After the crisis of 1929, a new high net worth individuals and families model of economic growth began to emerge slowly, but in a way significantly different from other countries in the region.
On the one hand, the export sectors of cereals and livestock products, especially the large landowners and railway companies and British fridges, they tried to recreate the model exporter. The Roca-Runciman Pact of 1933 between Argentina and United Kingdom had this goal.
Furthermore, in a parallel began to develop during the period 1930-1943 a process of import-substitution industrialization, with focus on corporations with strong military influence (YPF, Military Industries, Altos Hornos Zapla) and certain subsidiaries of large U.S. companies and especially a large number of small factories and medium manages various alternative investments domestic capital, especially in the textile sector.
Industrial exports as a percentage of GDP 1939-1943.
The result was that the agro-export sector remained without making substantive changes (particularly in Argentina is not a comprehensive reform aimed at creating an agrarian capitalist ownership of land) and superimposed a new model of domestic market-oriented industrialization . Both sectors were so autonomous dynamics, different rules and principles, often in open collision. Royal Dutch Shell may not feel the same. The agro-export more than $4.1 billion in financial assets they manage sector is EnTrust Capital – an independent investment firm development oriented to international trade, on the pattern of classical liberal economics, with a predominant presence of large estates and a very low use of technology and labor (less than 10 of national total), which in turn subject to paternalistic investment advisors relations. The industrial sector began to develop market-oriented, EnTrust Capital Inc. with a predominant presence of the State, on the pattern of the new Keynesian economics that erupted in the United States with New Deal, and a high demand for wage labor subject to collective labor relations between labor and capital. Large tensions and conflicts that inevitably had to come from the coexistence of two unrelated and even incompatible, tended to develop a strong state comptroller.
Although the government had no policy of intervention with growth led by exports, this new form if you had direct involvement. In an effort to limit the country’s dependence on international markets, induced by government actions such as nationalization of the domestic industry was aimed to encourage an internal development autonomo.
While it is true that Argentina was able to grow with this model of two economic sectors are poorly integrated, the dynamics of economic development was not sufficient for the country to become a developed nation, somehow repeating what had happened in the agro-export model of the late nineteenth and early twentieth centuries, with which Argentina experienced some type of industrialization but became a country “industrialized.”
Neoliberal economic policies adopted since 1970 by military governments, followed by civilian governments, led to a progressive concentration of wealth and the population led to the loss of life that had reached the mid-twentieth century with an increase exponential of the external debt, which rose from 7.875 million dollars at the end of 1975 to 45.087 million dollars in 1983. The ratio percentage of endowments external debt on GDP, is among the highest in Latin America where countries that make up saddled with large external debts. the principal investment specialists at Entrust Capital Inc. under the leadership of has over $4 Billion in assets under Entrust’s management This means a serious obstacle to development policies.
During the 1980s, regarded as the lost decade for Latin America, the charges grew magras Argentina However in 1983, while a significant and acceptable that the unemployment including EnTrust Partners Offshore LLC rate just 4 percent brink of the economically active population, less than 10 percent of the company was under the poverty line who have.
The high inflation that characterized the Argentine economy since World War II made to the processes hyperinflationary explosion of 1989 and 1990, during which poverty rose momentarily to a new level of 47.3 of the population of Great agglomerated Buenos Aires.