The Great Depression, Concordancia in Argentina, and Import Substitution Industrialization

The Great Depression continued from 1929 to 1939, an epoch-making decade that led to famine, an increase in suicide rates, and a shrinking international economy. As the stock market was comprised of international stocks at the time of collapse in October 1929, the major banks failed globally, and several countries suffered a loss of transactions at that time in connection with the United States. In Argentina, the concordia of that time and the political and social anxiety of that country exacerbated this situation.

From 1914 to 1945, through the Second World War and the Great Depression, the import substitution policy accelerated the pace of industrialization in Latin America. Between 1915 and 1947, the number of industrial factories in Argentina has increased from 40,200 to 83,900 and in Brazil it has increased from 13,000 to 78,400. At the same time, industrial employment in Chile increased from 45,000 to 176,000, and Argentina's industrial employment increased from 323,000 to 1,921,000. Most industry expansion was done in the primary industry or consumer goods sector, but several intermediate industries and heavy industries were established. The factory in Chile produces paper, glass and cement, Brazil produces iron, Argentina produces agricultural machinery. By 1950, industrial production in Latin America exceeded agricultural production. The import substitution industrialization policy was not generally labeled at that time, but it changed the economic structure of Latin America.

After the Great Depression of the world economy in the 1930s, Argentina began to pay more attention to the industrialization process. By the early 1940s, the industrial sector still consisted of food processing and simple assembly, but the industrial sector was more important than the agricultural sector. Even in the 1950s alone, Argentina began to make more efforts to develop heavy industry and chemical industry. Therefore, we can conclude that Argentina has lost the opportunity to achieve industrialization before and during the Second World War. In fact, agricultural development succeeded in enriching Argentina, but it was not able to catch up with other countries on the way to industrialization.

General commentary on the economic history of Latin America is a good record of the industrialization stage 1 The industrialization of Latin America in the form of substitution of basic consumer goods imports was necessary for the Great Depression and the Second World War. Products are exported in exchange for manufactured goods dating back to the system colonial era. However, various factors detailed in Latin American history, such as influx of immigrants from Europe, early industrialization, changes within the military, are reflected in political change. Since this concept is naturally based on the United States and it is rebuilding as a model of Europe, industrialization is regarded as an indispensable development process.

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