Definition of the agro-export model

The concept of model agro-exporter is the one that emerged in the second half of the 19th century in Argentina and Latin America generally due to the consolidation of a economic system based on both the production of agricultural raw materials as in the export of the same to the central countries (mainly European). The agro-export model was the direct consequence of the almost unlimited entry of investments and foreign capital that allowed Argentina to reactivate economy in much of his territory. In addition, the agro-export model coincides with the establishment of the Argentine national state.

The notion of the agro-export model has to do with the development of the world economic system at the end of the 19th century. This system was based on the world division between central countries and peripheral or producing countries. While the latter specialized in the production and export of raw materials and basic elements (especially agricultural), the former were dedicated to the production of manufactured or more complex products that sold at a higher price than raw materials and therefore allowed the European powers and the United States to seize large amounts of money. capital.

The oiled way in which this economic system developed allowed the circulation of capital between the most powerful and the least powerful regions to continue for more than fifty years. However, the capitalist crisis of 1930 that made countries like Great Britain, the United States and France falling into a serious economic depression cut the flow of investment to the countries peripherals. Thus, Latin American countries such as Argentina had to find a way to substitute this agro-export model for one of consumption internal that would allow to place all the local production in the market of each region.

Throughout its existence, the agro-export model allowed growth (although not development) economy of Argentina, making it that region for what it was famous for at the time: "the granary of the world".