The Economic Growth Of Argentina And Argentina

1281 Words 6 Pages
Compared to other parts of the world, Latin American countries have developed much slower and lack the economic progression of first world countries. "A vague consensus suggests that some financial development took place, but it was not all that might have been hoped for" (Coatsworth 140). While every country faces obstacles to growth, Latin American countries seem incapable of overcoming their financial obstacles and some have even economically regressed. Because Argentina and Bolivia used inefficient policies to address their domestic problems, they failed to attain significant economic growth despite possessing the potential to advance their countries ' economies. In this essay, I will do two things. First, I will discuss the events led …show more content…
Coatsworth cites the interwar period as the "decisive breaking point" in which Argentina took steps back (Coatsworth 139). According to Coatsworth, "Argentina begin a very strong position in 1913, consistent with its claim to one of the richest economies in the world. However, this position was continuously eroded in relative terms until the interwar period, such that by the 1930s, Argentina had experienced virtually no net increase in financial depth" (Coatsworth 150). While other international countries experienced minor setbacks caused by war or the Great Depression, Argentina suffered a much bigger setback compared other countries. Eckstein believes that the nationalists that took over control of Bolivia in played a large part in aiding Bolivia 's failure to grow. The nationalists were middle class led and the policies that they enacted removed old institutions and replaced them with new ones that favored the poor. However, "the shift in government priorities was not economically justifiable" because the new system was inefficient due to the new government being subject to conflicting class pressures (Eckstein …show more content…
Eckstein exposes how low state revenues that force the Bolivian government to accept other countries ' investment. "When sufficient revenue cannot be generated internally to address economic and political needs, even ideologically nationalist regimes will seek foreign assistance and accept creditor loan biases" (Coatsworth 132) The negative result is that foreign countries have say in the distribution of Bolivia 's resources which leads to inefficient agricultural development. Essentially, "...foreign capital had come to play such an important role that it contributed to the breakdown of the populist coalition" (Coatsworth

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