1. Population: 36.3 million Fourth largest in Latin America Economy: Among the top 5 in Latin America in terms of GDP per head, benefits from rich natural resources, a highly literate population, an export oriented agricultural sector, and a diversified industrial base. GDP per head (about $13,000 or 1/3th that of the USA (2006). Argentina Now Case Study: Argentina

2. Argentina Then….. Beginning of the 20 th Century, endowments: the “pampas” gave agricultural sector comparative advantage 1900: 71% GDP per head relative to 16 OECD countries 1913: 80% GDP per head relative to 16 OECD countries _____________ 1950: 65% GDP per head relative to 16 OECD countries 1973: 47% GDP per head relative to 16 OECD countries 1987: 32% GDP per head relative to 16 OECD countries

5. What happened? Cavallo & Cavallo et al in your syllabus suggest: Downfall due to ISI policies which in the case of Argentina: Directly via taxation of agricultural exports Indirectly via protection of non-agricultural commodities and other trade restrictions “Other” macroeconomic policies also had a negative impact

14. In conclusion: Trade policies adversely affected agriculture which is capital intensive Other macroeconomic policies: Overvalued exchange rate High fiscal deficits Also had a negative impact on overall performance as of 1930  Next class: Topic 8 in your syllabus