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A University of Sussex DPhil thesis Available online via Sussex Research Online: http://sro.sussex.ac.uk/ This thesis is protected by copyright which belongs to the author. This thesis cannot be reproduced or quoted extensively from without first obtaining permission in writing from the Author The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the Author When referring to this work, full bibliographic details including the author, title, awarding institution and date of the thesis must be given Please visit Sussex Research Online for more information and further details University of Sussex School of Global Studies Economic Dependency and the Political Economy of Post-neoliberalism in Argentina: The Paradox between Commodities and Progressiveness, The Case of the Soy Complex by Miguel A. Rivera Quiñones A dissertation submitted to the University of Sussex in accordance with the requirements of the degree of Doctor of Philosophy in International Relations October, 2012 I hereby declare that this thesis has not been and will not be, submitted in whole or in part to another University for the award of any other degree. Signature:……………………………………… University of Sussex Doctor of philosophy in International Relations Economic Dependency and the Political Economy of Post-neoliberalism in Argentina: The Paradox between Commodities and Progressiveness, The Case of the Soy Complex by Miguel A. Rivera Quiñones Abstract This dissertation investigates the role commodity exports are playing in making the hegemonic policies of Latin America’s new progressive governments viable and the repercussions these are having on economic development. At the core of the analysis there is a study of those mechanisms which are making possible Kirchenerism’s policies of industrialization, social redistribution and international autonomy viable, and, how these are reliant on reinforcing the commodity exporting economy in the country. Using Argentina as a case study the dissertation argues that this post-neoliberal progressive project is embedded in an essential paradox. This hinges on the way in which a more progressive post-neoliberal organization of capitalism is entrenched in reinforcing Argentina’s subordinated integration into global capitalism as a commodity provider - a process which, in turn, is strengthening the country’s dependent integration into the international economy. The Argentine soy complex is taken as a case study to provide an empirical base to the argument and provides a site for testing the main hypothesis of this study. The argument revisits the Latin American tradition of dependency theory. It explores to what extent the post-neoliberal political economy in Argentina, even if progressive, is reliant on commodity exports which are strengthening a situation of dependency that is then obstructing the prospects for long term economic development. Chapter 2 explores how the Latin American tradition of dependency can provide a valuable setting to study the political economy of post-neoliberalism in the region. In chapter 3, I argue that a precise look at the current organization of how capital is realized in Argentina can show that the core of the processes of capital accumulation and social reproduction, embraced by Kirchenerism, represents a post-neoliberal rupture. Chapter 4 shows how the key hegemonic policies for Kirchenerism - of industrialization, social redistribution and international autonomy - are possible because of the recent growth of the commodity exporting economy. Chapter 5, establishes how Kirchenerism is reliant on the good performance of the soy complex in order to sustain these policies and, in chapter 6, there is an illustration of how the new situation of dependency hinders economic development prospects by using the soy complex as a case study. The major contribution this dissertation offers is an increased understanding of the political economy of these new progressive governments. In particular, the analysis shows the essential role that commodity exports have had in sustaining the key policies of these projects and also how the sustainability of a more social democratic organization of capitalism is hindering long term prospects for economic development I dedicate this dissertation to my parents, because they always have been there for me. Acknowledgments I will like to first thank my family and friends for their unconditional support during this project without which it would have been impossible for me to complete this dissertation. I’m also grateful for Raquel Caminoa of CIARA, who was instrumental in helping me establish contact with many of my informants in Argentina. I want to acknowledge Ernesto Ambriosetti of SRA who accepted me conducting an interview with him on the 22 of December and provided very important information. Thanks also to Rosa Duffy, from the Library of the Ministry of Economy, who guided me in a very gentle way towards the information for which I was looking. I’m deeply indebted to my supervisors Dr. Benjamin Selwyn and Dr. Samuel Knafo who through all these years have provided me with unconditional support and good academic advice. I’m also grateful to Dr. Antonio Carmona Baez form the University of Amsterdam who, in addition to offering me his friendship, gave me academic advice which has always been very important. In Argentina Juan O’Farrell, Carlos Alarcon and Silvia Iliano offered very intuitive comments regarding this project for which will I always be grateful. I also want to acknowledge the incredible generosity of the members of MOCASE in Quimili who provided me with shelter, food and the most meaningful experience from the field work. I’m deeply grateful to my friends in the United Kingdom that have been there for me through all these years, especially Harry McNealy, Roza Marangopoulou, Maurizzio Cigliano and Paula Silvia who have been like my family in Britain. In Puerto Rico my dearest friends, Melvin Fontan, Bolivar Santiago, Jose Luis Lopez, Antonio Torres and Christian Cintrón, have not only supported me emotionally throughout these years, but have also provided economic support at difficult times. In addition I want to offer my thanks to professor Hector Melendez Lugo from the University of Puerto Rico, first, for being my friend and teacher for so many years and, second, for convincing me to embrace this project. Finally, I want to thank my parents, Miguel and Zoraida, not only for being there for me in every moment of my life, but also because it was from them that I learned that there are no real triumphs without struggles. Table of Contents Dedication iii Acknowledgements iv List of Chart, Tables and Diagrams viii List of Abbreviations ix CHAPTER ONE: Introduction Why Studying Latin America’s Progressive Governments? 1 Layout of the Dissertation 7 Methodology 8 Argentinean Kirchenerism as a case study 13 The Political Economy of Kirchenerism and the soy economy 15 CHAPTER TWO: The Political Economy of Post Neoliberalism and the New Dependency Introduction 17 Post Neoliberalism and the New Latin American Left 18 Limitations and Gaps 22 Dependency Theory in times of Neoliberalism 27 Post-neoliberalism and Latin America’s Dependency tradition Commodity exports and Dependency 31 Post-neoliberalism and Dependency 33 Technological Dependency 35 Uneven Accumulation and Post-neoliberalism 36 WTO and Dependency 39 Conclusion 41 CHAPTER THREE: The Post Neoliberal Restructuring in Argentina Introduction 42 Kirchenerism in the Shadows of Neoliberalism 44 The Economic Governance of the Post Neoliberal Restructuring 51 Industry and Agriculture after Neoliberalism Industrial Sector 57 Agricultural sector 59 The Social and Foreign Policy of the ‘National Popular’ Project Social Policy 62 Foreign Policy 67 The political Economy of Post Neoliberalism and the new ‘Progressiveness’ 70 Conclusion 75 CHAPTER FOUR: The Paradox of Progressiveness: Commodities and the Reassertion of Dependency Introduction 77 Argentina’s International Trade 2004-2010 78 Foreign Exchange and Industrial Growth 84 The Redistributive Budget and Commodity Exports 89 Trade Surplus and International Autonomy 93 The New Post Neoliberal Situation of Dependency 98 CHAPTER FIVE: Kirchenerism and the Soy Complex Introduction 110 The soy complex and Argentina’s integration to the global Agricultural regime 111 Kirchenerism, Soy Economy and the New Dependency Soy Complex and Industrialization 117 Soy Complex Tax Revenues contributions and the redistributive budget 122 The soy complex and International Autonomy 127 Agrarian Transformations and social cost of the new situation of dependency 130 The social costs of Progressiveness in Santiago del Estero 135 Conclusion 139 CHAPTER SIX: The Soy Complex and the Paradox of Progressiveness Introduction 141 Reinforcing Argentina’s Subordination within the global Economy The case of Europe 142 The Chinese case 146 The power of TNCs within the soy complex 148 Argentina’s insertion into international uneven accumulation 154 Conclusion 159 CONCLUSION: Researching the Political Economy of Latin America’s Progressive Governments 161 BLIBLIOGRAPHY 169 Tables, Charts and Diagrams 1.1South America’s Commodity Dependence 5 1.2 Business Organizations interviewed within the Soy Value Chain 11 3.1 Argentina’s Balance of Trade 1991-2012 50 3.2 Argentina’s current account balance 1994-2012 50 3.3 Argentina’s industrial production 1991-2011 50 3.4 Argentina's Economic Growth 2002-2011 52 3.5 Variation in Productive and

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