MACROECONOMIC ASPECTS OF SPANISH AMERICAN INDEPENDENCE. The effects of Fiscal and Currency Fragmentation, 1800s-1860s

Economic historians explaining the divergent economic path in North and South America over time focus on the post-independence period in the former British or Spanish colonies. Their institutional explanation for Latin American economic backwardness is anchored in the political disorder that occurred in the postcolonial period, which did not provide the right conditions for economic growth. Yet, more important than political aspects, fiscal and monetary fragmentation of the Spanish Empire were major factors in hindering the economic growth later in the 19th century. This paper argues that economic struggle over resources determined political outcomes rather than the other way round. By assessing the macroeconomic effects of Independence on the contemporary and further economic and political development it shows that comparisons with North America are ill conceived. The study focuses on the disintegration of colonial fiscal and monetary regimes, that had organised the economy around silver mining and the export of silver currency as fiscal revenues, and the subsequent transformation into export-led economies, specialised in producing raw materials and foodstuff.

Macroeconomic aspects of Spanish American independence : the effects of fiscal and currency fragmentation, 1800s-1860s.

Economic historians explaining the divergent economic path in North and South America over time focus on the post-independence period in the former British or Spanish colonies. Their institutional explanation for Latin American economic backwardness is anchored in the political disorder that occurred in the postcolonial period, which did not provide the right conditions for economic growth. Yet, more important than political aspects, fiscal and monetary fragmentation of the Spanish Empire were major factors in hindering the economic growth later in the 19th century. This paper argues that economic struggle over resources determined political outcomes rather than the other way round. By assessing the macroeconomic effects of Independence on the contemporary and further economic and political development it shows that comparisons with North America are ill conceived. The study focuses on the disintegration of colonial fiscal and monetary regimes, that had organised the economy around silver mining and the export of silver currency as fiscal revenues, and the subsequent transformation into export-led economies, specialised in producing raw materials and foodstuff

China inside out: explaining silver flows in the triangular trade, c.1820s-1870s

This paper analyses a new, large dataset of silver prices, as well as silver and merchandise trade flows in and out of China in the crucial decades of the mid-19th century when the Empire was opened to world trade. Silver flows were associated with the interaction between heterogenous monetary preferences and availability of specific coins. Before the 1850s, money markets became increasingly efficient, as reliance on bills of exchange allowed exports to grow in times when sound money was in short supply. When a new standard for silver eventually emerged, there was a new peak in China’s silver imports

Red Nacional de reconocedores de suelos.

Los relevamientos sistemáticos de suelos en Argentina comenzaron en la década de 1960, en el marco del Plan Mapa de Suelos. Dicho plan, desarrollado y liderado por el INTA, dio impulso a la formación de especialistas y a la producción de cartografía de suelos a diferentes escalas. Sin embargo, a partir del año 2000 las actividades se redujeron notablemente y gran parte de los equipos provinciales formados hasta ese momento se desarticularon. Desde entonces los relevamientos continuaron de manera aislada sólo en aquellas provincias donde se mantuvieron los grupos de trabajo. Este hecho condujo a que actualmente diferentes regiones del país no cuenten con información acerca de las propiedades y distribución de suelos a una escala adecuada para la toma de decisiones. En este contexto, en el 2018 se crea la Red Nacional de Reconocedores de Suelos (RNRS) que organiza las capacidades técnicas y operativas a nivel nacional para dar pronta respuesta a la creciente demanda de cartografía. Se trata de un equipo interinstitucional e interdisciplinario de especialistas distribuidos por todo el país, que realiza tareas de relevamiento, produce y difunde cartografía básica y utilitaria de suelos, ofrece capacitación y genera espacios de discusión y actualización metodológica. A la fecha, la RNRS ha relevado aproximadamente 760.000 ha en el sur de Córdoba, estimando completar durante el presente año el relevamiento del departamento Río Cuarto. Esta estrategia organizacional permitirá avanzar en el mapeo semidetallado de suelos en nuestro país, estableciendo vinculaciones sinérgicas entre profesionales de diferentes instituciones a fin de fortalecer y potenciar los equipos de trabajo en cada región. El motivo de esta contribución es presentar la RNRS, sus objetivos, avances a la fecha y desafíos a futuro, haciendo una breve revisión del estado actual de los relevamientos a escala semidetallada en nuestro país.Fil: Moretti, Lucas M. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Cerro Azul; ArgentinaFil: Rodriguez, Darío M. Instituto Nacional de Tecnología Agropecuaria (INTA). Instituto de Suelos; ArgentinaFil: Schulz, Guillermo A. Instituto Nacional de Tecnología Agropecuaria (INTA). Instituto de Suelos; ArgentinaFil: Kurtz, Ditmar Bernardo. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Corrientes; ArgentinaFil: Altamirano D. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Manfredi; ArgentinaFil: Amin, S. Universidad Nacional de Río Cuarto; ArgentinaFil: Angelini, Marcos Esteban. Instituto Nacional de Tecnología Agropecuaria (INTA). Instituto de Suelos; Argentina. Wageningen University. Soil Geography and Landscape group; Holanda. International Soil Reference and Information Centre. World Soil Information; HolandaFil: Babelis, German Claudio. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria San Juan; ArgentinaFil: Becerra, Alejandra Gabriela. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Córdoba. Instituto Multidisciplinario de Biología Vegetal. Universidad Nacional de Córdoba. Facultad de Ciencias Exactas Físicas y Naturales. Instituto Multidisciplinario de Biología Vegetal; ArgentinaFil: Bedendo, Dante Julian. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Paraná; ArgentinaFil: Boldrini, C. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Marcos Juárez. Agencia de Extensión Rural Río Cuarto; AgentinaFil: Bongiovanni, C. Universidad Nacional de Río Cuarto; ArgentinaFil: Bozzer, S. Universidad Nacional de Río Cuarto; ArgentinaFil: Cabrera, A. Universidad Nacional de Río Cuarto; ArgentinaFil: Canale, A. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Marcos Juárez. Agencia de Extensión Rural Río Cuarto; AgentinaFil: Chilano, Y. Universidad Nacional de Río Cuarto; ArgentinaFil: Cholaky, Carmen. Universidad Nacional de Río Cuarto. Facultad de Agronomía y Veterinaria; ArgentinaFil: Cisneros; José Manuel. Universidad Nacional de Río Cuarto. Cátedra de Uso y Manejo de Suelos; ArgentinaFil: Colazo, Juan Cruz. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria San Luis; ArgentinaFil: Corigliano, J. Universidad Nacional de Río Cuarto; ArgentinaFil: Degioanni, Américo José. Universidad Nacional Río Cuarto. Facultad de Agronomía y Veterinaria. Departamento de Ecología Agraria; ArgentinaFil: de la Fuente, Juan Carlos Instituto Nacional de Tecnología Agropecuaria (INTA). Instituto de Suelos; ArgentinaFil: Escobar, Dardo. Ministerio de Agricultura, Ganadería y Pesca; ArgentinaFil: Faule, L. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Manfredi. Córdoba. ArgentinaFil: Galarza, Carlos Martin. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Marcos Juárez; ArgentinaFil: González, J. Universidad Nacional de Río Cuarto; ArgentinaFil: Holzmann, R. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Alto Valle; ArgentinaFil: Irigoin, Julieta. Instituto Nacional de Tecnología Agropecuaria (INTA). Instituto de Suelos; Argentina. Universidad Nacional de Luján. Departamento Tecnología; ArgentinaFil: Lanfranco, M. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Manfredi; ArgentinaFil: León Giacosa, C. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Rafaela; ArgentinaFil: Matteio, J.P. Instituto Nacional de Tecnología Agropecuaria (INTA). Instituto de Suelos; ArgentinaFil: Márquez, C. Gobierno de Córdoba. Ministerio de Agricultura y Ganadería; ArgentinaFil: Marzari, R. Universidad Nacional de Río Cuarto; ArgentinaFil: Mattalia, M.L. Universidad Nacional de Río Cuarto; ArgentinaFil: Morales Poclava, P.C. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Salta; ArgentinaFil: Muñoz, S. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Marcos Juárez; ArgentinaFil: Paladino, Ileana Ruth. Instituto Nacional de Tecnología Agropecuaria (INTA). Instituto de Suelos; Argentina. Universidad Nacional de Lomas de Zamora. Facultad de Ciencias Agrarias; ArgentinaFil: Parra, B. Universidad Nacional de Río Cuarto; ArgentinaFil: Pérez, M. Gobierno de Córdoba. Ministerio de Agricultura y Ganadería; ArgentinaFil: Pezzola, A. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Hilario Ascasubi; ArgentinaFil: Perucca, S. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Marcos Juárez. Agencia de Extensión Rural Río Cuarto; ArgentinaFil: Porcel de Peralta, R. Gobierno de Córdoba. Ministerio de Agricultura y Ganadería; ArgentinaFil: Renaudeau, S. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Corrientes; ArgentinaFil: Salustio, M. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Marcos Juárez. Agencia de Extensión Rural Río Cuarto; ArgentinaFil: Sapino, V. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Rafaela; ArgentinaFil: Tenti Vuegen, L.M. Instituto Nacional de Tecnología Agropecuaria (INTA). Instituto de Suelos. ArgentinaFil: Tosolini, R. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Rafaela; ArgentinaFil: Vicondo, M.E. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Manfredi; Argentina. Universidad Nacional de Córdoba. ArgentinaFil: Vizgarra, L.A. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Quimili; ArgentinaFil: Ybarra, D.D. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Corrientes; ArgentinaFil: Winschel, C. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Hilario Ascasubi; ArgentinaFil: Zamora, E. Instituto Nacional de Tecnología Agropecuaria (INTA). Estación Experimental Agropecuaria Corrientes; Argentin

A trojan horse in Daoguang China? Explaining the flows of silver in and out of China

Written on board of US Steamer San Jacinto – anchored in Shanghai in October 1856 - a report to the New York Times on the “Progress of the Rebellion in China” indicated that the US government “was forced to buy the Carolus dollars at an increasing sacrifice in order to pay its high salaried officers, not for what they are bought, for a Carolus dollars count not more than a Mexican or American with the pursers of the US navy”. In Shanghai the coin was at 50% premium above of the Mexican coin or any other silver coin of equal weight in circulation. No reason was given for such wild appreciation other than “the prejudice of the Chinese” in favour of the old Spanish American coin. According to the source “one hundred Carolus could buy in any established commercial house in China 150 American dollar or other silver dollars (and) a hundred pound draft on the bank of England maybe had for 250 or 270 Carolus, and larger or smaller ones in the same ratio” at the time when 450 or more pesos were required elsewhere in Europe or America for a sterling. The reporter concluded that in no other place the famous coin was worth more than its standard value. That China had a problem with silver is well known to the economic and monetary history literature. In the last 20 years or so the silverization of China has been pivotal in the explanation of the Great Divergence and more traditionally has occupied the interest of economic historians of China and Asia since, probably it firstly occurred in the late 18th century. There is a wealth of studies on trade and monetary history of China, the Pacific Rim and globally which have emphasized the role of silver in the Middle Kingdom since the 16th century. A more traditional historiography has insisted on the de-silverization of China by mid-19th century, which some associate with the Daoguang Depression – provoked by the acute alteration in the exchange rate of copper cash to silver that characterized the period

Bounded Leviathan: or why North and Weingast are only right on the right half

The great merit of North’s and Weingast’s insight into the importance of a ruler’s credible commitment to protecting property rights is that it is both parsimonious and it lends itself beautifully to generalizations. It has e.g. inspired the economic literature on the importance of legal origins” (LaPorta et al., 1998, 2008), which seemed to vindicate the notion that post-Glorious Revolution English institutions were particularly conducive to economic growth. More recently economists have acknowledged that growth in fact depends on state capacity. This encompasses not only investor protection (legal capacity) but also the ability of the state to finance itself, fiscal capacity. (Besley and Persson, 2009, 2010) show that the protection of private property rights and that of public property rights to taxation are linked and most likely co-evolutionary. However, the precise relation between the two is anything but clear. This paper argues that North’s and Weingast’s models one-sided focus on state coercion that threatened subject’ property rights has obscured the relation between coercion used in revenue collection and total revenue role of fiscal capacity. We suggest a very simple model to show that this relationship between state fiscal capacity and legal capacity is not linear, especially in the phase of nation state building. Before 1800 states faced one of two very different central challenges. 1) States that already exhibited high levels of coercion had to try to keep in check the ruler’s potential for predation as North and Weingast argued. 2) States that used very low levels of coercion faced a coordination problem instead of a predation issue. The case of Spain provides empirical evidence for the existence of states where an increase in coercion would have improved fiscal capacity, but high levels of legal capacity paradoxically prevented the ruler from adopting this path. Finally, we use financial market developments to show the serious welfare implications that resulted from such a lack of coordination and integration

Gresham on horseback: the monetary roots of Spanish American political fragmentation in the nineteenth century

The economics literature is full of studies of monetary or currency unions ranging from the sterling area before 1914, to the Bretton Woods system later and the euro zone within the European Monetary Union today. A quick search in Econ-Lit returned over 10,000 entries among abstracts and subjects, and a good one thousand titles. None was found for currency or monetary disunion, or fragmentation. Yet, the monetary disintegration that occurred in Spanish America over the period 1800-25, along with the fiscal and political fragmentation that followed the implosion of the Spanish Empire, is one of the most prominent examples of such an economic phenomenon. Moreover, the macroeconomic consequences in the long run for the performance of nineteenth century Latin American economies makes the fragmentation of such an extended monetary union a case well worthy of consideration

A stakeholder empire: the political economy of Spanish imperial rule in America

This paper revises the traditional view of Spain as a predatory colonial state that extracted revenue from natural resources and populations in the Americas while offering little in return. Using 18th century Spanish American treasury accounts we show that local elites not only exerted important control over revenue collection as argued by (Irigoin/Grafe 2006) but also over expenditure allocation. Mirroring Elliot’s characterization of the English empire as a ‘stakeholder empire’ we contend that the Spanish colonial state developed into a stakeholder model, in which local interests were deeply invested in the survival and expansion of empire. The means of co-optation were intra-colonial transfers, as well as credit relations between the state and colonial individuals and corporations, which guaranteed that much of colonial revenue was immediately fed back into the local economy, while minimizing enforcements costs. By allowing stakeholder control of both revenue and expenditure Spain managed to avoid the problems faced by France where royal control of expenditure clashed with at least partial elite control of revenue raising (Velde/Weir 1992, Hoffman/Rosenthal 1997)

The Spanish Empire and its legacy: fiscal re-distribution and political conflict in colonial and post-colonial Spanish America

The comparative history of the Americas has been used to identify factors determining longterm economic growth. One approach, new institutional economics (NIE), claims that the colonial origins of respective institutional structures explain North American success and Spanish American failure. Another argues that differences in resources encountered by Europeans fostered divergent levels of equality impacting on institutions and growth. This paper challenges the theoretical premises and historical evidence of both views offering a historicized, statistically and economically validated explanation for the institutional and economic development of Spanish America. First, it revises the structure of the fiscal system challenging the characterization of Spain as an absolutist ruler. Secondly, an analysis of fiscal data at regional levels assesses the performance of the Imperial state. It shows the existence of massive revenue redistribution within the colonies, disputing the notion of a predatory extractive empire based on endowments as the source of original inequality. Finally, we discuss how a contingent event, the imprisonment of the Spanish king in 1808, contributed to the disintegration of a 300-year-old empire. The crisis of legitimacy in the empire turned fiscal interdependence between regions into beggar-thy-neighbour strategies and internecine conflict. We conclude by arguing for a reversal of the causality from weak institutions causing economic failure to fiscal (and economic) failure leading to political instability

Inconvertible paper money, inflation and economic performance in early nineteenth century Argentina

To date, factor endowments or comparative advantages in the international economy, have been at the centre of explanations for the economic performance of Argentina in the nineteenth century. Historians have focused on the increasing volume of rural exports and the availability of land on the frontier. Yet, the contemporary fiscal and monetary events have been ignored. From the 1820s to the 1860s, the state was mainly financed by issues of inconvertible paper currency. Hence, depreciation and high volatility of the means of payment became a basic feature of the Buenos Aires economy. This article will reassess the expansion of the rural economy in the light of the impact of inflationary finances