Thursday, October 15, 2009

Blog Post TWO: Argentina and the Economic Growth

Which were the main characteristics of the economic growth process that faced Argentina at the end of the XIX century? Which were its successes and weaknesses? Compare the experience of the immigrants in USA and in Argentina?

During the nineteenth century, Argentina experienced great growth in its economy as technology advanced and the production of exports increased, allowing the country room to become more self-reliant and less dependent on the imports of other countries. Declaring independence from Spain in 1816, it was during this century that Argentina finally began obtaining a more stable government. With the progression of development, the province of Buenos Aires had a great development in the production, or raising, of cattle, acting as the first major export of Argentina (1850s). The leather, the fat of the animal, and dried meat from the cattle was exported to Great Britain and began creating a form of revenue for Argentina. In 1862, Argentina elected its first president, Bartolomé Mitre, strengthening the stability of the country, and giving the growth of the economy added structure.
During the years 1870 to 1890, several new inventions were introduced, allowing the country to flourish in size and in the economy. Gas lighting was spread to homes, increasing the literacy rate and improving levels of education while, in the same period, the railroad system made its way to Argentina and began to map routes across the countryside. These railroads were major factors in the economic boom of Argentina. The ease that the system added to transportation allowed for immigration to expand, bringing many people from European countries to create a labor force to support the growth of exports that was also occurring in the country. Because the rails could reach far distances of the country in shorter amounts of time, it became easier to take advantage of the large open land that Argentina had, as well as transporting crops and cattle at exponentially faster rates. These successes in the development were the key features in the boom of the economy, creating strong capital expansion, a solid labor force, and sufficient land crops and cattle. Along with the railway system, the invention of ships with refrigeration systems allowed the country to export not only dried beef, but fresh meat and large amounts of grain overseas and to Great Britain and other countries, providing much of the grains for the western hemisphere.
Although they had much strength during the 19th century, Argentina still had problems being self sufficient due to its reliance on imports from European countries. This reliance acted as the country’s major weakness in the economy, and would eventually lead to problems during the economic crashes that other countries experienced during the 20th century.
As immigrants were coming into Argentina, large groups of immigrants were also entering the United States. Although both groups were seen as great sources of labor, those coming to Argentina were met with less resistance, as the languages began to mix and create a stronger culture. In the United States, many other cultures were met with resistance and were seen more as a problem than a solution, specifically the large flow of Irish in 1845-1850 because of the Great Potato Famine. The work for the immigrants also varied. Those coming into major ports in the US such as New York, Boston, or Baltimore were sent to work in factories to continue the industrial progress of the country, while most entering Buenos Aires were sent to work with the major crops and cattle farms that were located far from the city.
Overall, as Argentina progressed through the nineteenth century it became a stronger country with a strengthened economy. With the newly found technology, as well as the beginnings to an organized government, the country obtained a strong workforce, lands on which to build work, and valued resources to stimulate the economy and its international relationships.

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