Why Argentina Collapsed 7 Times? PM Modi's Visit Revives The Story Of A Fallen Nation That Was Richer Than Europe
Today, it struggles with inflation, corruption and a football obsession that often overshadows deeper crises. How did a nation so full of promise end up bankrupt seven times in one century?
The Pampas That Fed a Continent
Argentina's flat and fertile grasslands – the Pampas – once made it the food basket of the world. When World War I brought European farming to a halt, Argentina stepped in. Wheat, meat and wool flowed out of its ports. Money poured in.
President Milei and I discussed ways to diversify trade ties, cooperation in agriculture, defence, security, energy and more. There is immense scope in areas like pharmaceuticals and sports as well.@JMilei pic.twitter.com/8jFADZmbcb — Narendra Modi (@narendramodi) July 5, 2025
European companies arrived, building railways, roads and ports. Buenos Aires, Rosario and Córdoba flourished. Immigrants came in waves. By the 1920s, economists said Argentina might one day rival America.
Then Came the Fall
In 1925, Argentina's GDP matched that of Canada, the United Kingdom and Italy. But four years later, everything changed. The Great Depression hit the United States. Demand collapsed. Orders dried up. Argentina's exports sank. Farmers lost income. Unemployment spread. Public anger rose.
Excellent meeting with President Javier Milei of Argentina. We are marking 75 years of India-Argentina diplomatic relations and 5 years since we elevated our relationship to a Strategic Partnership. We have covered significant ground in our bilateral relations, but we agree that… pic.twitter.com/3fG6ojU4ZD — Narendra Modi (@narendramodi) July 5, 2025
General Jose Felix Uriburu saw an opportunity. In 1930, he led a bloodless coup, ousting President Hipolito Yrigoyen. But the economy did not recover.
In 1931, new elections were held. A new government came in. Still, the damage was done.
From 1930 to 1980, Argentina saw six military coups. The constant instability scared off investors. Industry stalled. Growth froze.
Isolation by Design
In 1943, another coup brought the military back to power. In 1944, they installed Edelmiro Farrell as president, but real power rested with General Juan Perón. His idea was – close off the economy to protect local industries. Imports were taxed. Foreign trade was restricted.
In the beginning, the strategy worked. Factories ran. Wages rose. People felt hopeful.
Paid homage to General José de San Martín in Buenos Aires. His courage and leadership played a pivotal role in Argentina's history. His life remains a symbol of patriotism and determination for the people of Argentina. pic.twitter.com/zItGl5TIXT — Narendra Modi (@narendramodi) July 5, 2025
But foreign investment fled. Imports dried up. Inflation crept in. The economy began to crack.
Peron responded with censorship. Then he clashed with the Church. Laws were passed to weaken its influence. In Catholic Argentina, that sparked a national backlash.
The Printing Press Problem
The military initially backed Peron, but cracks widened. In 1955, they removed him. What followed was a chaotic political shuffle – more coups, more elections and no stability.
In the 1970s, new governments tried to lift wages, launch social programs and repay debt. But revenue did not match spending. To make up the gap, they printed money. A lot of it.
Paid tributes to Mahatma Gandhi in Buenos Aires. His timeless vision and noble ideals will always guide humanity. All over the world, the thoughts of Bapu reverberate. They give strength and hope to millions. Inspired by him, we reiterate our commitment to build a just and… pic.twitter.com/hhNKBMKP5l — Narendra Modi (@narendramodi) July 5, 2025
By 1989, inflation spun out of control. Prices tripled. Then tripled again. Hyperinflation hit 3,000%. Grocery costs changed by the day. People carried bags of cash to buy bread. The Argentine peso became worthless.
The Dollar Gamble That Backfired
In 1991, President Carlos Menem took a bold step. He pegged the peso to the US dollar. One peso equaled one dollar. Overnight, the currency strengthened. But exports became expensive. Foreign goods flooded in. Argentinians preferred imported items. Local factories collapsed. Jobs vanished.
By 2001, the country ran out of dollars. The economy broke down. The peso plummeted. Riots broke out. Banks were stormed. Argentina defaulted again.
The Beautiful Game, the Ugly Distraction
Football was never just a sport in Argentina. It was political fuel. Peron used it. So did every government that followed.
In 1978, Argentina hosted and won the FIFA World Cup. The nation cheered. Streets filled with joy. But behind the celebration, a military dictatorship tortured and silenced thousands. Human rights were trampled. The economy was bleeding. No one looked.
That World Cup cost around $700 million in today's money. The government, already in debt, spent it anyway for propaganda and distraction.
Paid homage to Gurudev Tagore in Buenos Aires. Gurudev Tagore had visited Argentina in 1924 and had left a lasting impression on the minds of many people in this nation, especially scholars and students.
We in India take immense pride in the contributions of Gurudev Tagore to… pic.twitter.com/7gRkCz7rAW — Narendra Modi (@narendramodi) July 5, 2025
Time and again, leaders turned to football to win love. Stadiums were built. Tournaments were hyped.
Meanwhile, corruption scandals grew. Unemployment soared. Necessary reforms were shelved. Football kept people entertained. Politics kept collapsing.
Even now, the game remains a national passion and a powerful tool to deflect attention from broken systems.
What Argentina Teaches the World
Argentina was rich in every way – land, livestock, minerals and manpower. But poor decisions, fragile institutions and short-term politics pulled it backward.
My visit to Argentina has been a productive one. I am confident that our discussions will add significant momentum to our bilateral friendship and fulfil the strong potential that exists. I thank President Milei, the Government, and the people of Argentina for their warmth.… pic.twitter.com/JvtcxV5gSt — Narendra Modi (@narendramodi) July 5, 2025
Inflation continues. Corruption runs deep. Military memories still echo. And football still takes center stage when budgets should.
What happened in Argentina was not fate. It was a result of choices. One after another. Over decades.
Today, it stands as both a cautionary tale and a reminder that even the strongest nations can stumble if power is misused, and distractions replace direction.
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