ARGENTINA IN DEPRESSION

Question 1

What was the state of the Argentinian economy in the 1920s and what was it dominated by? (2)

Answer 1

1. It had a 5% growth rate

2. Primary production of wheat and beef

Question 2

Who was Yrigoyen? (4)

Answer 2

1. Leader of the Radical Party
2. President from 1916-1922 and 1928-1930
3. Continued the political corruption of his Conservative predecessors through extensive patronage
4. Sought genuine improvements in Argentine life (such as the opening of three new universities; offering more opportunities for the middle classes; and supporting strikes)

Question 3

Describe the events and effects of Tragic Week. (5)

Answer 3

1. Trade unions in Argentina had been dominated by anarcho-syndicalist groups (often made up of migrants from southern Europe who were used to direct methods such as calling strikes to achieve their goals)
2. In January 1919, violence erupted in Buenos Aires over the metallurgical strikes
3. When the violence ended, right-wing groups organised themselves themselves into the Argentine Patriotic League, which threatened and intimidated its oppoenets
4. Labour conflicts and apparent government support led to the entry of the military into conflicts
5. Yrigoyen tied members of the middle class to his regime through patronage.

Question 4

What were the main problems facing Argentina by 1922? (4)

Answer 4

1. Crisis in the meat industry
2. Tariffs
3. Debt
4. Oil

Question 5

Describe the meat industry crisis.

Answer 5

1. Pre-war chilled-beef trade, which dominated exports, was generally geared to middle-class tastes wanting high quality beef
2. With WWI there was a demand for cheaper beef products rather than higher-quality beef
3. Many ranches met this shift in the change of quality
4. Demand collapsed after the war
5. Number of cattle slaughtered for export in 1921 was less than 50% of 1918 figures and prices had fallen by a half
6. Processors protected their own profit margins by lowering prices to ranchers
7. Ranchers gained control of the Rural Society (alliance of powerful conservative cattle ranchers) to try to pressurise the government
8. Nothing was achieved

Question 6

Describe the tariff and debt problems in Argentina during the 1920s.

Answer 6

1. 1923 tariff extended protection to various raw resources such as cotton in an attempt to diversify the agricultural sector, but only restored duties to 1914 levels
2. National debt had increased significantly
3. Between 1921 and 1922, government revenue fell from 481 to 461 million paper pesos, yet expenditures increased from 503 to 614 million pesos - debt grew from 682 to 893 million paper pesos

Question 7

How did Buenos Aires grow in the 1920s?

Answer 7

1. The city developed primarily as a port
2. Eventually handled not only the majority of Argentina’s import and export trade, but also that of Bolivia and Paraguay
3. Was the hub of the railway system

Question 8

Describe the problems with oil in the 1920s.

Answer 8

1. Government feared foreign investment in oil
2. Regardless, foreign interest grew -> insufficient funding for the proper development of the oil industry
3. Alvear set up the YPF - an advisory board set up to exclude foreigners as far as possible.
4. British and American interest was too developed for this
5. By 1928, foreign investment was 38% (compared with 3% in 1916 and 20% in 1920
6. In 1927, supporters of Yrigoyen introduced legislation for nationalisation, but it was not passed.
7. In 1927, Shell was allowed to develop an oil refinery in Buenos Aires, in agreement to train Argentine students for it.

Question 9

What was the ‘Infamous Decade’ and why was it ‘infamous’?

Answer 9

Name given to the 1930s in Argentina because it seemed characterised by political corruption and intimidation. It was a period of military dictatorship.

Question 10

Describe the events of the 1930 coup.

Answer 10

1. Saw the appointment of Jose Felix Uriburu as president.
2. Led by junior officers who took control of Government House
3. Uriburu became president and promoted the paramilitary Legion Civica Argentina.
4. He appointed supporters to key positions and purged known radical sympathisers in the guise of cutting expenditures
5. Wanted to install the readitional elites back into power

Question 11

Who were the traditional elites?

Answer 11

1. Landowners
2. The Church
3. The army

Question 12

How did Justo come to power?

Answer 12

1. During Uriburu’s coup, Justo and other more moderate conservatives were secretly plotting, if not to return Argentina to democracy, then at least not to open it up to fascism
2. Uriburu agreed to a trial election in April 1921 in Buenos Aires to elect a new governor - the Radical candidated won
3. In July, a rebellion in Corrientes orchestrated by left-wing members of the military led to both Uriburu temporarily exiling Alvear, the Radical leader and the annulment of the April elections in Buenos Aires
4. This led him to lose face and military support.

Question 13

In what way was the 1931 election corrupt?

Answer 13

1. The Radicals decided to boycott the election
2. During the campaign, the police had confiscated the ballot tickets of known Radical supporters
3. In the port city of Avellaneda, conservative leaders had arrested many of them
4. Conservative leaders switched ballot boxes to ensure a conservative majority

Question 14

What was the effect of the 1931 election being won by Justo?

Answer 14

It returned the old elites to power.

Question 15

Define: Concordancia.

Answer 15

The conservative regime of the 1930s. Was made up of three main components.

Question 16

What were the three main components of the Concordancia?

Answer 16

1. Old-style conservatives who referred to themselves as ‘National Democrats’; probably the majority. They opposed extremism of any sort and were opposed to political corruption; their leader was Justo
2. The Independent Socialist Party. A small conservative group who broke away from the Socialists in 1927
3. Nationalists formerly led by Uriburu who had often been associated with the right-wing paramilitary movements of the 1920s and were increasingly influenced by European dictators such as Mussolini in Italy and Primo de Rivera in Spain

Question 17

How did the government respond to the Great Depression through the reduction of debts?

Answer 17

1. US dollar devalued
2. Argentina began to repay loans
3. 1933: Justo devalued peso, making Argentinian goods cheaper and so was able to reduce foreign debts

Question 18

How did the government respond to the Great Depression through spending cuts?

Answer 18

1. Uriburu sought to save government expenditures through spending cuts
2. Dismissed 20,000 government employees
3. National government expenditure fell from 934 million paper pesos in 1929 to 702 million by 1934

Question 19

How did the government respond to the Great Depression through the increased trade?

Answer 19

1. Particularly with Britain
2. Threatened by introduction of Imperial Preference, where Britain agreed to cut imports of Argentine beef by 5%
3. Roca-Runciman Agreements

Question 20

Describe the key features of the Roca-Runciman Agreements.

Answer 20

1. Britain agreed to two concessions: to admit in future years the same quantity of Argentine beef as it did 1932 and to agree that Argentine meat-packing plants could supply 15% of British beef imports
2. Argentina agreed to reduce tariffs on 350 British goods to the 1930 rates, currency exchanges favourable to Britain and the preservation of British commercial interests in Argentina such as the railways
3. Any payments to Britain deferred because of the weakness of the paper peso were to be automatically taken from Argentine earnings from exports in sterling
4. All trade between Britain and Argentina was to be carried in British ships

Question 21

Define: Roca-Runciman Agreements

Answer 21

1. Treaty between Argentina and Britain
2. Secured for three years
3. Guaranteed Argentina a fixed share in British markets for meat and ruled out tariffs on British cereal imports

Question 22

Effects of the Roca-Runciman Agreements?

Answer 22

1. Justo gave in to British demands in other areas, in order to protect agreements
2. Street-railway system in Buenos Aires was British owned and in a generally decrepit condition for which the British owners blamed high taxes and uneconomic fares
3. Shareholders complained of poor dividends while Portenos moaned about the quality of the service
4. British demanded a new charter for a new monopoly, with tax exemptions, guaranteed returns of 7% to investors and the elimination of the competition
5. Justo gave in

Question 23

What was the Eden-Malbran Treaty?

Answer 23

1. Renewed Roca-Runciman Treaty, signed in 1936
2. Britain was allowed to impose taxes on Argentine meat imports and more favourable terms for British-owned railways in Argentina

Question 24

How did the government respond to the Great Depression through the maintenance of the oil industry?

Answer 24

1. Government gave up on the idea of a state oil monopoly and allowed foreign interests free rein
2. Argentine oil production trebled between 1930 and 1946
3. Argentine oil production in total grew by enough to significantly reduce foreign imports: in 1930, Argentina imported 58% of its oil and in 1940, 37%.
4. Argentina needed significant amounts of oil for its industrial developmnt

Question 25

From where did the growth of nationalism originate?

Answer 25

1. A general feeling of Argentine Exceptionalism, that Argentina was potentially a superpower but had underperformed
2. The dislike of foreign, particularly British involvement in the economy
3. The Radical youth movement FORJA (Fuerza de Orientacion Radical de la Juventud) supported nationalist ideas and attacked foreign involvement

Question 26

What were the effects of the union strikes of 1936?

Answer 26

1. Railroad workers gained security of employment, although their pay was cut
2. Office workers gained sick pay and severance pay in the event of dismissal
3. Working hours were gradually reduced and some retirement schemes came into operation

Question 27

Define: Import Substitution Industrialisation

Answer 27

1. The development of domestic industry to avoid over-reliance on imported industrial goods.
2. The idea was to develop industry so economies were not so dependent on primary products
3. In Argentina, firms such as Tornquist and Bunge y Born began to diversify their activities and invest in products aimed at local markets
4. In 1943, for the first time, the value of manufactures exceeded that of agriculture

Question 28

How did the Argentinian government aid ISI?

Answer 28

1. In 1932 the government levied petrol taxes to finance a highways bureau and the construction of 30,000 km of roads by 1938
2. Government spending increased by 27% between 1932 and 1937
3. Government was keen that industrial development should be harnessed to miltary defence and in 1941, the Direccion General de Fabricaciones was created to provide military supplies and equipment

Question 29

What three emergency measures did Federico Pinedo (ministry of the Treasury) impose?

Answer 29

1. Introduction of income tax - tariff duties formed a smaller proportion of total government revenues, from 80% in the 1920s to 50% by 1940.
2. Central bank - previously the privately run banking system made it impossibl to control the monetary supply and manage the economy at large. Now the central bank could regulate interest rates and the monetary supply
3. Creation of juntas for products - organisations created to manage the production and marketing of specific products to guarantee quality and control supply

Question 30

Why did the Concordancia decline?

Answer 30

June 1943, the civilian politicians were overthrown in a military coup, setting the way for Peron.