Argentina’s Industrial Evolution: WWI to Post-WWII
Impact of World War I on Domestic Industry
The First World War significantly altered Argentina’s domestic industry. The reduction in foreign trade provided a protective environment for local industries. However, the need to import production equipment remained a challenge, hindering full utilization of this advantage. The textile industry experienced expansion due to new market opportunities created by the war.
Post-War Industrial Development
The advancement of the textile industry slowed after the war as European nations implemented import restrictions to protect their own industries. During the war, progress was made in the production of simple products like edible oils and cheese, as well as more complex goods such as chemicals, cement, and paper.
Foreign Investment in Argentine Industry
U.S. companies seeking global markets began investing in Argentina, particularly in refrigeration and oil activities. Cement producers, automakers like Ford and General Motors, and communication companies like ATT followed suit.
The Role of Oil Activity and YPF
Oil activity was crucial during this period. In 1923, a license was signed with a U.S. company to manufacture gasoline pumps. In 1926, an agreement was reached to sell 200 jets per month to YPF (Yacimientos Petrolíferos Fiscales), thanks to General Mosconi. Under Mosconi’s leadership since 1922, YPF played a pivotal role in driving local industry, expanding oil production and establishing the La Plata distillery as a core productive center.
State and Private Enterprises
The first steel plant in Argentina was SOMISA. In 1956, INTI (National Institute of Industrial Technology) and INTA (National Agricultural Technology Institute) were created to support the industrial and agricultural sectors. The National Atomic Energy Commission became a key player in the technical development of industry during the 1960s and 1970s. The state also established Dini, Gas del Estado, Techint, and Water and Energy.
Post-World War II Changes
A surprising consequence of World War II was the significant expansion of Argentine industrial exports, rising from 5% in 1940 to 19% by 1945. Notable sectors included textiles, chemicals, and food. This export-driven growth allowed for increased production scale and economic dimensions. However, these markets were lost as the war ended, partly due to government restrictions on exports and industrialists’ preference for the protected local market.
Economic Relations with the U.S. and Britain
Pressure from Washington to join the war against the Axis, conflicts of interest in trade and investment, issues with Great Britain, and anti-American sentiments in Argentina created increasing tension. Washington prohibited the export of various products to Argentina, including oil extraction equipment, locomotives, steel, weapons, and fuel. Concerned about the emergence of an unreliable power in South America, the U.S. aimed to limit the expansion of heavy industry in Argentina. This conflict forced Argentina to produce under unfavorable conditions, lacking energy, inputs, and modern equipment.
Credit and Support Agencies
In 1944, the Industrial Bank of Credit was established to provide medium and long-term financing to manufacturers. The institution quickly grew, employing 2,000 people, including 200 professionals and academics, to provide technical and promotional support beyond mere financial assistance. The number of approved credits increased from 2,500 in the first year to 50,000 in 1954. This bank supported the growth of companies like ACINDAR, VASALLI, and Siderca.