The Great Depression, Concordancia In Argentina, And Import Substitution Industrialization

1072 words - 4 pages

The Great Depression, which lasted from 1929 to 1939, was a landmark decade that entailed famine, increased suicide rates, and financial shrinkage internationally. Being that the stock market was comprised of international stock, when the crash of October 1929, major banks failed worldwide, causing several countries to suffer from trading losses due to the relationship with the United States at the time. In Argentina, circumstances were intensified by the Concordancia and the political and social turmoil in the country at the time. Import Substitution Industrialization was a tactic used in Argentina and internationally to repair the country’s economy.
The depression in the 1930’s in the country of Argentina was one of the most devastating internationally. In 1929, Argentina had the fourth highest gross domestic product; however a few short months later, this would no longer be considered the case. Considering that the economy heavily depended on foreign trade for daily essential produces, the economy was deficient of vital goods and thus lacked important industry. Mainly dependent on the foreign capital from Great Britain at the time, domestic industry was severely affected by the market crash due to the halt of British domestic capital investment. Through the Domino Effect, mass and widespread unemployment was a major and constant theme in the Argentinian culture at the time. This further affected the government revenue dropped significantly as the export of the country faulted investment and imports were decreased exponentially due to the international depression. As a result of the decline in national revenue, grand deficits began to appear. To repair the shortage of the countries’ profits, the government began to borrow money from trading countries as to simulate the investments from Great Britain and, hence, generate an increased amount of revenue for the country as a whole.
At the time of the Great Depression, Argentina was in a power battle between the government and the radicals. Radical Juan Hipólito Del Sagrado Corazón de Jesùs Irigoyen, also known as Hipólito Irigoyen, took power of the government as president in 1928 with only 45 percent of the votes nationally. He gained the support from small farmers by offering subsides, internal trade unions by settling wage disputes in favor of the people, and the intellectuals of the country by supporting the University Reform Movement. During the depression, the Radicals lost a significant amount of power because no reform was enacted. Previously, President Irigoyen was considered to be an advantage and necessary change within the government; however, during the depression, he was merely representational of a figure head considered to be senile, corrupt, and at fault for the degree and enormity of the crisis. As a result of the public’s newly found opinion, he lost a grandiose amount of support from the labor unions and thus, labor unrest was extremely common. To alleviate the unrest and...

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