Dictatorship, Democracy, and Globalization: Argentina and the Cost of Paralysis, 1973-2001

by Klaus Friedrich Veigel

The collapse of the Argentine economy in 2001, involving the extraordinary default on $150 billion in debt, has been blamed variously on the failure of neoliberal policies or on the failure of the Argentine government to pursue those policies vigorously enough during the 1990s. But this is too myopic a view, Klaus Veigel contends, to provide a fully satisfactory explanation of how a country enjoying one of the highest standards of living at the end of the nineteenth century became a virtual economic basket case by the end of the twentieth. Veigel asks us to take the long view of Argentina’s efforts to re-create the conditions for stability and consensus that had brought such great success during the country’s first experience with globalization a century ago. The experience of war and depression in the late 1930s and early 1940s had discredited the earlier reliance on economic liberalism. In its place came a turn toward a corporatist system of interest representation and state-led, inward-oriented economic policies. But as major changes in the world economy heralded a new era of globalization in the late 1960s and early 1970s, the corporatist system broke down, and no social class or economic interest group was strong enough to create a new social consensus with respect to Argentina’s economic order and role in the world economy. The result was political paralysis leading to economic stagnation as both civilian and military governments oscillated between protectionism and liberalization in their economic policies, which finally brought the country to its nadir in 2001.

234 pages, Hardcover

First published January 1, 2009

Reviews

[Vance Woods · Rating 4 out of 5]

If, as I, you carry around a deep connection to the Argentine people, but if, also as I, your time among them was at too early an age to truly appreciate their endearingly, infuriatingly idiosyncratic nature, Veigel's book will probably turn a few light bulbs on in your head. So many things make so much more sense to me now than before reading it. And don't let the econo-speak deter you - his narrative is still fairly easy to follow, even if you don't necessarily know what he's talking about from a technical perspective.

That being said, the four stars stem from a lack of definition at conclusion-drawing time. Veigel follows the unfolding of the various ups and downs of the Argentine economy and political situation pretty clearly, and the picture he paints of a people caught in a struggle between isolationism and globalization is well formed. However, his main point seems to be that Argentina developed as it did because it was Argentina, a tautology which doesn't really require 200 pages to be established. Also, while he does demonstrate in his text that blame may be placed at the doors both of the Argentine government and the IMF and other international lenders, he buries the lead a bit when it comes to actually judging the merits of either accusation.

Still, if you want to learn more about "los Argentinos," Veigel conveys a love for and an understanding of the culture that goes beyond mere research to actual emotional attachment. I'd wager you will not come away from this book without feeling some strong emotion - be it anger, sadness, love, or all of the above.