Grupo de Oficiales Unidos (GOU,
formed in March 1943) opposed both to corruption
and to the Left, overthrew Castillo in a coup.
ECONOMIC DEPENDENCY & MAIN
TRADING PARTNERS
Argentina
Economic Dependency: Exports



Exports were key to the Argentine reserves,
however the country was not reliant on one sole
crop
Wheat & beef were the primary exports but were
not the only sources of income as the economy was
modernizing and diversifying
linseed & corn were also key export crops
Economic Dependency: Industries


Industries that developed were logical extensions of
its agricultural sector: I.e. food processing, meat
packing, flour milling & leather tanning
Argentina’s industry was largely domestic, thus there
was limited foreign investment until the 1920s
Foreign Trade





foreign investment played a crucial role during the 1930s & was 50
% of the total capital investment in the Argentine industry
As Europe and America suffered, protectionist policies were
implemented to keep their own farmers solvent
This lead to an imbalance of trade in Argentina – the value of cash
crops fell 43%, accompanied by a 40% devaluation of the
Argentine peso
When the economy hit rock bottom in 1933 the gov’t responded
with polices not meant to change the economy but to bolster
traditional areas of interest and income—livestock and agriculture
The gov’t established a number of agricultural regulatory boards
that lobbied for protectionist policies for agriculture that included
tariffs
Foreign Trade: Main Trading Partners




·The new gov’t also tried to hold on to the relationship with
the UK to boost economic recovery --Argentina tilted
towards the British and the allies during WW1
The result of this was the Roca-Runiciman Pact (1933): the
pact placed restrictions on Argentina in order to restore
positive trade relations with the UK -- the pact strengthened
commercial ties
British markets for Argentine goods would be preserved if
Argentina promised to give preference to British
manufactured goods and protect British companies from
nationalization
US firms started businesses in Argentina b/c it was difficult
to export due to high tariffs
INDUSTRIES
Argentina
Domesticated Industries


Before the 1920s, Argentina had largely domesticated
industries.
Food processing, meat packaging, flour milling and
leather tanning were some of the industries that
developed in Argentina.
Main Industries


The wheat and meat industries where two of the
main industries in Argentina.
Linseed and corn were some other important
industries in Argentina during the 1920s. However
the linseed market collapsed during the 1930s and
Argentina severely lessened its involvement in that
sector.
Importance of Oil



After World War I, oil became a very important
resource.
The Yirigoyen administration wanted to lessen its
dependence on foreign oil.
On June 3, 1922 Yirigoyen created the Fiscal
Petroleum Fields (YRP), a state run oil company to
compete against foreign interests. Its first director
was General Enrique Mosconi.
YRP




The YRP would source, produce, refine and sell
petroleum.
The first YRP oil refinery was inaugurated in December
1925 in Ensenada, Buenos Aires, Argentina.
The YRP had some influence on other oil companies. In
May 1929, the YRP lowered the price of oil forcing
other companies to do the same. This helped keep
foreign gas prices competitive.
It was the first state-owned oil company created.
Class Structure

- In the 1880s Argentina began a period of
modernization that brought social changes that
threatened the traditional landowning creole elites
- Immigrants created new businesses that
challenged the traditional power base
- In terms of class structure during the Great
Depression, many people of the working class were
relatively unphased as the depression had
seemingly mild.
Class Structure


- the working class developed in terms of
organizational strength and political importance
- the entrepreneurial capitalist class was formed
(industrial bourgeoisie)
-The Great Depression had a relatively mild effect on
Argentina, although it did halt economic expansion (
contributing factors - industrial growth, foreign trade
(traiffs made it difficult to establish trades overseas),
etc)
- unemployment rates never went below 10% -working class did not have to suffer a great dea
CONCLUSION
Argentina