definition of the agro-export model

The concept of the agro-export model is the one that emerged in the second half of the 19th century in Argentina and Latin America in general due to the consolidation of an economic system based both on the production of agricultural raw materials and their export to countries. Centrals (mainly European). The agro-export model was the direct consequence of the almost unlimited inflow of foreign investment and capital that allowed Argentina to reactivate the economy in a large part of its 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 were sold at a higher price than raw materials and that, for thus, they allowed the European powers and the United States to seize great 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 caused countries like Great Britain, the United States and France to fall into a serious economic depression, cut off the flow of investment to peripheral countries. In this way, Latin American countries such as Argentina had to find a way to replace this agro-export model with one of internal consumption that would allow placing all local production in the market of each region.

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