Thesis on "Great Depression of Argentina"

Thesis 4 pages (1530 words) Sources: 7 Style: APA

[EXCERPT] . . . .

Depression of Argentina

The Great Depression of Argentina

The depression that Argentina experienced in the 1930s was related to the Great Depression in the United States and other countries during that time. The entire world struggled because financial markets were slow and imports and exports dried up to the point that it was difficult to get things. Those who could get things often had no money to pay for them. The main exports of Argentina were things that people needed but that failed to help the country stay strong financially during that time. As time passed, however, the country of Argentina recovered and became stronger for the adversity that it had been through. Now it has paid off large debts and is growing in strength, making its future a bright one.

The Great Depression of the 1930s did not only affect the United States (Caldwell & O'Driscoll, 2007; Ohanian & Cole, 1999), it also had a direct impact on Argentina's economy. Argentina's specialized export of beef and grain began to plummet during a time when spending in the U.S. was at an all-time low (Paolera & Taylor, 1999). Yet, the Argentine economy proved to be resilient as it bounced back from the depression and once again began to thrive. Second in size and population only to Brazil, Argentina is a land of beauty and serenity for most people (Paolera & Taylor, 1999).

There are cattle and sheep grazing, and the area is rich with agriculture (Paolera & Taylor, 1999). It has a republic style of government and was first explored in 1516 (Paolera & Taylor, 1999). A man named Juan Diaz de Solis scoped out the area and liked what he saw. People have been there ever since. They realize what a beautiful and fertile place they live in, and more companies are moving into that country because of the land and the people. They want to be part of what Argentina has to offer. Of course, not all businesses are interested in Argentina, but there are many of them that have decided that the country would be a great place to start an agricultural business, place a call center, or otherwise build something that will bring in some of their own people and also give jobs to some of the native people.

Slowly, and under British rule, Argentina developed. In 1975, things turned bad as the cost of living went up more than three hundred and fifty percent and terrorists attacks killed many hundreds of people (Paolera & Taylor, 1999). There was a 'dirty war' -- aimed at eradication of enemies -- that was started after that time, and by 1999 a serious recession was in its third year (Paolera & Taylor, 1999). The 1930s were tough, but this new recession was a struggle, as well, in a country that had never fully recovered from the problems that it had experienced during the Great Depression.

Fernando de la Rua was elected President of Argentina that year, too, and the country defaulted on one hundred and fifty-five billion dollars that it needed to pay back (Paolera & Taylor, 1999). It was the largest default in history and was completely unprecedented. Slowly, though, Argentina turned things around and started gaining ground again from a financial standpoint. The debt was paid off, and the GDP growth rate is now above eight percent (Paolera & Taylor, 1999). The country has really turned around from where it was in the past, and many things have changed there. How all of this happened seems miraculous to many people, but it is a story of resiliency. People who are willing to work for what they want often get more than those who are not interested in doing this, and the people of Argentina were committed to their country and what they needed to do in order to ensure its recovery and future success. If they had not been, the country might still be languishing.

The major exports of Argentina are very important, because they are what keep the country growing financially and what will help the country continue to prosper far into the future. They have always been important to the country of Argentina, but they have grown since 1990 in a big way because the recession/depression of that time finally came to an end (Paolera & Taylor, 1999). Generally, Argentina exports corn, wheat, soybeans, and cattle or beef (Paolera & Taylor, 1999). They are a leader when it comes to beef, making them an important player in the export market (Paolera & Taylor, 1999).

In the 1930s there was a serious depression that took place within the United States (Caldwell & O'Driscoll, 2007; Ohanian & Cole, 1999). Most people still believe that it was confined to that country, but it was not (Caldwell & O'Driscoll, 2007). The Great Depression ruined the lives of many people in America and other countries (Paolera & Taylor, 1999; Ohanian & Cole, 1999). People lost their jobs, houses, savings, and in some cases their lives (Ohanian & Cole, 1999). The suicide rate was very high due to the destruction of so many people's hard-earned financial lives (Paolera & Taylor, 1999).

Argentina and countless other countries suffered, as well (Ohanian & Cole, 2002). In 1929 the Great Depression had its start in the United States, and before very long it had spread all the way around the world (Ohanian & Cole, 1999). The UK was also very hard-hit by the depression (Ohanian & Cole, 2002). The only countries that were not affected were countries that were already too poor to see their financial areas drop any lower.

These are few of these countries left in a rapidly developing world, and Argentina is not one of them. There were political implications of the Depression, too, and increased tariffs on imports (Paolera & Taylor, 1999). That meant that trade was reduced, and this only helped the Depression to worsen. There was another depression of sorts, also, that took place in Argentina between 1975 and 1990 (Hopenhayn & Neumeyer, 2003).

While this is not the main focus of this particular paper, it is important to be aware of the fact that there were problems that occurred during that time and that the Great Depression of the 1930s is not the only financial difficulty that Argentina has experienced. The fact that it has been able to weather these things and get through them shows the resiliency of the people who live there and also the resiliency of the people who are in power in that country.

The Argentine government has done an incredible job with getting the economy back on track, both from the Depression and from the staggering debt and deep recession that the country had experienced in the late 1990s (Paolera & Taylor, 1999). The GDP of Argentina is now more than two hundred and sixty billion dollars, and the annual growth rate is more than eight percent (Paolera & Taylor, 1999).

Agriculture is eight percent of the total GDP, so it is clear that agricultural interests still play a large part in helping the country grow and stay strong financially (Paolera & Taylor, 1999). Per capita GDP for the country is more than sixty-six hundred dollars and the exports total almost fifty-six billion dollars (Paolera & Taylor, 1999). Fuels, cars, grains, vegetable oils, and other oilseed byproducts are some of the most important areas where trade is concerned (Paolera & Taylor, 1999).

Today things in Argentina are looking up and the country is poised to enjoy a bright future. Right now it is a member of the regional common market bloc Mercosur (Paolera & Taylor, 1999). This was established in 1991 and is trying to break down trade barriers between countries that join it. This makes it good for the economy of… READ MORE

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