<P> The economic history of Argentina is one of the most studied, owing to the "Argentine paradox", its unique condition as a country that had achieved advanced development in the early 20th century but experienced a reversal, which inspired an enormous wealth of literature and diverse analysis on the causes of this decline . </P> <P> Argentina possesses definite comparative advantages in agriculture, as the country is endowed with a vast amount of highly fertile land . Between 1860 and 1930, exploitation of the rich land of the pampas strongly pushed economic growth . During the first three decades of the 20th century, Argentina outgrew Canada and Australia in population, total income, and per capita income . By 1913, Argentina was the world's 10th wealthiest nation per capita . </P> <P> Beginning in the 1930s, however, the Argentine economy deteriorated notably . The single most important factor in this decline has been political instability since 1930, when a military junta took power, ending seven decades of civilian constitutional government . In macroeconomic terms, Argentina was one of the most stable and conservative countries until the Great Depression, after which it turned into one of the most unstable . Despite this, up until 1962 the Argentine GDP per capita was higher than of Austria, Italy, Japan and of its former colonial master, Spain . Successive governments from the 1930s to the 1970s pursued a strategy of import substitution to achieve industrial self - sufficiency, but the government's encouragement of industrial growth diverted investment from agricultural production, which fell dramatically . </P> <P> The era of import substitution ended in 1976, but at the same time growing government spending, large wage increases and inefficient production created a chronic inflation that rose through the 1980s . The measures enacted during the last dictatorship also contributed to the huge foreign debt by the late 1980s, which became equivalent to three - fourths of the GNP . </P>

5. what factors contributed to the economic issues in argentina
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