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Missionaries of Modernization MISSIONARIES OF MODERNIZATION: THE UNITED STATES, ARGENTINA, AND THE LIBERAL INTERNATIONAL ORDER, 1958-1963 DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Dustin Alan Walcher, B.A., M.A. ***** The Ohio State University 2007 Dissertation Committee: Approved by Professor Peter L. Hahn, Advisor _________________________________ Professor Kevin Boyle Advisor Graduate Program in History Professor Robert McMahon Copyright by Dustin Alan Walcher 2007 ABSTRACT In 1958, Arturo Frondizi was elected president of Argentina following three years of military rule under the Liberating Revolution. Frondizi pledged to reintegrate the working-class Peronists into the body politic, after the previous military leadership had pledged to exorcise the group from the national consciousness. Above all, however, Frondizi pledged to embark on an ambitious modernization campaign through which Argentina would emerge as an industrialized, high mass consumption society. Over the subsequent five years, Argentine modernization was supported extensively by public and private elites from the United States. Using U.S. and Argentine sources, this dissertation examines the international and transnational dimensions of Argentine developmentalism. Between 1958 and 1963, the U.S. government, private American banks, and supranational organizations such as the International Monetary Fund (IMF), loaned hundreds of millions of dollars to Argentina in support of the country’s economic development. They conditioned such support on domestic Argentine political and economic reforms, including privatization of state-owned industry, reduced expenditures toward the welfare state, and the liberalization of trade and capital flows. The Frondizi government, and after March 1962 the José María Guido government, ii readily agreed to U.S. conditions. Those policies, however, were unpopular with the Argentine working class which suffered under austere spending policies. They also protested a perceived loss of national sovereignty as transnational corporations in general, and petroleum companies in particular, became increasingly dominant within the Argentine economy. The modernization efforts ended in failure. U.S. officials were unwilling to liberalize their own domestic economy to facilitate increased Argentine imports, which contributed significantly to the constant Argentine balance-of-payments deficits. Despite Frondizi’s promises to the contrary, his government was unable to reintegrate the Peronists back into the body politic peacefully. Instead, Frondizi was removed from power by a military coup in March 1962. The Arturo Illia government’s cancellation of oil contracts held by transnational corporations on 15 November 1963 marked the end of concerted transnational modernization efforts in Argentina. Those efforts concluded without generating the promised economic improvement, or political and social stability. iii Dedicated to the memory of my grandparents, Howard and Lucy Tiedeman, and to my mother, Pamela Tiedeman Walcher iv ACKNOWLEDGMENTS In the process of working on this project, I have accumulated numerous debts, scholarly and otherwise. The origins of this dissertation lie in my undergraduate education. Nicholas Maher first introduced me to Latin American history and the “history of the Americas” when I was a college sophomore. My interest in the interaction between the United States and the world was further nurtured at UCLA by Amy E. Davis, Geoffrey Robinson, and Michael Salman. I could not have hoped to find a better environment to continue my education than that offered by the Ohio State University’s History Department. Ken Andrien immersed me in the history of Latin America, and Donna Guy provided a detailed introduction to Argentine history. Michael Hogan generously gave of his time while serving as Dean and helped to introduce me to the history (and historiography) of U.S. foreign relations. Robert McMahon added his experience and insights as this project matured through the writing stage. Kevin Boyle was always available to answer my questions and influenced my thinking about U.S. history more than he knows. This dissertation would not have been possible without the assistance of numerous archivists and librarians. In particular, I would like to thank the archival staffs of the National Archives II in College Park, Maryland; the George Meany v Memorial Archives in Silver Spring, Maryland; the John F. Kennedy Presidential Library in Boston, Massachusetts; the Lyndon Baines Johnson Presidential Library in Austin, Texas; and the Universidad di Tella in Buenos Aires, Argentina. Librarians at the Biblioteca Nacional, the Ministerio de las Relaciones Exteriores y Culto, and the Ministerio de Economía, all in Buenos Aires, patiently hunted down the books, newspapers, and articles that I asked to read. Brian Etheridge and the staff of the American Foreign Policy Center at Louisiana Tech University made my stay in Ruston pleasant and productive. Other scholars have added their insights and benefited this project. In particular, I would like to thank Alan McPherson, Stephen Rabe, Darlene Rivas, Jeremi Suri, and Robert Waters. I was able to conduct the research necessary to complete this dissertation thanks to the magnanimous financial support of many institutions. The Department of History at Ohio State University supported my research in the Washington, D.C. area during the summer and winter of 2005. The Ohio State Center for Latin American Studies administered a Foreign Language and Area Studies grant that allowed me to study Spanish in Buenos Aires for two months. The Mershon Center for International Security Studies, the Tinker Foundation, and the Society for Historians of American Foreign Relations, each supported my research in Argentina. The John F. Kennedy Library Foundation and the Lyndon Baines Johnson Library Foundation provided grants that offset expenses incurred while conducting research at their facilities. Finally, the American Foreign Policy Center at Louisiana Tech University generously funded my research in its rich microfilm collections, and vi provided a forum where I was able to discuss the early stages of my work. For all of the financial support, I remain extremely grateful. My fellow graduate students at Ohio State have made Columbus a vibrant place to study. Steven Hyland and Melissa Guy have shared many conversations about Latin America generally, and Argentina specifically. Melissa also kindly showed me around Austin when I conducted research at the Johnson Library. Chapin Rydingsward offered a helpful critique of the initial seminar paper that eventually grew into this dissertation, and Kate Epstein did the same for an early draft of Chapter 6. My treatment of labor was aided by Ryan Irwin’s suggestions. Don Hempson and Robert Robinson, close friends and fellow graduates of the program, have shared conversations about our respective research projects, and just about everything else. Since I first set foot on the Ohio State campus, Peter L. Hahn has been the most important fixture in my academic life. He has sharpened my thinking, improved my writing, and guided my education. Despite his increasingly busy schedule, he has always made himself available, and I feel fortunate to have been his advisee for six years. His influence can be seen in whatever virtues I may have as a scholar; my flaws have certainly come from elsewhere. Most importantly, I have been blessed with many supportive family members. My aunt, Lynn Walcher, has been a constant source of encouragement, no matter what goal I’ve pursued, and also provided a place to stay between conference and research trips in Texas and Louisiana. My wife, Denise Calaba Walcher, relocated from Los Angeles to Columbus – far from friends and family – to be with me as I vii worked on this project. Even if I don’t say it as often as I should, I am deeply thankful. This dissertation is dedicated to the people who have nurtured me, and my interest in history, for the longest period of time. Howard and Lucy Tiedeman did more than is in the job description for grandparents. Together with my mother, Pamela Tiedeman Walcher, they instilled in me the importance of education. Along the way, all three encouraged a rather abnormal interest in history, especially for a nine year old. I think of them every day. viii VITA 1978 …………………………. Born – Salt Lake City, Utah 2000 ………………………..... B.A., History, University of California, Los Angeles 2003 …………………………. M.A., History, The Ohio State University 2001-present ………………… Graduate Teaching and Research Associate, The Ohio State University FIELDS OF STUDY Major Field: History Studies in: Diplomatic History Modern U.S. History Latin American History ix TABLE OF CONTENTS Page Abstract ………………………………………………………………….. ii Dedication ……………………………………………………………….. iv Acknowledgments …………………………………………………….... v Vita ………………………………………………………………………. ix Chapters: 1. Introduction: Establishing Order and Spreading International Liberalism During the Cold War Era ……………………………. 1 2. Desarrollo Defined: Arturo Frondizi, the United States, and the Origins of Bilateral Developmentalism, 1958 …………………... 24 3. Desarrollo Enacted: Transnational Development in Argentina, 1958-January 1961 …………………………………………….... 70 4. Opportunity Lost: The Rise of the Alliance for Progress and the Fall of Frondizi, January 1961-March 1962 ………………... 138 5. Desarrollo Endangered: Salvaging Liberal Development
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