Nadia Gloag

Comida Con Causa Research Paper

June 6, 2018

Argentina was once a very rich and vibrant land with a thriving economy, and although it

is still a prosperous Latin-American country, it is plagued with problems. Although it was many

political leader’s aim to improve the economy and the lives of Argentine citizens, the problems

that ailed the country as a result of their failed attempts included hyperinflation, food

insecurities, and the kidnapping, torture, and murder of an estimated 30,000 Argentine citizens.

Argentina has been able to bounce back from the numerous human rights abuses and

hyperinflation reaching over 20,000% that the late 20th century brought, but these afflictions

continue to have a lasting effect on Argentina’s citizens, government, economy, and food

system.

Argentina’s economic problems are difficult to analyze and compare, as they are so

unique. As Economist Simon Kuznetz once said, “There are four kinds of countries in the world:

developed countries, undeveloped countries, Japan and Argentina.” However, there are a few

indicators as to how, why, and when Argentina saw its collapse (Engelmann). After WWII, Juan

Perón, a big believer in the merits of fascist corporatism, took over as Argentina’s president. His

goals and promises as president were very positive and beneficial to many Argentine citizens, as

he aimed, among other things, to aid Argentina’s working class citizens. However, he lacked the

proper funding to fulfill these goals. One of the main sources of funding Perón used during his

rule was the Argentine Institute for the Promotion of Trade (IAPI), which utilized the products of

Argentine farmers, buying produce from farmers and selling them for significantly higher prices
in international markets. The IAPI was unable to provide adequate funding, however, “due to a

decline in international agricultural prices, mismanagement, corruption, and unfulfilled economic

assumptions about availability of British Pound Sterling reserves to offset trade deficits with the

United States” (Singerman). The repercussions of this mistake were substantial, as the IAPI’s

“staggering operating deficits had to be financed through loans granted by state-owned banks

and eventually by Argentina’s central bank.” (Singerman).

However poor the decision to use the IAPI turned out to be in the end because of the

uninterested market and resulting inflation, the organization had the potential to be very

beneficial to Argentine farmers and other citizens.

Argentine Farmers had to sell their crops to this state agency, which in exchange paid the

farmers a fixed domestic price with the intent of protecting them from fluctuations in

international commodity prices. The IAPI would then try to sell the crops in the

international markets at prices significantly above the domestic prices it had paid the

farmers with the purpose of realizing huge profits. (Singerman)

The way in which the IAPI functioned ensured everybody was happy: farmers would be

protected from market fluctuations, and the country and its citizens would benefit from the profit

of the organization. Many countries do not care for the farmers and other food system workers,

so the attention given to the farmers contributing to the IAPI was uncommon yet positive for

many. Of course, this was back when Argentina was still a very wealthy country and had the

ability to pay attention to and properly provide for everyone. After this time, however, the

devastation that swept Argentina ensured that farmers and other workers in the food system

began being neglected in Argentina. The mistakes and miscalculations made under Juan Perón’s

nine year rule set Argentina down the path to its downfall.
 Juan Perón was thrown out of office in 1955, a few years after his influential and widely

loved wife Eva “Evita” Perón died “signaling the collapse of the national coalition that had

backed him. Having antagonized the church, students, and others, he was forced into exile by the

military” (History). He settled down in Spain and, while there, continued to exert influence to

rally his followers, the Perónists, into a movement that ensured his return to presidency in 1973

(Biography: Juan Peron). He wasn’t president long, however, before his death in 1974, leaving

the already failing country in the hands of his unprepared vice-president and wife, Isabel Perón,

who was formerly a nightclub dancer in Panama (Yergin and Stanislaw). “Her regime inherited

problems of inflation, labour unrest, and political violence, [and although] she attempted to solve

the problems by appointing new Cabinet ministers, printing money to pay foreign debts, and

imposing a state of siege,” the country saw no improvement in its economy (Britannica). In

1976, once Isabel’s attempts at improving Argentina’s economy yielded no positive results, she

was overthrown by a military junta, and Jorge Rafael Videla became president. Videla’s aim as

Argentina’s leader was to defuse the “political instability and growing violence” that resulted

from Former President Juan Perón’s death (BBC). This seemed like a great goal in theory, but

Videla’s plan of action to achieve this goal was far from positive. He allowed and encouraged

armed forces to kidnap, torture, and murder suspected left-wing activists who may be

contributing to Argentina’s violence in any way. This horrific event was dubbed the Dirty War,

and the people who fell victim to the Dirty War were called los desaparecidos, meaning ‘the

disappeared’. After being kidnapped, these people would be sent to one of “364 secret detention

centres... used between 1976 and 1978... [where they were] routinely tortured and killed, their

bodies disposed of in mass graves, or thrown out of planes at night over the River Plate”

(Caistor). Pregnant women who were abducted during this time were often held until they gave
birth, and then they were slaughtered. Their children were given to military families who often

did not know the origin of their new child (Biography: Jorge Rafaél Videla). Not only does the

Dirty War continue to haunt the memories of affected people and families today, it had large

negative effects on Argentina’s already deteriorating government and economy, and continues to

negatively affect the lives of many today.

After the horrors of the Dirty War, Argentina’s problems only grew:

The century’s most hopefully elected President [(Raúl Alfonsín)] had to leave office five

months ahead of schedule – in July of 1989 – defeated by an unrealistic economic

program that was supposed to rescue Argentina from the financial pit the dictators had

dug for it but was instead buried under an inflationary avalanche that reached a record

1996.6 per cent monthly. (Guillermoprieto)

As time went on, Argentina continued to suffer despite the government’s best interests and

attempts. Inflation rose, newspapers were censored, government scandals become more

commonplace, food insecurity increased, violence ensued, and political leaders were unable to

solve the country’s problems. Many choices the heads of state made, especially those at the

beginning of Argentina’s downfall such as Perón and Videla, severely impacted the wellbeing of

the country and its population, and though their economy has improved over the last couple

decades, much of Argentina continues to suffer.

According to Trading Economics, inflation in Argentina is currently at 25.6%. Although

this number is nothing compared to the country’s hyperinflation years ago, it is still very

damaging to the lives of many Argentine citizens. Argentina is a large producer of food, and yet,

because they export such a large amount of their crop to the world, many of the country’s own

population suffers. Although Argentina is able to successfully provide food locally fairly well,
something other Latin-American countries see major struggles with, they have problems with

ensuring that all of the population has access to the food they need. “According to the data

provided by the ‘Observatorio de la Deuda Social Argentina’ (2012), 11.2% of the families in

Argentina face food insecurity problems, and 16% of them are families with children.” (Feeney

and MacClay). Argentina’s problems with inflation have made it so exporting the food the

country produces is a top priority in order to make revenue and decrease inflation to better

support the country and its citizens. However, with this as one of the country’s main goals, the

population of Argentina who may need food more urgently are unable to have cheap and easy

access to it. Some Argentine citizens live wealthy and easy lives, but many indigenous people

suffer from this greatly. Multiple children die from malnutrition in small indigenous

communities every year, and many people go hungry in order to properly provide for their

families (BBC). Argentina’s food system, while good for the exportation of goods, neglects and

hurts the citizens of Argentina, particularly its indigenous population. Although exporting goods

to the world is beneficial for the country as it yields a large profit, it would do Argentina good to

find a way that ensures food security to all of its citizens.

Argentina’s political leaders have made many mistakes that transformed one of the

richest and preeminent countries in the world to one of high inflation and insecurity. Although it

was the goal of many political leaders to better the economy and help and improve the lives of

Argentina’s population, the actions they took had devastating domino effects. Once Argentina

began to experience inflation and instability under Juan Perón’s rule, it set the country down a

path they didn’t know how to bounce back from. The inability of Argentina’s political leaders to

right the wrongs performed by their predecessors ensured Argentina remains a country struggling

with violence, inflation, insecurity, and fear. Argentina’s leaders continue their attempts to
improve the country’s food system and economy and restore Argentina to its former grandeur.

Only time will tell whether or not they succeed.

Works Cited

“The Paradox of Argentina.” The Commanding Heights: The Battle for the World Economy, by

Daniel Yergin and Joseph Stanislaw, Free Press, 2002.

https://www-tc.pbs.org/wgbh/commandingheights/shared/pdf/ess_argentinaparadox.pdf.

“Juan Perón Biography.” Biography.com. A&E Television Networks, September 17, 2015. Web.
 June 6, 2018. https://www.biography.com/people/juan-per%C3%B3n-9438004.

History.com Staff. “Perón deposed in Argentina.” History.com. A&E Television Networks,

2010.

Web. June 6, 2018.

https://www.history.com/this-day-in-history/Perón-deposed-in-argentina.

“Jorge Rafaél Videla Biography.” Biography.com. A&E Television Networks, April 1, 2014.

Web. June 6, 2018.

https://www.biography.com/people/jorge-rafa%C3%A9l-videla-40374.

Singerman, Eduardo. “Perón's Legacy: Inflation In Argentina, An Institutionalized Fraud.”

Forbes. Forbes, January 30, 2015. Web. June 6, 2018.

https://www.forbes.com/sites/realspin/2015/01/30/Peróns-legacy-inflation-in-argentina-

and-an-institutionalized-fraud/#615ceb0f5c77.

The Editors of Encyclopaedia Britannica. “Isabel Perón.” Encyclopaedia Britannica.

Encyclopaedia Britannica, September 17, 2007. Web. June 6, 2018.

https://www.britannica.com/biography/Isabel-Perón.

Feeney, Roberto, and MacClay, Pablo. “Food Security in Argentina: A Production or

Distribution Problem?” International Food and Agribusiness Management Review, vol.

19, no. 2, 2016. https://www.ifama.org/resources/Documents/v19i2/120150169.pdf.

“Argentina Inflation Rate 1944-2018” Trading Economics. Trading Economics. Web. June 6,

2018. https://tradingeconomics.com/argentina/inflation-cpi.

“Dying from hunger in food-exporting Argentina.” BBC. BBC, April 6, 2011. Web. June 6,

2018.

https://www.bbc.com/news/world-latin-america-12973543.
Caistor, Nicholas. “General Jorge Rafael Videla: Dictator who brought terror to Argentina in the

'dirty war'.” Independent. Independent, May 17, 2013. Web. June 6, 2018.

https://www.pastemagazine.com/articles/2016/12/argentinas-inflation-problem-and-how-

its-permeated.html

Engelmann, Nicholas. “Argentina's Inflation Problem, and How It's Permeated Every Aspect of

the Culture.” Paste Magazine. Paste Magazine, December 7, 2016. Web. June 6, 2018.

https://www.independent.co.uk/news/obituaries/general-jorge-rafael-videla-dictator-who-

brought-terror-to-argentina-in-the-dirty-war-8621806.html