Desde la Colonia hasta 1860. Economia para todos.

Understanding the Economic History of Argentina

The Origins of Economic Organization in Argentina

• The history of Argentina's economy is crucial for understanding contemporary issues, as many current economic problems have deep historical roots.

• Early forms of economic organization emerged after Spanish conquistadors established their presence in the region.

Significance of the May Revolution (1810)

• The May Revolution marked a pivotal moment in Argentine history, with significant economic implications that are yet to be fully explored.

Colonial Economic Structures

• By the late 18th century, territories in Spanish America were still under colonial rule, focusing on territorial gains rather than independence.

• An original peso coin from this era symbolizes early national currency and reflects the economic conditions during Oscar Alende's ministry in Buenos Aires.

European Expansion and Resource Exploitation

• European powers sought riches such as spices and precious metals; Spain's expeditions led to the discovery of gold and silver in Mesoamerica and Peru.

• Initial interest shifted towards tropical products like cotton and sugar, but regions like Río de la Plata lacked these resources, leading to marginal development compared to other areas.

Labor Systems During Colonial Times

• The encomienda system allowed Spanish settlers to exploit indigenous labor through contracts that required them to provide food and evangelization services.

• Three main labor exploitation systems existed: encomienda, mita (forced labor), and plantation slavery. Each had distinct characteristics affecting local economies.

Changes in Economic Activity by the 18th Century

• By the 18th century, Buenos Aires thrived on contraband trade due to limited legitimate economic activities.

• The introduction of cattle ranching became significant as it transitioned into organized production units known as estancias.

Political Developments Impacting Economy

• Under Bourbon reforms during Charles III’s reign, autonomy was granted to territories like La Plata, altering regional dynamics significantly.

The Impact of the Industrial Revolution on Argentina's Economy

Transformation of Production Methods

• The Industrial Revolution in Great Britain radically changed production methods, introducing steam power and large-scale industrial production.

• Spanish settlers organized the economy in Argentina around farms and artisanal production units, adapting to new economic realities.

Economic Integration and Challenges

• The demand for leather and wool from England integrated the Río de la Plata into the global economy as a supplier of raw materials while importing manufactured goods.

• Regional economies faced challenges due to competition from imported products, raising questions about protectionism versus free trade. This dilemma persisted throughout the 19th century and remains relevant today.

Protectionism vs Free Trade Debate

• The debate over protectionism is framed not as isolation from global trade but as creating internal conditions necessary for domestic production to thrive within international systems.

• The Plaza de Mayo became a significant site for discussions on independence at the beginning of the 19th century, influencing Argentina's economic changes throughout that century.

Regional Disparities in Economic Development

• A divide emerged between provinces with dynamic economies linked to livestock (near ports) and those relying on subsistence economies, leading to federal conflicts and national organization struggles.

• Buenos Aires solidified its role in economic leadership post-May Revolution, with free trade becoming a political objective for commercial elites, intensifying conflict with regional economies until mid-century.

Historical Context of Economic Marginality

• By late 18th to early 19th centuries, much of Argentina operated under closed subsistence economies with minimal international trade engagement, marking a period of marginality in economic development.

Monastic Contributions to Local Economy

• Benedictine monks arrived in the 19th century focusing on artisanal production for sustenance; they established agricultural practices including vineyards which contributed locally while maintaining traditional craftsmanship standards.

Economic Characteristics of Pre-Industrial Societies

Local Production and Subsistence

• The pre-industrial economy was characterized by local production aimed at subsistence, with minimal surplus. This limited excess production primarily served local consumption.

• Surplus goods, such as leftover fruits, were often donated to institutions like orphanages and elderly homes, reflecting a communal approach to resource distribution.

Agricultural Practices

• Early agricultural practices included small-scale dairy production where cream was manually processed into butter. This indicates the artisanal nature of food production during this period.

• By the 1960s, there was a shift towards selling agricultural products like cattle and wheat rather than handmade goods, which were mainly for personal use or gifting.

Economic Integration and Transformation

• The economy functioned in a semi-closed manner with limited external trade until significant changes occurred due to colonial conquests and global market integration.

• The integration into the world market led to increased competition; while some sectors thrived (e.g., leather exports), others struggled or disappeared entirely.

Land Distribution and Ownership Changes

Expansion of Land Ownership

• By the mid-19th century, land ownership expanded significantly in Buenos Aires due to military rewards for service against indigenous populations, leading to vast territorial claims.

• Private land appropriation surged in Buenos Aires province, reaching approximately 12 million hectares within a few years through various means including military concessions.

Colonial Economic Structures

• The economic structure during colonial times resembled that seen in early revolutionary periods, particularly regarding livestock farming focused on leather production.

Impact of Livestock Farming on Economy

Characteristics of Livestock Farming

• Livestock farming required extensive land but relatively few people, facilitating growth despite low population density in Argentina's fertile regions.

Territorial Occupation Challenges

• A significant portion of Argentina remained unoccupied by settlers from European descent; only about 20% was utilized by descendants of conquistadors at this time.

Integration into Global Markets

Shift Towards Raw Material Production

• Post-independence saw raw material production become central to Argentina's economy. Cattle ranching for international leather markets initiated processes of land concentration among few owners.

Regional Economies' Struggles

• Regional economies faced challenges competing against foreign imports as they adapted to new market conditions following increased global integration.

Descriptive Accounts of Saladeros

Conditions in Saladeros

• Travelers described saladeros (meat processing facilities), highlighting horrific conditions such as overwhelming odors and unsanitary practices prevalent during meat processing operations.

Processing Techniques

• Animals were kept under poor conditions before slaughter; methods involved brutal treatment prior to processing meat into strips for preservation using salt.

Impressive Narratives of Cleaning Methods

The Process of Extracting Fat and Oils

• The narrative discusses the extraction of fat and oils, highlighting a lack of better cleaning methods available at the time.

• It describes a vivid scene where numerous pigs share their entrails with dogs, illustrating a raw and unfiltered perspective on the process.

• The account is characterized as "impressive," emphasizing the striking nature of the events being described.

• This segment reflects on historical practices in animal processing, showcasing both the brutality and necessity involved in such methods.