DEVELOPMENTALISM: IN ARGENTINA, MEXICO, COLOMBIA AND SPAIN - HISTORY - 2025

The desarrollismo is an economic theory that the best way to boost a weak economy is imposing high taxes on imported goods and strengthen the domestic market of the country. The use of high taxes on foreign products serves as a tool to prioritize the purchase of domestic products in the domestic market.

This idea gave rise to a thought throughout the world that defines development as the most direct route to economic prosperity. Developmental laws revolve around government institutions and theory serves to legitimize the economic policies of the governments themselves.

Arturo Frondizi, main exponent of industrialism in Latin America

Therefore, the correct application of developmentalism depends on the confidence that the people have in the president or leader of the country. Developmentalism had several exponents worldwide, but it arose mainly as an idea contrary to communism.

Frondizi developmentalism

The Argentine Arturo Frondizi was the main exponent of industrialism in Latin America. His four-year presidency, between 1958 and 1962, had as its main economic exponent the implementation of policies that were called developmental.

The reason for the economic changes in his government is linked to a fundamental problem of all Latin American nations of the time: the lack of a stable economic course that would properly enhance the nation's market.

Although some economies in the southern cone had a certain level of strength, there was still a long way to go before any of these countries could be called developed.

Frondizi's developmental policies had a specific characteristic that separated them from the rest: the country's industrialization and economic policies were not as closely tied to the state as the original developmental ideology proposed.

Frondizi's developmentalism revolved mainly around the ideas of the Economic Commission for Latin America and the Caribbean (ECLAC). The president named economist Rogelio Frigerio as his main voice in the country's economic decisions; This was influential in the implementation of developmentalism in Argentina.

The law that gave rise to the beginning of developmentalism with Frondizi was the so-called Foreign Investment Law, which encouraged and helped multinational industries to establish themselves in Argentina.

Developmentalism in Argentina

With Frondizi in charge of the nation, developmentalism in Argentina began in 1958 with the economic policies of the then president. Industrialization was the main objective of the Frondizi government, and during the time that it remained in power the country's economy had a historical peak in foreign investment.

Among all the industries that decided to invest in Argentina after the new policies established by Frondizi, the automobile industry stands out, particularly the industrial manufacturing companies of US vehicles.

Chemical and oil industries also began to arrive in Argentina, as did heavy machinery producers. One of the main reasons for this injection of foreign capital was the establishment of internal protections for investment companies.

The guarantees offered by the Frondizi government helped multiply foreign growth.

Argentina and the oil crisis

The improvement of domestic oil production was another of the main exponents of developmentalism in the late 1950s and early 1960s. Frondizi nationalized the oil industry and increased oil production exponentially in the country, which at the beginning of his government it had a high production deficit.

By early 1958 Argentina only produced a third of the oil it consumed, which meant a significant expenditure of money just to meet the needs of the nation.

Therefore, Frondizi eliminated the concessions to private companies and nationalized all the oil in the country. By the end of his government, Argentina began to produce 200,000 tons more than in 1958.

Developmentalism in Mexico

Developmentalism in Mexico dates back to the late 1940s. Although it was not considered developmentalism in itself, the policies that began to be implemented in the country fulfilled the characteristics of this theory.

In 1952, the Mexican government began to implement a policy to reduce imports and promote national industry. Mexican economic policies caused growth within national industries and increased the country's production of goods over the next 30 years.

However, the income of the population was still relatively poor and money was concentrated in the hands of a small group of people.

Developmentalism in Colombia

The beginnings of developmentalism in Colombia date from the end of the Second World War and the beginning of the 1950s, when the price of coffee (the main Colombian export product) skyrocketed worldwide. This enabled a high inflow of capital to Colombia, which began to be used to promote the industrialization of the country.

Similarly, protection policies were offered to national companies, as would happen with foreign companies in the Frondizi government a few years later.

Colombian and Mexican economic policies can be classified as the earliest signs of developmentalism in Latin America.

Developmentalism in Spain

Spanish developmentalism exists before the Latin American rise of this ideology, since the beginning of the government of Francisco Franco. The wide opposition of the government against communism was the main exponent of developmentalism in Spain.

However, it was not until 1959 when the Iberian country had a significant growth of its economy.

Although the policies to promote domestic industry based on developmentalism date back to the 1930s, it is considered that 1959 was when the Spanish economy fully adopted this theory.

It was at the end of the 1950s when Franco ceded power to the Liberals, who expelled the entire economic cabinet of the dictator and established new guidelines.

New policies

Developmental policies began to be implemented accompanied by little social change; the latter caused a Spanish exodus to other European countries and even to South America.

In part, Spanish immigration stabilized the country as large numbers of inhabitants left Spain and this helped reduce overpopulation.

The exodus led to an economic improvement in the country, as it was accompanied by developmental policies that improved the national industry and the quality of life of the Spanish. In addition, foreign investment in Spain was encouraged, which meant a significant increase in the country's capital.

References

1. Developmentalism, (nd), January 18, 2018. Taken from Wikipedia.org
2. Requiem or New Agenda for Third World Studies ?, Tony Smith, June 1, 2011. Taken from Cambridge.org
3. Frondizi and the Politics of Developmentalism in Argentina, 1955–62 - Summary, Celia Szusterman, 1993. Taken from palgrave.com
4. Francoist Spain, (nd), March 5, 2018. Taken from wikipedia.org
5. Economic history of Mexico, Elsa Gracida, (2004). Taken from scielo.org
6. Rogelio Julio Frigerio, (nd), December 28, 2017. Taken from Wikipedia.org
7. The Developmentalism, National University of Colomiba, (nd). Taken from unal.edu