The then capital of the Viceroy of the Rio de La Plata was invaded by the English, but after a couple of months, they were expelled. The following year, a similar situation arose again, with the same result. Today, some Argentines joke that without the heroic action of the Creoles, Argentina could have been like Australia. Of course, we can never know what would have happened, but history teaches us that a country's success or failure largely depends on the institutions it implements.
Argentina, a country we have discussed many times before, once experienced a period of significant wealth. It was one of the richest countries in the world, if not the richest. But how did this prosperity come about, and why does it differ so much from the country we see today? Moreover, what role did international trade and foreign capital play in this supposed Golden Era? Let's delve into the history of this nation to find the answers.
The Origin of a Nation At the end of the 18th century, the Spanish Crown established the Viceroyalty of the Rio de La Plata with its capital in Buenos Aires. The region was initially of little interest to the Spanish Empire, but English smuggling and Portuguese expansion in Brazil prompted the crown to take notice. Independence movements sprouted in various American territories of the Empire between 1810 and 1825, including what we now know as Argentina. On May 25, 1810, the Viceroy was deposed, and Argentina proclaimed a local government. The country declared its definitive independence on July 9, 1816.
The Conflict and Formation of Institutions However, conflicts and wars persisted due to disputes over governance and the type of government to be established. The main factions were the unitaros and the federales, with Buenos Aires seeking more rights for itself due to its wealth from a port and customs. The provinces argued for shared resources and equal rights. The dispute continued for almost 50 years and was only resolved when the Constitution of 1853 was approved. This constitution, which paved the way for Argentina's prosperity, was influenced by the ideas of Juan Bautista Alberdi, who identified four main obstacles the country needed to overcome: lack of capital, scarcity of population, lack of infrastructure, and lack of legal certainty.
Four Key Changes That Shaped Argentina's Prosperity
Immigration Boom: The constitution promoted immigration, leading millions of Europeans to arrive in Argentina between the late 19th and early 20th centuries. The country became a popular destination for immigrants due to abundant work opportunities and higher salaries than their home countries.
Railroad Development: The government recognized the importance of a modern railroad network in a vast country like Argentina. Between 1865 and 1910, the railway network expanded from less than 500 kilometers to over 30,000 kilometers, linking various regions and boosting trade.
Economic Expansion: Argentina's economy experienced enormous growth, becoming one of the world's leading food producers. By 1910, it was among the 10 richest and most prosperous countries globally, boasting significant wheat, corn, beef, mutton, and lamb exports.
Education Advancement: The country focused on education, reducing illiteracy from 70% to less than 20% in just six decades. The government established free, compulsory, and secular education, making Argentina a leader in education in comparison to European countries.
The Fall from Prosperity Despite this golden era of prosperity, Argentina's fortunes took a turn for the worse. The country faced challenges and events that led to its decline. Economic, social, and political factors contributed to the loss of its once vibrant position among the world's wealthiest nations.
The Present and Future Looking at Argentina's current state, it may seem like a far-off myth or science fiction story. The country faces numerous challenges today, but it also holds immense potential. Only time will tell whether Argentina can recover its past glory or create a new path for itself.
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