page_title: Economic history of Argentina
section_title: Post-independence transition
hierarchical_section_title: Economic history of Argentina / Post-independence transition
caption_attribution_description: Market Place, from "Picturesque illustrations of Buenos Ayres and Monte Video, consisting of twenty-four views: accompanied with descriptions of the scenery, and of the costumes, manners, &amp;c., of the inhabitants of those cities and their environs". "The Market Place in Buenos Aires, Argentina is covered by shops on the sides of the piazza and is divided into different sections of fruits and vegetables, beef, poultry, and spirits. High society women did not enter the market and sent servants or trusted slaves to the market place."
context_page_description: The economic history of Argentina is one of the most studied, owing to the "Argentine paradox", its unique condition as a country that had achieved advanced development in the early 20th century but experienced a reversal, which inspired an enormous wealth of literature and diverse analysis on the causes of this decline. Since independence from Spain in 1816, the country has defaulted on its debt nine times and inflation has often been in the double digits, even as high as 5000%, resulting in several large currency devaluations.
  Argentina possesses definite comparative advantages in agriculture, as the country is endowed with a vast amount of highly fertile land. Between 1860 and 1930, exploitation of the rich land of the pampas strongly pushed economic growth. During the first three decades of the 20th century, Argentina outgrew Canada and Australia in population, total income, and per capita income. By 1913, Argentina was the world's 10th wealthiest state per capita.
  Beginning in the 1930s, however, the Argentine economy deteriorated notably.
context_section_description: During the early post-independence period, an important share of Argentina's exports came from cattle and sheep production. The livestock-raising economy was based upon the abundance of fertile land in the littoral provinces. Cropping apparently lacked comparative advantage compared to livestock grazing.
  Exports rose 4% to 5% annually from 1810 to 1850 and 7% to 8% from 1850 to 1870. This growth was achieved through the extension of the frontier and greater efficiency in livestock production.
  As a result of the diversification in markets and products, Argentina managed to escape the trap of a single-staple economy and sustained its economic growth over six decades. The combined effect of declining prices of textiles and rising prices of livestock products produced dramatic improvements in the terms of trade, which rose 377% between 1810 and 1825 in local prices. Several governors waged campaigns against the natives to increase the available lands, from Juan Manuel de Rosas to Julio Argentino Roca.
  Most poor gauchos joined forces with the most powerful caudillos in the vicinity. As the Federalist Party, they opposed the policies implemented by Buenos Aires, and waged the Argentine Civil Wars.
caption: Buenos Aires marketplace, 1810s
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