Dictatorship, Democracy, and Globalization: Argentina and the Cost of Paralysis, 1973–2001 (review)

In late 2001, Argentina fell apart, economically and politically. President Fernando de la Rúa resigned precipitously, following years of increasing unemployment and foreign debt, and months of escalating protests. It was a dramatic period, and momentous for the absence of military intervention. Yet, as Veigel demonstrates in Dictatorship, Democracy, and Globalization, the 2001 crisis was in some ways less unique than it initially appeared. Veigel traces Argentine economic policies and developments from the early 1970s—during the governments of Juan Domingo Perón and his wife and successor, María Estela (Isabel) Perón—through the rise of military authoritarianism in 1976, the collapse of the military regime in 1983, President Raúl Alfonsín's early resignation in 1989, and, finally, the 2001/2 crisis. In the process, Veigel effectively demonstrates the extent to which Argentine policymakers have continued to repeat many of the same errors, been hampered by many of the same constraints, and ultimately faced surprisingly similar ends.

In essence, Veigel argues that Argentina's economic struggles have been largely a function of the lack of political or social consensus about a single economic model, whether statist or liberal. The pressures from competing interest groups often forced governments to rescind economic reforms, or new leaders to offer dramatically different alternatives. Veigel also demonstrates the difficulties that Argentina's national governments have encountered when seeking to control the deficit, given provincial governments and public enterprises with sufficient autonomy to thwart the efforts of national leaders. Yet, despite the emphasis on social and structural constraints, Veigel finds that economic policymakers did indeed contribute to the country's overall economic failures, mostly by focusing on short-term crisis response at the expense of long-term consequences (207). Foreign entities and leaders, especially the imf and the United States, have also influenced economic outcomes in Argentina, but Veigel tends to portray their role as more moderate than decisive.

Methodologically, the book is notable for its depth of research. Veigel meticulously researched not only the development of Argentine economic policy but also the policies of the imf and the United States when relevant. He conducted an interesting array of interviews with principle actors and drew from numerous primary documents, including news reports, memoranda by central figures, telegrams, and even luncheon invitations. Based on this research, Veigel has been able to provide intriguing insights about how personal views and relationships influenced some of Argentina's major economic developments.

That said, there are a few holes in the research. Veigel's expertise is clearly concentrated on economic policy. Yet, when the book touches on other issues—as it inevitably must—the author's research and depth of understanding seem more superficial. He tends alternately to skirt or ignore different indicators and sources of social conflict, including guerrilla warfare during the 1960s and 1970s, social protest (such as the piqueteros, beginning in the mid-1990s), and the military rebellions that shook Argentina from 1987 to 1990. Overall, Veigel demonstrates considerably less familiarity with these contentious actors or their political and economic impact. Since a major portion of the book deals with the emergence, collapse, and aftermath of military rule, Veigel necessarily addresses some of the cleavages within the armed forces, but his references to the various groups tend to be inconsistent. Since he often neglects to define such critical terms as corporatist, nationalist, and neoliberal, or even such economic terms as Keynesian or monetarist, some of these discussions can be confusing.

Nevertheless, no book can cover everything. This one may not be an encyclopedic examination of Argentine political or social history during this period, but it does stand as an informative discussion of Argentina's economic history. To his credit, the author avoids simplification: He apparently prefers economic liberalism, but he focuses mostly on the necessity of consistency in economic policymaking. He highlights the importance of globalization and shifting international trends with respect to the role of states in...