Argentine Revolution 1966: Onganía’s Rise and Impact
The 1966 Coup and Initial Support
The 1966 coup was initially welcomed in the financial sector, with liberal optimism reflected in the stock market, where some stocks rose by 70 points. Business entities such as ACIEL, UIA, CGE, and the Rural Society expressed their enthusiasm, and their representatives attended Onganía’s inauguration ceremony.
With some nuances, and with the exception of radicalism and the traditional left, political parties accepted the new situation as logical and reasonable. Political and trade union sectors of Peronism unanimously supported the coup, as did Perón from exile.
Onganía’s Governance Model
The governance model that Onganía attempted to impose was a modernizing autocracy intended to transform society from above, with or without popular support. This model presented another variant of corporatist thought, but in this case, it was executed by a state power expressly excluded from interest groups. Political parties were banned, strict censorship was imposed on trade union activity, and students, intellectuals, and artists were persecuted.
Onganía declared his intention to remain in power indefinitely and proclaimed the program of the “Argentine Revolution” to restore the economy, revive growth, and then distribute the benefits to achieve “social peace.”
The “Statute of the Argentine Revolution,” approved by the three commanders-in-chief, created a regulatory framework that replaced the Constitution.
Economic Policies and Initial Success
At the start of his administration, Onganía tried to overcome the difficult economic situation by presenting an economic plan that promised a “great transformation.” The main objectives were industrial growth, balance of payments equilibrium, and price stability.
The state would use monetary, foreign exchange, fiscal, and wage and price controls to achieve these goals.
To instill confidence in foreign investors, a law was passed demonstrating that there was no more “oil nationalism.”
These measures, and confidence in the stability of the peso, helped to create a flow of capital into the country, which was reflected in the net reserves of the Central Bank.
The issue of labor was essential in this program; wages were frozen.
Economic Growth and Challenges
In 1968, inflation declined, and the balance of payments improved. There was an increase in public works, with an impact on industrial growth and employment through the implementation of projects such as the National Road Plan.
Imports of raw materials and intermediate goods grew, especially spare parts for machinery, lumber, newsprint, aluminum, copper, and chemicals.
The reduction of import tariffs hurt small businesses associated with the CGE but not those linked to large foreign investments.
The currency was devalued, and the peso was replaced by Law 18,188.
Social unrest and protests forced the government to enact wage increases.
Student Movement and University Intervention
In late July 1966, Onganía ordered the intervention of the national universities, ordering the police to use violence to expel students and teachers.
The destruction reached the laboratories and libraries of the universities, including the most recent and novel acquisition: a computer. This event became known as “The Night of the Long Batons.”
The intervention was followed by the exodus of teachers and researchers and the abolition of student union bodies.