Argentina's Economic and Political Evolution (1914-1945)
Impact of the 1929 Economic Crisis
The Crisis of '29 profoundly influenced the politics and economy of Argentina. The nation faced significant challenges, such as falling prices for exports, the depletion of credits, and a lack of available payments for committed imports. State revenues, which depended heavily on international trade taxes, were severely reduced. Despite these hardships, there was an increase in domestic demand and a simultaneous diversification of the market. However, a sharp fall in imports led to a decrease in tax revenues derived from them.
Argentina During the First World War
The First World War profoundly affected Argentina's economy. The flow of capital, labor, and manufacturing from Europe declined significantly. The total value of Argentine imports dropped between 40% and 50% compared to pre-1914 levels. This decline resulted from the reallocation of European resources toward military production and transport difficulties caused by the war. While the decline in imports favored Argentine industries using domestic raw materials, growth remained slow due to labor shortages, difficulties in importing machinery, and rising prices for imported fuels, which supplied most of the country's energy.
The Second World War and Industrial Growth
Argentina's economy prospered through trade development and the process of Import Substitution Industrialization (ISI). The industrial proletariat grew, fueled by immigration from rural areas. However, the political scheme following the 1930 coup maintained a "fraudulent democracy." Unions were pursued, basic democratic freedoms were attacked, and workers' political organizations were repressed. This era, known as the "Infamous Decade," was nearing its end. During this time, sales of frozen and canned meat intended for British soldiers increased significantly.
The 1930 Coup and Conservative Restoration
The 1930 Coup combined two main tendencies: one led by Agustín P. Justo, who leaned toward displacing the president without changing the constitutional system, and the other led by José Félix Uriburu, who favored an authoritarian regime. Many military authorities were hesitant, fearing failure, yet there was no significant will to resist the movement.
On September 2, the Minister of War took his seat. By September 5, President Hipólito Yrigoyen, who was ill, delegated control to Martínez, who decreed a state of siege to ease political tensions. On September 6, the revolutionaries took action; Uriburu received Martínez's resignation and became the president of the provisional government, forming his cabinet. This period is called the Conservative Restoration because it established an authoritarian government. Uriburu justified the coup by claiming the country was in ruin. The economic malaise and the army's increasing involvement in government played key roles. The army presented itself to society as the "restorers of the nation," aiming to redress the perceived wrongs caused by Yrigoyen during his second presidency. They also gained support from university sectors that disagreed with the University Reform.