Like so many treatises on economic development—or, more precisely, the industrialization of a primarily agricultural nation—this work seems to affirm once more that in reality most problems of “balanced industrialization” are non-economic in nature. Throughout the book are references to the disequilibrium between economic life in the rural areas and the metropolis. Yet, the few suggestions that are made for correcting this phenomenon of “unbalanced growth” relate to what are called “required political changes;” but these changes are never articulated. What specific political changes?
One is left with the impression that, in the view of the authors, an absolute necessity for improved economic well-being of Argentina lies in cooperation and planning with her neighbors in some sort of common market; yet, at the same time the absolute necessity for a strictly national character of the economy is stressed. The authors also note that customs unions in Latin America have not been notably successful. In addition to the need for Argentina to take part in international economic relations there is the insistence upon the decentralization of population and industry within the country in order to bring about a better balance between the rural and the metropolitan areas. The claimed 241% increase in the aggregate value of industry between 1935 and 1965 has apparently occurred largely in the Buenos Aires metropolitan district. Here resides one-third of the nation’s population; and here has occurred the 51% increase in physical volume of production between 1960 and 1969. Most of the rise in industrial out-put and income is attributed to the “dynamic industries:” automobiles, chemicals, metals, and machinery. It is predicted that the value of output in these enterprises will double in 1975 with respect to 1965, and triple by 1980.
A major weakness seems to lie in the fact that it is difficult for the pampean agrarian sector to fill simultaneously the two major purposes seen for it by the writers: 1) to produce the greater part of export goods, and 2) to provide the base of the national diet. It is especially hard to see how the dilemma can be overcome while insisting on “import substitution,” and at the same time noting the inability to reduce costs, even with numerous controls.
In brief, the authors have gathered informative notes for a book, and have pointed up some crucial questions for a genuine industrial development. Yet, they really suggest no solutions beyond deconcentration of the “dynamic industries” by forming regional or “microindustrial areas.” The only apparent policy recommendations for accomplishing this feat are higher levels of agricultural output through importation and application of modern technology (in order to increase productivity); a penetration into world markets while simultaneously developing wider domestic regional markets; the subsidizing of low- cost exports; customs protection requiring “strong political decisions” with regard to location and assignment of priorities, which “rulers often are not in a position to adopt without affecting internal interests.” What is the intended implication?
Generally the authors insist that there must be a well-defined, integrated technological strategy toward three fields of action: 1) the elaboration of a clear industrial plan, 2) the promotion of bilateral trade agreements of a complementary nature, and 3) the conquering of “obstacles to exportation originating from limits imposed by outside forces on Argentine subsidized and licensed businesses.” There is an appeal to Argentinians to discover original solutions that can be adapted to the institutional structure of the country without injuring the independence of the private enterprise sector of the economy.
More “specifics” would be helpful. There is a limited but useful appendix of statistics and another on the case of the automobile industry as a case study. There is no bibliography, and footnotes, though badly needed, are entirely lacking.
