What was the best economic moment in Argentina?

THE economy From Argentina it has experienced different moments, between crisis and splendor, becoming a point of reference for the region and one of the most important economies in the Latin America.

According to some economists, Argentina’s “best economic moment” occurred in the so-called “Golden Age”, between 1880 and 1930.

Argentina’s golden age: the agricultural export boom

During the last decade of the 19th century, Argentina he had a fantastic time economic growth driven by the agricultural sector.

The expansion of the agricultural frontier and the modernization of production techniques have led to an increase in the production of cereals and meat.

According to economic historian Juan Carlos Garavaglia, in “Argentina in the 20th Century: From Prosperity to Decline,” that boom in agricultural exports led to sustained economic growth.

Immigration and urban development in Argentina

The massive wave of immigrants who arrived in the country expelled by the war was another determining factor in the country’s development. This workforce promoted industrial and urban development, especially in the metropolitan area of ​​Buenos Aires.

The Economist Aldo Ferrerin his book “The Argentine Economy: From the Conquest to the 2001 Crisis”, he emphasized that The combination of natural resources and human capital led to the flourishing of the Argentine economy.

Infrastructure

During the so-called “Golden Age”, Argentina also achieved significant momentum in terms of infrastructure and financial development.

The construction of railways, the modernization of ports and the creation of financial institutions were key elements in the expansion of trade and investment.

Political and social stability

During that period, political stability was achieved that allowed for long-term planning and the implementation of efficient economic policies.

Second the analysis of the economic historian Roberto Cortés Conde in his book “History of Contemporary Argentina”, It was political stability that provided a favorable environment for economic development.

Challenges and transformations

Despite the achievements achieved, the “Golden Age” was also crossed by challenges such as the First World War and the Great Depression, which had significant impacts on the Argentine economy.

However, analysis by contemporary economists such as Juan Carlos Korol, in “Economy and Society in Argentine History,” suggests that the resilience and diversification of the economy made it possible to overcome these obstacles.

Maddison Project

Comparing the wealth of different countries is complicated because there are some components to take into consideration. He Gross Domestic Product (GDP) It is the way that economists have found to establish unified parameters that allow comparative analysis.

In Argentina it began to be used in the mid-20th century, which is why the so-called golden age is not measured according to these guidelines.

However, the Project Madisonwhich uses historical parameters to estimate GDP since the beginning of civilization, is a source that some economists use to project into the past.

According to these statistics, during the so-called “Golden Age”, Argentina reached first place. In 2018, this statistic produced by the University of Groningen in the Netherlands indicated that Argentina had been the richest country in the world in 1896, and remained among the top positions during the first decades of the 20th century.

After being questioned by several economic historians, in 2020 these figures were corrected and Argentina was relegated to sixth place.

Among the oppositions generated by this historical analysis, the decline in GDP emerges, which ended in 1916, when Hipólito Yrigoyen assumed the presidency. Some sources claim that GDP was 15% lower than in 1895, which is why they classify this period only as a “golden year”.