Argentina economic case throughout decades already become staples in nearly every Economics and Business schools. Argentina is become classic empirical case of Middle Income Trap.
Argentina in paper especially in early 20th century have many similar comparison with Australia and Canada. All three have basically European settlers society, unlike Brazil up North, Argentina have temprete climate that more suitables for European (just like Australia, Canada or NZ). Argentina also have large agro industrial base especially cattle economies in the first half of last century, similar to Australia and NZ.
However that's the comparison stop. Just like most South/Latin American nations, Argentina also experienced military junta and dictators. However compare to Brazil, somehow Argentina not able to turn around their economy base toward more industrialized balance. Their 'democracies' economic policies after the last Military Junta tople not long after their miss calculate British response in Falkland, should at least give more confidence to the investors.
However succesive government after democracies return, simply so far fail to give enough boost of confidence toward sustainable growth. Market and Investors simply not confince the governments able to handle Argentina main problem, which is Inflation. Even during better time in during 2003-2008, inflation in Argentina also still higher in the neighborhood. Argentina should be one of leading food producers, however they don't manage to handle domestic food prices.
This resulted creditors loosing confidence, and if creditors loosing confidence, so do investors. Thus the cycles of problem loans and not enough investments to jump start economy continues toward this days.
As for Armed Forces Investments, I just see the succesive civilians governments after last military junta, simply do not want to invest much in Military. For me it is just like the civilians still want to punish the military after all this time.
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