Five-Year Plans of Argentina
Encyclopedia
The Five Year Plan was an Argentine state-planning
strategy, during the first government of Juan Domingo Perón.
The plan addressed the need to anticipate and encode in a single body all the measures affecting the exports and imports, regulating the classification, packaging and quality certification of the exportable products, and establishing a customs
procedure tailored to the realities at that time. It decentralized and diversified industry, forming new productive areas, and placing them properly in terms of natural energy sources, means of communication, transportation and consumer markets. A minimum of five years was established for works and investment needed to ensure an adequate supply of raw materials, fuel and mechanical equipment, and rationally develop industry and agriculture in the country. Moreover, in order to expedite customs and port services, it was proposed to unify in each office those functions under the direction, coordination and oversight of a central body to be known as the General Administration of Customs and Ports of the Nation which would replace -with more powers- to the hitherto General Directorate of Customs.
In its article 2 º, it authorized the Executive to fund the plan with the issue of Public Debt Securities in the amount required and / or any other appropriate means, rendering annually to Congress.
The making knowledge was new: both houses of the Congress were convened, not formally as House, but as an invitation to national senators and representatives to join the exposure of the President. The event took place in the floor of the House of Deputies on October 21, 1946, with full attendance for the ruling bloc, however the opposition failed to attend. Opened the event the Senate President and Vice President of the Nation, Dr. Juan Hortensio Quijano; and later Perón and the Technical Secretary, barcelonan Dr. José Figuerola.
The government opened an outreach campaign, beginning with talks of President Juan Peron in the Teatro Colón, first with workers, and then with employers of the Argentine Industrial Union
and the newly created Argentine Association of Production, Industry and Trade.
. It was held in 1952, during the second term of Juan Domingo Peron (1951-1955).
; protecting domestic producers against the changes in international prices, and against the action of international monopolies and importing countries of argentine products.
and even to the private sector for the acquisition of capital goods.
When the Institute acquired processed products which failed placement, it provided the profit margin for the industrial sector, creating a special joint committee to resolve the crisis in certain productive sectors, acquiring raw materials to give it to manufacturers.
Also developed promotion and development functions, as determined which production activities were a priority and therefore should receive special treatment, for example, the granting of credits without obligation to repay. On the other hand, it subsidized the production of certain consumer goods in order to maintain the level of real wage
s.
, Hungary
, Italy
, the Netherlands
, Norway
, Finland
, Denmark
, Brazil
and Sweden
. Anyway, despite the efforts made by the body to expand the portfolio of buyers of Argentine products, the United Kingdom continued to rank first as an importer, followed by the United States.
Concerning imports, the importance of IAPI was significantly lower. The major purchases were recorded in the areas of metallurgy
, building material
s, machinery and textiles, standing out as sellers United States and Great Britain, while trade with the Soviet Union reported a significant increase since 1953.
Since 1949 the Institute's activities dwindled, leading to the private sector take over much of the exchange. In its relations with the private sector, the large subsidies granted IAPI: between 1947 and 1954 agricultural subsidies amounted to 5,063,011 pesos
, while the livestock sector amounted 4,567,590 pesos.
Finally, the deficit turned out to be important enough to motivate the redesign of its convenience (in its latest report the agency's operating deficit amounted to 20,000 million pesos or 3% of the GDP of that time).
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
strategy, during the first government of Juan Domingo Perón.
The preparations
Early in the second half of 1946, the Technical Secretariat of the Presidency began to prepare a Plan of Government for the five-year period from 1947 to 1951. The Five Year Plan was first announced as a bill to be sent to the Congress, in the presidential message of October 19, 1946 (the Article 1º consisted of the "Achievements and Investment Plan", and developed a number of other bills).The plan addressed the need to anticipate and encode in a single body all the measures affecting the exports and imports, regulating the classification, packaging and quality certification of the exportable products, and establishing a customs
Customs
Customs is an authority or agency in a country responsible for collecting and safeguarding customs duties and for controlling the flow of goods including animals, transports, personal effects and hazardous items in and out of a country...
procedure tailored to the realities at that time. It decentralized and diversified industry, forming new productive areas, and placing them properly in terms of natural energy sources, means of communication, transportation and consumer markets. A minimum of five years was established for works and investment needed to ensure an adequate supply of raw materials, fuel and mechanical equipment, and rationally develop industry and agriculture in the country. Moreover, in order to expedite customs and port services, it was proposed to unify in each office those functions under the direction, coordination and oversight of a central body to be known as the General Administration of Customs and Ports of the Nation which would replace -with more powers- to the hitherto General Directorate of Customs.
In its article 2 º, it authorized the Executive to fund the plan with the issue of Public Debt Securities in the amount required and / or any other appropriate means, rendering annually to Congress.
The making knowledge was new: both houses of the Congress were convened, not formally as House, but as an invitation to national senators and representatives to join the exposure of the President. The event took place in the floor of the House of Deputies on October 21, 1946, with full attendance for the ruling bloc, however the opposition failed to attend. Opened the event the Senate President and Vice President of the Nation, Dr. Juan Hortensio Quijano; and later Perón and the Technical Secretary, barcelonan Dr. José Figuerola.
The government opened an outreach campaign, beginning with talks of President Juan Peron in the Teatro Colón, first with workers, and then with employers of the Argentine Industrial Union
Argentine Industrial Union
The Argentine Industrial Union is the leading industrial advocacy group in Argentina, and one of the most influential in the country, in any sector.-Early development:...
and the newly created Argentine Association of Production, Industry and Trade.
Second Five Year Plan
The Second Five Year Plan was based on encouraging the growth of the heavy industryHeavy industry
Heavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...
. It was held in 1952, during the second term of Juan Domingo Peron (1951-1955).
Measures
During this period, Perón stressed primarily to promote foreign investment in the Argentine trade. The main measurements were:- Increase foreign investment
- Growth of heavy industry
- Removes most of the subsidies and industrial loans
- Partial restriction of public consumption
- The IAPI (Argentine Institute for the Promotion of Trade) would buy crops at a lower price than the international ones, for obtaining resources and stimulating industrialization.
Economy
The state took over the tasks of selling the exportable surpluses of domestic production, and purchasing fuel, raw materials and capital goods required for agricultural, industrial and mining development in the country.The IAPI
The Argentine Institute for the Promotion of Trade (IAPI) was an Argentine public body created by the decree nº 15350 on May 28, 1946, that, although it was signed by President Edelmiro Farrell, it was part of the package that Colonel Juan Domingo Perón and his team of advisers had projected, operating under the aegis of the Central Bank, in order to centralize foreign trade and transfer resources between different sectors of the economy. Its director was the economist Miguel Miranda, chairman of the Central Bank.Objectives
The objective that guided the creation of this agency was the need to have an agency specialized in trade issues, a better external integration through the conquest of new markets, and the consolidation of Argentina's presence in those already obtained. It also sought to promote the quality and diversity of local products and create strategies to defend their prices in the international market against the eventual deterioration of the terms of tradeTerms of trade
In international economics and international trade, terms of trade or TOT is /. In layman's terms it means what quantity of imports can be purchased through the sale of a fixed quantity of exports...
; protecting domestic producers against the changes in international prices, and against the action of international monopolies and importing countries of argentine products.
Features
The body had different functions. At the commercial level, it was responsible for buying cereals and meat to the producers, and then export them when international prices were favorable. Also met financial functions, providing funds to certain public agencies, provincial governmentsProvinces of Argentina
Argentina is subdivided into twenty-three provinces and one autonomous city...
and even to the private sector for the acquisition of capital goods.
When the Institute acquired processed products which failed placement, it provided the profit margin for the industrial sector, creating a special joint committee to resolve the crisis in certain productive sectors, acquiring raw materials to give it to manufacturers.
Also developed promotion and development functions, as determined which production activities were a priority and therefore should receive special treatment, for example, the granting of credits without obligation to repay. On the other hand, it subsidized the production of certain consumer goods in order to maintain the level of real wage
Real wage
The term real wages refers to wages that have been adjusted for inflation. This term is used in contrast to nominal wages or unadjusted wages. Real wages provide a clearer representation of an individual's wages....
s.
Results
Trade agreements were reached with several countries. Between 1947 and 1949 reached trade agreements with SwitzerlandSwitzerland
Switzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
, Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
and Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
. Anyway, despite the efforts made by the body to expand the portfolio of buyers of Argentine products, the United Kingdom continued to rank first as an importer, followed by the United States.
Concerning imports, the importance of IAPI was significantly lower. The major purchases were recorded in the areas of metallurgy
Metallurgy
Metallurgy is a domain of materials science that studies the physical and chemical behavior of metallic elements, their intermetallic compounds, and their mixtures, which are called alloys. It is also the technology of metals: the way in which science is applied to their practical use...
, building material
Building material
Building material is any material which is used for a construction purpose. Many naturally occurring substances, such as clay, sand, wood and rocks, even twigs and leaves have been used to construct buildings. Apart from naturally occurring materials, many man-made products are in use, some more...
s, machinery and textiles, standing out as sellers United States and Great Britain, while trade with the Soviet Union reported a significant increase since 1953.
Decline
The international decline in agricultural prices that followed the post-war European recovery, largely cut off the genuine source of income of the IAPI.Since 1949 the Institute's activities dwindled, leading to the private sector take over much of the exchange. In its relations with the private sector, the large subsidies granted IAPI: between 1947 and 1954 agricultural subsidies amounted to 5,063,011 pesos
Argentine peso
The peso is the currency of Argentina, identified by the symbol $ preceding the amount in the same way as many countries using dollar currencies. It is subdivided into 100 centavos. Its ISO 4217 code is ARS...
, while the livestock sector amounted 4,567,590 pesos.
Finally, the deficit turned out to be important enough to motivate the redesign of its convenience (in its latest report the agency's operating deficit amounted to 20,000 million pesos or 3% of the GDP of that time).