Argentina’s Unification: Cepeda, Pavón, and Economic Growth

Cepeda and the Path to Unification

In February 1859, Buenos Aires approved the Law of Retaliation in response to differential duties applied by the Confederacy. This action, influenced by foreign powers, increased the risk of war. The conflict ultimately led to a war between Buenos Aires and the combined forces of the U.S. ambassadors and Paraguay (Cepeda). Following the triumph of Mitre, Alsina’s resignation was imposed as a condition and accepted by the legislature of Buenos Aires. Mitre was subsequently appointed governor of Buenos Aires.

The Pact of San José de Flores

This covenant was signed on November 11. Its main points were:

  • The incorporation of Buenos Aires into the Confederacy
  • Amendments to the Constitution of 1853
  • The establishment of a national convention
  • The nationalization of the Buenos Aires customs office

Pavón: A Decisive Battle

In 1861, two new conflicts arose: a revolution in San Juan and the rejection of qualifications for Members of Buenos Aires by the Congress of Paraná. The Battle of Pavón proved decisive, resulting in the ultimate union of the Argentine provinces under the leadership of Buenos Aires.

Economic Landscape During Separation

During the years of separation, Buenos Aires enjoyed a prosperous economic situation due to its control of one of the country’s largest ports. Customs control provided considerable income. In April 1857, the Code of Commerce was adopted, placing Buenos Aires’ commercial law at the forefront globally.

The Confederacy, however, did not fare as well. Despite enabling the port of Rosario for international trade, it had little success. The Law of Differential Rights was established to reduce the province’s economic dependence on Buenos Aires.

Both parties relied on agriculture and livestock, primarily for local or provincial needs. The Confederacy supported agricultural settlement in Santa Fe and Entre Ríos, while Buenos Aires showed little interest in colonization. Chivilcoy was an exception, selling public property at low prices and easy terms.

Colonization efforts were not always positive, sometimes involving excessive concessions to contractors without considering the country’s general interests.

Modernization of Transport

Until 1860, vehicles were horse-drawn, with limited capacity and low speed. However, railway projects, particularly the installation of the Western Railway in Buenos Aires, brought significant change. The railway’s rapid expansion highlighted the Confederacy’s decline without Buenos Aires. Attempts were made to colonize indigenous lands, with a law granting land to those willing to work it. Immigration was encouraged for settlement.

Socio-Political Actors

Influential socio-political actors existed in both territories. In the Confederacy, two orientations emerged: one urging Urquiza to subdue the breakaway state by force, and the other proposing a peaceful solution.

In Buenos Aires, two political groups held different views on Urquiza and the Confederacy. The chupandinos (nationalists) advocated for rapprochement with the rest of the country and unsuccessfully opposed Valentín Alsina’s election. On the other hand, the pandilleros (autonomists), who controlled the Buenos Aires government, consisted of men who had returned from exile after the fall of Rosas.