Argentina is one of the leading countries in Latin America. Its territory covers all climatic zones. In the north, near Brazil, the climate is tropical; in the south of Tierra del Fuego, it is cold. Not only the diversity of climate, but also the geography of the country – the Andes massif in the west and the Atlantic coast with steppe and chernozem plains in the east – allow any agricultural activity. Its subsoil is rich in oil, gas, uranium, and many other minerals that are exported. River hydroelectric power plants supply not only Argentina but also its neighbors.
In the 17th century, Spanish conquistadors gradually conquered South America. The sparsely populated by Indians territory of future Argentina was quickly conquered. They were looking for a water route to the Indian silver treasures, which the Spaniards had already become acquainted with while conquering the Aztecs and Incas. Legend has it that the Indians, in order to get rid of the Spaniards, told them about a supposedly existing river in the south that would allow their ships to reach the "silver city." Therefore, when the Spaniards reached the mouth of a large river, they called it the "silver river" (Rio de la Plata). The silver city was never found, but the Spaniards founded the city of Buenos Aires ("good air") on the river bank, which served as a base for expeditions along the Paraná and Uruguay rivers. Unfortunately, 450 years later, little remains of the good air. The capital of Argentina, Buenos Aires, with a population of 12 million, is not only the largest industrial city but also the largest port in the country. The dream of silver was reflected in the name of the young state (silver – "argentum") and in the imagination of many generations of Europeans who later settled Argentina.
When in 1810 Napoleon's legions overthrew the throne of the Spanish kings, the Creoles – descendants of Spaniards born on American soil – decided to arbitrarily secede from the Spanish Empire and create a new state. Slavery, privileges, and the trade monopoly of the Spaniards were abolished. The Creoles fought for several years with the Spaniards and not only held their territory but also liberated Chile and Peru through campaigns across the Andes.
In 1816, full independence was achieved, and in 1853, after internecine wars between various "caudillos," a republican constitution was adopted, which, with minor changes, is still in effect today. After political dependence on Spain, Argentina fell under the economic influence of Great Britain (long-term loans). The British began to use the country as a raw material appendage. They civilized the lands, built a railway network. Cattle breeding in the country was created according to their model: careful selection of breeds and natural fattening of herds in the fields. The main economic profile of the country and its folk hero "gaucho" (cowboy) – a shepherd, skilled horseman, border guard, mercenary soldier – were born. His patriarchal family, hospitality, and habit of roasting veal in the open air are still common denominators for Argentines.
Argentina meets the 20th century with large undeveloped lands, which quickly begin to be filled thanks to European crop failures, wars, and revolutions. In the south of the province of Buenos Aires, Danes appear; in the province of Entre Ríos, Russian Jews; and in Patagonia, English, Irish, Swiss, and Austrians. Belarusians, Ukrainians, and Russians come to harvest crops, some of them stay. Germans from the Volga region settle in Chaco and Corrientes. The arrival of Spaniards continues, who move west – to the provinces of Mendoza, San Juan, and Salta, where the climate is favorable for growing grapes. Following them comes the most significant European flow – Italians. They settle practically throughout Argentina, building the first dams on the Río Negro and Neuquén rivers, turning steppe lands into gardens. Germans, Armenians, Yugoslavs, French, Poles, Greeks, and many others also arrive. In 1810, the country had almost 500,000 people. From 1857 to 1940, almost 7 million people entered Argentina. Data from 1992 put the country's population at 33 million, 1.5 million of whom have Slavic roots. Unlike Brazil, black slaves from Africa were not brought into Argentina. The economic instability of the 70s caused a small departure of Argentines to the USA and Australia. The Cold ideological war also affected Argentina, especially from 1973 to 1980. Here we must note three important features that distinguish Argentina from other Latin American countries.
First, during World War II, Argentina successfully advanced its export of agricultural products to the warring countries. The treasury was replenished with gold reserves.
In those years, on the wave of the labor movement, General Perón came to power. Laws protecting workers were adopted, which are still in effect today. Therefore, communist ideology could not take root in the lower strata.
And the gold reserves were directed to state programs, construction of housing, highways, hospitals, etc. Thanks to state orders, private production began to develop. Light industry and a powerful middle class of owners emerged, which is the second reason for the defeat of Marxist ideas. The Peronist party is currently in power, led by President Carlos Menem, who was elected for a second term in 1995 and has been implementing a strict anti-inflation program since 1990, which stabilized the economy. Transnational companies are investing money in Argentina. In the 60s, Ford, Fiat, Peugeot, Renault, Philips, Dupont, Roche, Glaxo, Shell, and Exxon built their plants. Twenty years later, Volkswagen, Sharp, Grundig, and others joined them. All these demographic and economic processes make Argentina a purely Western country with 98% European population.
In terms of architecture and way of life, Buenos Aires resembles Paris and Madrid, with a large number of individual low-rise houses. Argentines are unbiased towards foreigners, rather curious, because they themselves are grandchildren or great-grandchildren of emigrants. As if history is unfolding smoothly... But why did a country that ranked seventh in the world in economic indicators in the 40s slide to seventieth place by the 80s? This can be explained by three reasons.
First, the geographical position of the country. Argentina is far from the markets for its agricultural products (USA, Europe, Asia), which, without state subsidies and devaluation of its own currency, makes Argentine prices uncompetitive. This kind of protectionism until 1990 harmed the efficiency of the economy.
There is also a political reason. Argentine politicians are confident that the country is so rich that everyone should live well in it. (A legacy of public sector habits from the times of large gold reserves.) This led to money emission and inflation, which destroyed the government's authority. To stabilize society and prevent the Marxist threat, military juntas came to power. Such fluctuations scared away foreign investment and contributed to capital flight.
Finally, a demographic reason. A large country with a tiny domestic market could not develop its industry within the framework of modern technologies.
The current government is overcoming the political reason. A balanced budget has been achieved. The Argentine peso has been pegged to the dollar at 1:1 since 1991. Annual inflation is 4%.
The geographical "problem" is being overcome within the framework of the Common South American Market (MERCOSUR), which includes most South American countries led by Brazil. Traditional restrictions on the import of goods have been lifted. Stabilization allows banks to work with loans for the population and enterprises, which contributes to one of the main engines of the economy – housing construction for the population.
In 1992, the privatization of public sector enterprises began: telephone and railway networks, airlines, and gas pipelines. The private sector of the economy was laid 400 years ago. Even then, land, workshops, shops, stores, factories, etc., were always the property of private individuals. Therefore, when you hear that privatization is being completed in Argentina, keep in mind that this has nothing to do with "our privatization." Over the past 4 years, economic growth has been observed, which entails immigration from neighboring countries and creates unemployment (10-18%). In terms of its resources, Argentina can accommodate 10 times its current population on its territory. Settlement occurs naturally. Argentina is considered an agricultural country, but without peasants. Seasonal workers come for harvesting. Various harvesting machinery has long been used. There are enough hands. The majority of the population lives in cities.
It should be noted that there is no program of assistance to emigrants in Argentina. Most likely, restrictions and quotas for entry will be created. Do not rely on benefits, privileges, or loans. Rely only on yourself.
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