Introduction

Summary

This book discusses the evolution of the Argentine economy in the twentieth century. It covers a century that actually begins a few years earlier, in the decade of the 1880s, with the foundation and expansion of modern Argentina, and ends in 1989. This analysis does not include the last decade of the twentieth century because the 1989–1990 hyperinflationary period marks the end of an era and the beginning of a new one that is beyond the scope of this book. The convertibility system of the 1990s ushered in new problems, the recession starting in 1998 and the crisis of 2001–2002 afterward, following which was the recent and significant recovery (2003–2006). These more recent developments are part of an ongoing process that will only be understood as patterns emerge.

In the span of that century Argentina went through numerous and contradictory experiences. At its beginning it saw a rapid expansion followed by a deceleration after World War I. In the second half of the century there was only one decade of growth, the 1960s, and ever since then, it has suffered a clear decline. Until Word War I it grew at a rate that was greater than that of some more industrialized countries, converging to those levels of per capita income. During the second half of the century, however, Argentina fell behind, and the difference between it and more developed countries became evident.