Argentina’s Political and Economic History: 1886-1930

Posted on Dec 20, 2024 in History

Unicato (1886-1890)

Unicato refers to the political system implemented by Miguel Juárez Celman during his presidency (1886-1890). He concentrated power by simultaneously serving as President of the Nation and head of the National Autonomist Party (PAN). Initially, President Celman brought in his advisor, Miguel Juárez Celman. However, upon assuming the presidency, Juárez Celman rebelled against his political mentor. He then imposed what he termed the Unicato.

The ensuing revolution was bloody. Troops commanded by Roca, Pellegrini, and Levalle brutally suppressed the insurgents, who surrendered within days. Juárez Celman, fearing for his life, left Buenos Aires. Following the military victory, he negotiated the conditions of his continued rule with his party. Ultimately, on August 6, 1890, he submitted his resignation to Congress at Roca’s request. This marked the first time in 30 years that a president did not complete his term. Vice President Pellegrini assumed office, facing a dire economic situation where foreign debt represented 60% of the GDP, and most banks had closed their doors. The Unicato is related to the Revolution of the Park because this revolution led to the fall of Juárez Celman.

UCR (Radical Civic Union)

The UCR (Radical Civic Union) was the first Argentine political party, emerging in 1891. Pellegrini sought to align with Bartolomé Mitre for the upcoming presidential election. The opposition gathered to launch their candidacies, with agreements initially placing Mitre at the head, followed by the radicals Leandro N. Alem and Hipólito Yrigoyen. However, protests from a radical sector derailed the agreement.

In June 1891, a faction of the UC approved a joint formula with the government, forming the UCN (National Civic Union). The other faction formed the UCR, led by Alem and Yrigoyen. The UCR represented the middle classes and advocated for secularism. It played a key role in the conquest of universal and secret male suffrage. Its main goal was the national defense of the constitution.

Sáenz Peña Law

The Sáenz Peña Law, officially Law 8871 of General Elections, was enacted by the Argentine National Congress on February 10, 1912. It established secret and compulsory voting through electoral rolls, but it was still exclusive to native and naturalized Argentine men over 18 years old. This law marked a turning point, enabling the UCR candidate to come to power in 1916.

Previously, corruption dominated the electoral process. While citizens were required to register to vote, votes were often manipulated. Votes of deceased or absent individuals were counted, and opposition members were excluded. Votes were cast openly in public places. The Sáenz Peña Law introduced secret ballots deposited in a sealed urn. Voting became compulsory, as it was considered a right for all Argentine citizens over 18. Individuals over 70 were not required to vote.

1916-1930: Yrigoyen and Alvear Presidencies

Hipólito Yrigoyen served as president from 1916 to 1922. He was succeeded by Marcelo T. de Alvear. Yrigoyen was re-elected in 1928 and ruled until 1930 when he was overthrown in the first coup d’état.

  • Personalism: The political practices of the conservative order (the regime) were replaced by moral forces associated with the homeland and the nation, embodied by radicalism.
  • Interventionism: The opposition condemned the president for intervening in provincial autonomy, removing opposition governors and replacing them with allies.
  • The First World War: US trade gained ground, consolidating trade and capital transactions between the US, the UK, and Argentina.
  • University Reform: Students demanded secular education and proposed changes to university authorities.
  • Social Conflict: Notable events include the Tragic Week and the Patagonia Rebelde. Yrigoyen closed oilfields.

The radicals’ triumph in 1916 was precarious, and they faced significant opposition from various sectors.

Radical Economic Policy

The economic policy of radicalism largely continued the discussions of the previous period. The economy remained based on primary production and agricultural exports. Attempts to introduce changes to improve the situation of the urban middle classes were hampered by conservative opposition in Congress and two profound international crises: World War I (1914-1918) and the 1929 economic crisis. These crises adversely affected both the volume and prices of exported goods.

Exports

The period from 1916 to 1930 was characterized by fluctuations in the volume and prices of exports. Agricultural products were the most important exports. In the meat industry, the refinement process in cattle was reaffirmed. The most significant change was the introduction of chilling technology, replacing freezing. Chilling led ranchers associated with refrigerators and exports to gain ground over breeders tied to the internal market and dependent on packing houses and refrigerators. While Britain remained the primary purchasing country, the United States increased its purchases and investments, primarily in the refrigeration industry.

Agro-Export Model

Key features of the Agro-Export Model include:

  • Economic dependence on external markets
  • State intervention
  • Participation of foreign capital
  • Foreign immigration
  • Regional imbalance: Products were primarily sourced from the Pampas region.

Argentina’s Entry into the Global Market

Argentina integrated into the global market as a leading producer and exporter of primary commodities and a recipient of capital, manufactured goods, and immigrants (exporting raw materials to England). This model required infrastructure development, including transportation to move raw materials from producing provinces to the port, refrigerated ships for export (all supported by foreign capital), and labor from Europe due to unemployment caused by industrialization. This established the basic factors of a capitalist economy: land, labor, and capital.

Import Substitution Industrialization (ISI)

Import Substitution Industrialization (ISI) is an economic policy based on the premise that a developing country should strive to replace imported products, usually manufactured goods, with locally produced substitutes. This theory is linked to development similar to that advocated by mercantilism, which promotes maximizing exports and minimizing imports to increase national wealth. ISI is based on three pillars:

  1. An active industrial policy to subsidize and direct the production of substitutes
  2. Trade barriers (high tariffs)
  3. A monetary policy that maintains a high exchange rate