Import substitution industrialization
Import substitution industrialization is a trade and economic policy which advocates replacing foreign imports with domestic production. ISI is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products; the term refers to 20th-century development economics policies, although it has been advocated since the 18th century by economists such as Friedrich List and Alexander Hamilton. ISI policies were enacted by countries in the Global South with the intention of producing development and self-sufficiency through the creation of an internal market. ISI works by having the state lead economic development through nationalization, subsidization of vital industries, increased taxation, protectionist trade policies. Import substitution industrialization was abandoned by developing countries in the 1980s and 1990s due to the insistence of the IMF and World Bank on their structural adjustment programs of global market-driven liberalization aimed at the Global South.
In the context of Latin American development, the term "Latin American structuralism" refers to the era of import substitution industrialization in many Latin American countries from the 1950s until the 1980s. The theories behind Latin American structuralism and ISI were organized in the works of Raúl Prebisch, Hans Singer, Celso Furtado, other structural economic thinkers, gained prominence with the creation of the United Nations Economic Commission for Latin America and the Caribbean. While the theorists behind ISI or Latin American structuralism were not homogeneous and did not belong to one particular school of economic thought, ISI and Latin American structuralism and the theorists who developed its economic framework shared a basic common belief in a state-directed, centrally planned form of economic development. In promoting state-induced industrialization through governmental spending through the infant industry argument, ISI and Latin American structuralist approaches to development are influenced by a wide range of Keynesian and socialist economic thought.
ISI is associated and linked with dependency theory, although the latter has traditionally adopted a much broader Marxist sociological framework in addressing what are perceived to be the origins of underdevelopment through the historical effects of colonialism and neoliberalism. Though ISI is a development theory, its political implementation and theoretical rationale are rooted in trade theory: it has been argued that all or all nations that have industrialized have followed ISI. Import substitution was practiced during the mid-20th century as a form of developmental theory that advocated increased productivity and economic gains within a country; this was an inward-looking economic theory practiced by developing nations after WW2. Many economists at the time considered the ISI approach as a remedy to mass poverty: bringing a third-world country to first-world status through national industrialization. Mass poverty is defined thusly: "the dominance of agricultural and mineral activities – in the low-income countries, in their inability, because of their structure, to profit from international trade,".
Mercantilist economic theory and practices of the 16th, 17th, 18th centuries advocated building up domestic manufacturing and import substitution. In the early United States, the Hamiltonian economic program the third report and the magnum opus of Alexander Hamilton, the Report on Manufactures, advocated for the U. S. to become self-sufficient in manufactured goods. This formed the basis of the American School in economics, an influential force in the United States during its 19th-century industrialization. Werner Baer contends that all countries that have industrialized after the United Kingdom went through a stage of ISI, in which the large part of investment in industry was directed to replace imports. Going farther, in his book Kicking Away the Ladder, Korean economist Ha-Joon Chang argues, based on economic history, that all major developed countries, including the United Kingdom, used interventionist economic policies to promote industrialization and protected national companies until they had reached a level of development in which they were able to compete in the global market, after which those countries adopted free market discourses directed at other countries to obtain two objectives: open their markets to local products and prevent them from adopting the same development strategies that led to the developed nations' industrialization.
As a set of development policies, ISI policies are theoretically grounded on the Prebisch–Singer thesis, on the infant industry argument, on Keynesian economics. From these postulates, it derives a body of practices, which are commonly: an active industrial policy to subsidize and orchestrate production of strategic substitutes, protective barriers to trade, an overvalued currency to help manufacturers import capital goods, discouragement of foreign direct investment. By placing high tariffs on imports and other protectionist, inward-looking trade policies, the citizens of any given country, using a simple supply-and-demand rationale, will substitute the less-expensive good for the more expensive; the primary industry of importance would gather its resources, such as labor from other industries in this situation. In time, a third-world country would look and behave similar to a first-world country, with a new accumulation of capital and an increase of TFP (total factor prod
Railway nationalisation in Argentina
In 1948, during President Juan Perón's first term of office, the seven British- and three French-owned railway companies operating in Argentina, were purchased by the state. These companies, together with those that were state-owned, where grouped, according to their track gauge and locality, into a total of six state-owned companies which became divisions of the state-owned holding company Ferrocarriles Argentinos. In the latter half of the 19th century British and French-owned railway companies had played an important role in the economic development of Argentina. Between 1856 and 1914 the nation's railway network grew to become the largest in Latin America; the foreign investment provided by these companies had helped to transform Argentina from a underdeveloped, rural country, with many isolated communities, into one, becoming an prosperous agricultural producer and exporter. The foreign-owned railway companies had developed under the protection of the Argentine's strong property rights of the time.
The rail networks of the various companies radiated inland from the major ports of Buenos Aires and Rosario and were designed to speed the export of agricultural products from the provinces to European markets. The lack of interlinking between the many radial lines meant that the integration of the country’s interior was slower than it would have been had domestic needs been a priority. During World War II it had not been possible to import railway equipment or materials which meant that there was an urgent need for track and rolling stock renewal by the time nationalisation took place in 1948. Railways were beginning to face stiff competition from road transport as improvements in the national road network were made. By the time the railways were nationalised in 1948, during President Perón's first term in office, the growth in economic nationalism in the country had reached a point where, for many Argentines in search of self-determination, the foreign-owned railways had become symbols of the control of the country's economy by foreign powers.
Between 1936 and 1939 the once British-owned metre gauge Córdoba Central and Central Chubut had been nationalised. As from 1 March 1948 the remaining British-owned railway companies in Argentina became the property of the government; these were the four broad gauge companies: BA Great Southern, Central Argentine, BA & Pacific and the BA Western. The official transfer of ownership, on March 1, of some 24,458 km of British-owned railways to the Argentine government took place amidst widespread celebrations including a mass demonstration in its support on Buenos Aires' Plaza Británica, in front of the Retiro railway terminus. British shareholders were compensated with the rescision of their US$500 million debt to the Central Bank of Argentina and US$100 million, cash; the cash figure proved controversial, as it had not been reported during the negotiations. Pressed on the issue, President Perón explained that the premium was for "sentimental reasons."Later in 1948 the three French-owned railway companies were nationalised: the broad gauge Rosario & Puerto Belgrano and the metre gauge Compañía General de Buenos Aires and Provincial de Santa Fe.
After the nationalisation all the Argentine network was grouped into six railway divisions named after distinguished Argentine presidents and national heroes according to their track gauge and locality. Apart from former British and French companies, Argentine ones became part of "Ferrocarriles Argentinos", the state-owned company created after the nationalisation to manage the entire railway network; the list of companies taken over by each division was as follows: Notes: The Central Northern had taken over North Argentine Railway in 1909. The Central Argentine had acquired the BA Northern, BA & Rosario and Santa Fe Western railway companies; the Entre Ríos Railway had acquired the Central Entre Ríos Railway in 1892. The Argentine North Eastern had acquired the East Argentine in 1907; the BAGSR had acquired Bahía Blanca & North Western and Buenos Aires & Ensenada railways before being built by the Argentine state. The BAP had acquired the Villa María & Rufino, Argentine Great Western Railway, Andean railways.
An Argentine company, the BAWR had been purchased by British in 1890. After the nationalisation, maps of the six railway divisions managed by state-owned Ferrocarriles Argentinos were as follows: Argentines saw railway nationalisation as a major step towards the economic independence of their country which had for so long been under the influence of foreign capital. Nationalisation of the railways, the central bank, the telephone system and the docks were part of Perón's economic recovery scheme for postwar Argentina and had formed part of the first Five-Year Plan, announced in October 1946. In mass rallies he would refer to railway nationalisation as a victory over foreign imperialism. At the time there was little local opposition, although it became apparent that, far from stimulating the national economy, nationalisation of the railways together with other foreign companies, contributed to the economic crises that Argentina suffered from the 1950s onwards by adding to national budget deficits.
Great Britain is an island in the North Atlantic Ocean off the northwest coast of continental Europe. With an area of 209,331 km2, it is the largest of the British Isles, the largest European island, the ninth-largest island in the world. In 2011, Great Britain had a population of about 61 million people, making it the world's third-most populous island after Java in Indonesia and Honshu in Japan; the island of Ireland is situated to the west of Great Britain, together these islands, along with over 1,000 smaller surrounding islands, form the British Isles archipelago. The island is dominated by a maritime climate with quite narrow temperature differences between seasons. Politically, Great Britain is part of the United Kingdom of Great Britain and Northern Ireland, constitutes most of its territory. Most of England and Wales are on the island; the term "Great Britain" is used to include the whole of England and Wales including their component adjoining islands. A single Kingdom of Great Britain resulted from the union of the Kingdom of England and the Kingdom of Scotland by the 1707 Acts of Union.
In 1801, Great Britain united with the neighbouring Kingdom of Ireland, forming the United Kingdom of Great Britain and Ireland, renamed the "United Kingdom of Great Britain and Northern Ireland" after the Irish Free State seceded in 1922. The archipelago has been referred to by a single name for over 2000 years: the term'British Isles' derives from terms used by classical geographers to describe this island group. By 50 BC Greek geographers were using equivalents of Prettanikē as a collective name for the British Isles. However, with the Roman conquest of Britain the Latin term Britannia was used for the island of Great Britain, Roman-occupied Britain south of Caledonia; the earliest known name for Great Britain is Albion or insula Albionum, from either the Latin albus meaning "white" or the "island of the Albiones". The oldest mention of terms related to Great Britain was by Aristotle, or by Pseudo-Aristotle, in his text On the Universe, Vol. III. To quote his works, "There are two large islands in it, called the British Isles and Ierne".
Pliny the Elder in his Natural History records of Great Britain: "Its former name was Albion. Old French Bretaigne and Middle English Bretayne, Breteyne; the French form replaced the Old English Breoton, Bryten, Breten. Britannia was used by the Romans from the 1st century BC for the British Isles taken together, it is derived from the travel writings of the Pytheas around 320 BC, which described various islands in the North Atlantic as far north as Thule. Marcian of Heraclea, in his Periplus maris exteri, described the island group as αἱ Πρεττανικαὶ νῆσοι; the peoples of these islands of Prettanike were called the Priteni or Pretani. Priteni is the source of the Welsh language term Prydain, which has the same source as the Goidelic term Cruithne used to refer to the early Brythonic-speaking inhabitants of Ireland; the latter were called Picts or Caledonians by the Romans. Greek historians Diodorus of Sicily and Strabo preserved variants of Prettanike from the work of Greek explorer Pytheas of Massalia, who travelled from his home in Hellenistic southern Gaul to Britain in the 4th century BC.
The term used by Pytheas may derive from a Celtic word meaning "the painted ones" or "the tattooed folk" in reference to body decorations. The Greco-Egyptian scientist Ptolemy referred to the larger island as great Britain and to Ireland as little Britain in his work Almagest. In his work, Geography, he gave the islands the names Alwion and Mona, suggesting these may have been the names of the individual islands not known to him at the time of writing Almagest; the name Albion appears to have fallen out of use sometime after the Roman conquest of Britain, after which Britain became the more commonplace name for the island. After the Anglo-Saxon period, Britain was used as a historical term only. Geoffrey of Monmouth in his pseudohistorical Historia Regum Britanniae refers to the island as Britannia major, to distinguish it from Britannia minor, the continental region which approximates to modern Brittany, settled in the fifth and sixth centuries by migrants from Britain; the term Great Britain was first used in 1474, in the instrument drawing up the proposal for a marriage between Cecily the daughter of Edward IV of England, James the son of James III of Scotland, which described it as "this Nobill Isle, callit Gret Britanee".
It was used again in 1604, when King James VI and I styled himself "King of Great Brittaine and Ireland". Great Britain refers geographically to the island of Great Britain, it is often used to refer politically to the whole of England and Wales, including their smaller off shore islands. While it is sometimes used to refer to the whole of the United Kingdom, including Northern Ireland, this is not correct. Britain can refer to either all island
World War II
World War II known as the Second World War, was a global war that lasted from 1939 to 1945. The vast majority of the world's countries—including all the great powers—eventually formed two opposing military alliances: the Allies and the Axis. A state of total war emerged, directly involving more than 100 million people from over 30 countries; the major participants threw their entire economic and scientific capabilities behind the war effort, blurring the distinction between civilian and military resources. World War II was the deadliest conflict in human history, marked by 50 to 85 million fatalities, most of whom were civilians in the Soviet Union and China, it included massacres, the genocide of the Holocaust, strategic bombing, premeditated death from starvation and disease, the only use of nuclear weapons in war. Japan, which aimed to dominate Asia and the Pacific, was at war with China by 1937, though neither side had declared war on the other. World War II is said to have begun on 1 September 1939, with the invasion of Poland by Germany and subsequent declarations of war on Germany by France and the United Kingdom.
From late 1939 to early 1941, in a series of campaigns and treaties, Germany conquered or controlled much of continental Europe, formed the Axis alliance with Italy and Japan. Under the Molotov–Ribbentrop Pact of August 1939, Germany and the Soviet Union partitioned and annexed territories of their European neighbours, Finland and the Baltic states. Following the onset of campaigns in North Africa and East Africa, the fall of France in mid 1940, the war continued between the European Axis powers and the British Empire. War in the Balkans, the aerial Battle of Britain, the Blitz, the long Battle of the Atlantic followed. On 22 June 1941, the European Axis powers launched an invasion of the Soviet Union, opening the largest land theatre of war in history; this Eastern Front trapped most crucially the German Wehrmacht, into a war of attrition. In December 1941, Japan launched a surprise attack on the United States as well as European colonies in the Pacific. Following an immediate U. S. declaration of war against Japan, supported by one from Great Britain, the European Axis powers declared war on the U.
S. in solidarity with their Japanese ally. Rapid Japanese conquests over much of the Western Pacific ensued, perceived by many in Asia as liberation from Western dominance and resulting in the support of several armies from defeated territories; the Axis advance in the Pacific halted in 1942. Key setbacks in 1943, which included a series of German defeats on the Eastern Front, the Allied invasions of Sicily and Italy, Allied victories in the Pacific, cost the Axis its initiative and forced it into strategic retreat on all fronts. In 1944, the Western Allies invaded German-occupied France, while the Soviet Union regained its territorial losses and turned toward Germany and its allies. During 1944 and 1945 the Japanese suffered major reverses in mainland Asia in Central China, South China and Burma, while the Allies crippled the Japanese Navy and captured key Western Pacific islands; the war in Europe concluded with an invasion of Germany by the Western Allies and the Soviet Union, culminating in the capture of Berlin by Soviet troops, the suicide of Adolf Hitler and the German unconditional surrender on 8 May 1945.
Following the Potsdam Declaration by the Allies on 26 July 1945 and the refusal of Japan to surrender under its terms, the United States dropped atomic bombs on the Japanese cities of Hiroshima and Nagasaki on 6 and 9 August respectively. With an invasion of the Japanese archipelago imminent, the possibility of additional atomic bombings, the Soviet entry into the war against Japan and its invasion of Manchuria, Japan announced its intention to surrender on 15 August 1945, cementing total victory in Asia for the Allies. Tribunals were set up by fiat by the Allies and war crimes trials were conducted in the wake of the war both against the Germans and the Japanese. World War II changed the political social structure of the globe; the United Nations was established to foster international co-operation and prevent future conflicts. The Soviet Union and United States emerged as rival superpowers, setting the stage for the nearly half-century long Cold War. In the wake of European devastation, the influence of its great powers waned, triggering the decolonisation of Africa and Asia.
Most countries whose industries had been damaged moved towards economic expansion. Political integration in Europe, emerged as an effort to end pre-war enmities and create a common identity; the start of the war in Europe is held to be 1 September 1939, beginning with the German invasion of Poland. The dates for the beginning of war in the Pacific include the start of the Second Sino-Japanese War on 7 July 1937, or the Japanese invasion of Manchuria on 19 September 1931. Others follow the British historian A. J. P. Taylor, who held that the Sino-Japanese War and war in Europe and its colonies occurred and the two wars merged in 1941; this article uses the conventional dating. Other starting dates sometimes used for World War II include the Italian invasion of Abyssinia on 3 October 1935; the British historian Antony Beevor views the beginning of World War II as the Battles of Khalkhin Gol fought between Japan and the fo
The Cisplatine War known as the Argentine-Brazilian War, was an armed conflict over an area known as Banda Oriental or the "Eastern Bank" in the 1820s between the United Provinces of the Río de la Plata and the Empire of Brazil in the aftermath of the United Provinces' independence from Spain. Led by José Gervasio Artigas, the region known as the Eastern Bank, in the Río de la Plata Basin, revolted against Spanish rule in 1811, against the backdrop of the 1810 May Revolution in Buenos Aires as well as the regional rebellions that followed in response to Buenos Aires' pretense of primacy over other regions of the viceroyalty. In the same context, the Portuguese Empire headquartered in Rio de Janeiro, took measures to solidify its hold on Rio Grande do Sul and to annex the region of the former Eastern Jesuit Missions. From 1814 on, the Eastern Province joined forces with the provinces of Santa Fe and Entre Rios in a loose confederation called the Federal League, which resisted Buenos Aires' authority.
After a series of banditry incidents in territory claimed by the Portuguese Empire, the Rio Grande do Sul, Portugal invaded the Eastern Bank in 1816. Artigas was defeated by the Luso-Brazilian troops in 1820 at the Battle of Tacuarembó; the Portuguese Empire formally annexed the Eastern Bank, under the name Cisplatina, with support from local elites. With the annexation, the Portuguese Empire now enjoyed strategic access to Río de la Plata and control of the estuary's main port, Montevideo. After Brazilian independence, in 1822, the Cisplatina became part of Brazil, it sent delegates to the 1823 Constitutional Convention and, under the 1824 Constitution, enjoyed a considerable degree of autonomy, more so than other provinces of the Empire. While welcoming Portuguese intervention in the rogue Eastern province, the United Provinces of the Río de la Plata urged the local populace to rise up against Brazilian authority, giving them political and material support with a view to reestablishing sovereignty over the region.
Rebels led by Fructuoso Rivera and Juan Antonio Lavalleja carried on resistance against Brazilian rule. In 1825, a Congress of delegates from all over the Eastern Bank met in La Florida and declared independence from Brazil, while reaffirming its allegiance to the United Provinces of the Río de la Plata. In response, Brazil declared war on the United Provinces; the two navies which confronted each other in the River Plate and the South Atlantic were in many way opposites. Brazil was a major naval power with 96 warships and small, an extensive coastal trade and a large international trade carried on in British and American ships; the United Provinces of the Río de la Plata had similar international trading links but had few naval pretensions. Its navy consisted of a few gunboats for port defence. Both navies were short of indigenous sailors and relied on British - and, to a lesser extent - American and French officers and men, the most notable of which were the Argentine commander, the Irish born Admiral William Brown, the commander of the Brazilian inshore squadron, the English Commodore James Norton.
The strategy of the two nations reflected their respective positions. The Brazilians imposed a blockade on the River Plate and the trade of Buenos Aires, while the Argentines vainly attempted to defy the blockade using Brown’s squadron while unleashing a swarm of privateers to attack Brazilian seaborne commerce in the South Atlantic from their bases at Ensenada and more distant Carmen de Patagones; the Argentines gained some notable successes - most notably by defeating the Brazilian flotilla on the Uruguay River at the Battle of Juncal and by beating off a Brazilian attack on Carmen de Patagones. But by 1828, the superior numbers of Brazil’s blockading squadrons had destroyed Brown’s naval force at the Monte Santiago and was strangling the trade of Buenos Aires and the government revenue it generated. On land, the Argentine army crossed the River Plate and established its headquarters near the Uruguayan town of Durazno. General Carlos María de Alvear invaded a series of skirmishes followed.
Pedro I of Brazil planned a counteroffensive by late 1826, managed to gather a small army composed of Southern Brazil volunteers and European mercenaries. The recruiting effort was hampered by local rebellions throughout Brazil, which forced the Emperor to relinquish direct command of his Army, return to Rio de Janeiro and bestow command of the troops on Felisberto Caldeira Brant, Marquis of Barbacena; the Brazilian counteroffensive was stopped at the inconclusive Battle of Ituzaingó. While Brazilian troops were prevented from marching on to Buenos Aires, Argentine troops no longer managed to operate in Brazilian territory. Ituzaingó was the only battle of some magnitude in the whole war. A series of smaller clashes ensued, including the Battle of Sarandí, the naval Battles of Juncal and Monte Santiago. Scarcity of volunteers hampered the Brazilian response, by 1828 the war effort had become burdensome and unpopular in Brazil; that year, Rivera reconquered the territory of the former Eastern Jesuit Missions.
Battle of Sarandí: October 12, 1825 Battle of Ituzaingó: February 20, 1827 Battle of Juncal: February 8–9, 1827 Battle of Monte Santiago: April 7–8, 1827 The stalemate in the Cisplatine War was caused by the inability of the Argentine and Uruguayan land forces to capture major cities in Uruguay and Brazil, the severe economic consequences imposed by the Brazilian blockade of Buenos Aires, the lack of manpower for a full-scale Brazilian la
Bahía Blanca is a city in the southwest of the province of Buenos Aires, Argentina, by the Atlantic Ocean, is the seat of government of Bahía Blanca Partido. It had 301,572 inhabitants according to the 2010 census, it is the principal city in the Greater Bahía Blanca urban agglomeration. The city has an important sea port with a depth of 45 feet, kept constant upstream all along the length of the bay, where the Napostá Stream drains. Bahía Blanca means "White Bay"; the name is due to the typical colour of the salt covering the soil surrounding the shores. The bay was seen by Ferdinand Magellan during his first circumnavigation of the world on the orders of Charles I of Spain, in 1520, looking for a canal connecting the Atlantic to the Pacific Ocean along the coasts of South America; the city was founded as a fortress on 11 April 1828 by Colonel Ramón Estomba under the orders of Brigadier-General and subsequent Governor of Buenos Aires, Juan Manuel de Rosas, being named Fortaleza Protectora Argentina, intended to protect inhabitants from cattle rustlers, to protect the coast from the Brazilian navy, which had landed in the area the previous year.
It was visited by Charles Darwin during his travels through South America in September 1833. The fortress was attacked by malones several times, most notably in 1859 by 3,000 Calfucurá warriors, it became commercially important after the Buenos Aires Great Southern Railway linked the town to the city of Buenos Aires in 1885, facilitating the transport of grain from the Pampas. The rapid growth of the local economy, the policy encouraging immigration from Europe and the country's abundant natural resources attracted many immigrants from Spain and Italy, a remarkable number from France, who settled in Pigüé, about 125 km to the north of the city. Another important foreign settlement close to the city was of Dutch settlers, in Tres Arroyos, located about 250 km north east. Major groups of immigrants from Germany and Jews from Eastern Europe arrived in the city and in the region at the beginning of the 20th century, as well as during World War II and the post-war period. European immigrants brought their customs and culture.
There were at least five opera houses in Bahía Blanca at the beginning of the 20th century and six cinemas by 1920. Puerto Belgrano, located 29 km to the southeast, is Argentina's largest naval base, its construction started with a secret decree signed by Argentine President José Evaristo Uriburu. It was designed and built at the turn of the 20th century by an Italian engineer Luigi Luiggi, carried out by a Dutch company named Dirks, Dates & Van Hattem; the municipal government of Bahia Blanca Partido encompasses the mayor, in charge of the executive branch, the city council, in charge of local legislation and audit of the municipal budget, a local Judiciary System, in charge of administering justice on behalf of the City regarding all the aspects of municipal legislation. The mayor and the members of the council are elected by direct vote while the municipal judges are appointed; the mayor appoints the members of his cabinet of Secretaries who can be summoned by the council to whom they are accountable.
A local political crisis in March 2006 resulted in the mayor's request for leave, granted by the city council on 27 March 2006. The mayor was indicted and the case continues in the local judiciary; the president of the city council took over as interim mayor. However, on 24 August 2006 the city council decided, for the first time in the history of the city, to unseat the elected mayor. With the approval of the supreme court of the Buenos Aires Province, the interim mayor and former president of the city council was appointed to complete his predecessor's term. Bahía Blanca is an important trans-shipping and commercial center, handling the large export trade of grains and wool from the southern area of Buenos Aires Province, oil from Neuquén Province, fruit from the Río Negro Valley, its group of sea ports is one of the most important in the country as the only ones that are 33 feet deep, although the depth of the main channel is kept at 40 feet by regular maintenance. Along the northeastern shore of the bay, these ports are Puerto Ingeniero White for grains and containers, Puerto Galván, a smaller one specialising in sunflower and soy oil, chemicals such as urea.
One of the largest urea industrial producers in the world, Profertil, is located there. Between these two main ports, several industrial and chemical plants operate their own piers; the petrochemical pole of the region made the port a convenient one. Competence between Puerto de Bahía Blanca and those located in the shores of Patagonia made it stronger and well organized having received investments from the private sector like Cargill that upgraded facilities in the 1980s; the combination of a railroad network for grains linking Rosario, by the shore of Paraná River to Bahía Blanca, its trade potential, linking Bahía Blanca to Zapala close to the border to Chile and to the Pacific Ocean shores avoiding days of navigation through Ferrocarril Transandino del Sur, the availability of energy and human resources make the area quite an interesting one from the industrial and commercial perspectives. There are several local societies representing economic activities taking place in the region such as Sociedad Rural, Corporación del Comercio y de la Industri