Citation
Production, commerce and transportation in a regional economy

Material Information

Title:
Production, commerce and transportation in a regional economy Tucuman, 1776-1810
Creator:
Stahl, Jeremy D., 1960-
Publication Date:
Language:
English
Physical Description:
vii, 276 leaves : ill. ; 29 cm.

Subjects

Subjects / Keywords:
Commerce ( jstor )
Commercial production ( jstor )
Economic regions ( jstor )
Haciendas ( jstor )
Imports ( jstor )
Jurisdiction ( jstor )
Livestock ( jstor )
Merchants ( jstor )
Mining ( jstor )
Textiles ( jstor )
Dissertations, Academic -- History -- UF
Economic conditions -- History -- Tucumán (Argentina) ( lcsh )
History thesis Ph.D
Genre:
bibliography ( marcgt )
non-fiction ( marcgt )

Notes

Thesis:
Thesis (Ph. D.)--University of Florida, 1994.
Bibliography:
Includes bibliographical references (leaves 264-275).
General Note:
Typescript.
General Note:
Vita.
Statement of Responsibility:
by Jeremy D. Stahl.

Record Information

Source Institution:
University of Florida
Holding Location:
University of Florida
Rights Management:
Copyright [name of dissertation author]. Permission granted to the University of Florida to digitize, archive and distribute this item for non-profit research and educational purposes. Any reuse of this item in excess of fair use or other copyright exemptions requires permission of the copyright holder.
Resource Identifier:
021042969 ( ALEPH )
33027225 ( OCLC )
AKL5545 ( NOTIS )
AA00004728_00001 ( sobekcm )

Downloads

This item has the following downloads:


Full Text
















PRODUCTION, COMMERCE AND TRANSPORTATION
IN A REGIONAL ECONOMY:
TUCUMAN, 1776-1810











By

JEREMY D. STAHL


A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL
OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY

UNIVERSITY OF FLORIDA


1994
















ACKNOWLEDGEMENTS


I would like to take this opportunity to thank all

those individuals and institutions whose support and

assistance made the completion of this project possible.

Foremost among these, of course, is the chair of my

dissertation committee, Professor Murdo J. MacLeod, whose

patient guidance has been most instrumental to the

successful realization of this dissertation. Other

committee members include Professors David Bushnell, Jeffrey

Needell, Robert Hatch and Allan Burns, each of whom offered

encouragement and valuable guidance as the project

progressed. Professor Jane Landers of Vanderbilt University

added fresh insights, warm friendship and bracing

encouragement when it was needed most. Professor Lyle N.

McAlister merits special appreciation for directing my early

years of graduate study, for sharing the pleasure of Latin

American History and for remaining a source of inspiration.

My debt to each of these individuals is considerable.

The University of Florida Department of History, under

the direction of Professors David Colburn, Kermit Hall and












Fred Gregory, has supported my studies as much as one could

hope; special departmental assistance helped make possible

research trips to Austin, Texas, to Buenos Aires, Argentina

and to Seville, Spain. The University of Florida Center for

Latin American Studies, by providing funding with a grant

from the Tinker Foundation for preliminary dissertation

research, also subsidized research in Argentina. Professor

Samuel Proctor of the University of Florida helped arrange a

fellowship from the Instituci6n de Cooperaci6n Ibero-

Americana that facilitated three months of critical

investigation in the Archivo General de Indias in Seville,

Spain.

Many other individuals--my friends, family and

colleagues--also merit acknowledgement and my deepest

appreciation for their support during the past years. My

dear friends Joe and Toni Thompson especially have helped

make my graduate years so enjoyable; their warm friendship

and generous hospitality eased the most difficult periods

and created some of the best. Ted and Gwen Snow have long

been supporters, helping whenever they could; Caroline King

assisted during the final push to complete this project and

deserves special thanks. The list of those meriting thanks

goes on and on: the many graduate students and the faculty


iii











and staff of the History Department, the staff of the

University of Florida Libraries, my many friends and

acquaintances in C6rdoba, Argentina, my Duck teammates,

Holbrook Travel of Gainesville. Let me take this

opportunity to thank them all collectively and express my

heartfelt appreciation for their years of assistance and

friendship.

Finally, I must acknowledge those whose encouragement,

confidence and patience has been most important. My best

friends and brothers Pete, Mark and Doug have always let me

know that I've been doing the right thing all these past

years. My parents Harry and Ann Stahl, however, have made

it all possible. The support they have so generously and so

often provided, the patience they have so long shown and the

love they so completely bestow have been my greatest

inspiration and compel me dedicate this work to them.

















TABLE OF CONTENTS





ACKNOWLEDGMENTS....................................... ii

ABSTRACT............................................... vi

INTRODUCTION........................................... 1

CHAPTERS

ONE THE RIO DE LA PLATA ECONOMY............... 8

TWO THE TUCUMAN REGION......................... 47

THREE PRODUCTION................................ 79

FOUR COMMERCE ................................. 134

FIVE TRANSPORTATION. .......................... 175

SIX SOCIETY. ................................. 208

CONCLUSION............................................ 255

BIBLIOGRAPHY.......................................... 264

BIOGRAPHICAL SKETCH................................... 276












Abstract of Dissertation Presented to the Graduate School
of the University of Florida in Partial Fulfillment of the
Requirements for the Degree of Doctor of Philosophy



PRODUCTION, COMMERCE AND TRANSPORTATION
IN A REGIONAL ECONOMY:
TUCUMAN, 1776-1810

By

Jeremy D. Stahl

April, 1994

Chair: Murdo J. MacLeod
Major Department: History


This dissertation presents a study of production,

commerce and transportation in the pre-industrial regional

economy of Tucuman in the viceroyalty of the Rio de la Plata

during the last decades of Spanish administration. It

examines sisa and alcabala records from the cities of

C6rdoba, Salta and San Salvador de Jujuy in order to

evaluate the economic adjustments that accompanied the

fundamental commercial changes that transformed this part of

the world. The expansion of the Atlantic economy after 1750

nurtured the emergence of southern Spanish America, a region

well-suited to the production of livestock, hides and wool--

products that all found strong markets in the growing global

system. The economy of the Tucuman region, responding to












this process as well as to the recovery of the Peruvian

silver-mining complex, experienced a series of little-

discussed modifications that are the subject of this study.

Chapter One develops the historiographical context for

this study; it presents an explication of four major studies

of the Rio de la Plata economy that best advance the

discussion of the historic processes that determined

regional history. Chapter Two is a brief economic geography

of the Tucuman region with special emphasis on the

demographic characteristics of the seven component

districts. Chapter Three surveys the productive activities

that integrated the Tucuman region with both the Peruvian

and Atlantic markets and simultaneously afforded a degree

of local self-sufficiency. Chapter Four addresses commerce

and the commercial relations that contributed to the

region's relative prosperity and further tied it to

neighboring markets. Chapter Five analyzes the

transportation sector that served Tucuman and physically

linked these three different regional economies. Chapter

Six is a study of some of the economic activities of the

tribute-paying Indian towns of northern Tucuman and of the

commercial pursuits of the region's property-owning

residents.


vii


















INTRODUCTION


The creation of the Rio de la Plata viceroyalty at the

end of the eighteenth century (1776) signaled the

culmination of a long process that prompted the gradual

emergence of the River Plate region of South America as an

increasingly important part of Spain's American empire.

Both the revival of silver mining in Peru and the steady

growth of European mercantilism after the middle of the

eighteenth century stimulated economic production and

exchange throughout southern South America, a part of the

world ideally situated to benefit from industrializing

Europe's commercial revival and growing hunger for certain

primary commodities. These dynamic forces triggered

dramatic changes in the several component regions of the new

Rio de la Plata viceroyalty and forced adjustments and re-

orientations within the long-established regional economies

of the Interior.

The vast sub-tropical South American Interior,

especially what is today northern Argentina, constituted the














oldest of these regions. A more traditional part of the

viceroyalty than Buenos Aires or other settlements with

easier access to sea routes, the Tucuman region incorporated

the pastoral jurisdictions of C6rdoba, Santiago del Estero,

San Miguel de Tucuman, Salta, San Salvador de Jujuy,

Catamarca and La Rioja, which together established a

corridor of Hispanic settlement that reached from the

Peruvian highlands to the River Plate estuary. Recognized

since the sixteenth century as a region devoted to livestock

production for the supply of Peru, the Tucuman region was

among those facing fundamental changes with the advent of

the viceregal era. Drawn increasingly to two different

markets, the traditional markets of Upper Peru and the

emerging market of Buenos Aires, the region quickly

experienced far-reaching adjustments which marked a clear

break with the past. While the region retained its pastoral

economy, new conditions triggered subtle re-orientations.

Whereas the entire region had once devoted itself to mule-

raising and livestock exports to Peru prior to about 1780,

the decades following 1780 saw a gradual re-orientation of

the southern jurisdictions. An increasing reliance upon the

production of hides and woolens for the Buenos Aires market

marked this process. The northern jurisdictions, on the














other hand, remained closely tied to the Peruvian market.

The once-single orientation of regional production gave way

to a more diversified export economy that now looked in two

directions.

The first chapter of this study provides a discussion

of the complex historiographical debate surrounding the

economic aspects of the Rio de la Plata's viceregal history.

Basically an explication of the work of four historians who

provide the fullest analysis of a wide range of questions,

this chapter establishes a foundation for the remainder of

the work by introducing the questions and topics that are

fundamental to any investigation into viceregal economic

history. Subtle differences between the explanations

offered by Carlos Sempat Assadurian, Tulio Halperin-Donghi,

Juan Carlos Garavaglia and Jonathon C. Brown provide the

starting point for this study and its attempt to describe a

little more clearly the adjustments forced upon certain

sectors of the Tucuman regional economy.

The second chapter provides an introduction to the

Tucuman region as a unit of economic geography. While the

region displayed an overall economic coherence, the seven

component jurisdictions each exhibited distinct economic and

demographic characteristics that influenced its position














within the whole. Eighteenth-century descriptions and

relations provide vivid sources for this brief survey;

contemporary census figures allow for a short discussion of

regional demographic characteristics.

The third, fourth and fifth chapters constitute the

heart of this study. Chapter Three presents a survey of the

primary productive activities throughout the region. It

looks first at the pastoral sector of the economy that was

most heavily influenced by the mule-raising and mule-

exporting enterprises that defined the region. The

measurement of annual mule exports uncovers a sudden and

sharp decline decline in the years after 1781 when popular

rebellion in Peru cut deeply into Andean purchases of these

animals. Gradual recovery of this market followed, but the

crisis occasioned by the years of hardship precipitated

significant adjustments within the economies of the southern

jurisdictions.

Chapter Three then turns to a related sector, that of

the production and processing of pastoral by-products that

included cattle hides, grease, tallow, soap and,

significantly, wool from the large herds of sheep that also

grazed regional pastures. Agriculture, especially the

cultivation of cotton and grapevines that contributed to the












5

local production of cotton textiles and wine and brandy in

the jurisdictions of Catamarca and La Rioja, also merits

discussion here. Finally, this chapter also examines the

less-important activities of mining and lumber production

which nevertheless figured into the regional export economy.

The fourth chapter is a discussion of commercial

patterns within the Tucuman regional economy. Through

analysis of sales tax revenues, it looks first at the

overall trends marking the volume of commercial activity in

each of the seven jurisdictions. These records reveal a

decade-long commercial malaise marking the years 1785-1795,

followed by a strong recovery in Tucumin's southern

jurisdictions and a weaker recovery in the north. Emphasis

then turns to a discussion of the direction and content of

commercial exchanges both within the region and with

neighboring regions.

Chapter Five offers an analysis of transportation, the

third critical component of the regional economy. First

this part presents a theoretical discussion of the

importance of transportation services within a pre-

industrial economy. Next it turns to a discussion of the

road network serving the region, including the heavily-

travelled royal roads that channeled most commercial traffic














from producer to market, and the less-important routes that

served secondary commercial circuits. It turns last to the

carters and muleteers who actually transported the region's

produce and commerce. It considers questions of volumes of

traffic, costs and freight rates for carriage, and the

overall efficacy of the transportation sector in serving the

regional economy.

The last chapter looks at two important social groups--

the tribute paying Indian population and the Hispanic

merchant community. This attempt to describe the economic

activities of these groups, and reach a better understanding

of their economic behavior, builds on treasury records and

tax ledgers that offer penetrating insights into individual

and group behavior. The merchant community especially

exhibited signs of a complex nature, from a few wealthy and

powerful landowners primarily occupied with livestock

exports, to the merchants of either locally-produced or

imported goods, to the small urban shopkeepers who kept the

city-dwellers of the region supplied with their basic

necessities.

From a broader perspective, this study also addresses

the origins of the Argentine nation and the factors that

helped shape the earliest economic and political crises that














defined Argentina's early nation-building process. The

viceregal era saw considerable economic growth in the

Tucuman region and even more in the River Plate; the

struggle between the conflicting interests of these regions

shaped the political battles of the first fifty years of

nationhood. The production of the Tucuman region

increasingly depended upon the Buenos Aires market for

consumers of its woolen goods and for access to European

consumers of it hides. The last years of colonial

administration, consequently, witnessed the Interior slip to

a secondary position within the viceregal system. The

adjustments that enabled the southern jurisdictions of

Tucuman to benefit from Buenos Aires' prosperity, however,

remained unattainable for the northern and western

jurisdictions. These areas, only marginally linked to the

Atlantic economy even late in the viceregal periods, were to

slip even further behind the prospering areas and become

economic backwaters in the nineteenth and twentieth

centuries.


















CHAPTER ONE

THE RIO DE LA PLATA ECONOMY



This chapter presents a discussion of the scholarship

of four important investigators of the economic structure of

the Rio de la Plata colony as a first step in the

exploration of an especially complex topic. The viceregal

era witnessed profound changes that brought once-isolated

settlements to the front of the colonial economic system.

The work of Carlos Sempat Assadourian, Tulio Halperin-

Donghi, Juan Carlos Garavaglia and Jonathon C. Brown provide

the basis for understanding these changes and their local

manifestations that often differed in nature from one region

to another.

Writing for two decades on the South American past, the

Argentinian historian Carlos Sempat Assadourian gradually

developed an elaborate interpretation of colonial economic

history. In a number of essays and monographs devoted to

the emergence and dynamics of South America's colonial

economy, Assadourian pioneered the study of the economic














spaces, the interprovincial commerce and the internal

sectors that defined the continent's economic development.

His studies of the South American economy not only

constitute a broad field of investigation distinguished by

the elaboration of a regional approach to colonial history,

but also present a useful framework for a closer examination

of Rio de la Plata's commercial history and the role of its

pre-industrial transportation sector.'

Assadourian maintains that by the beginning of the

seventeenth century, Spanish America already consisted of

several large regional economies. The South American or

Peruvian regional economy, dominated by silver mining,

included the regions of present-day Ecuador, Peru, Bolivia,

Chile, Paraguay and Argentina. The formation of this vast

economy created a system of economic relationships that led

to the emergence of regional specializations. By the end of

the seventeenth century the Peruvian regional economy


1. See Carlos Sempat Assadourian, El sistema de la
economic colonial: mercado interno, regiones v espacio
econ6mico (Lima, 1982), a compilation of six essays written
during the 1960s and 1970s developing a model of the
colonial Peruvian economy. See also Assadourian, Guillermo
Beato and Jose Carlos Chiamonte, Argentina: de la conquista
a la independencia (Buenos Aires, 1972); Assadourian,
Heraclio Bonilla, Antonio Mitre and Tristan Platt, Mineria y
espacio econ6mico en los Andes, silos XVI-XX (Lima, 1980);
and Assadourian et al., Modos de producci6n en Am6rica
Latina (Buenos Aires, 1973).












10
featured a considerable degree of self-sufficience built on

a high level of regional integration wherein a number of

specialized zones each contributed to a complete economy.

Assadourian presents a scheme in which the Potosi mining

complex in Alto Perd functioned as the axis or focus of this

system, or as the primary "pole of growth." This mining

complex dominated the entire economy; its sheer size made it

a major market for many commodities and its production of

silver provided a source of circulating capital.2

Assadourian emphasizes several fundamental activities

within this scheme. As noted, he attributes special

importance to mining, calling it the dominant production of

the Peruvian economy. He rejects interpretations that view

the colonial mining sector as little more than an enclave of

the European economy, somehow detached from the colony's

economic life. Instead, he defines mining as the "motor" of

the Peruvian economy, or the driving force behind the






2. For a discussion of the basic characteristics of
Assadourian's scheme, including explanations of the concepts
of self sufficience, regional specialization and regional
integration, see his essay "Integraci6n y disintegraci6n
regional en el espacio colonial. Un enfoque hist6rico," in
El sistema de la economic colonial, 109-134. Gwendolyn Cobb
recognized the far-reaching impact of the Potosi mining
complex in her article "Supply and Transportation for the
Potosi Mines, 1545-1640," Hispanic American Historical
Review 29:1 (February, 1949).














colonial system, intricately linked to other activities.3

The agricultural and ranching sector constituted the second

component of the Peruvian economy, providing large

quantities of foodstuffs and livestock to the barren

environs of the Andean mining centers. These mining

communities, in turn, emerged as the foremost consumers of

regional production. The commercial sector linked the

mining and agricultural sectors; exchange between the two

spheres, determined the vitality of the entire system.

These three sectors operated in an interdependent fashion,

each supporting and nurturing the others.4 Silver exports

and the European trade held a role of secondary importance

to this internal economy.

Assadourian bases much of this scheme on a nineteenth-

century study of New Spain's mining economy by the engineer-


3. Assadourian, "La organizaci6n econ6mica espacial
del sistema colonial," in El sistema de la economic
colonial, 277-331. The presentation of colonial Spanish
American mining sectors as enclaves of a dominant European
economy, Assadourian notes, was popularized by Enrique
Cardoso and Enzo Faletto, Dependencia y desarrollo en
Am6rica Latina (Mexico City, 1969), in which the authors
distinguish between agricultural colonies and mining
colonies. Assadourian calls this an "incorrect
distinction."

4. See Assadourian, "Sobre un element de la economic
colonial: producci6n y circulaci6n de mercancias en el
interior de un conjunto regional," in El sistema de la
economic colonial, 135-217. This essay provides a detailed
discussion of the interdependent nature of the mining,
agricultural and and commercial sectors within a "regional
conjunction," or the Peruvian regional economy.












12

economist Fausto de Elhuyar. Elhuyar's monograph addressed

his contemporaries' ignorance of the "true influence" of

mining, too often seen, he argued, as a "simple, isolated

resource" with little influence on the "general well-being."

Noting the lack of external demand for most of New Spain's

agricultural products, Elhuyar argued that the colony's

mining industry stimulated agricultural production,

increased the common wealth, created and sustained industry

and supported population growth. "In all civilized

countries," he explained, "is seen a certain or certain

sectors that are distinguished as much by their presence as

by the impulse they give and the extensions they provide, so

that without their help others would be of little

consequence."5

Elhuyar drew on the history of New Spain. From the

first Spanish expeditions, he explained, mines and precious

metals held the colonists' attention. Mining became the

first industry in the colony. The mine markets stimulated

agriculture, stock-raising and new settlements. Mining made

unproductive land productive and encouraged commerce between


5. Fausto de Elhuyar, Memoria sobre el influjo de la
mineria en Nueva Espaha (Mexico City, 1984), 7-11, 25-26.
Assadourian also cites Robert West, The Mining Community of
Northern New Spain: The Parral Mining District (Berkeley,
1949) and David A. Brading, Miners and Merchants in Bourbon
Mexico 1763-1810 (Cambridge, 1971) for their astute
evaluations of New Spain's mining economy, regional
production and the internal market.














provinces with different climates and resources. Gold and

silver filled the need for money, "giving life" to internal

commerce. Precious metals also drove the external economy.

New Spain's mines filled the limited domestic demand for

precious metals, and a large part of the "superabundance" of

these metals supported the colony's external trade. Silver,

accounting for two-thirds of the total value of exports,

paid for almost all imports. "When mining wealth is of some

duration," Elhuyar concluded, "it enlivens and gives greater

energy and extension to the other sectors it cultivates."6

Elhuyar's study is valuable, argues Assadourian, for

two basic reasons. First, he successfully explains the

subtle relationship between the internal and external

sectors of the colonial economy. Second, he clearly

outlines a model of this economy. While demonstrating the

existence of a dominant product that drove this economy,

Elhuyar concentrates on the relationship between mining and

other sectors--a relationship Assadourian calls "the sphere

of general circulation" or "the mercantilization of agrarian

production." In Assadourian's opinion, Elhuyar's

contemporary understanding and sophisticated perspective

must be re-employed.7 Assadourian uses this perspective to

6. Ibid., 22-23.

7. Assadourian, "La organizaci6n econ6mica espacial,"
279-280, 282-284.














develop a synthesis of a prosperous Peruvian economy--a

unified or integrated economic system--in which mining

constituted the dominant sector, agricultural products and

livestock were turned into merchandise by the commercial

sector, and new activities repeatedly emerged.

If at the height of Potosi's silver production early in

the seventeenth century the Peruvian economy reached a high

degree of prosperity, declining silver production from the

mid-seventeenth century to the mid-eighteenth century led to

widespread impoverishment. Typically, regional responses to

this process of impoverishment consisted of "adjustments,"

usually the elimination of interregional imports, the

expansion of the subsistence sector and the ruralization of

provinces.8 The commercial sector suffered waning

intensity and experienced various redirections of trade.

Assadourian emphasizes that the long crisis did not trigger

a breakdown of the Peruvian economy nor affect self-

sufficience, but encouraged a series of adjustments,

described as a slow process of reorientation away from

Potosi.

The economic recovery marking the second half of the

eighteenth century, Assadourian argues, had two sources.

First, the intensifying rhythms of the Atlantic economy and


8. Assadourian, "Integraci6n y disintegraci6n
regional," 127.














the consequent growth of Buenos Aires fostered both legal

and illegal trade throughout southern South America. The

creation of the Rio de la Plata viceroyalty in 1776 and the

declaration of free trade in 1778 further stimulated the

process of reorientation, moving parts of the old Peruvian

economy toward external markets. But the resurgence of

Peruvian mining, still the dominant sector in this late

period, proved more important to this recovery. Peter

Bakewell identifies and discusses this "remarkable boom" in

Potosi's silver output that tripled during the course of the

eighteenth century.9 To Assadourian, Andean mining still

determined the dynamics of the vast South American economy,

and agricultural, manufacturing and commercial activities

remained dependent on Peru's silver production.'"

Assadourian does not deny that metropolitan relations

wielded strong influences in the evolution of the Peruvian

economy. Drawing on Hamilton's pioneering study and those

of Alvaro Jara and the Chaunus, he compares the tremendous

silver exports between 1520 and 1650 with the meager







9. Peter Bakewell, "Mining," in Leslie Bethell,
editor, The Cambridge History of Latin America, 8 volumes
(Cambridge, 1984-91), volume 2, 138-149.
10. Ibid., 278-289.














contributions of other sectors." Nevertheless, the

importance of silver exports during this era or later never

signified dependence on the metropolitan market.12

Assadourian underscores this argument: just as silver

exports proved the dominant sector that shaped external

relations, silver production remained equally important to

the internal sphere, determining the direction and dynamics

of the colonial economic system. This economy, once

established, displayed a complete, integrated and

independent nature. External relations held a secondary

position, largely limited to the import of luxury goods.13

The prosperous 1780s and 1790s, despite growth of Atlantic

trade, brought South America's most self-sufficient years,

featuring considerable regional diversification and a high

degree of internal control.14 By 1800, the Peruvian


11. Assadourian, "Sobre un element de la economic
colonial," 211. Assadourian cites Earl Hamilton, American
Treasure and the Price Revolution in Spain, 1501-1650
(Cambridge, 1934); Pierre and Huguette Chaunu, Seville et
l'Atlantique, 11 volumes (Paris, 1955-60); Alvaro Jara, Tres
ensayos sobre economic minera hispanoamericana (Santiago,
1966). See also Peter Bakewell, "Registered Silver
Production in the Potosi District, 1550-1735," Jahrbuch fir
Geschichte von Staat, Wirtschaft und Gesellschaft
Lateinamerikas 12 (1975).
12. Assadourian, "Integraci6n y disintegraci6n
regional," 128-133.

13. Ibid. 112-113; Assadourian, "Sobre un element de
la economic colonial," 142-144.

14. Ibid., 144.












17

economy reached a level of self-sufficiency unequaled before

or since.

Tulio Halperin-Donghi presents a more focused analysis

of the Rio de la Plata's eighteenth-century regional

economic history. Squarely placing seventeenth-century Rio

de la Plata within the Peruvian sphere, he defines the

immense territory as consisting of two ill-defined zones.

The Interior extended from Upper Peru south to a vague

frontier in the pampas, and east from the Andes to the

territories along the Parand River. The Litoral, comprised

of the Guarani lands of Paraguay and Uruguay and the lands

banking the lower Parand and River Plate, included the

cities of Buenos Aires, Montevideo, Corrientes and Santa F6.

Between these two settled zones stretched the Chaco and

Pampa plains, both populated by tribes of Amerindian

hunters. Spaniards controlled relatively small portions of

these expanses; the most important area was the Interior

province of Tucuman, actually a corridor of settlements

(Jujuy, Salta, San Miguel de Tucuman, Santiago del Estero

and C6rdoba) that connected Peru with Buenos Aires and the

Atlantic. To the east of the Upper Parand, in Paraguay and










PC e


s.U ~S~p L~C


}~IM1


S&J


P4 rn1PJS


Rio de la Plata, Tucumdn and Cuyo Regions, c. 1776


. .. .. S ... .
d lt J~ljdi
*


Cij isni 4


i..~
F

~


3e

-~.-


*n
r


J4CLt


S Bua ..i. Afl.


P4


SMBL~ -*.-


d.

..~ :.


Ik

C~hrorsr


Spn~~

~


Figure 1.1.














Uruguay, Jesuit missions established a fragile Spanish

presence in a region bordering Brazil.'5

Halperin-Donghi's scholarship chiefly addresses Rio de

la Plata's revolutionary period, featuring a discussion of

the viceregal period that began in 1776 and a description of

the region's economic reorientation in the late eighteenth

century. In contrast to Assadourian, Halperin-Donghi

describes a profound shift away from the Potosi pole for the

Rio de la Plata region, a process nurtured by the rise of

the Atlantic economy. Increased contact with European

commercial powers dislocated the traditional structure of

the Peruvian economy. Buenos Aires and the River Plate

settlements grew in size and commercial importance,

eclipsing Potosi as a pole of growth for this part of the

colony. To Halperin-Donghi, the pastoral provinces along

the Parand and the Rio de la Plata led this reorientation;

the growth of this Atlantic-oriented region dominated by the

port of Buenos Aires occurred at the expense of the Interior

provinces' commerce, manufacturing and agriculture.




5. Tulio Halperin-Donghi, Politics, Economics and
Society in Argentina in the Revolutionary Period (Cambridge,
1975). This volume, basically a translation of his
Revoluci6n y querra: Formaci6n de un lite dirigente en la
Argentina criolla (Buenos Aires, 1972), presents an
excellent discussion of the economic complexion of the Rio
de la Plata regions at the end of the eighteenth century.












20

Halperin-Donghi's description of South America's early

colonial economy corresponds with that of Assadourian.

Halperin-Donghi acknowledges the Interior's unified

structure and stability founded on Peruvian mining and

achieved at the cost of "maintaining a slow rhythm of

production and trade."16 But more than revived conditions

in Potosi, Halperin-Donghi argues, the changing nature and

quickening pace of the Atlantic economy after 1750 triggered

the Rio de la Plata's reorientation. For Halperin-Donghi,

growing regional imbalances that caused growth for some

regions and decline for others unable to adapt to new

conditions stand out as the basic features of this process.

The ascent of the Litoral provinces proved the most

important consequence of this process. And Halperin-Donghi

sees this process as one of the keys to Argentinian history:

an explanation for the rise of the Litoral and the decline

of the long-dominant Interior.17

The growing imbalance sketched by Halperin-Donghi

intensified after the 1778 commercial reforms of Charles

III, when the Interior provinces encountered stiff

competition from Spanish agricultural imports and northern

Europe's manufactured goods. The last decades of the



16. Ibid., 5.

17 Ibid., 6, 16-29.














eighteenth century brought "painful readjustment" to the

Interior's craft industry and "disaster" to its agriculture.

European war and the disruption of Atlantic trade at the

very end of the century prompted a temporary restoration of

old patterns, but the "slowly increasing imbalance" between

the Interior and the Litoral proved irreversible.1

The rise of the Litoral and the commercial adjustments

of the late eighteenth century not only hastened

administrative reorganization, but also supported the

commercial growth of Buenos Aires. This growth proved vital

to the process that nudged the focus of commercial

circulation from the Peruvian mining industry to the Buenos

Aires mercantile community. Before 1776, Halperin-Donghi

argues, Buenos Aires served primarily as an administrative

center with only complimentary economic activities. Through

participation in the growing export of the Litoral's hides

to Europe, and helped by the reforms that brought Potosi

into Buenos Aires' administrative orbit, the port's merchant

community gradually gained control of the viceroyalty's

commercial activity and established a dominant role in the

viceregal economic system. The major business for this new

elite became the distribution of European goods throughout

the Interior and Peru in exchange for silver and gold. The


8. Ibid., 5.














consequent commercial and financial hegemony built by this

merchant community became a central feature of the late

colonial order, and Buenos Aires' prosperity grew from the

merchants' exploitation of the advantages that the system

gave to merchants over producers.19

Halperin-Donghi and Assadourian essentially agree on

the self-sufficient character of the early South American

economy and on the basic characteristics of the eighteenth-

century reorientation, but their discussions of the

consequences of this process differ. First, Assadourian

argues that the Peruvian mining sector maintained its

dominant position within the South American economy, while

Halperin-Donghi, recognizing the continued importance of

Peruvian silver, describes a decisive shift in the Rio de la

Plata toward the growing hegemony of Buenos Aires. Both

also see disruptive consequences arising from the growing

influence of the Atlantic economy, but they see these

effects in different sectors. Assadourian argues that

industry, mainly textile production, suffered as agriculture



19. For Halperin-Donghi's discussion of Buenos Aires'
mercantile expansion, see pages 29-40. See also Susan
Migden Socolow, "Economic Activities of the Porteio
Merchants: The Viceregal Period," Hispanic American
Historical Review 35:1 (February, 1975) and Kinship and
Commerce: The Merchants of Viceregal Buenos Aires
(Cambridge, 1975), which both examine the port's mercantile
growth and the development of its merchant class.














prospered, while Halperin-Donghi sees little change in

manufacturing but a decline in colonial agriculture.

Halperin-Donghi addresses the "detrimental

consequences" of free trade that enabled Iberian

agricultural products, especially wine, oil and frutos

secos, to compete successfully with the traditional

production of the Interior provinces in the Buenos Aires

market. While craft manufacture apparently remained

unharmed, the sudden appearance of Spanish produce triggered

sharp price drops and "ruthless competition among the

different regions that were slow to adapt to the changing

market.""2 Assadourian, however, argues that the growing

demand for, and import of, manufactured goods in the

Peruvian market had several consequences, including

disrupting the Interior's craft industry and import-

substitution manufacturing.

These differences can be partially reconciled by

recognizing that the focus and objectives of these two

studies differ. Assadourian presents a temporally and

geographically broader study, discussing the three hundred-

year evolution of a vast economy. Component eras and

regions are secondary to the whole; and his analysis is

painted in broad strokes. A deliberate rejection of the


20. Ibid., 12.













dependency paradigm, Assadourian's studies are internally

oriented and concentrate on describing the self-sufficient

nature of the colonial economy. Halperin-Donghi, however,

undertakes a much more specific study of the eighteenth-

century Rio de la Plata and its rise based on the growing

hegemony of Buenos Aires. This concentration naturally

enables the identification of distinct trends and processes

that Assadourian's broader studies overlooks

These two of scholars also differ in the types of

sources they draw upon to make their arguments. By

evaluating provincial tax records, Assadourian measures the

trade in, and prices of, provincial exports over time and

creates a rough guide to commercial circulation. These

records, coupled with an extensive use of notarial and

judicial documentation and mercantile correspondence, help

Assadourian illustrate both regional relationships with the

Peruvian mining sector and the basic economic structure of

the entire South American economy. Again, Assadourian

emphasizes provincial records over viceregal; his aim is to

write a provincially-oriented history of South America.

This methodology might be dangerous, but has led to

stimulating arguments. Halperin-Donghi's analysis, in

contrast, is based on research conducted primarily in the

Archivo General de la Naci6n in Buenos Aires and in the

Public Records Office in London. He employs fewer













statistics but draws on a complete mastery of secondary

literature. While his work is lightly footnoted, it draws

on a greater variety of administrative sources than does

Assadourian's and employs a more global perspective.

Although both scholars draw heavily on secondary sources and

a variety of administrative reports and relations, they use

these materials to different ends. Assadourian demonstrates

how effectively the South American colony insulated

itself from European intrusion; Halperin-Donghi demonstrates

the pervasiveness of European interests in one corner of the

colony.

Juan Carlos Garavaglia builds on Assadourian's regional

model and uses Halperin-Donghi's conclusions to develop a

study of regional differentiation within the Rio de la Plata

during the last years of the colonial period.21 Garavaglia

uses tithe records from 1786 to 1802 as "indirect

indicators" to measure growth in economic production in

three regions comprising the Rio de la Plata viceroyalty.

His study examines production trends in Tucumdn, in the

Litoral/Banda Oriental and in the eastern Andean province of

Cuyo, regions he defines based on particular economic

specializations. His findings underscore the importance of

21. Juan Carlos Garavaglia, "Economic Growth and
Regional Differentiations: The River Plate Regions of the
End of the Eighteenth Century," Hispanic American Historical
Review 65:1 (February, 1985), 51-89.














specific regional studies and the value of comparative

analysis.22

Garavaglia begins with a description of the changes

effecting southern South America after 1776. The creation

of the Rio de la Plata viceroyalty and the proclamation of

free trade helped Buenos Aires consolidate its role as a

commercial center for the surrounding hinterland. The

triumph of a new economic system, largely based on livestock

production in the Litoral and the export of hides from

Buenos Aires and Montevideo to Europe, triggered a series of

economic ups and downs, or differentiations, from region to

region.23 The Bourbon reforms, he argues, had a tremendous

impact in this part of the colonial world, either promoting

economic growth in some areas or aggravating decline in

others.

Between 1786 and 1802, the years for which Garavaglia

has full tithe data for all regions, the annual total tithe

22. Ibid., 55-56. A curve constructed from tithe
records, Garavaglia explains, provide an "indirect indicator
of the movement of production and of agricultural and
livestock prices." Tithe records can be problematic, he
explains, but for Rio de la Plata they express "the
particular behavior of a grain market that is tied to an
open agricultural economy." They do not seem to suggest, as
Brooke Larson found in eighteenth-century Cochabamba, "an
inverse correlation between years of the highest tithe and
the good harvests." See Larson, "Rural Rhythms of Class
Conflict in Eighteenth-Century Cochabamba, HAHR 60:3
(August, 1980), 407-430.

23. Ibid., 52.












27

collected in the viceroyalty grew by 59 percent. Growth was

not the same in all regions, however; some areas contributed

a reduced share of the total after 16 years and some areas

provided an increased share. The Litoral, led by Buenos

Aires, dominated the regional whole for the entire 16 years,

but to a lesser degree in the last five years studied. In

1786, the different areas of the Litoral contributed 57

percent of the total tithe, in 1802 only 51 percent. The

Tucumdn region, led by the city of C6rdoba, became an

important contributor whose relative share of the tithe

total increased from 25 percent to 38 percent. Cuyo,

comprised of the cities of Mendoza and San Juan, contributed

the least and even experienced a relative decline over time,

falling from 18 percent to 12 percent.24

Closer analysis of each of these regions, encompassing

a longer time span, reveals more subtle trends within this

framework. To obtain a clearer understanding of the Litoral

region, Garavaglia divides it into three smaller sub-

regions. Buenos Aires included the six country districts

surrounding the city. The Banda Oriental included

Montevideo, the districts on the eastern strip of the River

Plate and the districts around Maldonado. The Nuevo Litoral

included the three districts of Santa F6, the districts that


24. Ibid., 58.














would become Entre Rios and the zone that stretches to the

south of the Rio Corrientes.25 Above all, Garavaglia

asserts, growth in the Litoral did not affect all areas

equally.

Garavaglia's tithe analysis indicates a clear

diffentiation between cattle and hide production in the

Nuevo Litoral and grain production in Buenos Aires and the

Banda Oriental. For all the region, grain accounted for 67

percent of tithe income and cattle only 26 percent. The raw

numbers measuring hide exports from the River Plate are

noteworthy, however, and merit some discussion before

turning to the grain production that Garavaglia finds more

important. Using the daily sales tax accounts from Buenos

Aires and Montevideo, Garavaglia calculates an average

annual export of approximately 447,000 hides from the River

Plate (Buenos Aires and Montevideo) between 1779 and 1784.

Of these, 47 percent left from Buenos Aires. The remainder

left from Montevideo. The following years witnessed roughly

similar percentages.26





25. Ibid., 59.

26. Ibid., 53. For a more detailed calculation of the
River Plate's hide exports in the eighteenth century, see
Garavaglia, "El Rio de la Plata en sus relaciones
atldnticas: Una balanza commercial (1779-1784)," Economia,
sociedad y regiones (Buenos Aires, 1987)65-117.














Determining the origin of all these hides is more

difficult. Of the roughly 210,000 hides exported annually

from Buenos Aires between 1779 and 1884, Garavaglia

estimates that approximately 40,000 to 50,00 hides entered

the city from its countryside each year. Perhaps 70,000 more

came from cattle slaughtered for the provision of the city

and its surroundings. More important, some 100,000 hides

entered Buenos Aires from other provinces. Of these

100,000, almost half came from the Banda Oriental, 22

percent from Paraguay, 12 percent from Santa F6 and ten

percent from C6rdoba.27 In summarizing, Garavaglia notes

first that the countryside around Buenos Aires contributed

only about 30 percent of the hides exported from the River

Plate during its time of maximum expansion. Further, he

advises that Platense historians abandon the notion of an

area surrounding Buenos Aires settled exclusively by

ranchers and teeming with large herds of cattle and

recognize the clear distinction between between the wheat-

prodicung areas of the River Plate and the cattle-dependent

Nuevo Litoral.28 The River Plate's hides came from a




27 Ibid., 53-54. Garavaglia develops this discussion
from his calculations of the Buenos Aires alcabala
registers. See footnotes, pages 53-54.

28. Ibid., 55.














widespread and diverse area; Buenos Aires' tithe income

depended on wheat production (see Table 1.1).




Table 1.1 Cattle and Grain Percentage of Litoral Tithe,
1782-1804*


Cattle Grain
1782-86 1798-1802 1782-86 1792-1804

Buenos Aires 14 25 79 70
Montevideo 12 24 78 72
Santa F6 66 83 23 11
Corrientes 89 49 11 51



Figures represent the percentage of total tithe income.
Source: Garavaglia, "Economic Growth and Regional
Differentiations," 53.




The Cuyo region, comprised of the cities and

jurisdictions of Mendoza, San Juan and San Luis, relied on

grape cultivation and the production and export of wine and

brandy (aguardiente) to Buenos Aires and the River Plate.

Mendoza specialized in the production of wine, while San

Juan concentrated almost exclusively on aguardiente.

Garavaglia finds that the region flourished in the middle of

the eighteenth century (1755-1756), but by 1790 the tithe

incomes from this region diminished to about half what they

had been earlier (to about 45 percent for Mendoza and 50














percent for San Juan).29 Closer analysis of the figures

reveals important trends developing within Cuyo, however.

In the 1750s, Mendoza contributed more to Cuyo's total tithe

income than did San Juan; by 1790, the two cities were

almost even (despite the reduced total), and by 1800 San

Juan had surpassed Mendoza as dominant contributor to Cuyo's

tithe.3

As does Halperin-Donghi, Garavaglia attributes these

trends in Cuyo to the "disastrous effects" of the Bourbon

reforms and free trade. After 1778, wine and aguardiente

from the Spanish Mediterranean enjoyed free access to the

River Plate markets where their presence diminished the

demand for Cuyo's goods. Both the quantity and value of

Cuyo's products dropped in Buenos Aires during the 1780s and

1790s. But the wine trade seemed to suffer more than the

aguardiente trade; alcabala, or sales tax, receipts from

Buenos Aires indicate that aguardiente from San Juan figured

among the most important efectos de la tierra, or farm and

ranching products, received in the port.31

Tithe collection in the Tucuman region, comprised of

the cities of C6rdoba, Catamarca, San Miguel de Tucuman,


29 Ibid., 64-68.

30. Ibid., 65.

1. Ibid., 66.














Salta, Jujuy, La Rioja and Santiago de Estero, experienced

the most growth in the Rio de la Plata, increasing by 246

percent between 1786 and 1802.32 C6rdoba led this trend,

supported by increased ranching (cattle, mules and sheep),

growing wool exports and a well-established farming

community in the city's countryside, to become the second

most important tithe center among the regions studied,

behind Buenos Aires. But again, if the areas within Tucuman

are more closely examined, differing trends emerge. While

C6rdoba prospered tremendously, tithe production in San

Miguel de Tucuman remained steady, and declined in the

cotton and aguardiente-producing areas of Catamarca and La

Rioja. But C6rdoba's growth alone boosted Tucuman's

relative position within the regional whole, from 25 percent

of the total tithe collection in 1786 to 38 percent in 1802.

C6rdoba's growth proved so decisive, in fact, that the

Tucuman region's relative share of the total tithe for the

Rio de la Plata region grew at the expense of most other

regions. Between 1786 and 1802, for example, Buenos Aires'

share of the total shrank from 34 percent to 29 percent,

Montevideo's share shrank from 13 percent to ten percent,

and Cuyo's share from 18 percent to 12 percent. Santa F6,

the only other area showing relative growth during this


32. Ibid., 61.














period, increased from four percent of the total to ten

percent .3

Garavaglia again attributes most of these trends to the

effects of the Bourbon reforms that "accentuated changes

that, for some time, had been emerging in the space occupied

by the future territory of Argentina and Uruguay."34 As

Halperin-Donghi argues, the Atlantic economy shaped this

process. Garavaglia further notes that the growth of the

Litoral preceded free trade, which served to accelerate the

process. After the initiation of reforms, however, growth

in most areas remained fragile, as Corrientes and Santa F6

show. The strengthening of the cattle industry in the River

Plate area during the very last years of the colonial era,

he contends, did not lift ranching to a position of

predominance; rather, grain cultivation retained its primary

position.

But unlike Halperin-Donghi, Garavaglia argues that the

commercial role of Buenos Aires in relation to the Interior

pre-dated administrative reorganization, a policy that

solidified the city's dominant position. His analysis of

both the origins of the River Plate's hides and the markets

for Cuyo's wine and aguardiente lend weight to this


Ibid., 58.

Ibid., 87.














argument; it would seem that Buenos Aires' position as a

pole for the Interior's commerce dated from at least the

mid-eighteenth century. The growth of C6rdoba's economy and

its increasing Atlantic orientation further bolster this

argument. Garavaglia's calculations also confirm, in a

modified way, Halperin-Donghi's assessment of the Bourbon

reforms' impact on Interior agriculture. The decline of

Cuyo in the face of Iberian competition demonstrates the

unfortunate consequences of free trade in areas unable to

adjust to changing circumstances. The Tucuman region

illustrates a more complex scenario. If C6rdoba prospered

because its large landowners managed to increase exports of

hides and wool, the more isolated areas of La Rioja and

Catamarca suffered because of their inability to augment or

supplement their weakened specialties of aguardiente and

cotton.

Garavaglia's study underscores the importance and value

of regionalizing economic studies of the complex late

colonial period. His analysis of regional differentiation,

however, does not fully explain economic trends such as the

dominant position of grain production throughout the River

Plate area, nor does it explain the relationship between

this grain production and hide exports. These questions,

however, are addressed by Jonathon Brown's socioeconomic

history of the Rio de la Plata region during the viceregal














and early national periods.35 Brown's study concentrates

on both production and markets during the final years of the

pre-industrial age; like Halperin-Donghi and Garavaglia,

Brown finds external markets especially important to

regional hide production after 1776. The beginning of

Europe's Industrial Revolution and the emergence of the hide

export economy in the Rio de la Plata stimulated regional

growth and contributed to the reasons behind the opening of

Buenos Aires to legal overseas trade, but these processes

did not initiate a state of dependence on the Atlantic

economy.

Brown's study bluntly rejects standard dependency

theory and applies instead the staple theory of economic

growth to Argentinian history.36 Originally conceived to


3. Jonathon C. Brown, A Socioeconomic History of
Argentina, 1776-1860 (Cambridge, 1979) and his 1976
University of Texas Phd. dissertation, The Commercialization
of Buenos Aires: Argentina's Economic Expansion in the Era
of Traditional Technology, 1776-1860 (Ann Arbor, 1976).
36. Ibid., 5-6. Brown presents an excellent summary
of the basic arguments of the dependency school. The
dependency literature that Brown cites includes Enrique
Cardoso and Enzo Faletto, Dependencia y desarrollo en
America Latina; Andr6 Gunder Frank, Capitalism and
Underdevelopment in Latin America (New York, 1967); Stanley
J. and Barbara H. Stein, The Colonial Heritage of Latin
America (New York, 1970); Osvaldo Sunkel and Pedro Paz, El
subdesarrollo latinoamericano y la teoria del desarrollo
(Mexico City, 1970); and James D. Cockcroft, Andre Gunder
Frank and Dale L. Johnson, Dependence and Underdevelopment
(Garden City, 1972). For the more specific application of
dependency theory to Argentina, Brown cites Liborio Justo,
Nuestra patria vasalla: De los Borbones a Baring Brothers












36
explain the economic and social development of Canada, Brown

applies the staple theory to Argentina with considerable

success. Providing a useful structure for analyzing

regional economies, staple theory applies best when the

production of raw materials or commodities, such as hides,

becomes the dynamic sector of a regional economy and sets

the pace for regional economic development.3 Brown's

application of staple theory not only explains the

predominance of wheat production in the River Plate

described by Garavaglia, but also qualifies Assadourian's

rejection of South American dependency on the Atlantic

economy.

In Brown's presentation, three situations determine

staple economies. First is the existence of both

international markets for, and trade in, certain staple

products such as silver or hides. The second is that a

definable region enjoys a comparative advantage in the


(Buenos Aires, 1967); Jos6 Maria Rosa, Analasis hist6rico de
la dependencia argentina (Buenos Aires, 1974); Andres M.
Carretero, Origenes de la dependencia econ6mica argentina
(Buenos Aires, 1974); and Juan Antonio Corradi, "Argentina,"
in Ronald H. Chilcote and Joel C. Edelstein, editors, Latin
America: The Struggle with Dependency and Beyond
(Cambridge, 1974).
37. Ibid., 6-7. Brown notes that Harald A. Innis, The
Fur Trade of Canada (Toronto, 1930) was the first
application of staple theory to Canadian history, and that
Melville H. Watkins, "A Staple Theory of Economic Growth,"
in Canadian Journal of Economic and Political Science 29:2
(May 1963) has best formulated staple theory.














production of these staples. The third situation is for

this production to generate regional development and

stimulate growth within the regional infrastructure. This

diffusion of the effects of staple production is expressed

in terms of "linkages" that are classified into three

types.38

"Backward linkages" result from increases in staple

production that promote increased investment and growth in

the goods and services used by the export sector--services

such as transportation. "Forward linkages" result from

investment in the processing and marketing of staple goods.

Buenos Aires' stockyards, slaughterhouses and warehouses

provide examples of forward linkages. "Final demand

linkages" result from the development of secondary areas of

production associated with local consumer demands. Prior to

1860, Brown argues, the export sector of the Rio de la Plata

economy did not subvert or restrict the development of an

economic infrastructure--an argument central to dependency

theory. Instead, diversification and diffusion of economic

activity characterized the staple economy of the pre-

industrial age. Without the dynamic hide export economy in

the Rio de la Plata, Brown concludes, the economic and


38. Ibid., 6-8.












38
social expansion of this entire South American region would

have been retarded.3

Brown's application of staple theory clearly

demonstrates the prosperity of the Rio de la Plata's

viceregal economy. Noting that the evolution of Buenos

Aires as the center of the staple economy accelerated with

its establishment as the viceregal capital in 1776 and its

recognition as the official Spanish port for the entire

region in 1778, Brown argues that the single most important

change shaping the Rio de la Plata economy was the

administrative reform that brought Potosi into this new

viceregal sphere and diverted its official silver

production, some 370,000 pesos a year, through the city's

port. Buenos Aires, in response, developed an internal

market of its own that gradually stimulated production in

the hinterlands. Cattle industries in particular, he

argues, "responded with growth and sophistication."40

Markets in both Buenos Aires and Potosi stimulated growth in

all the settled areas of the Rio de la Plata. The

viceroyalty experienced not only expanding internal

commerce, but also increasing overseas commerce and a




39. Ibid., 8.

40. Ibid., 28. Brown refers to the viceregal period
as the "golden age" of the colonial era.












39

favorable balance of trade that lasted until the end of the

colonial era.41

Potosi's silver dominated this commerce, comprising

between 50 and 80 percent of the total value of River Plate

exports.42 Efectos de la tierra followed, becoming more

and more important. Hides led this growth, increasing from

150,000 exported to almost 875,000 in 1796. Salted meat

exports to Havana followed, also rising, from 158 metric

tons in 1787 to 1,785 tons ten years later. Imports, led by

textiles from Spain, Britain and France, iron

from Vizcaya and luxury items from around Europe, also

reveal ascending trends.43

This commercial growth, Brown continues, reflects

demographic trends for almost all parts of the viceroyalty.

Drawing on the demographic studies of Jorge Comadrdn Ruiz,

Brown argues that most of the Interior, as well as the River

Plate, experienced "anything but economic depression as a




4. Ibid., 30. Brown cites contemporary observers who
estimated the value of exports during the 1790s at
approximately five million pesos and imports at nearly three
million. These figures, he adds, may be low.

42. See also Garavaglia, "El ritmo de la extracci6n de
metdlico desde el Rio de la Plata A la Peninsula," Revista
de Indias 36:143/144 (January-June 1976), 253-254.
Garavaglia proposes that silver exports neared six million
pesos in some years during the 1780s and 1790s.

43. Ibid., 30.












40

result of freer trade.""44 Comadran Ruiz' calculations for

the River Plate region show the population climbing from

37,130 in 1777-78 to 92,000 in 1809. The Tucumdn region

grew from 123,985 to 211,867 during the same years, and Cuyo

from 23,411 to 59,954. Within these regions, only the Jujuy

jurisdiction declined, from 13,619 people to 12,278.45 The

most surprising growth was in Cuyo, where the population

more than doubled despite the difficulties endured by the

wine and aguardiente-producing industries (see Table 1.2).

This economic and demographic growth reflected what

Brown calls the "progressive expansion of the pastoral orbit

of Buenos Aires."46 This expansion involved not only the

area devoted to cattle production, but also the evolution of

cattle-breeding techniques--a process referred to as a shift

from hunting to husbandry. From the seventeenth century,

the principal pastoral products in demand in overseas

markets included hides, tallow and cured meats; until late

in the colonial period, hunting expeditions called vaquerias

slaughtered isolated herds of wild cattle that ranged the


44. Ibid., 35.


5. Data taken from Jorge Comadran Ruiz, Evoluci6n
demoqrdfica argentina durante el period hispdnico (1535-
1810) (Buenos Aires, 1969), 80-115.

46. Brown, A Socioeconomic History of Argentina, 35-
41. See also Horacio C. E. Giberti, Historia econ6mica de
la ganaderia argentina (Buenos Aires, 1960).

















Table 1.2. Population Growth in the Rio de la Plata,
1777 1809.


Region 1777-1778 1809

River Plate 37,130 92,000

Tucuman
C6rdoba 40,203 60,000
La Rioja 7,690 12,619
Jujuy 13,619 12,278
Salta 11,565 26,270
Tucuman 20,104 35,900
Santiago del Estero 15,465 40,500
Catamarca 13,315 24,300

Cuyo
Mendoza 8,765 21,492
San Juan 7,690 22,220
San Luis 6,956 16,242

Totals 184,526 363,821


Source: Comadrdn Ruiz, Evoluci6n demogrrfica
argentina, 80-115.



grasslands of the River Plate.47 Despite considerable

waste, vaquerias nevertheless met the demands of the


Atlantic market.


Vaquerias, in a sense, also wasted


rangeland, given the tendency of hunters simply to extend


47. For a more complete discussion of the history of
vaqueria cattle exploitation, see Emilio Coni, Historia de
las vaguerias del Rio de la Plata, 1555-1750 (Buenos Aires,
1956) and Herndn Asdribal Silva, "La grasa y el sebo: dos
elements vitales para la colonia: Buenos Aires en la
primera mitad del siglo dieziocho," Revista de Historia
Americana y Argentina 8:15-16 (1970-1971).












41

their hunts farther into frontier regions rather than try to

establish managed herds in already-hunted areas. By the

mid-eighteenth century, however, a number of different

pressures brought about a more efficient, better-managed

system of estancias, or formal cattle-breeding ranches, that

introduced better methods of pastoral production.4

Early estancias relied on unsophisticated roundups and

the branding of wild cattle that still grazed the unfenced

ranges. This "rudimentary husbandry," as Brown

characterizes it, assured the reproduction of herds and was

largely responsible for the success of cattle-breeding in

the Banda Oriental. Well watered, easily accessible and

free of Indian tribes that harassed ranching on the pampa,

the Banda Oriental quickly became the primary region of the

new techniques of cattle ranching. By the viceregal period

cattle grazing was well established here, generally oriented

toward the port of Montevideo. By the 1790s, saladeros, or



48. Brown, A Socioeconomic History of Argentina, 35-
41. See also Halperin-Donghi, "Una estancia en la campana
de Buenos Aires, Fontezuela, 1753-1809," and Garavaglia,
"Las actividades agropecuarias en el marco de la vida
econ6mica del pueblo de Indios de Nuestra Sefora de los
Santos Reyes Magos de Yapeyi: 1768-1806," both in Enrique
Florescano, editor, Haciendas, latifundios y plantaciones en
Am6rica Latina (Mexico City, 1979); and Carlos A. Moncaut,
Estancias bonaerenses: Con la menuda historic de alqunos
establecimientos, entire todos, de los partidos de Chascomus,
Randios, Magdalena, General la Valle y Lujin. Historia y
tradici6n (City Bell, 1977).












42

simple meat-salting plants, prepared Banda Oriental beef for

export to Cuba and Brazil.49

This evolutionary process saw pastoral commodities rise

to become a "junior partner" in the River Plate's commerce,

second only to the export of Peruvian silver.50 The

process would continue through the viceregal period and into

the nineteenth century, helping fuel the increase in

international shipping, the consolidation of the merchant

class and the growing hegemony of Buenos Aires within the

Rio de la Plata economy. When Peru's silver production

finally collapsed during the independence wars, the pastoral

economy stood poised to assume the role of dominant sector.

The early national period, in Brown's presentation, saw the

export of pastoral commodities from Buenos Aires begin to

carry the entire Rio de la Plata regional economy.

Industrial demands in Europe and North America, Brown

concludes, supported the increasing prosperity of this new

South American economy.5


9. For further discussion see Anibal Barrios Pintos,
Historia de la ganaderia en Uruguay, 1574-1971 (Montevideo,
nd.); and by Alfredo J. Montoya, Historia de los saladeros
argentinos (Buenos Aires, 1956) and La ganaderia v la
industrial de salaz6n de carnes en el peri6do 1810-1862
(Buenos Aires, 1971).
50. Ibid., 48-49.

51. Ibid., 49. Much of Brown's study is devoted to
explaining the relationship between the North Atlantic
industrial revolution and the sustained prosperity of Rio de













Brown's discussion of staple theory, demographic data

and expansion of the pastoral economy to Rio de la Plata

helps explain the expansion of grain cultivation for the

domestic market in the River Plate revealed by Garavaglia.

Concentrated around the area's cities, the growth in farming

reflects both the increased economic activity and the

population growth that marked the viceregal era. Staple

theory also explains the prosperity of C6rdoba, a city tied

to this expansion through its own hide and wool exports.

Similarly, the city's farming sector thrived as a

consequence of a "final demand" link to this prosperity.

The reorientation of Santa F6, however, best illustrates the

association between increased commodity exports and economic

diversification. As Santa F6's hide exports grew between

1786 and 1802, wheat cultivation became an increasingly

important element of the local economy. Population growth

in the jurisdiction, as well as increased commercial

activity, stimulated the production of foodstuffs important

to the local market.

Brown's study also further qualifies the

interpretations of Assadourian and Halperin-Donghi. His

application of staple theory and his subsequent arguments

maintain the self-sufficient nature of the South American



la Plata's pastoral economy. See chapters three and four.













economy despite the increasing importance of the pastoral

sector in the Rio de la Plata. Brown clearly presents the

reorientation of the Rio de la Plata economy that saw the

rise of a pastoral economy oriented toward the Atlantic, but

he also recognizes the continued dominance of Peruvian

silver within the commercial sphere of the regional economy.

The Rio de la Plata's eighteenth-century diversification and

rise to prominence in South America drew on its ties to

North Atlantic markets, but did not signify a condition of

dependence. Growing international trade certainly stirred

the traditionally slow rhythms of the Rio de la Plata

economy, which increasingly relied upon industrial markets

in the North Atlantic, and the local pastoral boom certainly

stimulated a variety of economic activities throughout the

Litoral--grain cultivation provides a strong example. Other

areas suffered. Cuyo, unable to compete with cheap imports,

declined. Catamarca and La Rioja in the Tucumdn region also

suffered in the face of competition triggered by the

viceregal era's adjustments. But full regional dependence,

rather than reliance, awaited the post-independence years

when the Peruvian silver sector had collapsed, overseas

trade climbed higher and higher and industrial technology

began to play a more and more important role in both

productive and extractive techniques.














The works of Assadourian, Halperin-Donghi, Garavaglia

and Brown represent the best synthesis of the Rio de la

Plata's economic history. Together they present a clear

discussion of a complex era; they offer accurate context and

effective examples for further regional studies of the South

American colonial economy. Assadourian skillfully places

Rio de la Plata within a broader colonial system, and then

introduces the critical process of adjustment or

reorientation that defined the viceregal era. His elaborate

exploration of the Andean mining economy conveys a

sophisticated understanding of the interdependent nature of

the mining, agricultural and commercial components of the

colonial economic system, yet provides for the distinct

processes of specific regional histories.

Halperin-Donghi builds on Assadourian's foundation in

his regional study of Rio de la Plata. He concentrates on

the critical adjustments that diminished the role of the

mining sector within this region, a process that also

altered commercial relationships and promoted a new city to

positions of administrative and economic dominance. His

conclusions modify those of Assadourian: One South American

region, at least, began to withdraw from the greater

conjunction and lean more and more in the direction of the

Atlantic economy.














Garavaglia underscores the complexity of this process.

His tithe data confirms the reorientation of the Rio de la

Plata's hide-producing economy and introduces another

important activity. Grain cultivation, he shows, emerged as

a key component of the Litoral economy and contributed to

regional development. Garavaglia's study emphasizes the

importance of careful regional analysis by demonstrating the

subtle differences from area to area that marked the dynamic

viceregal period. And by identifying three fundamental

component regions of the Rio de la Plata, Garavaglia

facilitates further examination of the colony's economic

history.

Brown, finally, introduces a new paradigm to the

synthesis of Platense history. His application of staple

theory provides a framework that weaves together these other

studies and explains the connections between the traditional

silver economy, the eighteenth-century processes of

adjustment and reorientation, and the Atlantic-oriented

growth of the Litoral based on hide production and the

diversification of component regional economies. Combined

with the works of Assadourian, Halperin-Donghi and

Garavaglia, Brown's staple theory lays the groundwork for a

closer look at Tucumdn's regional economy.
















CHAPTER TWO

THE TUCUMAN REGION



In 1773 when Don Alonso Carri6 de la Vandera, perhaps

better known by his pen name Concolorcorvo, left Buenos

Aires on an extended overland trip to Lima, he entered the

Tucuman region at a place called Esquina de la Guardia, an

isolated post approximately 85 leagues northwest of Buenos

Aires. The spot marked the boundary between Buenos Aires

and C6rdoba provinces.1 Following the Rio Tercero north

and west into the C6rdoba jurisdiction, Concolorcorvo

encountered a prosperous pastoral and agricultural economy.

Five rivers flowing from the elevations and forests of

western C6rdoba nurtured this economy in good years. The

Rios Primero, Segundo, Tercero, Cuarto and Quinto watered


1. "Concolorcorvo" (Alonso Carri6 de la Vandera), El
Lazarillo. A Guide for Inexperienced Travellers between
Buenos Aires and Lima. Translated by Walter D. Kline
(Bloomington, 1965), 140. A widely cited Spanish edition of
this work is El lazarillo de ciegos caminantes desde Buenos
Aires hasta Lima (Buenos Aires, 1942). The entire trip,
from Buenos Aires to Lima, Concolorcorvo calculated,
approached 950 leagues; the Tucuman portion, from the
frontier with Buenos Aires province to the border between
Jujuy and La Quiaca in the north, spanned approximately 380
leagues.













good pasturelands that supported herds of mules, cattle,

oxen, horses and sheep; irrigated farms in the populated

valleys of the jurisdiction grew crops of maize, wheat and

barley. Annual income from the mule and cattle trades alone

exceeded 600,000 pesos, Concolorcorvo claimed, adding that

the city of C6rdoba, capital of one of the most prosperous

areas he would see in his subsequent travels, ranked among

the wealthiest cities of its size in Spanish America.2

The city's population numbered just over 7,000 when

Concolorcorvo saw it; the jurisdiction's population counted

almost 40,000. The city's many wealthy "principal

citizens," mostly pasture owners and merchants, lived in

fine houses and kept many black and mulatto slaves. Seat of

the bishopric of Tucuman and home to a cathedral, C6rdoba

also boasted Dominican and Franciscan monasteries, two

convents, a crown-supported colegio and a Franciscan

university.3 "In few places of equal size in America,"

Concolorcorvo claimed, "does one find so much wealth."4



2. Ibid., 78.

Concolorcorvo provides this description; population
figures for C6rdoba and the other Tucuman districts come
from Jorge Comadrdn Ruiz, Evoluci6n demoqrdfica argentina,
47-54, 77-114.

4. Concolorcorvo, El lazarillo, 78-79.













Ten years later, in 1783, the city would be named seat of

the new Intendency of C6rdoba de Tucuman, with its

jurisdiction spreading throughout the southern jurisdictions

of the Interior.

Concolorcorvo saw C6rdoba just as it was emerging from

a long depression. The previous century had seen the steady

contraction of the provincial economy, and as late as 1740

the cabildo of C6rdoba had complained of widespread poverty

in the jurisdiction complicated by a long drought that

inflated the prices of basic foodstuffs in the city's

marketplace.s Since the beginning of the eighteenth

century, the cabildo explained, drought had diminished the

jurisdiction's production, hurting the livestock sector as

well as agriculture, and had triggered the ruralization of

the entire province.6 Many of the most respectable




5. "Carta de Cabildo de C6rdoba al Rey, 1739," in
Carlos A. Segreti, ed., C6rdoba, ciudad y provincia. Segcn
relates de vialeros y otros testimonies (C6rdoba, 1973),
124-125.

6. For a more complete discussion of this process of
the ruralization of C6rdoba's society, see Assadourian,
"Integraci6n y desintegraci6n regional," 121-127. Ceferino
Garz6n Maceda, Tucuman: Economia natural y economic
monetaria (C6rdoba, 1968), 11-15, also discusses the
provincial depression and its consequences, including the
shortage of circulating currency and increasing ruralization
of Tucuman.













citizens had left the city for their ranches, citing the

greater comforts and savings of the countryside.7

By 1760, however, C6rdoba's economy began its recovery.

The cabildo now wrote of abundant provisions and great

numbers of local livestock--cattle, sheep, goats, oxen,

horses and mules--once again entering the Peruvian trade.8

The mostly creole and casta population was widely dispersed,

living in nine partidos, or jurisdictions, that were

sufficiently watered by year-round rivers and streams.9

C6rdoba historian Efrain Bischoff found that these residents

created more than 170 new estancias in the jurisdiction




7. "Carta del Obispo de Tucuman, don Juan de
Sarricola, al Rey, 1729," in Segreti, C6rdoba, ciudad y
provincia, 114-116.
8. "Informe del Cabildo de C6rdoba al Rey, 1760," in
Segreti, C6rdoba, ciudad y provincia, 155-164.

9. See the "Oficio del gobernador-intendente de
C6rdoba Marqu6s de Sobremonte al virrey Marqu6s de Loreto,"
dated November 6, 1785, in Archivo General de Indias
(A.G.I.), Buenos Aires 50, "Correspondencia con los
Gobernadores de Tucuman, 1783-1806" (folios not numbered).
This document is also transcribed in Jose Torre Revelo, El
Marqu6s de Sobremonte. Gobernador Intendente de C6rdoba y
Virrey del Rio de la Plata. Ensayo hist6rico (Buenos Aires,
1946), xci-ciii. Sobremonte included the populations of the
9 additional settlements in the C6rdoba district: Rio
Segundo, 3,568; Rio Tercero, 3,580; Rio Quarto, 3,736;
Calamuchita, 2,548; Tras la Sierra, 2,967; Tulumba, 2,507;
Punilla, 3,867; Yschilin, 1,105; and Rio Seco, the largest,
with 5,038 inhabitants.













during the 1760s and 1770s.10 By the 1770s, at any rate,

C6rdoba had re-established its position as the staging

ground for the Peruvian mule trade. Local landowners once

again purchased large numbers of young mules from breeders

in Buenos Aires, Santa F6 and Corrientes. These animals

wintered in the fertile pastures of C6rdoba for later sale

to Salta dealers, and ultimately, to Peruvian buyers. This

mule trade, Concolorcorvo noted, dominated C6rdoba's economy

as well as that of the entire Tucumdn region.11

C6rdoba's pastures also supported herds of cattle that

provided hides and other by-products that figured among the

most important regional exports. Local merchants exported

many unprocessed hides, many that were tanned into leathers,

and many more that were made into cases and containers. The

cattle herds also provided the grease and tallow necessary

to make the soap that C6rdoba sold in the Buenos Aires

markets. Herds of sheep provided great quantities of wool

that rural inhabitants wove into ponchos, blankets and

saddle-blankets that sold throughout the region and in

Buenos Aires and Chile. The city's abundance, C6rdoba's


10. Efrain Bischoff, Historia de C6rdoba. Cuatro
siglos (C6rdoba, 1977), 61.

11. Concolorcorvo, El lazarillo, 111.






p..a.


PCRU


SdA SZd.2.
*.. dJy,


* H--
* ,a.aJ~apI


Si&


j


CSnA1.


*ICr


c~7~


t *'


* m"LL~ *


p Mr p 4 S


Tucumdn and Cuyo Regions, c. 1776


S.,


L CLL


joilaPfa


r.. L: rn.Y


...


sUI g, .~-----~--~
,


ijusna^ ..^nIr


Figure 2.1.














bishop recognized in 1773, arose from the fertile pastures

that supported these pastoral industries and nurtured the

growth that saw the population increase from a low of

perhaps 2,000 inhabitants in 1750.12

Five military posts to the south guarded the frontier

and defended C6rdoba's pastoral economy from the "enemy

Indians" of the pampas who had long maintained an active

hostility to the Spanish settlements.1 The enemy tribes

raided frequently and left their mark; over the past several

years, Sobremonte explained, the Rio Cuarto partido had seen

its mule exports diminish from 6,000 annually to only 1,400

in 1785. With four new posts planned, he hoped, such areas

might be repopulated and earlier prosperity recaptured. The

C6rdoba jurisdiction also counted eleven small pueblos de



12. See the "Informe del Obispo Moscoso al Rey sobre
su Obispado (Salta de Tucuman)" in Revista de Buenos Aires,
27 volumes. (Buenos Aires, 1865-1871), volume 25 (1865), 19-
67. Although this informed is not dated, others argue that
it was written in 1773--see Edberto Oscar Acevedo, La
intendencia de Salta de Tucuman en el virreinato del Rio de
la Plata (Mendoza, 1965), 12, footnote 6. Moscoso's 1750
population estimate came from a relaci6n submitted by the
Bishop Pedro Miguel de Argandoia in 1750.
13. Sobremonte, "Oficio (1785)." Sobremonte described
the frontier as running from the Fuerte de las Tunas in
Buenos Aires' jurisdiction to San Luis in C6rdoba's; the
forts that C6rdoba supported include the two fuertes of
Saladillo and Sauce and the fortines of San Bernardo, Santa
Cathalina and Concepci6n del Rio Cuarto.














indios, which together comprised only 195 tributaries who

generally paid their tributes with lengths of cotton

cloth.14 A number of C6rdoba's landowners even claimed

encomienda rights on very small numbers of Indians; during

the viceregal era the numbers probably never surpassed many

more than several dozen encomenderos with one, two, three or

four assigned Indians apiece."5

One hundred and fifteen leagues north of C6rdoba,

Concolorcorvo reached the much smaller city of Santiago del

Estero. Situated on the banks of the Rio Dulce, the city

counted fewer than 1,750 residents while the jurisdiction

numbered over 15,000. The area's poverty struck its

visitors. Concolorcorvo described the jurisdiction as

"saltpetrous" and "exposed to floods," and said that most of

the jurisdiction's residents, "scattered about in huts, are

miserable souls.""6 Bishop Moscoso added that the entire

jurisdiction lacked any "moral culture" and was "falling

from civilization"--conditions due, he suggested, to the



4. Ibid. Sobremonte listed these pueblos: San
Antonio Nonsacate, Quilino, San Jacinto, Soto, Pichana,
Salsacate, Nono, Cozquin, La Toma and Los Ranchos.

5. See Adolfo Luis Gonzalez Rodriguez, La encomienda
en Tucumdn (Seville, 1983).

16. Ibid., 85.













prevalence of the Quechua language among the rural

inhabitants. Sandy soils limited the agricultural potential

of the jurisdiction, and the local economy depended upon the

Buenos Aires-Lima trade.17 With little livestock

production and even less commercial farming, the

jurisdiction was better known for the handwoven ponchos,

blankets and saddle-blankets that provided income for the

rural population."1

Concolorcorvo also noted that the men of Santiago del

Estero enjoyed reputations as the best soldiers in the

province, long familiar with Chaco Indian raids. With its

largely Indian population, prevailing poverty and the long

history of frontier hostilities, the jurisdiction became an

important source of agricultural labor for the Litoral

region during the viceregal period."

Forty leagues north, the traveller entered the city of

San Miguel de Tucumdn, higher in elevation than the southern


17. Moscoso, "Informe," as follows: "No es menos
tardia su cultural en el moral, pero mas de notarse estilos
que desdicen de la civilizaci6n, conservan la lengua
quichua-cari, por idioma dominant de todos sus vecinos."
18. Halperin-Donghi, Politics. Economics and Society,
9, characterizes this domestic weaving as a "flourishing"
activity. Concolorcorvo said it was meager.

19. Ibid., 9.













jurisdictions and more prosperous than Santiago del Estero.

Concolorcorvo admired the jurisdiction's good pastures,

extensive forests and abundance of fine woods, all important

to the local economy; Bishop Moscoso described "all the

natural advantages that come together to benefit this

place." The jurisdiction's population exceeded 20,000 with

about 4,000 in the city itself; the approximately 24

principal residents prospered mainly from the carrying trade

that was so important to the jurisdiction's economy.

Ranching, especially the breeding and training of oxen for

the carting trade, also contributed to the local economy.0"

The jurisdiction also figured as an important craft center,

where hide tanning and the export of leathers employed many

and carpentry many more. Cut wood and trimmed lumber and

hand-crafted furniture from San Miguel de Tucuman sold

throughout the Interior as well as in the Litoral

settlements. The construction of large carts, as many as

200 each year, reflected the city's role in the Buenos

Aires-Potosi trade.21


20. Concolorcorvo, El lazarillo, 87; Moscoso,
"Oficio."

21. Carlos Pdez de la Torre, Historia de Tucumdn
(Buenos Aires, 1987), 134-135; Osvaldo Rail Bazdn, Historia
del noroeste argentino (Buenos Aires, 1986), 38-43.














Agriculture was sparse in this jurisdiction, but rice

grown here merited special note in a consulado report to the

viceroy in 1797, and citrus, especially oranges, warranted

specific mention in El Correo Mercantil de Espana y sus

Indias in the same year.2 The jurisdiction also produced

a fine tobacco, called Andullo, that sold throughout the

province and in Alto Perd but competed with tobacco grown in

Paraguay and Nueva Granada. In 1779 the contador Juan

Francisco Navarro, travelling to a new position in Buenos

Aires, recommended that the crown stop buying these other

types of tobacco for sale in Peru and limit commerce to the

San Miguel de Tucuman variety. Citing its equal or even

superior quality, Navarro noted the cheaper transportation

costs, and hence the greater profitability, of Tucuman

tobacco.2 In 1785, however, officials at the Real Renta

de Tobaco prohibited further cultivation of tobacco in San

Miguel de Tucuman as punishment for fraud and bad faith in




22. See Acevedo, La Intendencia de Salta, 224, for a
discussion of rice cultivation in the district, and Pdez de
la Torre, Historia de Tucumnn, 134, for the text of El
Correo Mercantil.
23. Edberto Oscar Acevedo, "El viaje del contador
Navarro entire Lima y Buenos Aires en 1779," in Revista de
Historia Americana y Argentina, 2: 5/6 (1960-1961), 305-306,
312-316.














its commerce with Cuyo.24 Consequently, this potential

asset to the provincial economy never fully developed.

Similarly, Navarro commented on the jurisdiction's limited

sugar cultivation, in which he again saw considerable

potential. He recommended encouraging its expansion into

the Peruvian market, again citing low transportation costs.

Sugar production expanded slowly in San Miguel de Tucuman,

however, and did not become a significant item in provincial

exports until after the colonial regime.25

Salta appeared next on the Buenos Aires-Potosi road,

approximately 75 leagues beyond San Miguel de Tucuman. In

Concolorcorvo's day, Peruvian merchants had already made

Salta famous for the great livestock fair held on the city's

outskirts.26 Salta had once rivalled C6rdoba for the

dominant position in the Rio de la Plata interior; in 1782

it became seat of the Intendency of Salta de Tucuman with

jurisdiction over the other cities of Santiago del Estero,

San Miguel de Tucuman, Catamarca and San Salvador de Jujuy.


24. Acevedo, La intendencia de Salta, 315-319.

25. Acevedo, "El viaje de Contador Navarro," 317-318.

26. Concolorcorvo, El lazarillo, 108. Concolorcorvo
estimated that Salta annually sent some 60,000 mules and
4,000 horses to Peru, a figure that seems high in light of
existing records of the trade.













Salta's population was quite small--perhaps 4,300 in the

city and some 11,500 in the jurisdiction, but the landowning

class constituted a powerful force and the city's key role

in the Peruvian trade gave it an influential position in

viceregal affairs."

The Peruvian trade dominated the jurisdiction's

economic life, which centered around the mule trade and

commerce. The jurisdiction's fine pastures strengthened the

young mules brought from the south--as Concolorcorvo

explained, the owners of Salta's pastures knew well that

their lands were best used for maturing the young animals

rather than for breeding them.28 Salta, like C6rdoba,

served as an important commercial center, each year seeing

the arrival of many cartloads of merchandise from Buenos

Aires and from throughout the province, destined for markets

in Potosi and throughout Alto Perd. The jurisdiction knew

limited industry, however; the insignificant textile

producers here could not compete with those in C6rdoba or

with the very cheap cloths produced throughout Alto Per.29

27. Halperin-Donghi, Politics, Economics and Society,
7-8.

28. Concolorcorvo, El lazarillo, 108.

29. Pedro Santos Martinez, Las industries durante el
virreinato (1776-1810) (Buenos Aires, 1969), 38-50.













Eighteen leagues past Salta, the traveller arrived in

San Salvador de Jujuy, the northernmost city in the Tucuman

region. A city of only 1,700 residents in a jurisdiction

with around 13,500, San Salvador de Jujuy had once known

better times. By the onset of the viceregal era, however,

Jujuy had declined to a position of secondary importance,

described by Bishop Moscoso as a place of "little society."

While Salta controlled Tucuman's mule trade, Jujuy claimed

the much less lucrative cattle trade with Alto Peru, selling

several thousand animals annually to buyers from the

provinces of Chichas and Porco.30 Jujuy's large Indian

population also contributed significant amounts to the royal

treasury; concentrated in an area north and west of the city

known as La Puna, the pueblos de indios that included

Rinconada, Cochinoca, Purmamarca, Tumbaia, Tilcara and

Humahuaca together paid several thousand pesos in yearly

tribute obligations.3 But Jujuy's location as the

northernmost jurisdiction in Tucuman provided its most

important advantage, giving it control of the terminus of

the cart route through the province and a monopoly on the



30. Concolorcorvo, El lazarillo, 137.
31. A.G.I., Buenos Aires 458, "Cuentas de Real
Hacienda de Salta y Jujui (1782-1786)."












61
transshipment of merchandise into Alto Peru on the backs of

tamed mules.32 Only mules broken and trained for the task

in the pastures of the jurisdiction could manage the

difficult 100-league carriage from San Salvador de Jujuy to

Potosi.3

The Salta and Jujuy jurisdictions also supported a line

of frontier fortifications intended to keep hostile Chaco

Indian bands from raiding vulnerable haciendas. Supported

by the Jujuy treasury, the presidios of Los Dolores,

Ledesma, San Bernardo and Santa Barbara garrisoned perhaps

100 soldiers. The Salta-supported posts, including the

presidios of San Luis and San Carlos, occupied 88 more.

Together the two jurisdictions spent over 30,000 pesos each

year paying salaries and supplying provisions for these

defenses."

Two other Tucuman jurisdictions off the main road

claimed some importance. Although they generated less



32. Acevedo, Intendencia de Salta, 285.

3. Acarete du Biscay, An Account of a Voyage up the
River de la Plata, and thence Overland to Peru (Northhaven,
1968; London, 1698), 38.
34. A.G.I., Buenos Aires 468, "Expedientes sobre la
Sisa de Tucuman, y reducci6n de indios (1784)," a document
titled "Plano de la tropa de las fronteras de esta ciudad to
Salta, y la de Jujuy" (folios not numbered).












62
vibrant economies, the Catamarca and La Rioja jurisdictions

contributed in specialized ways to the Tucuman regional

economy and often appear in treasury records and in official

informes and relations. The Catamarca jurisdiction,

northwest of C6rdoba in the arid foothills of the Andes,

counted a poor population of some 15,000 inhabitants, with

about 6,500 of these in the city of Catamarca. The city sat

in a valley shadowed by the Cerro de Aconquija to the north;

year-round streams provided water for the city and irrigated

crops in the valley. Bishop Moscoso wrote that hills and

higher valleys sheltered haciendas of "sown fields and large

and small livestock," but that the principal crops were

cotton and peppers, both grown in noteworthy quantities and

carried to market in C6rdoba. Catamarca's rural population

and small pueblos de indios produced quantities of coarse

cotton linens that were consumed locally or sold in

neighboring jurisdictions. Farmers in Catamarca also

practiced some irrigated market gardening, viticulture and

tobacco cultivation, and in the higher areas some wheat

cultivation, but Catamarca's inhabitants consumed most of

this production locally."

35. Halperin-Donghi, Politics, Economics and Society,
13. For more discussion of Catamarca, see Acevedo, La
Intendencia de Salta; Bazdn, Historia del noroeste












63
South of Catamarca stretched the La Rioja jurisdiction.

The city of La Rioja, described as a "small and backward"

collection of "miserable huts" by the Marques de Sobremonte,

counted about 2,100 residents. Bishop Moscoso claimed that

this jurisdiction barely supported the city; its commerce,

he wrote, was "of little consequence." The jurisdiction,

with about 9,700 people, mainly produced small quantities of

wine and aguardiente for sale in neighboring cities. It

also grew small amounts of cotton used by local weavers in

their "obras caseras."36 Livestock, including mules,

cattle, sheep and goats, generated some income for

landowners, but even most of the mules used to carry La

Rioja's products came from C6rdoba. La Rioja's jurisdiction

included the mines of Famatina, where 7,500 people populated

a fairly fertile area that nevertheless saw little



argentino; caros villafuerte and Rogelio Machado,
Catamarca, camino y tiempo (Buenos Aires, n.d.). For more
on Catamarca's textiles, see Carlos A. Dellespiane y
Calcena, "La artesania del tejido en Catamarca," in Primer
Congress de Historia de Catamarca, 3 volumes (Catamarca,
1966), volume III, 91-106.
36. Sobremonte, "Oficio (1785)" and Moscoso, "Informe"
both note La Rioja's small economy. Sobremonte's report
includes a list of the eleven pueblos de indios--Sanagasta,
Machinagasta, Aimogasta, Sauces, Pituil, Famatina,
Malligasta, Anguinam, Sanogasta, Uichigasta and Olta--that
together comprised only 118 tributaries who generally paid
their tributes with lengths of cotton lienzos.













cultivation. The mines barely produced; when Sobremonte

visited in 1785 they had long since played out and the many

poor souls still mining the area barely scratched out a

living.

Falling outside the Tucumdn region proper (as defined

by Garavaglia) and constituting the regional economy of

Cuyo, the jurisdictions of Mendoza, San Juan and San Luis

merit attention here because they comprise a vital component

of the Interior economy, and, as Assadourian, Halperin-

Donghi and Garavaglia argue, they also felt the impact of

eighteenth-century adjustments. The jurisdiction and city

of Mendoza, in the eastern foothills of the Andes bordering

Chile, dominated the Cuyo region. Famous as an agricultural

center, the jurisdiction population of about 9,000 people,

with about 7,500 of these residing in the city, relied on

the good climate, fertile soil and abundant water in the

jurisdiction. Sobremonte admired the extensive irrigation

system that brought water from the Rio Mendoza to most

houses in the city and nourished the fine fields, gardens,

vineyards and orchards. Irrigation supported an abundance

of almost all crops and products that included dried fruits,

flour, and oil. But the wine production that dominated this

agricultural center formed the great bulk of exports to













Buenos Aires. The jurisdiction also engaged in some

ranching, albeit on a smaller scale and directed mainly

toward the local market or for export to Chile. Ranching

concentrated in the Valle de Uco, where fine alfalfa

pastures supported healthy herds and exports of animal by-

products that included hides, soap, tallow and grease.3

Transportation and commercial activities and mining

also figured among Mendoza's important economic sectors.

Carrying both European imports to markets in Chile and the

jurisdiction's own products to market in Buenos Aires,

between 1,000 and 1,500 carts travelled between Mendoza and

the River Plate each year, and thousands more mules

continued the short but arduous journey over the Andes. In

the Valle de Uspallata, in the sierra north and west of the

city, traces of gold, silver and copper supported small

mining efforts and generated Sobremonte's considerable

enthusiasm in 1785. As in Famatina, however, the Uspallata

mines never became an important source of income.3


7. Pedro Santos Martinez, Historia econ6mica de
Mendoza durante el virreinato (1776-1810) (Madrid, 1961),
102-106; Pedro Santos Martinez, et al., Historia de Mendoza
(Buenos Aires, 1979), 34-36; and Jorge M. Scalavini,
Historia de Mendoza (Mendoza, 1965), 86-92.

38. Despite the predictions of Francisco Serra Canals,
who served as the Superintendent of Royal and Public Works
for the Province of Cuyo, the mines never became important.












66

Just north of Mendoza, also in the Andes foothills, the

jurisdiction of San Juan counted some 7,700 mostly mestizo

inhabitants, with around 6,150 of these in the city of San

Juan. This jurisdiction specialized in the production of

aguardiente, especially double-distilled, or resacado, of

the best quality and so strong, according to Concolorcorvo,

"that mixing it with common stock gives it as much fire as

that of Andalucia or Cataluia."39 Prior to the creation of

the viceroyalty, Sobremonte noted, San Juan's aguardiente

sold widely throughout the River Plate and in Peru, but it

suffered declining distribution in the face of competing

quantities imported from Spain.40 San Juan's estates also

produced maize and other crops including hemp, mainly for



In 1785 Serra Canals claimed that "experience has shown the
mines to be most useful, capable of supporting considerable
population and the continuous removal of silver." In his
"Testimonio de Autos sobre las Minas de Huspallata" he
requested 20,000 pesos to study the possibility of
rehabilitating the Huspallata mines. The documents do not
reveal whether his request was ever granted. See his
"Testimonio" in A.G.I., Buenos Aires 50, "Correspondencia
con los gobernadores de Tucumdn, 1783-1806," dated 1785
(folios not numbered).

9. Concolorcorvo, El lazarillo, 81. Concolorcorvo
noted that this strong brandy was also called acuardiente de
cabeza, perhaps in reference to its strength.
40. "Oficio del Marqu6s de Sobremonte, Nov. 11, 1785,"
See also Carmen P. de Varese and Hector D. Arias, Historia
de San Juan (Mendoza, 1966), 54-58.














the local market. Carting never developed in San Juan

because mules proved better-suited to carrying the area's

aguardiente to markets in Buenos Aires, Chile and the north.

The last jurisdiction of significance was isolated,

poor San Luis, little more than a stopping point on the

Buenos Aires-Mendoza road. About 185 leagues west of Buenos

Aires, 70 leagues east of Mendoza and about 85 leagues south

of C6rdoba, this isolated frontier jurisdiction numbered

about 7,500 residents, with about 3,700 in the city of San

Luis. Most of this population lived in poverty,

occasionally working as peon laborers with the passing cart

or mule trains or driving livestock to either Chile or

C6rdoba.4 Sobremonte noted that because the jurisdiction

lacked even a single mill, the residents grew little more

than maize and imported what little wheat flour they could

afford from Mendoza. He also described a limited craft

industry, similar to that of Santiago del Estero, with women

producing small numbers of ponchos and blankets for trade

with more prosperous communities. Large herds of sheep,

which counted as many as 70,000 to 80,000, supported this

weaving.


41. Urbano J. Nfiez, Historia de San Luis (Buenos
Aires, 1979), 92. Sobremonte's "Oficio" also includes a
good description of economic conditions in this district.













San Luis did become an important vaqueria staging

ground. In the spring of each year wealthy outsiders from

Buenos Aires, Chile or C6rdoba arrived to hire a foreman and

crew of ten or twelve peons to enter the pampas south of the

jurisdiction to round up or slaughter wild cattle, and

sometimes horses and mules.42 Each year five or ten or

fifteen such expeditions entered the unsettled lands, each

"harvesting" around 5,000 animals. Organizers of these

vaquerias from Buenos Aires generally came for hides that

were carted back to the port; those from Chile and more

often C6rdoba drove these wild herds back to their own

pastures. During the last decades of the eighteenth

century, San Luis managed to maintain a steady commerce with

neighboring jurisdictions based on these roundups. C6rdoba

became an important market for San Luis mules; Mendoza

purchased more and more of the wild cattle. Finally, San

Luis also maintained a small, if regular, export of animal

by-products--wool, hides, tallow, grease, soap, even dried

meat (charque), and, occasionally, cheese.

By the late eighteenth century, the Tucumdn

jurisdictions comprised an economically diversified region

with a variety of productive activities and a strong


42. Niiez, Historia de San Luis, 86-92.













commercial sector. The pastoral sector predominated,

providing income to each of the jurisdictions and

constituting the infrastructure that supported the

development of secondary activities such as tanning, weaving

and market agriculture. The vitality of this regional

economy depended on both access to, and relations with, the

markets in both Buenos Aires and Peru. Furthermore, the

Tucuman region imported few goods aside from luxury goods

and hardware. Almost all the staple foods, textiles and raw

materials consumed in the region came from local producers.

Carrying this production to market and handling the Buenos

Aires-Peruvian trade added another important element to the

regional economy. The following chapters examine the

productive, the commercial and the transport activities of

Tucuman more closely.

The demographic characteristics of the Tucuman region

during the viceregal era, however, reflected geographic and

economic differences that also characterized the region.

The numbers of people populating each jurisdiction, and the

numbers living in each city, varied widely within the

region. The region proved rather racially balanced overall,

but exhibited significant local contrasts. Clustered

populations of Indians, castas (mixed-race) and Spanish and













creole blancos tended to give specific appearances to

different jurisdictions and suggest that local economic

conditions within the region were associated with the racial

composition of the local population.

The combined population of the Tucuman jurisdictions

totalled almost 126,000 in 1779.43 C6rdoba, with just over

40,000, or 32 per cent of the regional population,

constituted the largest. San Miguel de Tucuman, with just

over 20,000 residents, or about 16 per cent of the total

regional population, was the second largest. La Rioja, with

only 9,700 (about 8 per cent), and Salta, with 11,500 (about

9 per cent), were the smallest jurisdictions. Jujuy,

Catamarca and Santiago del Estero each claimed roughly 12

per cent of the total regional population.

The northern and western reaches of the region recorded

generally smaller populations than the southern parts.

Salta and Jujuy combined, for instance, still had 10,000

fewer inhabitants than C6rdoba. Catamarca and La Rioja

together were smaller still. Well over half the regional



43. The following figures are adapted from Comadrdn
Ruiz, Evoluci6n demogrrfica argentina, 80-81. Comadran Ruiz
bases his discussion on a number of sources, and for the
Interior relies most heavily upon the censuses and summaries
produced by the bishoprics of Santiago de Chile and Tucumdn
(see page 79, footnote 3).













population lived in the three jurisdictions of C6rdoba,

Santiago del Estero and San Miguel de Tucuman. Table 2.1

presents jurisdiction and city populations for the Tucuman

and the Cuyo regions. Table 2.2 reveals several important

demographic characteristics of the Tucuman region by

providing a more specific portrait of the regional

population classified according to race. First, the casta

grouping, made up of mestizo, mulatto, and free and enslaved

blacks comprised the largest part of the population,

approximately 45 per cent of the total. The Indian and

blanco, those of Spanish birth or considered of Spanish

descent, populations were about equal, each comprising

approximately 27 to 28 per cent of total. Jujuy was by far

the most Indian jurisdiction, with 82 per cent of its

inhabitants classified as Indian. La Rioja followed, with

approximately 53 per cent of its inhabitants classified as

Indian. C6rdoba, with roughly 45 per cent of its

inhabitants classified as blanco, and Catamarca, with

roughly 30 percent, proved the most Spanish jurisdictions.

Santiago del Estero (54 per cent) and San Miguel de Tucuman

(64 per cent) both counted populations that were more than

half casta, while C6rdoba counted just under half its

population (45 per cent) as casta. Salta's population
















Table 2.1. Populations, Tucuman and Cuyo, 1779


Tucumdn

Jurisdiction City

C6rdoba 39,673 7,283
Santiago del Estero 15,465 1,776
San Miguel de Tucuman 20,104 4,087
Salta 11,565 4,305
San Salvador de Jujuy 13,519 1,707
Catamarca 15,315 6,441
La Rioja 9.723 2.172
total 125,355 27,771

Cuyo

Mendoza 8,765 7,478
San Juan 7,690 6,141
San Luis 6.956 3,684
total 23,411 17,303




Source: Jorge Comadrdn Ruiz, Evoluci6n demoqgrfica
argentina, 80-81.

















Table 2.2. Populations by Race and Caste, Tucumdn,


Jurisdiction blancos

C6rdoba 17,863(45%)

Santiago 2,247(14%)
del Estero

San Miguel 3,166(16%)
de Tucuman

Salta 3,190(27%)

San Salvador 653(5%)
de Jujuy

Catamarca 4,590(30%)

La Rioja 2,617(27%)

totals 34,326(27%)


castas

17,626(45%)

8,312(54%)


12,869(64%)


5,305(46%)

1,785(13%)


7,908(52%)

1.906(20%)

55,711(45%)


naturales

4,184(10%)

4,897(32%)


4,069(20%)


3,070(27%)

11,181(82%)


2,817(18%)

5,200(53%)

35,418(28%)


Source: Comadran Ruiz, Evoluci6n demogrdfica argentina,
80-81.




proved the most balanced, with roughly 50 per cent casta, 25

per cent Indian and 25 percent blanco.

With Jujuy's large Indian population, the north counted

over half its inhabitants (57 per cent) as Indian, far more

than the southern (17 per cent Indian) or the western (32

per cent Indian) jurisdictions. The southern jurisdictions


totals

39,673

15,456


20,104


11,565

13,519


15,315

9.723

125,355


1779













of C6rdoba, Santiago del Estero and San Miguel de Tucumin,

in contrast, together counted a population that was about 51

per cent casta and less than 20 per cent Indian. Only in

C6rdoba and La Rioja did blancos outnumber castas and only

in C6rdoba and Catamarca did blancos outnumber Indians. In

most places Indians proved the minority. The western

jurisdictions of Catamarca and La Rioja counted a fairly

balanced population--roughly 7,600 blancos (29 per cent),

10,000 castas (39 per cent) and 8,000 Indians (32 per cent).

Table II also reveals a decidedly rural population in

the Tucuman region, with just under 22 per cent of the total

population residing in the cities. The rest of the region's

population lived widely dispersed throughout a vast

territory, very seldom coming into contact with the cities,

church or royal government--what Sobremonte called "civil

life.""44 Sobremonte wrote at the end of his long report to

the crown in 1785 that the most serious difficulties in his

C6rdoba de Tucuman intendency were the lack of formal towns,

the shortage of priests and the persistence of rustic

customs. "The perseverance of rustic customs and the

ignorance of religion or a true understanding of what a

vassal owes his sovereign makes the collection of taxes and


44. Sobremonte, "Oficio (1785)."













tithes very difficult," Sobremonte complained. If

Sobremonte attributed much of the widespread theft of

livestock in the countryside to the isolation and poverty of

so many rural inhabitants, he also recognized the deficient

administration of the countryside. Ignorance, corruption

and "a lack of zeal" too often characterized the alcaldes of

the rural jurisdictions of Tucuman.

What the intendency most needed, Sobremonte suggested,

was new towns along the royal roads to both Buenos Aires and

Mendoza. C6rdoba's southern jurisdictions of Rios Tercero

and Cuarto particularly needed new towns to give their

inhabitants better opportunities to sell their cattle.

Villas of 30 to 40 people, with a house for each family and

a church, would begin to address the shortcomings of the

countryside. Sobremonte's plan called for the construction

of two such villas at a cost of 6,705 pesos for materials

and the salaries and rations of workers. He even suggested

that the project be funded with revenues from the sales of

playing cards and tobacco, but like many plans for the

development of his jurisdiction, Sobremonte's call went

unheeded in Buenos Aires and in Spain."


5. Sobremonte's proposal is found in an untitled
report addressing the lack of "pueblos formales" in C6rdoba
de Tucuman--see A.G.I., Buenos Aires 50 (folios not















This brief economic and demographic survey suggests

three vaguely distinct zones within the Tucuman region. In

the north, the jurisdictions of Salta and San Salvador de

Jujuy comprised one fairly cohesive zone. Here economic

activity displayed a greater reliance upon the livestock

trade with Alto PerG. Salta specialized in the sale of

mules and Jujuy in the sale of cattle; other than these

sectors, however, the north generated little production.

The overwhelmingly rural and largely Indian population in

the north further distinguished the north from the more

mestizo and blanco populations in the southern and western

zones.

In the southern zone, comprised of the jurisdictions of

C6rdoba, Santiago del Estero and San Miguel de Tucuman, the

economy proved more diversified. Livestock and ranching

still dominated, but this activity here stimulated

processing of pastoral by-products. Hides figured as the

most important, but wool and woolen goods also became major

exports from the southern zone. This southern zone also

benefitted from its better access to Buenos Aires, a

critical market for all the southern products except mules.


numbered) dated C6rdoba, November 6, 1785.













As in the north, commerce and the carrying trade, tied to

the Buenos Aires-Peru trade, also became important. The

larger populations in the southern jurisdictions also

differentiated the south from the north. Both San Miguel

and Santiago del Estero counted decisively casta

populations, while C6rdoba counted a blanco population equal

in size to the casta group. The southern zone emerged

during the viceregal era as a solidly creole part of the

colonial system.

The western zone, made up of the Catamarca and La Rioja

jurisdictions, comprised the poorest component of the

Tucuman regional economy. Each jurisdiction specialized in

one primary export without even the carrying or commercial

sectors to exploit. C6rdoba effectively dominated the

regional marketing of the western jurisdictions' products:

much of Catamarca's cotton and linens and La Rioja's wine

sold through the larger city's plaza. Interestingly, the

western zone exhibited the most racially-balanced population

in Tucuman, with roughly equal numbers of white, casta and

Indian populations.

The Tucuman region, then, featured considerable local

differentiation. Prosperous and diversified areas such as

C6rdoba and San Miguel de Tucuman contrasted with poorer,













more specialized jurisdictions such as Jujuy and La Rioja.

The region also boasted important cities just as it lamented

its vast stretches of desolate countryside. Indian zones

such as La Puna and western Catamarca remained isolated from

mestizo and Spanish areas, and "rustic" rural society

clashed sharply with the urban ambience of C6rdoba and

Salta. But the local differences were outweighed by the

regional unity lent by the principal economic sector--the

export of pastoral products. The component Tucuman

jurisdictions functioned as a cohesive regional economy

through their unchallenged "production" of livestock that

provided the means to exploit Peru's need for livestock and

Buenos Aires' clamor for hides. Tucuman's commercial role

as intermediary in the Buenos Aires-Peru trade lent further

cohesion to the region. Local merchants passed large

quantities of valuable European imports through the Tucuman

jurisdictions each year. Finally, these commercial pursuits

complimented and stimulated the carrying trade in Tucuman,

another regional specialty that lent unity and even a sense

of identity to the region.















CHAPTER THREE

PRODUCTION



Ranching, livestock exports and the processing of

pastoral by-products dominated the Tucuman regional economy.

The export of mules to Peru figured as the region's most

prominent activity, but cattle exports and the production of

hides, leathers and soap and their export to Buenos Aires,

Chile and Peru also contributed. Local consumption of meat

in the region's cities and countryside further added to

statistics. Livestock production included sheep raising;

wool from C6rdoba's large numbers of sheep proved another

important resource. The region exported some raw wool, but

processed much more into textiles and finished goods such as

ponchos and blankets. Livestock and pastoral by-products,

plus a number of other agricultural and manufactured goods,

provided the Tucuman region with the material base for both

moderate prosperity and measurable growth. Provincial tax

registers that afford a close examination of the productive

side of Tucuman's economy recorded much of this activity.

This chapter presents a survey of economic production in













Tucuman, first examining the livestock and pastoral by-

product sectors of the economy and then turning to the range

of secondary activities that included cotton cultivation and

the manufacture of inexpensive cotton and woolen textiles,

viticulture and the production of wine and aguardiente,

lumber processing from regional forests and mineral

extraction from the high, isolated mountains of western

Tucuman.

As Concolorcorvo noted in 1773, the mule trade

constituted the principal business for the wealthiest

Tucuman landowners. This mule trade then served the

seemingly limitless Peruvian market, where the animals not

only filled the demands of Potosi's mining sector and

colonial transportation activities, but also constituted a

major item in the repartimiento de mercancias that widely

featured the forced sale of a variety of goods, including

mules, to Andean Indian communities. Responding to these

markets from the earliest years of the colonial period, and

especially after the economic recovery that followed the

mid-eighteenth century, mule raising had a long history in

the Tucuman region. A number of studies examine this trade,

especially for the most prosperous years. These studies

mostly count the numbers of animals exported from the region













using treasury records from Salta, the city that marketed

the animals into Alto Peru.'

Assadourian's various studies of the Rio de la Plata

economy include one examination of C6rdoba's mule trade

throughout its colonial history.2 He distinguishes three

phases characterizing this trade, extending them to the

entire Tucuman region and arguing that they reflect the

broader economic history of his Peruvian economy. His

analysis identifies an initial phase of general prosperity--

a period of expansion and then stability, marking roughly

the entire seventeenth century. A steady decline spanned

the first half of the eighteenth century, followed by a long

period of recovery and growth from 1750 until the end of the

colonial era. Short-term trends emerge within these longer

phases, but Assadourian's outline provides a reasonable

picture of the Tucuman experience. Early in the seventeenth


1. See Estela B. Toledo, "El comercio de mulas en
Salta: 1657-1698," in Anuario del Instituto de
Investgaciones Hist6ricas 6 (1962-1963), 165-190; Nicolas
Sdnchez-Alborn6z et al., "La saca de mulas de Salta al Peri,
1778-1808," in Anuario del Instituto de Investigaciones
Hist6ricas 8 (1965), 261-312; and Sanchez-Alborn6z, "La
extracci6n de mulas de Jujuy al Peru. Fuentes, volumen y
negociantes," in Estudios de Hist6ria Social, 1 (1965), 107-
120.

2. Assadourian, "Economia regional y mercado interno.
El caso de C6rdoba en los siglos XVI y XVII," in El sistema
de la economic colonial, 42-49.













century, Assadourian explains, relatively small numbers of

mules exported at high prices corresponded with a decline of

textile production as the region struggled against Peruvian

competition. By 1630, as textile production declined

sharply, mule exports began to rise steadily, but with a

corresponding drop in prices from a high of about 65 reales

per head in the 1620s to less than 25 reales in the 1640s.

From the 1650s until around 1700 exports remained steady at

around 20,000 animals each year but with further decline in

price, from 22 reales in 1660 to 16 reales in 1670 to the

lowest price of 10 reales by 1700. From 1700 until the mid-

eighteenth century, both prices and exports remained low.

The economic recovery after 1750, however, included both

increased exports and higher prices, so that by 1770

unbroken, untrained mules from the C6rdoba jurisdiction sold

to northern buyers for approximately 36 reales each, and by

1800 for between 44 and 100 reales each.3





3. See Concolorcorvo, El lazarillo, 112-113; A.G.I.,
also the "Relaci6n que demuestra el Estado de Escasez o
Abundancia" in A.G.I., Buenos Aires 383, "Estado de las
Aduanas y Comercio del Virreinato, 1789-1793," July 1800,
folio 354. This report includes a list of mule prices in
C6rdoba: for one-year-old mules, 6 to 6 1/2 pesos; for two-
year-olds, 7 1/2 to 8 pesos; for three-year-olds, 10 1/2 to
11 pesos; and for mansas, or tamed animals, 12 to 14 pesos.












83

Concolorcorvo's relation includes a valuable discussion

of the economics of this mule trade. Tucuman's native-born

mules, he explains, remained few in number compared to those

purchased from the Buenos Aires and Litoral jurisdictions.

Pampas landowners realized greater profit from selling young

animals to pasture owners farther north rather than by

raising them any longer than necessary. The young mules

purchased from the southern landowners cost 12 to 16 reales

each; the herds driven from the Buenos Aires countryside

numbered between 600 and 700. The drives required perhaps

12 peones using about 40 horses; salaries for these workers,

plus other expenses, added an average of 4 reales to the

cost of each animal by the time they reached C6rdoba's

winter pastures. The young mules remained at pasture about

14 months, at a cost of 5 or 6 reales each (plus a bonus of

6 animals per 100 given to the pasture owner). Expenses,

then, would have added another 8 reales to the cost of each

animal. Concolorcorvo computed that each mule brought to

C6rdoba from the south cost around 26 reales, "more or

less," by the time it sold to northern buyers for around 36

reales. A little more than one year after its purchase,

then, a herd of 600 animals brought from Buenos Aires and












84
sold a year later could bring a profit of approximately 750

pesos."

After a year or so in C6rdoba's pastures, herds

generally numbering between 1,300 to 1,400 animals were

driven north to Salta during the fall months (April through

June). This drive required about 20 men with 70 horses,

adding about 5 reales in costs to each animal. These larger

herds wintered again in Salta's pastures at 8 reales per

head; by spring, when they were sold to buyers from

throughout Peru, their cost had risen to approximately 50

reales. The selling price at the fair, however, averaged

around 8 or 9 pesos (64 to 72 reales) per head, bringing a

fair profit for a second time to TucumAn landowners. Herds

leaving Salta numbered around 1,700 to 1,800 head, driven by

16, 18 or 20 men with 150 horses and 70 or 80 pack mules for

carrying provisions. The herds went as far as Potosi, Oruro

and Cuzco, where they sold for 13 to 17 pesos (104 to 136

reales) per head or more.5

An excise tax called the sisa collected against each

mule exported from Salta provides the best means of


4. Concolorcorvo, El lazarillo, 112-116. One peso
equalled 8 reales.

s. Sanchez Alborn6z, "La saca de mulas," 262, footnote














measuring Tucumnn's mule trade. The Spanish crown imposed

the sisa tax throughout the empire on any goods of

particular local commercial value. In the Rio de la Plata

provinces, mules, brandy, yerba mate, tobacco and several

other items appeared on the sisa list. In Tucuman, the

first sisa tax on mules, amounting to two reales per animal,

appeared in the early eighteenth century when the crown

assigned its income to defense of the frontier and to

offensive campaigns against Chaco Indians. With the support

of provincial landowners, those most interested in

territorial defense, the sisa became an important source of

revenue for support of the region's forts and presidios. By

1760 the tax had been raised to six reales per animal, where

it remained until the end of the colonial period.6

In various archives in Seville, Buenos Aires and

C6rdoba there exists an almost uninterrupted sequence of

sisa records from Salta that span the years from 1761 to

1809. When compiled and analyzed as one, these various

sources provide both the total annual sisa income from mules

and the total number of mules annually exported to the

Peruvian provinces. Many years are documented by the libros

manuales, or daily entry books that include the date of


6. Ibid., 271-276.













transactions in addition to the amount of each individual

payment and the number of mules being paid for. These

libros constitute an especially rich source of information;

royal treasury officials in Buenos Aires carefully confirmed

their accuracy and veracity. Other periods can be measured

by reviewing annual summaries and resdmenes, documents that

provided the same information but often for different

purposes. In either case, the sisa records permit a

revealing quantitative analysis of the regional mule trade.

The procedure developed for collecting the sisa

depended upon a system of guias, or licenses, and

rescuardos, or guard posts, located at strategic points

along the various routes north from Salta. The guias

constituted a written proof that a merchant or exporter

(internador) had properly paid all taxes on his herd at the

Salta fair and was legally entitled to drive a determined

number of animals from the intendency. Royal law obliged

the foremen of these herds, or tropas, to present their

guias to the post guards, who were responsible for verifying

the herd size and collecting the sisa payment and seeing












87

that all documents, including the libro and the guias, were

signed. The herds then passed.7

The efficiency of this system depended upon the honesty

of the guards who patrolled the various routes north.

Geography also controlled traffic and limited options so

that the herds could not easily avoid the guards. The main

route, taken by most herds, ran northwest from Salta

(skirting west of San Salvador de Jujuy) through the

Quebrada del Toro, a canyon passage patrolled by the guards.

Ten days to two weeks later the herds reached another post,

the last before their ascent to Alto Pert. A second less-

travelled route passed through the Jujuy district and then

north through the Quebrada de Humahuaca to Tarija. Posts

located between Salta and Jujuy and again at La Quiaca well

to the north watched this route. The two routes, determined

by the relative ease of travel in the quebradas, or canyons,

effectively channeled almost all traffic north.8


This careful system was not enough to prevent all
fraud, however. The Catamarca and La Rioja districts were
suspected of supporting an illicit commerce in livestock.
See the "Informe de Juan Victorino Martinez de Tineo, a El
Marques de Sobremonte," dated June 24, 1779 (Salta) in
A.G.I., Buenos Aires 50 (folios not numbered).

8. Ibid., 283-288. Sdnchez-Alborn6z estimates that
between 80 and 90 per cent of all traffic passed through the
Quebrada del Toro route. The posts, he adds, were
administered only from February through August because harsh













The sisa records from Salta represent the great

majority of the mules raised in and exported from the

Tucumdn region. Two separate sets of records cover the span

from 1761 to 1809. Nicolas Sanchez-Albornoz presents one

set in a study of mule exports from Salta between 1778 and

1809. Gathered from the Contaduria section of the Archivo

General de la Naci6n in Buenos Aires, he published this data

in two columns. The first column records the annual sisa

revenue from mule exports from the Salta jurisdiction while

the second presents the total number of animals that

annually passed from the district.9 The second set of

data, covering the years 1761-1776, is found in the Archivo

General de Indias in Seville. These sisa accounts include

the annual total sisa revenue for both the Salta and Jujuy

jurisdictions and the annual subtotals collected on a number

of specific goods, including mules, cows and soap. These

accounts record the years 1764 to 1770 in detail, with

complete lists of each tropa leaving the Salta district.






winters and high Spring runoffs made off-season travel
impossible.

9. See the author's discussion of the Buenos Aires
accounts, mostly in his footnotes, in Ibid., 289-296.













Summaries record the subsequent years."1 Several years

record only the amount in pesos collected by the tax; these

figures, however, permit a fairly accurate estimation of the

number of animals exported.11 In this half-century span,

in which at least 1,500,000 mules left the Tucumdn region,

only the figures for the years 1776 and 1777 are missing.2

In some years the guards did not collect for all the

animals that passed their posts. Most annual figures

correspond, however, with the sisa collected roughly

representing the reported number of mules passing from the

district. When debts did incur, they generally were paid

within a year or two--often, when the sisa falls short one

year, it was made up the next. In order to alleviate any

distortion caused by sisa debts, the data is best presented

in five-year blocks that provide more reliable figures.

Analyzing the figures for such periods alleviates the small

problems with the data and presents a better picture of

10. A.G.I., Buenos Aires 463, "Cuentas de Sisa de
Salta y Jujui, 1764-1776."

11. Estimations, based on sisa income in pesos,
derived from a simple calculation:
Sisa amount (in pesos) X 8 reales 6 reales (tax
on each mule).
12. See Appendix I for a complete year-by-year listing
of mule exports and sisa income from mules in Salta for the
years 1761-1809.














long-term trends. Table 3.1 presents five-year totals and

annual averages for the Salta jurisdiction for the years

from 1761 to 1809.


Table 3.1.


Official Mule exports and Sisa Revenue from
Salta District, 1761-1809. In Five-Year
Intervals.


Mules# Ann. Avg.


Sisa


Ann. Avg.


1761-65
1766-70
1771-75
1776-80*
1781-85
1786-90
1791-95
1796-1800
1801-05
1806-1809


154,127
151,839
167,060
100,031
95,285
109,316
74,814
125,168
182,943
155,252


30,825
30,367
33,412
33,344
19,057
21,863
14,964
25,034
36,589
38,813


115,596pesos
111,631
125,295
73,607
71,175
80,670
57,545
93,875
108,827
129,892


23,119pesos
22,326
25,059
24,536
14,235
16,134
11,509
18,775
21,765
25,978


1776 and 1777 figures are missing.
# 1764-75 figures estimates (see fn. 48).

Sources: Years 1761-1775 from A.G.I., Buenos Aires
463, "Cuentas de Sisa de Salta y Jujui, 1764-76,"
years 1778-1809 from Nicolas Sanchez-Albornoz, "La
saca de mulas de Salta."




The sisa records reveal several general trends marking

the Tucuman mule trade. The years from 1761 to 1780 show

relatively high exports and sisa revenue, with an annual

average of 31,836 mules sent north and 23,692 pesos


Year












91

collected in sisa revenue. The 15 years following the Tupac

Amaru rebellion in Peru show a significant decline in this

commerce. Annual exports fell to an average of 18,628

animals between 1781 and 1795. The period from 1796 to 1809

marks the recovery of the trade; annual averages rose to

25,033 animals from 1796 to 1800, then to 36,588 animals

between 1801 and 1805, and to 38,813 animals from 1806 to

1809. Figure 3.1, presenting Salta's mule exports from 1761

to 1809, illustrates these trends.

Comparative figures from the San Salvador de Jujuy sisa

records spanning the years from 1764 to 1789 demonstrate

Salta's dominant position in the regional mule trade.

Jujuy's exports and revenues from 1764 to 1775 represent a

small fraction of Salta's trade. Although Jujuy's annual

exports occasionally reached 10,000 head, annual totals

generally averaged about 20 per cent of Salta's exports and

constituted about 16 per cent of the Tucumdn total for the

26 years examined. The Jujuy sisa summaries also provide

both the number of mules annually exported as well as the

total sisa revenues collected each year. A comparison of

the Salta and Jujuy figures illustrates the imbalance

between the two cities. Table 3.2 includes three columns of

data presenting each city's annual mule exports and sisa
































































0 0
LO


0 0
CO C\


0'~




Full Text

PAGE 1

352'8&7,21 &200(5&( $1' 75$163257$7,21 ,1 $ 5(*,21$/ (&2120< 78&80$1 %\ -(5(0< 67$+/ $ ',66(57$7,21 35(6(17(' 72 7+( *5$'8$7( 6&+22/ 2) 7+( 81,9(56,7< 2) )/25,'$ ,1 3$57,$/ )8/),//0(17 2) 7+( 5(48,5(0(176 )25 7+( '(*5(( 2) '2&725 2) 3+,/2623+< 81,9(56,7< 2) )/25,'$

PAGE 2

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

PAGE 3

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

PAGE 4

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nYH EHHQ GRLQJ WKH ULJKW WKLQJ DOO WKHVH SDVW \HDUV 0\ SDUHQWV +DUU\ DQG $QQ 6WDKO KRZHYHU KDYH PDGH LW DOO SRVVLEOH 7KH VXSSRUW WKH\ KDYH VR JHQHURXVO\ DQG VR RIWHQ SURYLGHG WKH SDWLHQFH WKH\ KDYH VR ORQJ VKRZQ DQG WKH ORYH WKH\ VR FRPSOHWHO\ EHVWRZ KDYH EHHQ P\ JUHDWHVW LQVSLUDWLRQ DQG FRPSHO PH GHGLFDWH WKLV ZRUN WR WKHP ,9

PAGE 5

7$%/( 2) &217(176 SDJH $&.12:/('*0(176 LL $%675$&7 YL ,1752'8&7,21 &+$37(56 21( 7+( 5,2 '( /$ 3/$7$ (&2120< 7:2 7+( 78&80$1 5(*,21 7+5(( 352'8&7,21 )285 &200(5&( ),9( 75$163257$7,21 6,; 62&,(7< &21&/86,21 %,%/,2*5$3+< %,2*5$3+,&$/ 6.(7&+ Y

PAGE 6

$EVWUDFW RI 'LVVHUWDWLRQ 3UHVHQWHG WR WKH *UDGXDWH 6FKRRO RI WKH 8QLYHUVLW\ RI )ORULGD LQ 3DUWLDO )XOILOOPHQW RI WKH 5HTXLUHPHQWV IRU WKH 'HJUHH RI 'RFWRU RI 3KLORVRSK\ 352'8&7,21 &200(5&( $1' 75$163257$7,21 ,1 $ 5(*,21$/ (&2120< 78&80$1 %\ -HUHP\ 6WDKO $SULO &KDLU 0XUGR 0DF/HRG 0DMRU 'HSDUWPHQW +LVWRU\ 7KLV GLVVHUWDWLRQ SUHVHQWV D VWXG\ RI SURGXFWLRQ FRPPHUFH DQG WUDQVSRUWDWLRQ LQ WKH SUHLQGXVWULDO UHJLRQDO HFRQRP\ RI 7XFXP£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£Q UHJLRQ UHVSRQGLQJ WR YL

PAGE 7

WKLV SURFHVV DV ZHOO DV WR WKH UHFRYHU\ RI WKH 3HUXYLDQ VLOYHUPLQLQJ FRPSOH[ H[SHULHQFHG D VHULHV RI OLWWOH GLVFXVVHG PRGLILFDWLRQV WKDW DUH WKH VXEMHFW RI WKLV VWXG\ &KDSWHU 2QH GHYHORSV WKH KLVWRULRJUDSKLFDO FRQWH[W IRU WKLV VWXG\ LW SUHVHQWV DQ H[SOLFDWLRQ RI IRXU PDMRU VWXGLHV RI WKH 5LR GH OD 3ODWD HFRQRP\ WKDW EHVW DGYDQFH WKH GLVFXVVLRQ RI WKH KLVWRULF SURFHVVHV WKDW GHWHUPLQHG UHJLRQDO KLVWRU\ &KDSWHU 7ZR LV D EULHI HFRQRPLF JHRJUDSK\ RI WKH 7XFXP£Q UHJLRQ ZLWK VSHFLDO HPSKDVLV RQ WKH GHPRJUDSKLF FKDUDFWHULVWLFV RI WKH VHYHQ FRPSRQHQW GLVWULFWV &KDSWHU 7KUHH VXUYH\V WKH SURGXFWLYH DFWLYLWLHV WKDW LQWHJUDWHG WKH 7XFXP£Q UHJLRQ ZLWK ERWK WKH 3HUXYLDQ DQG $WODQWLF PDUNHWV DQG VLPXOWDQHRXVO\ DIIRUGHG D GHJUHH RI ORFDO VHOIVXIILFLHQF\ &KDSWHU )RXU DGGUHVVHV FRPPHUFH DQG WKH FRPPHUFLDO UHODWLRQV WKDW FRQWULEXWHG WR WKH UHJLRQnV UHODWLYH SURVSHULW\ DQG IXUWKHU WLHG LW WR QHLJKERULQJ PDUNHWV &KDSWHU )LYH DQDO\]HV WKH WUDQVSRUWDWLRQ VHFWRU WKDW VHUYHG 7XFXP£Q DQG SK\VLFDOO\ OLQNHG WKHVH WKUHH GLIIHUHQW UHJLRQDO HFRQRPLHV &KDSWHU 6L[ LV D VWXG\ RI VRPH RI WKH HFRQRPLF DFWLYLWLHV RI WKH WULEXWHSD\LQJ ,QGLDQ WRZQV RI QRUWKHUQ 7XFXP£Q DQG RI WKH FRPPHUFLDO SXUVXLWV RI WKH UHJLRQnV SURSHUW\RZQLQJ UHVLGHQWV 9OO

PAGE 8

,1752'8&7,21 7KH FUHDWLRQ RI WKH 5R GH OD 3ODWD YLFHUR\DOW\ DW WKH HQG RI WKH HLJKWHHQWK FHQWXU\ f VLJQDOHG WKH FXOPLQDWLRQ RI D ORQJ SURFHVV WKDW SURPSWHG WKH JUDGXDO HPHUJHQFH RI WKH 5LYHU 3ODWH UHJLRQ RI 6RXWK $PHULFD DV DQ LQFUHDVLQJO\ LPSRUWDQW SDUW RI 6SDLQnV $PHULFDQ HPSLUH %RWK WKH UHYLYDO RI VLOYHU PLQLQJ LQ 3HUX DQG WKH VWHDG\ JURZWK RI (XURSHDQ PHUFDQWLOLVP DIWHU WKH PLGGOH RI WKH HLJKWHHQWK FHQWXU\ VWLPXODWHG HFRQRPLF SURGXFWLRQ DQG H[FKDQJH WKURXJKRXW VRXWKHUQ 6RXWK $PHULFD D SDUW RI WKH ZRUOG LGHDOO\ VLWXDWHG WR EHQHILW IURP LQGXVWULDOL]LQJ (XURSHnV FRPPHUFLDO UHYLYDO DQG JURZLQJ KXQJHU IRU FHUWDLQ SULPDU\ FRPPRGLWLHV 7KHVH G\QDPLF IRUFHV WULJJHUHG GUDPDWLF FKDQJHV LQ WKH VHYHUDO FRPSRQHQW UHJLRQV RI WKH QHZ 5LR GH OD 3ODWD YLFHUR\DOW\ DQG IRUFHG DGMXVWPHQWV DQG UHn RULHQWDWLRQV ZLWKLQ WKH ORQJHVWDEOLVKHG UHJLRQDO HFRQRPLHV RI WKH ,QWHULRU 7KH YDVW VXEWURSLFDO 6RXWK $PHULFDQ ,QWHULRU HVSHFLDOO\ ZKDW LV WRGD\ QRUWKHUQ $UJHQWLQD FRQVWLWXWHG WKH

PAGE 9

ROGHVW RI WKHVH UHJLRQV $ PRUH WUDGLWLRQDO SDUW RI WKH YLFHUR\DOW\ WKDQ %XHQRV $LUHV RU RWKHU VHWWOHPHQWV ZLWK HDVLHU DFFHVV WR VHD URXWHV WKH 7XFXP£Q UHJLRQ LQFRUSRUDWHG WKH SDVWRUDO MXULVGLFWLRQV RI &UGRED 6DQWLDJR GHO (VWHUR 6DQ 0LJXHO GH 7XFXP£Q 6DOWD 6DQ 6DOYDGRU GH -XMX\ &DWDPDUFD DQG /D 5LRMD ZKLFK WRJHWKHU HVWDEOLVKHG D FRUULGRU RI +LVSDQLF VHWWOHPHQW WKDW UHDFKHG IURP WKH 3HUXYLDQ KLJKODQGV WR WKH 5LYHU 3ODWH HVWXDU\ 5HFRJQL]HG VLQFH WKH VL[WHHQWK FHQWXU\ DV D UHJLRQ GHYRWHG WR OLYHVWRFN SURGXFWLRQ IRU WKH VXSSO\ RI 3HUX WKH 7XFXP£Q UHJLRQ ZDV DPRQJ WKRVH IDFLQJ IXQGDPHQWDO FKDQJHV ZLWK WKH DGYHQW RI WKH YLFHUHJDO HUD 'UDZQ LQFUHDVLQJO\ WR WZR GLIIHUHQW PDUNHWV WKH WUDGLWLRQDO PDUNHWV RI 8SSHU 3HUX DQG WKH HPHUJLQJ PDUNHW RI %XHQRV $LUHV WKH UHJLRQ TXLFNO\ H[SHULHQFHG IDUUHDFKLQJ DGMXVWPHQWV ZKLFK PDUNHG D FOHDU EUHDN ZLWK WKH SDVW :KLOH WKH UHJLRQ UHWDLQHG LWV SDVWRUDO HFRQRP\ QHZ FRQGLWLRQV WULJJHUHG VXEWOH UHRULHQWDWLRQV :KHUHDV WKH HQWLUH UHJLRQ KDG RQFH GHYRWHG LWVHOI WR PXOHn UDLVLQJ DQG OLYHVWRFN H[SRUWV WR 3HUX SULRU WR DERXW WKH GHFDGHV IROORZLQJ VDZ D JUDGXDO UHRULHQWDWLRQ RI WKH VRXWKHUQ MXULVGLFWLRQV $Q LQFUHDVLQJ UHOLDQFH XSRQ WKH SURGXFWLRQ RI KLGHV DQG ZRROHQV IRU WKH %XHQRV $LUHV PDUNHW PDUNHG WKLV SURFHVV 7KH QRUWKHUQ MXULVGLFWLRQV RQ WKH

PAGE 10

RWKHU KDQG UHPDLQHG FORVHO\ WLHG WR WKH 3HUXYLDQ PDUNHW 7KH RQFHVLQJOH RULHQWDWLRQ RI UHJLRQDO SURGXFWLRQ JDYH ZD\ WR D PRUH GLYHUVLILHG H[SRUW HFRQRP\ WKDW QRZ ORRNHG LQ WZR GLUHFWLRQV 7KH ILUVW FKDSWHU RI WKLV VWXG\ SURYLGHV D GLVFXVVLRQ RI WKH FRPSOH[ KLVWRULRJUDSKLFDO GHEDWH VXUURXQGLQJ WKH HFRQRPLF DVSHFWV RI WKH 5R GH OD 3ODWDnV YLFHUHJDO KLVWRU\ %DVLFDOO\ DQ H[SOLFDWLRQ RI WKH ZRUN RI IRXU KLVWRULDQV ZKR SURYLGH WKH IXOOHVW DQDO\VLV RI D ZLGH UDQJH RI TXHVWLRQV WKLV FKDSWHU HVWDEOLVKHV D IRXQGDWLRQ IRU WKH UHPDLQGHU RI WKH ZRUN E\ LQWURGXFLQJ WKH TXHVWLRQV DQG WRSLFV WKDW DUH IXQGDPHQWDO WR DQ\ LQYHVWLJDWLRQ LQWR YLFHUHJDO HFRQRPLF KLVWRU\ 6XEWOH GLIIHUHQFHV EHWZHHQ WKH H[SODQDWLRQV RIIHUHG E\ &DUORV 6HPSDW $VVDGXULDQ 7XOLR +DOSHULQ'RQJKL -XDQ &DUORV *DUDYDJOLD DQG -RQDWKRQ & %URZQ SURYLGH WKH VWDUWLQJ SRLQW IRU WKLV VWXG\ DQG LWV DWWHPSW WR GHVFULEH D OLWWOH PRUH FOHDUO\ WKH DGMXVWPHQWV IRUFHG XSRQ FHUWDLQ VHFWRUV RI WKH 7XFXP£Q UHJLRQDO HFRQRP\ 7KH VHFRQG FKDSWHU SURYLGHV DQ LQWURGXFWLRQ WR WKH 7XFXP£Q UHJLRQ DV D XQLW RI HFRQRPLF JHRJUDSK\ :KLOH WKH UHJLRQ GLVSOD\HG DQ RYHUDOO HFRQRPLF FRKHUHQFH WKH VHYHQ FRPSRQHQW MXULVGLFWLRQV HDFK H[KLELWHG GLVWLQFW HFRQRPLF DQG GHPRJUDSKLF FKDUDFWHULVWLFV WKDW LQIOXHQFHG LWV SRVLWLRQ

PAGE 11

ZLWKLQ WKH ZKROH (LJKWHHQWKFHQWXU\ GHVFULSWLRQV DQG UHODWLRQV SURYLGH YLYLG VRXUFHV IRU WKLV EULHI VXUYH\ FRQWHPSRUDU\ FHQVXV ILJXUHV DOORZ IRU D VKRUW GLVFXVVLRQ RI UHJLRQDO GHPRJUDSKLF FKDUDFWHULVWLFV 7KH WKLUG IRXUWK DQG ILIWK FKDSWHUV FRQVWLWXWH WKH KHDUW RI WKLV VWXG\ &KDSWHU 7KUHH SUHVHQWV D VXUYH\ RI WKH SULPDU\ SURGXFWLYH DFWLYLWLHV WKURXJKRXW WKH UHJLRQ ,W ORRNV ILUVW DW WKH SDVWRUDO VHFWRU RI WKH HFRQRP\ WKDW ZDV PRVW KHDYLO\ LQIOXHQFHG E\ WKH PXOHUDLVLQJ DQG PXOHn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

PAGE 12

ORFDO SURGXFWLRQ RI FRWWRQ WH[WLOHV DQG ZLQH DQG EUDQG\ LQ WKH MXULVGLFWLRQV RI &DWDPDUFD DQG /D 5LRMD DOVR PHULWV GLVFXVVLRQ KHUH )LQDOO\ WKLV FKDSWHU DOVR H[DPLQHV WKH OHVVLPSRUWDQW DFWLYLWLHV RI PLQLQJ DQG OXPEHU SURGXFWLRQ ZKLFK QHYHUWKHOHVV ILJXUHG LQWR WKH UHJLRQDO H[SRUW HFRQRP\ 7KH IRXUWK FKDSWHU LV D GLVFXVVLRQ RI FRPPHUFLDO SDWWHUQV ZLWKLQ WKH 7XFXP£Q UHJLRQDO HFRQRP\ 7KURXJK DQDO\VLV RI VDOHV WD[ UHYHQXHV LW ORRNV ILUVW DW WKH RYHUDOO WUHQGV PDUNLQJ WKH YROXPH RI FRPPHUFLDO DFWLYLW\ LQ HDFK RI WKH VHYHQ MXULVGLFWLRQV 7KHVH UHFRUGV UHYHDO D GHFDGHORQJ FRPPHUFLDO PDODLVH PDUNLQJ WKH \HDUV IROORZHG E\ D VWURQJ UHFRYHU\ LQ 7XFXP£QnV VRXWKHUQ MXULVGLFWLRQV DQG D ZHDNHU UHFRYHU\ LQ WKH QRUWK (PSKDVLV WKHQ WXUQV WR D GLVFXVVLRQ RI WKH GLUHFWLRQ DQG FRQWHQW RI FRPPHUFLDO H[FKDQJHV ERWK ZLWKLQ WKH UHJLRQ DQG ZLWK QHLJKERULQJ UHJLRQV &KDSWHU )LYH RIIHUV DQ DQDO\VLV RI WUDQVSRUWDWLRQ WKH WKLUG FULWLFDO FRPSRQHQW RI WKH UHJLRQDO HFRQRP\ )LUVW WKLV SDUW SUHVHQWV D WKHRUHWLFDO GLVFXVVLRQ RI WKH LPSRUWDQFH RI WUDQVSRUWDWLRQ VHUYLFHV ZLWKLQ D SUHn LQGXVWULDO HFRQRP\ 1H[W LW WXUQV WR D GLVFXVVLRQ RI WKH URDG QHWZRUN VHUYLQJ WKH UHJLRQ LQFOXGLQJ WKH KHDYLO\ WUDYHOOHG UR\DO URDGV WKDW FKDQQHOHG PRVW FRPPHUFLDO WUDIILF

PAGE 13

IURP SURGXFHU WR PDUNHW DQG WKH OHVVLPSRUWDQW URXWHV WKDW VHUYHG VHFRQGDU\ FRPPHUFLDO FLUFXLWV ,W WXUQV ODVW WR WKH FDUWHUV DQG PXOHWHHUV ZKR DFWXDOO\ WUDQVSRUWHG WKH UHJLRQnV SURGXFH DQG FRPPHUFH ,W FRQVLGHUV TXHVWLRQV RI YROXPHV RI WUDIILF FRVWV DQG IUHLJKW UDWHV IRU FDUULDJH DQG WKH RYHUDOO HIILFDF\ RI WKH WUDQVSRUWDWLRQ VHFWRU LQ VHUYLQJ WKH UHJLRQDO HFRQRP\ 7KH ODVW FKDSWHU ORRNV DW WZR LPSRUWDQW VRFLDO JURXSV WKH WULEXWH SD\LQJ ,QGLDQ SRSXODWLRQ DQG WKH +LVSDQLF PHUFKDQW FRPPXQLW\ 7KLV DWWHPSW WR GHVFULEH WKH HFRQRPLF DFWLYLWLHV RI WKHVH JURXSV DQG UHDFK D EHWWHU XQGHUVWDQGLQJ RI WKHLU HFRQRPLF EHKDYLRU EXLOGV RQ WUHDVXU\ UHFRUGV DQG WD[ OHGJHUV WKDW RIIHU SHQHWUDWLQJ LQVLJKWV LQWR LQGLYLGXDO DQG JURXS EHKDYLRU 7KH PHUFKDQW FRPPXQLW\ HVSHFLDOO\ H[KLELWHG VLJQV RI D FRPSOH[ QDWXUH IURP D IHZ ZHDOWK\ DQG SRZHUIXO ODQGRZQHUV SULPDULO\ RFFXSLHG ZLWK OLYHVWRFN H[SRUWV WR WKH PHUFKDQWV RI HLWKHU ORFDOO\SURGXFHG RU LPSRUWHG JRRGV WR WKH VPDOO XUEDQ VKRSNHHSHUV ZKR NHSW WKH FLW\GZHOOHUV RI WKH UHJLRQ VXSSOLHG ZLWK WKHLU EDVLF QHFHVVLWLHV )URP D EURDGHU SHUVSHFWLYH WKLV VWXG\ DOVR DGGUHVVHV WKH RULJLQV RI WKH $UJHQWLQH QDWLRQ DQG WKH IDFWRUV WKDW KHOSHG VKDSH WKH HDUOLHVW HFRQRPLF DQG SROLWLFDO FULVHV WKDW

PAGE 14

GHILQHG $UJHQWLQDnV HDUO\ QDWLRQEXLOGLQJ SURFHVV 7KH YLFHUHJDO HUD VDZ FRQVLGHUDEOH HFRQRPLF JURZWK LQ WKH 7XFXP£Q UHJLRQ DQG HYHQ PRUH LQ WKH 5LYHU 3ODWH WKH VWUXJJOH EHWZHHQ WKH FRQIOLFWLQJ LQWHUHVWV RI WKHVH UHJLRQV VKDSHG WKH SROLWLFDO EDWWOHV RI WKH ILUVW ILIW\ \HDUV RI QDWLRQKRRG 7KH SURGXFWLRQ RI WKH 7XFXP£Q UHJLRQ LQFUHDVLQJO\ GHSHQGHG XSRQ WKH %XHQRV $LUHV PDUNHW IRU FRQVXPHUV RI LWV ZRROHQ JRRGV DQG IRU DFFHVV WR (XURSHDQ FRQVXPHUV RI LW KLGHV 7KH ODVW \HDUV RI FRORQLDO DGPLQLVWUDWLRQ FRQVHTXHQWO\ ZLWQHVVHG WKH ,QWHULRU VOLS WR D VHFRQGDU\ SRVLWLRQ ZLWKLQ WKH YLFHUHJDO V\VWHP 7KH DGMXVWPHQWV WKDW HQDEOHG WKH VRXWKHUQ MXULVGLFWLRQV RI 7XFXP£Q WR EHQHILW IURP %XHQRV $LUHVn SURVSHULW\ KRZHYHU UHPDLQHG XQDWWDLQDEOH IRU WKH QRUWKHUQ DQG ZHVWHUQ MXULVGLFWLRQV 7KHVH DUHDV RQO\ PDUJLQDOO\ OLQNHG WR WKH $WODQWLF HFRQRP\ HYHQ ODWH LQ WKH YLFHUHJDO SHULRGV ZHUH WR VOLS HYHQ IXUWKHU EHKLQG WKH SURVSHULQJ DUHDV DQG EHFRPH HFRQRPLF EDFNZDWHUV LQ WKH QLQHWHHQWK DQG WZHQWLHWK FHQWXULHV

PAGE 15

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nV FRORQLDO HFRQRP\ $VVDGRXULDQ SLRQHHUHG WKH VWXG\ RI WKH HFRQRPLF

PAGE 16

VSDFHV WKH LQWHUSURYLQFLDO FRPPHUFH DQG WKH LQWHUQDO VHFWRUV WKDW GHILQHG WKH FRQWLQHQWnV HFRQRPLF GHYHORSPHQW +LV VWXGLHV RI WKH 6RXWK $PHULFDQ HFRQRP\ QRW RQO\ FRQVWLWXWH D EURDG ILHOG RI LQYHVWLJDWLRQ GLVWLQJXLVKHG E\ WKH HODERUDWLRQ RI D UHJLRQDO DSSURDFK WR FRORQLDO KLVWRU\ EXW DOVR SUHVHQW D XVHIXO IUDPHZRUN IRU D FORVHU H[DPLQDWLRQ RI 5R GH OD 3ODWDn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f D FRPSLODWLRQ RI VL[ HVVD\V ZULWWHQ GXULQJ WKH V DQG V GHYHORSLQJ D PRGHO RI WKH FRORQLDO 3HUXYLDQ HFRQRP\ 6HH DOVR $VVDGRXULDQ *XLOOHUPR %H£WR DQG -RV &DUORV &KLDPRQWH $UJHQWLQD GH OD FRQTXLVWD D OD LQGHSHQGHQFLD %XHQRV $LUHV f $VVDGRXULDQ +HUDFOLR %RQLOOD $QWRQLR 0LWUH DQG 7ULVWDQ 3ODWW 0LQHUD Y HVSDFLR HFRQPLFR HQ ORV $QGHV VLJORV ;9,;; /LPD f DQG $VVDGRXULDQ HW DO 0RGRV GH SURGXFFLQ HQ $PULFD /DWLQD %XHQRV $LUHV f

PAGE 17

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nV HFRQRPLF OLIH ,QVWHDG KH GHILQHV PLQLQJ DV WKH PRWRU RI WKH 3HUXYLDQ HFRQRP\ RU WKH GULYLQJ IRUFH EHKLQG WKH )RU D GLVFXVVLRQ RI WKH EDVLF FKDUDFWHULVWLFV RI $VVDGRXULDQnV VFKHPH LQFOXGLQJ H[SODQDWLRQV RI WKH FRQFHSWV RI VHOI VXIILFLHQFH UHJLRQDO VSHFLDOL]DWLRQ DQG UHJLRQDO LQWHJUDWLRQ VHH KLV HVVD\ ,QWHJUDFLQ \ GLVLQWHJUDFLQ UHJLRQDO HQ HO HVSDFLR FRORQLDO 8Q HQIRTXH KLVWULFR LQ (O VLVWHPD GH OD HFRQRPD FRORQLDO *ZHQGRO\Q &REE UHFRJQL]HG WKH IDUUHDFKLQJ LPSDFW RI WKH 3RWRV PLQLQJ FRPSOH[ LQ KHU DUWLFOH 6XSSO\ DQG 7UDQVSRUWDWLRQ IRU WKH 3RWRV 0LQHV +LVSDQLF $PHULFDQ +LVWRULFDO 5HYLHZ )HEUXDU\ f

PAGE 18

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nV PLQLQJ HFRQRP\ E\ WKH HQJLQHHU $VVDGRXULDQ /D RUJDQL]DFLQ HFRQPLFD HVSDFLDO GHO VLVWHPD FRORQLDO LQ (O VLVWHPD GH OD HFRQRPD FRORQLDO 7KH SUHVHQWDWLRQ RI FRORQLDO 6SDQLVK $PHULFDQ PLQLQJ VHFWRUV DV HQFODYHV RI D GRPLQDQW (XURSHDQ HFRQRP\ $VVDGRXULDQ QRWHV ZDV SRSXODUL]HG E\ (QULTXH &DUGRVR DQG (Q]R )DOHWWR 'HSHQGHQFLD \ GHVDUUROOR HQ $PULFD /DWLQD 0H[LFR &LW\ f LQ ZKLFK WKH DXWKRUV GLVWLQJXLVK EHWZHHQ DJULFXOWXUDO FRORQLHV DQG PLQLQJ FRORQLHV $VVDGRXULDQ FDOOV WKLV DQ LQFRUUHFW GLVWLQFWLRQ 6HH $VVDGRXULDQ 6REUH XQ HOHPHQWR GH OD HFRQRPD FRORQLDO SURGXFFLQ \ FLUFXODFLQ GH PHUFDQFDV HQ HO LQWHULRU GH XQ FRQMXQWR UHJLRQDO LQ (O VLVWHPD GH OD HFRQRPD FRORQLDO 7KLV HVVD\ SURYLGHV D GHWDLOHG GLVFXVVLRQ RI WKH LQWHUGHSHQGHQW QDWXUH RI WKH PLQLQJ DJULFXOWXUDO DQG DQG FRPPHUFLDO VHFWRUV ZLWKLQ D UHJLRQDO FRQMXQFWLRQ RU WKH 3HUXYLDQ UHJLRQDO HFRQRP\

PAGE 19

HFRQRPLVW )DXVWR GH (OKX\DU (OKX\DUnV PRQRJUDSK DGGUHVVHG KLV FRQWHPSRUDULHVn LJQRUDQFH RI WKH WUXH LQIOXHQFH RI PLQLQJ WRR RIWHQ VHHQ KH DUJXHG DV D VLPSOH LVRODWHG UHVRXUFH ZLWK OLWWOH LQIOXHQFH RQ WKH JHQHUDO ZHOOEHLQJ 1RWLQJ WKH ODFN RI H[WHUQDO GHPDQG IRU PRVW RI 1HZ 6SDLQnV DJULFXOWXUDO SURGXFWV (OKX\DU DUJXHG WKDW WKH FRORQ\n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n DWWHQWLRQ 0LQLQJ EHFDPH WKH ILUVW LQGXVWU\ LQ WKH FRORQ\ 7KH PLQH PDUNHWV VWLPXODWHG DJULFXOWXUH VWRFNUDLVLQJ DQG QHZ VHWWOHPHQWV 0LQLQJ PDGH XQSURGXFWLYH ODQG SURGXFWLYH DQG HQFRXUDJHG FRPPHUFH EHWZHHQ )DXVWR GH (OKX\DU 0HPRULD VREUH HO LQIOXMR GH OD PLQHUD HQ 1XHYD (VSDD 0H[LFR &LW\ f $VVDGRXULDQ DOVR FLWHV 5REHUW :HVW 7KH 0LQLQJ &RPPXQLW\ RI 1RUWKHUQ 1HZ 6SDLQ 7KH 3DUUDO 0LQLQD 'LVWULFW %HUNHOH\ f DQG 'DYLG $ %UDGLQJ 0LQHUV DQG 0HUFKDQWV LQ %RXUERQ 0H[LFR &DPEULGJH f IRU WKHLU DVWXWH HYDOXDWLRQV RI 1HZ 6SDLQnV PLQLQJ HFRQRP\ UHJLRQDO SURGXFWLRQ DQG WKH LQWHUQDO PDUNHW

PAGE 20

SURYLQFHV ZLWK GLIIHUHQW FOLPDWHV DQG UHVRXUFHV *ROG DQG VLOYHU ILOOHG WKH QHHG IRU PRQH\ JLYLQJ OLIH WR LQWHUQDO FRPPHUFH 3UHFLRXV PHWDOV DOVR GURYH WKH H[WHUQDO HFRQRP\ 1HZ 6SDLQnV PLQHV ILOOHG WKH OLPLWHG GRPHVWLF GHPDQG IRU SUHFLRXV PHWDOV DQG D ODUJH SDUW RI WKH VXSHUDEXQGDQFH RI WKHVH PHWDOV VXSSRUWHG WKH FRORQ\nV H[WHUQDO WUDGH 6LOYHU DFFRXQWLQJ IRU WZRWKLUGV RI WKH WRWDO YDOXH RI H[SRUWV SDLG IRU DOPRVW DOO LPSRUWV :KHQ PLQLQJ ZHDOWK LV RI VRPH GXUDWLRQ (OKX\DU FRQFOXGHG LW HQOLYHQV DQG JLYHV JUHDWHU HQHUJ\ DQG H[WHQVLRQ WR WKH RWKHU VHFWRUV LW FXOWLYDWHV (OKX\DUn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nV RSLQLRQ (OKX\DUnV FRQWHPSRUDU\ XQGHUVWDQGLQJ DQG VRSKLVWLFDWHG SHUVSHFWLYH PXVW EH UHHPSOR\HG $VVDGRXULDQ XVHV WKLV SHUVSHFWLYH WR ,ELG $VVDGRXULDQ /D RUJDQL]DFLQ HFRQPLFD HVSDFLDO

PAGE 21

GHYHORS D V\QWKHVLV RI D SURVSHURXV 3HUXYLDQ HFRQRP\D XQLILHG RU LQWHJUDWHG HFRQRPLF V\VWHPLQ ZKLFK PLQLQJ FRQVWLWXWHG WKH GRPLQDQW VHFWRU DJULFXOWXUDO SURGXFWV DQG OLYHVWRFN ZHUH WXUQHG LQWR PHUFKDQGLVH E\ WKH FRPPHUFLDO VHFWRU DQG QHZ DFWLYLWLHV UHSHDWHGO\ HPHUJHG ,I DW WKH KHLJKW RI 3RWRVn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

PAGE 22

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nV VLOYHU RXWSXW WKDW WULSOHG GXULQJ WKH FRXUVH RI WKH HLJKWHHQWK FHQWXU\ 7R $VVDGRXULDQ $QGHDQ PLQLQJ VWLOO GHWHUPLQHG WKH G\QDPLFV RI WKH YDVW 6RXWK $PHULFDQ HFRQRP\ DQG DJULFXOWXUDO PDQXIDFWXULQJ DQG FRPPHUFLDO DFWLYLWLHV UHPDLQHG GHSHQGHQW RQ 3HUXnV VLOYHU SURGXFWLRQ $VVDGRXULDQ GRHV QRW GHQ\ WKDW PHWURSROLWDQ UHODWLRQV ZLHOGHG VWURQJ LQIOXHQFHV LQ WKH HYROXWLRQ RI WKH 3HUXYLDQ HFRQRP\ 'UDZLQJ RQ +DPLOWRQnV SLRQHHULQJ VWXG\ DQG WKRVH RI $OYDUR -DUD DQG WKH &KDXQXV KH FRPSDUHV WKH WUHPHQGRXV VLOYHU H[SRUWV EHWZHHQ DQG ZLWK WKH PHDJHU 3HWHU %DNHZHOO 0LQLQJ LQ /HVOLH %HWKHOO HGLWRU 7KH &DPEULGJH +LVWRU\ RI /DWLQ $PHULFD YROXPHV &DPEULGJH f YROXPH ,ELG

PAGE 23

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nV PRVW VHOIVXIILFLHQW \HDUV IHDWXULQJ FRQVLGHUDEOH UHJLRQDO GLYHUVLILFDWLRQ DQG D KLJK GHJUHH RI LQWHUQDO FRQWURO %\ WKH 3HUXYLDQ $VVDGRXULDQ 6REUH XQ HOHPHQWR GH OD HFRQRPD FRORQLDO $VVDGRXULDQ FLWHV (DUO +DPLOWRQ $PHULFDQ 7UHDVXUH DQG WKH 3ULFH 5HYROXWLRQ LQ 6SDLQ &DPEULGJH f 3LHUUH DQG +XJXHWWH &KDXQX 6HYLOOH HW n$WODQWLDXH YROXPHV 3DULV f $OYDUR -DUD 7UHV HQVD\RV VREUH HFRQRPD PLQHUD KLVSDQRDPHULFDQD 6DQWLDJR f 6HH DOVR 3HWHU %DNHZHOO 5HJLVWHUHG 6LOYHU 3URGXFWLRQ LQ WKH 3RWRV 'LVWULFW -DKUEXFK IU *HVFKLFKWH YRQ 6WDDW :LUWVFKDIW XQG *HVHOOVFKDIW /DWHLQDPHULNDV f $VVDGRXULDQ ,QWHJUDFLQ \ GLVLQWHJUDFLQ UHJLRQDO ,ELG $VVDGRXULDQ 6REUH XQ HOHPHQWR GH OD HFRQRPD FRORQLDO ,ELG

PAGE 24

HFRQRP\ UHDFKHG D OHYHO RI VHOIVXIILFLHQF\ XQHTXDOHG EHIRUH RU VLQFH 7XOLR +DOSHULQ'RQJKL SUHVHQWV D PRUH IRFXVHG DQDO\VLV RI WKH 5LR GH OD 3ODWDnV HLJKWHHQWKFHQWXU\ UHJLRQDO HFRQRPLF KLVWRU\ 6TXDUHO\ SODFLQJ VHYHQWHHQWKFHQWXU\ 5LR GH OD 3ODWD ZLWKLQ WKH 3HUXYLDQ VSKHUH KH GHILQHV WKH LPPHQVH WHUULWRU\ DV FRQVLVWLQJ RI WZR LOOGHILQHG ]RQHV 7KH ,QWHULRU H[WHQGHG IURP 8SSHU 3HUX VRXWK WR D YDJXH IURQWLHU LQ WKH SDPSDV DQG HDVW IURP WKH $QGHV WR WKH WHUULWRULHV DORQJ WKH 3DUDQ£ 5LYHU 7KH /LWRUDO FRPSULVHG RI WKH *XDUDQL ODQGV RI 3DUDJXD\ DQG 8UXJXD\ DQG WKH ODQGV EDQNLQJ WKH ORZHU 3DUDQ£ DQG 5LYHU 3ODWH LQFOXGHG WKH FLWLHV RI %XHQRV $LUHV 0RQWHYLGHR &RUULHQWHV DQG 6DQWD ) %HWZHHQ WKHVH WZR VHWWOHG ]RQHV VWUHWFKHG WKH &KDFR DQG 3DPSD SODLQV ERWK SRSXODWHG E\ WULEHV RI $PHULQGLDQ KXQWHUV 6SDQLDUGV FRQWUROOHG UHODWLYHO\ VPDOO SRUWLRQV RI WKHVH H[SDQVHV WKH PRVW LPSRUWDQW DUHD ZDV WKH ,QWHULRU SURYLQFH RI 7XFXP£Q DFWXDOO\ D FRUULGRU RI VHWWOHPHQWV -XMX\ 6DOWD 6DQ 0LJXHO GH 7XFXP£Q 6DQWLDJR GHO (VWHUR DQG &UGREDf WKDW FRQQHFWHG 3HUX ZLWK %XHQRV $LUHV DQG WKH $WODQWLF 7R WKH HDVW RI WKH 8SSHU 3DUDQ£ LQ 3DUDJXD\ DQG

PAGE 25

SX} 3 f 3 9 )LJXUH 5R GH OD 3ODWD 7XFXUD£Q DQG &X\R 5HJLRQV F

PAGE 26

8UXJXD\ -HVXLW PLVVLRQV HVWDEOLVKHG D IUDJLOH 6SDQLVK SUHVHQFH LQ D UHJLRQ ERUGHULQJ %UD]LO +DOSHULQ'RQJKLnV VFKRODUVKLS FKLHIO\ DGGUHVVHV 5LR GH OD 3ODWDnV UHYROXWLRQDU\ SHULRG IHDWXULQJ D GLVFXVVLRQ RI WKH YLFHUHJDO SHULRG WKDW EHJDQ LQ DQG D GHVFULSWLRQ RI WKH UHJLRQn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£ DQG WKH 5LR GH OD 3ODWD OHG WKLV UHRULHQWDWLRQ WKH JURZWK RI WKLV $WODQWLFRULHQWHG UHJLRQ GRPLQDWHG E\ WKH SRUW RI %XHQRV $LUHV RFFXUUHG DW WKH H[SHQVH RI WKH ,QWHULRU SURYLQFHVn FRPPHUFH PDQXIDFWXULQJ DQG DJULFXOWXUH 7XOLR +DOSHULQ'RQJKL 3ROLWLFV (FRQRPLFV DQG 6RFLHW\ LQ $UJHQWLQD LQ WKH 5HYROXWLRQDU\ 3HULRG &DPEULGJH f 7KLV YROXPH EDVLFDOO\ D WUDQVODWLRQ RI KLV 5HYROXFLQ \ JXHUUD )RUPDFLQ GH XQ OLWH GLULJHQWH HQ OD $UJHQWLQD FULROOD %XHQRV $LUHV f SUHVHQWV DQ H[FHOOHQW GLVFXVVLRQ RI WKH HFRQRPLF FRPSOH[LRQ RI WKH 5LR GH OD 3ODWD UHJLRQV DW WKH HQG RI WKH HLJKWHHQWK FHQWXU\

PAGE 27

+DOSHUQ'RQJKLn V GHVFULSWLRQ RI 6RXWK $PHULFDnV HDUO\ FRORQLDO HFRQRP\ FRUUHVSRQGV ZLWK WKDW RI $VVDGRXULDQ +DOSHULQ'RQJKL DFNQRZOHGJHV WKH ,QWHULRUnV XQLILHG VWUXFWXUH DQG VWDELOLW\ IRXQGHG RQ 3HUXYLDQ PLQLQJ DQG DFKLHYHG DW WKH FRVW RI PDLQWDLQLQJ D VORZ UK\WKP RI SURGXFWLRQ DQG WUDGH %XW PRUH WKDQ UHYLYHG FRQGLWLRQV LQ 3RWRV +DOSHULQ'RQJKL DUJXHV WKH FKDQJLQJ QDWXUH DQG TXLFNHQLQJ SDFH RI WKH $WODQWLF HFRQRP\ DIWHU WULJJHUHG WKH 5R GH OD 3ODWDn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nV PDQXIDFWXUHG JRRGV 7KH ODVW GHFDGHV RI WKH ,ELG ,ELG

PAGE 28

HLJKWHHQWK FHQWXU\ EURXJKW SDLQIXO UHDGMXVWPHQW WR WKH ,QWHULRUn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nV KLGHV WR (XURSH DQG KHOSHG E\ WKH UHIRUPV WKDW EURXJKW 3RWRV LQWR %XHQRV $LUHVn DGPLQLVWUDWLYH RUELW WKH SRUWnV PHUFKDQW FRPPXQLW\ JUDGXDOO\ JDLQHG FRQWURO RI WKH YLFHUR\DOW\nV FRPPHUFLDO DFWLYLW\ DQG HVWDEOLVKHG D GRPLQDQW UROH LQ WKH YLFHUHJDO HFRQRPLF V\VWHP 7KH PDMRU EXVLQHVV IRU WKLV QHZ HOLWH EHFDPH WKH GLVWULEXWLRQ RI (XURSHDQ JRRGV WKURXJKRXW WKH ,QWHULRU DQG 3HUX LQ H[FKDQJH IRU VLOYHU DQG JROG 7KH ,ELG

PAGE 29

FRQVHTXHQW FRPPHUFLDO DQG ILQDQFLDO KHJHPRQ\ EXLOW E\ WKLV PHUFKDQW FRPPXQLW\ EHFDPH D FHQWUDO IHDWXUH RI WKH ODWH FRORQLDO RUGHU DQG %XHQRV $LUHVn SURVSHULW\ JUHZ IURP WKH PHUFKDQWVn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nV GLVFXVVLRQ RI %XHQRV $LUHVn PHUFDQWLOH H[SDQVLRQ VHH SDJHV 6HH DOVR 6XVDQ 0LJGHQ 6RFRORZ (FRQRPLF $FWLYLWLHV RI WKH 3RUWHR 0HUFKDQWV 7KH 9LFHUHJDO 3HULRG +LVSDQLF $PHULFDQ +LVWRULFDO 5HYLHZ )HEUXDU\ f DQG .LQVKLS DQG &RPPHUFH 7KH 0HUFKDQWV RI 9LFHUHJDO %XHQRV $LUHV &DPEULGJH f ZKLFK ERWK H[DPLQH WKH SRUWnV PHUFDQWLOH JURZWK DQG WKH GHYHORSPHQW RI LWV PHUFKDQW FODVV

PAGE 30

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nV FUDIW LQGXVWU\ DQG LPSRUW VXEVWLWXWLRQ PDQXIDFWXULQJ 7KHVH GLIIHUHQFHV FDQ EH SDUWLDOO\ UHFRQFLOHG E\ UHFRJQL]LQJ WKDW WKH IRFXV DQG REMHFWLYHV RI WKHVH WZR VWXGLHV GLIIHU $VVDGRXULDQ SUHVHQWV D WHPSRUDOO\ DQG JHRJUDSKLFDOO\ EURDGHU VWXG\ GLVFXVVLQJ WKH WKUHH KXQGUHG \HDU HYROXWLRQ RI D YDVW HFRQRP\ &RPSRQHQW HUDV DQG UHJLRQV DUH VHFRQGDU\ WR WKH ZKROH DQG KLV DQDO\VLV LV SDLQWHG LQ EURDG VWURNHV $ GHOLEHUDWH UHMHFWLRQ RI WKH ,ELG

PAGE 31

GHSHQGHQF\ SDUDGLJP $VVDGRXULDQnV VWXGLHV DUH LQWHUQDOO\ RULHQWHG DQG FRQFHQWUDWH RQ GHVFULELQJ WKH VHOIVXIILFLHQW QDWXUH RI WKH FRORQLDO HFRQRP\ +DOSHULQ'RQJKL KRZHYHU XQGHUWDNHV D PXFK PRUH VSHFLILF VWXG\ RI WKH HLJKWHHQWK FHQWXU\ 5R GH OD 3ODWD DQG LWV ULVH EDVHG RQ WKH JURZLQJ KHJHPRQ\ RI %XHQRV $LUHV 7KLV FRQFHQWUDWLRQ QDWXUDOO\ HQDEOHV WKH LGHQWLILFDWLRQ RI GLVWLQFW WUHQGV DQG SURFHVVHV WKDW $VVDGRXULDQn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nV DQDO\VLV LQ FRQWUDVW LV EDVHG RQ UHVHDUFK FRQGXFWHG SULPDULO\ LQ WKH $UFKLYR *HQHUDO GH OD 1DFLQ LQ %XHQRV $LUHV DQG LQ WKH 3XEOLF 5HFRUGV 2IILFH LQ /RQGRQ +H HPSOR\V IHZHU

PAGE 32

VWDWLVWLFV EXW GUDZV RQ D FRPSOHWH PDVWHU\ RI VHFRQGDU\ OLWHUDWXUH :KLOH KLV ZRUN LV OLJKWO\ IRRWQRWHG LW GUDZV RQ D JUHDWHU YDULHW\ RI DGPLQLVWUDWLYH VRXUFHV WKDQ GRHV $VVDGRXULDQnV DQG HPSOR\V D PRUH JOREDO SHUVSHFWLYH $OWKRXJK ERWK VFKRODUV GUDZ KHDYLO\ RQ VHFRQGDU\ VRXUFHV DQG D YDULHW\ RI DGPLQLVWUDWLYH UHSRUWV DQG UHODWLRQV WKH\ XVH WKHVH PDWHULDOV WR GLIIHUHQW HQGV $VVDGRXULDQ GHPRQVWUDWHV KRZ HIIHFWLYHO\ WKH 6RXWK $PHULFDQ FRORQ\ LQVXODWHG LWVHOI IURP (XURSHDQ LQWUXVLRQ +DOSHULQ'RQJKL GHPRQVWUDWHV WKH SHUYDVLYHQHVV RI (XURSHDQ LQWHUHVWV LQ RQH FRUQHU RI WKH FRORQ\ -XDQ &DUORV *DUDYDJOLD EXLOGV RQ $VVDGRXULDQnV UHJLRQDO PRGHO DQG XVHV +DOSHULQ'RQJKLnV FRQFOXVLRQV WR GHYHORS D VWXG\ RI UHJLRQDO GLIIHUHQWLDWLRQ ZLWKLQ WKH 5LR GH OD 3ODWD GXULQJ WKH ODVW \HDUV RI WKH FRORQLDO SHULRG *DUDYDJOLD XVHV WLWKH UHFRUGV IURP WR DV LQGLUHFW LQGLFDWRUV WR PHDVXUH JURZWK LQ HFRQRPLF SURGXFWLRQ LQ WKUHH UHJLRQV FRPSULVLQJ WKH 5LR GH OD 3ODWD YLFHUR\DOW\ +LV VWXG\ H[DPLQHV SURGXFWLRQ WUHQGV LQ 7XFXP£Q LQ WKH /LWRUDO%DQGD 2ULHQWDO DQG LQ WKH HDVWHUQ $QGHDQ SURYLQFH RI &X\R UHJLRQV KH GHILQHV EDVHG RQ SDUWLFXODU HFRQRPLF VSHFLDOL]DWLRQV +LV ILQGLQJV XQGHUVFRUH WKH LPSRUWDQFH RI -XDQ &DUORV *DUDYDJOLD (FRQRPLF *URZWK DQG 5HJLRQDO 'LIIHUHQWLDWLRQV 7KH 5LYHU 3ODWH 5HJLRQV RI WKH (QG RI WKH (LJKWHHQWK &HQWXU\ +LVSDQLF $PHULFDQ +LVWRULFDO 5HYLHZ )HEUXDU\ f

PAGE 33

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f ,ELG

PAGE 34

FROOHFWHG LQ WKH YLFHUR\DOW\ JUHZ E\ SHUFHQW *URZWK ZDV QRW WKH VDPH LQ DOO UHJLRQV KRZHYHU VRPH DUHDV FRQWULEXWHG D UHGXFHG VKDUH RI WKH WRWDO DIWHU \HDUV DQG VRPH DUHDV SURYLGHG DQ LQFUHDVHG VKDUH 7KH /LWRUDO OHG E\ %XHQRV $LUHV GRPLQDWHG WKH UHJLRQDO ZKROH IRU WKH HQWLUH \HDUV EXW WR D OHVVHU GHJUHH LQ WKH ODVW ILYH \HDUV VWXGLHG ,Q WKH GLIIHUHQW DUHDV RI WKH /LWRUDO FRQWULEXWHG SHUFHQW RI WKH WRWDO WLWKH LQ RQO\ SHUFHQW 7KH 7XFXP£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

PAGE 35

ZRXOG EHFRPH (QWUH 5RV DQG WKH ]RQH WKDW VWUHWFKHV WR WKH VRXWK RI WKH 5R &RUULHQWHV $ERYH DOO *DUDYDJOLD DVVHUWV JURZWK LQ WKH /LWRUDO GLG QRW DIIHFW DOO DUHDV HTXDOO\ *DUDYDJOLDn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f EHWZHHQ DQG 2I WKHVH SHUFHQW OHIW IURP %XHQRV $LUHV 7KH UHPDLQGHU OHIW IURP 0RQWHYLGHR 7KH IROORZLQJ \HDUV ZLWQHVVHG URXJKO\ VLPLODU SHUFHQWDJHV ,ELG ,ELG )RU D PRUH GHWDLOHG FDOFXODWLRQ RI WKH 5LYHU 3ODWHnV KLGH H[SRUWV LQ WKH HLJKWHHQWK FHQWXU\ VHH *DUDYDJOLD (O 5R GH OD 3ODWD HQ VXV UHODFLRQHV DWO£QWLFDV 8QD EDODQ]D FRPHUFLDO f (FRQRPD VRFLHGDG \ UHJLRQHV %XHQRV $LUHV f

PAGE 36

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nV KLGHV FDPH IURP D ,ELG *DUDYDJOLD GHYHORSV WKLV GLVFXVVLRQ IURP KLV FDOFXODWLRQV RI WKH %XHQRV $LUHV DOFDEDOD UHJLVWHUV 6HH IRRWQRWHV SDJHV ,ELG

PAGE 37

ZLGHVSUHDG DQG GLYHUVH DUHD %XHQRV $LUHVn WLWKH LQFRPH GHSHQGHG RQ ZKHDW SURGXFWLRQ VHH 7DEOH f 7DEOH &DWWOH DQG *UDLQ 3HUFHQWDJH RI /LWRUDO 7LWKH r &DWWOH *UDLQ %XHQRV $LUHV 0RQWHYLGHR 6DQWD ) &RUULHQWHV r )LJXUHV UHSUHVHQW WKH SHUFHQWDJH RI WRWDO WLWKH LQFRPH 6RXUFH *DUDYDJOLD (FRQRPLF *URZWK DQG 5HJLRQDO 'LIIHUHQWLDWLRQV 7KH &X\R UHJLRQ FRPSULVHG RI WKH FLWLHV DQG MXULVGLFWLRQV RI 0HQGR]D 6DQ -XDQ DQG 6DQ /XLV UHOLHG RQ JUDSH FXOWLYDWLRQ DQG WKH SURGXFWLRQ DQG H[SRUW RI ZLQH DQG EUDQG\ DJXDUGLHQWHf WR %XHQRV $LUHV DQG WKH 5LYHU 3ODWH 0HQGR]D VSHFLDOL]HG LQ WKH SURGXFWLRQ RI ZLQH ZKLOH 6DQ -XDQ FRQFHQWUDWHG DOPRVW H[FOXVLYHO\ RQ DJXDUGLHQWH *DUDYDJOLD ILQGV WKDW WKH UHJLRQ IORXULVKHG LQ WKH PLGGOH RI WKH HLJKWHHQWK FHQWXU\ f EXW E\ WKH WLWKH LQFRPHV IURP WKLV UHJLRQ GLPLQLVKHG WR DERXW KDOI ZKDW WKH\ KDG EHHQ HDUOLHU WR DERXW SHUFHQW IRU 0HQGR]D DQG

PAGE 38

SHUFHQW IRU 6DQ -XDQf &ORVHU DQDO\VLV RI WKH ILJXUHV UHYHDOV LPSRUWDQW WUHQGV GHYHORSLQJ ZLWKLQ &X\R KRZHYHU ,Q WKH V 0HQGR]D FRQWULEXWHG PRUH WR &X\RnV WRWDO WLWKH LQFRPH WKDQ GLG 6DQ -XDQ E\ WKH WZR FLWLHV ZHUH DOPRVW HYHQ GHVSLWH WKH UHGXFHG WRWDOf DQG E\ 6DQ -XDQ KDG VXUSDVVHG 0HQGR]D DV GRPLQDQW FRQWULEXWRU WR &X\RnV WLWKH $V GRHV +DOSHULQ'RQJKL *DUDYDJOLD DWWULEXWHV WKHVH WUHQGV LQ &X\R WR WKH GLVDVWURXV HIIHFWV RI WKH %RXUERQ UHIRUPV DQG IUHH WUDGH $IWHU ZLQH DQG DJXDUGLHQWH IURP WKH 6SDQLVK 0HGLWHUUDQHDQ HQMR\HG IUHH DFFHVV WR WKH 5LYHU 3ODWH PDUNHWV ZKHUH WKHLU SUHVHQFH GLPLQLVKHG WKH GHPDQG IRU &X\RnV JRRGV %RWK WKH TXDQWLW\ DQG YDOXH RI &X\RnV SURGXFWV GURSSHG LQ %XHQRV $LUHV GXULQJ WKH V DQG V %XW WKH ZLQH WUDGH VHHPHG WR VXIIHU PRUH WKDQ WKH DJXDUGLHQWH WUDGH DOFDEDOD RU VDOHV WD[ UHFHLSWV IURP %XHQRV $LUHV LQGLFDWH WKDW DJXDUGLHQWH IURP 6DQ -XDQ ILJXUHG DPRQJ WKH PRVW LPSRUWDQW HIHFWRV GH OD WLHUUD RU IDUP DQG UDQFKLQJ SURGXFWV UHFHLYHG LQ WKH SRUW 7LWKH FROOHFWLRQ LQ WKH 7XFXP£Q UHJLRQ FRPSULVHG RI WKH FLWLHV RI &UGRED &DWDPDUFD 6DQ 0LJXHO GH 7XFXP£Q ,ELG ,ELG ,ELG

PAGE 39

6DOWD -XMX\ /D 5LRMD DQG 6DQWLDJR GH (VWHUR H[SHULHQFHG WKH PRVW JURZWK LQ WKH 5R GH OD 3ODWD LQFUHDVLQJ E\ SHUFHQW EHWZHHQ DQG &UGRED OHG WKLV WUHQG VXSSRUWHG E\ LQFUHDVHG UDQFKLQJ FDWWOH PXOHV DQG VKHHSf JURZLQJ ZRRO H[SRUWV DQG D ZHOOHVWDEOLVKHG IDUPLQJ FRPPXQLW\ LQ WKH FLW\nV FRXQWU\VLGH WR EHFRPH WKH VHFRQG PRVW LPSRUWDQW WLWKH FHQWHU DPRQJ WKH UHJLRQV VWXGLHG EHKLQG %XHQRV $LUHV %XW DJDLQ LI WKH DUHDV ZLWKLQ 7XFXP£Q DUH PRUH FORVHO\ H[DPLQHG GLIIHULQJ WUHQGV HPHUJH :KLOH &UGRED SURVSHUHG WUHPHQGRXVO\ WLWKH SURGXFWLRQ LQ 6DQ 0LJXHO GH 7XFXP£Q UHPDLQHG VWHDG\ DQG GHFOLQHG LQ WKH FRWWRQ DQG DJXDUGLHQWHSURGXFLQJ DUHDV RI &DWDPDUFD DQG /D 5LRMD %XW &RUGREDnV JURZWK DORQH ERRVWHG 7XFXP£QnV UHODWLYH SRVLWLRQ ZLWKLQ WKH UHJLRQDO ZKROH IURP SHUFHQW RI WKH WRWDO WLWKH FROOHFWLRQ LQ WR SHUFHQW LQ &RUGREDnV JURZWK SURYHG VR GHFLVLYH LQ IDFW WKDW WKH 7XFXP£Q UHJLRQnV UHODWLYH VKDUH RI WKH WRWDO WLWKH IRU WKH 5LR GH OD 3ODWD UHJLRQ JUHZ DW WKH H[SHQVH RI PRVW RWKHU UHJLRQV %HWZHHQ DQG IRU H[DPSOH %XHQRV $LUHVn VKDUH RI WKH WRWDO VKUDQN IURP SHUFHQW WR SHUFHQW 0RQWHYLGHRnV VKDUH VKUDQN IURP SHUFHQW WR WHQ SHUFHQW DQG &X\RnV VKDUH IURP SHUFHQW WR SHUFHQW 6DQWD ) WKH RQO\ RWKHU DUHD VKRZLQJ UHODWLYH JURZWK GXULQJ WKLV ,ELG

PAGE 40

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nV GRPLQDQW SRVLWLRQ +LV DQDO\VLV RI ERWK WKH RULJLQV RI WKH 5LYHU 3ODWHnV KLGHV DQG WKH PDUNHWV IRU &X\RnV ZLQH DQG DJXDUGLHQWH OHQG ZHLJKW WR WKLV ,ELG ,ELG

PAGE 41

DUJXPHQW LW ZRXOG VHHP WKDW %XHQRV $LUHVn SRVLWLRQ DV D SROH IRU WKH ,QWHULRUnV FRPPHUFH GDWHG IURP DW OHDVW WKH PLGHLJKWHHQWK FHQWXU\ 7KH JURZWK RI &RUGREDnV HFRQRP\ DQG LWV LQFUHDVLQJ $WODQWLF RULHQWDWLRQ IXUWKHU EROVWHU WKLV DUJXPHQW *DUDYDJOLDnV FDOFXODWLRQV DOVR FRQILUP LQ D PRGLILHG ZD\ +DOSHULQ'RQJKLnV DVVHVVPHQW RI WKH %RXUERQ UHIRUPVn LPSDFW RQ ,QWHULRU DJULFXOWXUH 7KH GHFOLQH RI &X\R LQ WKH IDFH RI ,EHULDQ FRPSHWLWLRQ GHPRQVWUDWHV WKH XQIRUWXQDWH FRQVHTXHQFHV RI IUHH WUDGH LQ DUHDV XQDEOH WR DGMXVW WR FKDQJLQJ FLUFXPVWDQFHV 7KH 7XFXP£Q UHJLRQ LOOXVWUDWHV D PRUH FRPSOH[ VFHQDULR ,I &UGRED SURVSHUHG EHFDXVH LWV ODUJH ODQGRZQHUV PDQDJHG WR LQFUHDVH H[SRUWV RI KLGHV DQG ZRRO WKH PRUH LVRODWHG DUHDV RI /D 5LRMD DQG &DWDPDUFD VXIIHUHG EHFDXVH RI WKHLU LQDELOW\ WR DXJPHQW RU VXSSOHPHQW WKHLU ZHDNHQHG VSHFLDOWLHV RI DJXDUGLHQWH DQG FRWWRQ *DUDYDJOLDnV VWXG\ XQGHUVFRUHV WKH LPSRUWDQFH DQG YDOXH RI UHJLRQDOL]LQJ HFRQRPLF VWXGLHV RI WKH FRPSOH[ ODWH FRORQLDO SHULRG +LV DQDO\VLV RI UHJLRQDO GLIIHUHQWLDWLRQ KRZHYHU GRHV QRW IXOO\ H[SODLQ HFRQRPLF WUHQGV VXFK DV WKH GRPLQDQW SRVLWLRQ RI JUDLQ SURGXFWLRQ WKURXJKRXW WKH 5LYHU 3ODWH DUHD QRU GRHV LW H[SODLQ WKH UHODWLRQVKLS EHWZHHQ WKLV JUDLQ SURGXFWLRQ DQG KLGH H[SRUWV 7KHVH TXHVWLRQV KRZHYHU DUH DGGUHVVHG E\ -RQDWKRQ %URZQnV VRFLRHFRQRPLF KLVWRU\ RI WKH 5R GH OD 3ODWD UHJLRQ GXULQJ WKH YLFHUHJDO

PAGE 42

DQG HDUO\ QDWLRQDO SHULRGV %URZQnV VWXG\ FRQFHQWUDWHV RQ ERWK SURGXFWLRQ DQG PDUNHWV GXULQJ WKH ILQDO \HDUV RI WKH SUHLQGXVWULDO DJH OLNH +DOSHULQ'RQJKL DQG *DUDYDJOLD %URZQ ILQGV H[WHUQDO PDUNHWV HVSHFLDOO\ LPSRUWDQW WR UHJLRQDO KLGH SURGXFWLRQ DIWHU 7KH EHJLQQLQJ RI (XURSHnV ,QGXVWULDO 5HYROXWLRQ DQG WKH HPHUJHQFH RI WKH KLGH H[SRUW HFRQRP\ LQ WKH 5R GH OD 3ODWD VWLPXODWHG UHJLRQDO JURZWK DQG FRQWULEXWHG WR WKH UHDVRQV EHKLQG WKH RSHQLQJ RI %XHQRV $LUHV WR OHJDO RYHUVHDV WUDGH EXW WKHVH SURFHVVHV GLG QRW LQLWLDWH D VWDWH RI GHSHQGHQFH RQ WKH $WODQWLF HFRQRP\ %URZQnV VWXG\ EOXQWO\ UHMHFWV VWDQGDUG GHSHQGHQF\ WKHRU\ DQG DSSOLHV LQVWHDG WKH VWDSOH WKHRU\ RI HFRQRPLF JURZWK WR $UJHQWLQLDQ KLVWRU\ 2ULJLQDOO\ FRQFHLYHG WR -RQDWKRQ & %URZQ $ 6RFLRHFRQRPLF +LVWRU\ RI $UJHQWLQD &DPEULGJH f DQG KLV 8QLYHUVLW\ RI 7H[DV 3KG GLVVHUWDWLRQ 7KH &RPPHUFLDOL]DWLRQ RI %XHQRV $LUHV $UJHQWLQDnV (FRQRPLF ([SDQVLRQ LQ WKH (UD RI 7UDGLWLRQDO 7HFKQRORJ\ $QQ $UERU f ,ELG %URZQ SUHVHQWV DQ H[FHOOHQW VXPPDU\ RI WKH EDVLF DUJXPHQWV RI WKH GHSHQGHQF\ VFKRRO 7KH GHSHQGHQF\ OLWHUDWXUH WKDW %URZQ FLWHV LQFOXGHV (QULTXH &DUGRVR DQG (Q]R )DOHWWR 'HSHQGHQFLD Y GHVDUUROOR HQ $PULFD /DWLQD $QGU *XQGHU )UDQN &DSLWDOLVP DQG 8QGHUGHYHORSPHQW LQ /DWLQ $PHULFD 1HZ
PAGE 43

H[SODLQ WKH HFRQRPLF DQG VRFLDO GHYHORSPHQW RI &DQDGD %URZQ DSSOLHV WKH VWDSOH WKHRU\ WR $UJHQWLQD ZLWK FRQVLGHUDEOH VXFFHVV 3URYLGLQJ D XVHIXO VWUXFWXUH IRU DQDO\]LQJ UHJLRQDO HFRQRPLHV VWDSOH WKHRU\ DSSOLHV EHVW ZKHQ WKH SURGXFWLRQ RI UDZ PDWHULDOV RU FRPPRGLWLHV VXFK DV KLGHV EHFRPHV WKH G\QDPLF VHFWRU RI D UHJLRQDO HFRQRP\ DQG VHWV WKH SDFH IRU UHJLRQDO HFRQRPLF GHYHORSPHQW %URZQnV DSSOLFDWLRQ RI VWDSOH WKHRU\ QRW RQO\ H[SODLQV WKH SUHGRPLQDQFH RI ZKHDW SURGXFWLRQ LQ WKH 5LYHU 3ODWH GHVFULEHG E\ *DUDYDJOLD EXW DOVR TXDOLILHV $VVDGRXULDQnV UHMHFWLRQ RI 6RXWK $PHULFDQ GHSHQGHQF\ RQ WKH $WODQWLF HFRQRP\ ,Q %URZQnV SUHVHQWDWLRQ WKUHH VLWXDWLRQV GHWHUPLQH VWDSOH HFRQRPLHV )LUVW LV WKH H[LVWHQFH RI ERWK LQWHUQDWLRQDO PDUNHWV IRU DQG WUDGH LQ FHUWDLQ VWDSOH SURGXFWV VXFK DV VLOYHU RU KLGHV 7KH VHFRQG LV WKDW D GHILQDEOH UHJLRQ HQMR\V D FRPSDUDWLYH DGYDQWDJH LQ WKH %XHQRV $LUHV f -RV 0DUD 5RVD $QDODVV KLVWULFR GH OD GHSHQGHQFLD DUJHQWLQD %XHQRV $LUHV f $QGUV 0 &DUUHWHUR 2UJHQHV GH OD GHSHQGHQFLD HFRQPLFD DUJHQWLQD %XHQRV $LUHV f DQG -XDQ $QWRQLR &RUUDGL $UJHQWLQD LQ 5RQDOG + &KLOFRWH DQG -RHO & (GHOVWHLQ HGLWRUV /DWLQ $PHULFD 7KH 6WUXJJOH ZLWK 'HSHQGHQF\ DQG %H\RQG &DPEULGJH f ,ELG %URZQ QRWHV WKDW +DUDOG $ ,QQLV 7KH )XU 7UDGH RI &DQDGD 7RURQWR f ZDV WKH ILUVW DSSOLFDWLRQ RI VWDSOH WKHRU\ WR &DQDGLDQ KLVWRU\ DQG WKDW 0HOYLOOH + :DWNLQV $ 6WDSOH 7KHRU\ RI (FRQRPLF *URZWK LQ &DQDGLDQ -RXUQDO RI (FRQRPLF DQG 3ROLWLFDO 6FLHQFH 0D\ f KDV EHVW IRUPXODWHG VWDSOH WKHRU\

PAGE 44

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n VWRFN\DUGV VODXJKWHUKRXVHV DQG ZDUHKRXVHV SURYLGH H[DPSOHV RI IRUZDUG OLQNDJHV )LQDO GHPDQG OLQNDJHV UHVXOW IURP WKH GHYHORSPHQW RI VHFRQGDU\ DUHDV RI SURGXFWLRQ DVVRFLDWHG ZLWK ORFDO FRQVXPHU GHPDQGV 3ULRU WR %URZQ DUJXHV WKH H[SRUW VHFWRU RI WKH 5R GH OD 3ODWD HFRQRP\ GLG QRW VXEYHUW RU UHVWULFW WKH GHYHORSPHQW RI DQ HFRQRPLF LQIUDVWUXFWXUHDQ DUJXPHQW FHQWUDO WR GHSHQGHQF\ WKHRU\ ,QVWHDG GLYHUVLILFDWLRQ DQG GLIIXVLRQ RI HFRQRPLF DFWLYLW\ FKDUDFWHUL]HG WKH VWDSOH HFRQRP\ RI WKH SUHn LQGXVWULDO DJH :LWKRXW WKH G\QDPLF KLGH H[SRUW HFRQRP\ LQ WKH 5LR GH OD 3ODWD %URZQ FRQFOXGHV WKH HFRQRPLF DQG ,ELG

PAGE 45

VRFLDO H[SDQVLRQ RI WKLV HQWLUH 6RXWK $PHULFDQ UHJLRQ ZRXOG KDYH EHHQ UHWDUGHG %URZQnV DSSOLFDWLRQ RI VWDSOH WKHRU\ FOHDUO\ GHPRQVWUDWHV WKH SURVSHULW\ RI WKH 5R GH OD 3ODWDnV YLFHUHJDO HFRQRP\ 1RWLQJ WKDW WKH HYROXWLRQ RI %XHQRV $LUHV DV WKH FHQWHU RI WKH VWDSOH HFRQRP\ DFFHOHUDWHG ZLWK LWV HVWDEOLVKPHQW DV WKH YLFHUHJDO FDSLWDO LQ DQG LWV UHFRJQLWLRQ DV WKH RIILFLDO 6SDQLVK SRUW IRU WKH HQWLUH UHJLRQ LQ %URZQ DUJXHV WKDW WKH VLQJOH PRVW LPSRUWDQW FKDQJH VKDSLQJ WKH 5LR GH OD 3ODWD HFRQRP\ ZDV WKH DGPLQLVWUDWLYH UHIRUP WKDW EURXJKW 3RWRV LQWR WKLV QHZ YLFHUHJDO VSKHUH DQG GLYHUWHG LWV RIILFLDO VLOYHU SURGXFWLRQ VRPH SHVRV D \HDU WKURXJK WKH FLW\nV SRUW %XHQRV $LUHV LQ UHVSRQVH GHYHORSHG DQ LQWHUQDO PDUNHW RI LWV RZQ WKDW JUDGXDOO\ VWLPXODWHG SURGXFWLRQ LQ WKH KLQWHUODQGV &DWWOH LQGXVWULHV LQ SDUWLFXODU KH DUJXHV UHVSRQGHG ZLWK JURZWK DQG VRSKLVWLFDWLRQ 0DUNHWV LQ ERWK %XHQRV $LUHV DQG 3RWRV VWLPXODWHG JURZWK LQ DOO WKH VHWWOHG DUHDV RI WKH 5LR GH OD 3ODWD 7KH YLFHUR\DOW\ H[SHULHQFHG QRW RQO\ H[SDQGLQJ LQWHUQDO FRPPHUFH EXW DOVR LQFUHDVLQJ RYHUVHDV FRPPHUFH DQG D ,ELG ,ELG %URZQ UHIHUV WR WKH YLFHUHJDO SHULRG DV WKH JROGHQ DJH RI WKH FRORQLDO HUD

PAGE 46

IDYRUDEOH EDODQFH RI WUDGH WKDW ODVWHG XQWLO WKH HQG RI WKH FRORQLDO HUD 3RWRVnV VLOYHU GRPLQDWHG WKLV FRPPHUFH FRPSULVLQJ EHWZHHQ DQG SHUFHQW RI WKH WRWDO YDOXH RI 5LYHU 3ODWH H[SRUWV (IHFWRV GH OD WLHUUD IROORZHG EHFRPLQJ PRUH DQG PRUH LPSRUWDQW +LGHV OHG WKLV JURZWK LQFUHDVLQJ IURP H[SRUWHG WR DOPRVW LQ 6DOWHG PHDW H[SRUWV WR +DYDQD IROORZHG DOVR ULVLQJ IURP PHWULF WRQV LQ WR WRQV WHQ \HDUV ODWHU ,PSRUWV OHG E\ WH[WLOHV IURP 6SDLQ %ULWDLQ DQG )UDQFH LURQ IURP 9L]FD\D DQG OX[XU\ LWHPV IURP DURXQG (XURSH DOVR UHYHDO DVFHQGLQJ WUHQGV 7KLV FRPPHUFLDO JURZWK %URZQ FRQWLQXHV UHIOHFWV GHPRJUDSKLF WUHQGV IRU DOPRVW DOO SDUWV RI WKH YLFHUR\DOW\ 'UDZLQJ RQ WKH GHPRJUDSKLF VWXGLHV RI -RUJH &RPDGU£Q 5XL] %URZQ DUJXHV WKDW PRVW RI WKH ,QWHULRU DV ZHOO DV WKH 5LYHU 3ODWH H[SHULHQFHG DQ\WKLQJ EXW HFRQRPLF GHSUHVVLRQ DV D ,ELG %URZQ FLWHV FRQWHPSRUDU\ REVHUYHUV ZKR HVWLPDWHG WKH YDOXH RI H[SRUWV GXULQJ WKH V DW DSSUR[LPDWHO\ ILYH PLOOLRQ SHVRV DQG LPSRUWV DW QHDUO\ WKUHH PLOOLRQ 7KHVH ILJXUHV KH DGGV PD\ EH ORZ 6HH DOVR *DUDYDJOLD (O ULWPR GH OD H[WUDFFLQ GH PHW£OLFR GHVGH HO 5R GH OD 3ODWD £ OD 3HQQVXOD 5HYLVWD GH ,QGLDV -DQXDU\-XQH f *DUDYDJOLD SURSRVHV WKDW VLOYHU H[SRUWV QHDUHG VL[ PLOOLRQ SHVRV LQ VRPH \HDUV GXULQJ WKH V DQG V ,ELG

PAGE 47

UHVXOW RI IUHHU WUDGH &RPDGU£Q 5XL]n FDOFXODWLRQV IRU WKH 5LYHU 3ODWH UHJLRQ VKRZ WKH SRSXODWLRQ FOLPELQJ IURP LQ WR LQ 7KH 7XFXP£Q UHJLRQ JUHZ IURP WR GXULQJ WKH VDPH \HDUV DQG &X\R IURP WR :LWKLQ WKHVH UHJLRQV RQO\ WKH -XMX\ MXULVGLFWLRQ GHFOLQHG IURP SHRSOH WR 7KH PRVW VXUSULVLQJ JURZWK ZDV LQ &X\R ZKHUH WKH SRSXODWLRQ PRUH WKDQ GRXEOHG GHVSLWH WKH GLIILFXOWLHV HQGXUHG E\ WKH ZLQH DQG DJXDUGLHQWHSURGXFLQJ LQGXVWULHV VHH 7DEOH f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£Q 5XL] (YROXFLQ GHPRJU£ILFD DUJHQWLQD GXUDQWH HO SHULRGR KLVS£QLFR f %XHQRV $LUHV f %URZQ $ 6RFLRHFRQRPLF +LVWRU\ RI $UJHQWLQD 6HH DOVR +RUDFLR & ( *LEHUWL +LVWRULD HFRQPLFD GH OD JDQDGHUD DUJHQWLQD %XHQRV $LUHV f

PAGE 48

7DEOH 3RSXODWLRQ *URZWK LQ WKH 5R GH OD 3ODWD 5HFULRQ 5LYHU 3ODWH 7XFXP£Q &UGRED /D 5LRMD -XMX\ 6DOWD 7XFXP£Q 6DQWLDJR GHO (VWHUR &DWDPDUFD &X\R 0HQGR]D 6DQ -XDQ 6DQ /XLV 7RWDOV 6RXUFH &RPDGU£Q 5X] (YROXFLQ DUJHQWLQD GHPRDU£ILFD JUDVVODQGV RI WKH 5LYHU 3ODWH 'HVSLWH FRQVLGHUDEOH ZDVWH YDTXHUDV QHYHUWKHOHVV PHW WKH GHPDQGV RI WKH $WODQWLF PDUNHW 9DTXHUDV LQ D VHQVH DOVR ZDVWHG UDQJHODQG JLYHQ WKH WHQGHQF\ RI KXQWHUV VLPSO\ WR H[WHQG )RU D PRUH FRPSOHWH GLVFXVVLRQ RI WKH KLVWRU\ RI YDTXHUD FDWWOH H[SORLWDWLRQ VHH (PLOLR &RQL +LVWRULD GH ODV YDTXHUDV GHO 5R GH OD 3ODWD %XHQRV $LUHV f DQG +HUQ£Q $VGUEDO 6LOYD /D JUDVD \ HO VHER GRV HOHPHQWRV YLWDOHV SDUD OD FRORQLD %XHQRV $LUHV HQ OD SULPHUD PLWDG GHO VLJOR GLH]LRFKR 5HYLVWD GH +LVWRULD $PHULFDQD Y $UJHQWLQD f

PAGE 49

WKHLU KXQWV IDUWKHU LQWR IURQWLHU UHJLRQV UDWKHU WKDQ WU\ WR HVWDEOLVK PDQDJHG KHUGV LQ DOUHDG\KXQWHG DUHDV %\ WKH PLGHLJKWHHQWK FHQWXU\ KRZHYHU D QXPEHU RI GLIIHUHQW SUHVVXUHV EURXJKW DERXW D PRUH HIILFLHQW EHWWHUPDQDJHG V\VWHP RI HVWDQFLDV RU IRUPDO FDWWOHEUHHGLQJ UDQFKHV WKDW LQWURGXFHG EHWWHU PHWKRGV RI SDVWRUDO SURGXFWLRQ (DUO\ HVWDQFLDV UHOLHG RQ XQVRSKLVWLFDWHG URXQGXSV DQG WKH EUDQGLQJ RI ZLOG FDWWOH WKDW VWLOO JUD]HG WKH XQIHQFHG UDQJHV 7KLV UXGLPHQWDU\ KXVEDQGU\ DV %URZQ FKDUDFWHUL]HV LW DVVXUHG WKH UHSURGXFWLRQ RI KHUGV DQG ZDV ODUJHO\ UHVSRQVLEOH IRU WKH VXFFHVV RI FDWWOHEUHHGLQJ LQ WKH %DQGD 2ULHQWDO :HOO ZDWHUHG HDVLO\ DFFHVVLEOH DQG IUHH RI ,QGLDQ WULEHV WKDW KDUDVVHG UDQFKLQJ RQ WKH SDPSD WKH %DQGD 2ULHQWDO TXLFNO\ EHFDPH WKH SULPDU\ UHJLRQ RI WKH QHZ WHFKQLTXHV RI FDWWOH UDQFKLQJ %\ WKH YLFHUHJDO SHULRG FDWWOH JUD]LQJ ZDV ZHOO HVWDEOLVKHG KHUH JHQHUDOO\ RULHQWHG WRZDUG WKH SRUW RI 0RQWHYLGHR %\ WKH V VDODGHURV RU %URZQ $ 6RFLRHFRQRPLF +LVWRU\ RI $UJHQWLQD 6HH DOVR +DOSHULQ'RQJKL 8QD HVWDQFLD HQ OD FDPSDD GH %XHQRV $LUHV )RQWH]XHOD DQG *DUDYDJOLD /DV DFWLYLGDGHV DJURSHFXDULDV HQ HO PDUFR GH OD YLGD HFRQPLFD GHO SXHEOR GH ,QGLRV GH 1XHVWUD 6HRUD GH ORV 6DQWRV 5H\HV 0DJRV GH
PAGE 50

VLPSOH PHDWVDOWLQJ SODQWV SUHSDUHG %DQGD 2ULHQWDO EHHI IRU H[SRUW WR &XED DQG %UD]LO 7KLV HYROXWLRQDU\ SURFHVV VDZ SDVWRUDO FRPPRGLWLHV ULVH WR EHFRPH D MXQLRU SDUWQHU LQ WKH 5LYHU 3ODWHnV FRPPHUFH VHFRQG RQO\ WR WKH H[SRUW RI 3HUXYLDQ VLOYHU 7KH SURFHVV ZRXOG FRQWLQXH WKURXJK WKH YLFHUHJDO SHULRG DQG LQWR WKH QLQHWHHQWK FHQWXU\ KHOSLQJ IXHO WKH LQFUHDVH LQ LQWHUQDWLRQDO VKLSSLQJ WKH FRQVROLGDWLRQ RI WKH PHUFKDQW FODVV DQG WKH JURZLQJ KHJHPRQ\ RI %XHQRV $LUHV ZLWKLQ WKH 5R GH OD 3ODWD HFRQRP\ :KHQ 3HUXnV VLOYHU SURGXFWLRQ ILQDOO\ FROODSVHG GXULQJ WKH LQGHSHQGHQFH ZDUV WKH SDVWRUDO HFRQRP\ VWRRG SRLVHG WR DVVXPH WKH UROH RI GRPLQDQW VHFWRU 7KH HDUO\ QDWLRQDO SHULRG LQ %URZQnV SUHVHQWDWLRQ VDZ WKH H[SRUW RI SDVWRUDO FRPPRGLWLHV IURP %XHQRV $LUHV EHJLQ WR FDUU\ WKH HQWLUH 5LR GH OD 3ODWD UHJLRQDO HFRQRP\ ,QGXVWULDO GHPDQGV LQ (XURSH DQG 1RUWK $PHULFD %URZQ FRQFOXGHV VXSSRUWHG WKH LQFUHDVLQJ SURVSHULW\ RI WKLV QHZ 6RXWK $PHULFDQ HFRQRP\ )RU IXUWKHU GLVFXVVLRQ VHH $QLEDO %DUULRV 3LQWRV +LVWRULD GH OD JDQDGHUD HQ 8UXJXD\ 0RQWHYLGHR QGf DQG E\ $OIUHGR 0RQWR\D +LVWRULD GH ORV VDODGHURV DUJHQWLQRV %XHQRV $LUHV f DQG /D JDQDGHUD Y OD LQGXVWULD GH VDOD]Q GH FDUQHV HQ HO SHULRGR %XHQRV $LUHV f ,ELG ,ELG 0XFK RI %URZQnV VWXG\ LV GHYRWHG WR H[SODLQLQJ WKH UHODWLRQVKLS EHWZHHQ WKH 1RUWK $WODQWLF LQGXVWULDO UHYROXWLRQ DQG WKH VXVWDLQHG SURVSHULW\ RI 5LR GH

PAGE 51

%URZQnV GLVFXVVLRQ RI VWDSOH WKHRU\ GHPRJUDSKLF GDWD DQG H[SDQVLRQ RI WKH SDVWRUDO HFRQRP\ WR 5R GH OD 3ODWD KHOSV H[SODLQ WKH H[SDQVLRQ RI JUDLQ FXOWLYDWLRQ IRU WKH GRPHVWLF PDUNHW LQ WKH 5LYHU 3ODWH UHYHDOHG E\ *DUDYDJOLD &RQFHQWUDWHG DURXQG WKH DUHDnV FLWLHV WKH JURZWK LQ IDUPLQJ UHIOHFWV ERWK WKH LQFUHDVHG HFRQRPLF DFWLYLW\ DQG WKH SRSXODWLRQ JURZWK WKDW PDUNHG WKH YLFHUHJDO HUD 6WDSOH WKHRU\ DOVR H[SODLQV WKH SURVSHULW\ RI &UGRED D FLW\ WLHG WR WKLV H[SDQVLRQ WKURXJK LWV RZQ KLGH DQG ZRRO H[SRUWV 6LPLODUO\ WKH FLW\nV IDUPLQJ VHFWRU WKULYHG DV D FRQVHTXHQFH RI D ILQDO GHPDQG OLQN WR WKLV SURVSHULW\ 7KH UHRULHQWDWLRQ RI 6DQWD ) KRZHYHU EHVW LOOXVWUDWHV WKH DVVRFLDWLRQ EHWZHHQ LQFUHDVHG FRPPRGLW\ H[SRUWV DQG HFRQRPLF GLYHUVLILFDWLRQ $V 6DQWD )nV KLGH H[SRUWV JUHZ EHWZHHQ DQG ZKHDW FXOWLYDWLRQ EHFDPH DQ LQFUHDVLQJO\ LPSRUWDQW HOHPHQW RI WKH ORFDO HFRQRP\ 3RSXODWLRQ JURZWK LQ WKH MXULVGLFWLRQ DV ZHOO DV LQFUHDVHG FRPPHUFLDO DFWLYLW\ VWLPXODWHG WKH SURGXFWLRQ RI IRRGVWXIIV LPSRUWDQW WR WKH ORFDO PDUNHW %URZQnV VWXG\ DOVR IXUWKHU TXDOLILHV WKH LQWHUSUHWDWLRQV RI $VVDGRXULDQ DQG +DOSHULQ'RQJKL +LV DSSOLFDWLRQ RI VWDSOH WKHRU\ DQG KLV VXEVHTXHQW DUJXPHQWV PDLQWDLQ WKH VHOIVXIILFLHQW QDWXUH RI WKH 6RXWK $PHULFDQ OD 3ODWDnV SDVWRUDO HFRQRP\ 6HH FKDSWHUV WKUHH DQG IRXU

PAGE 52

HFRQRP\ GHVSLWH WKH LQFUHDVLQJ LPSRUWDQFH RI WKH SDVWRUDO VHFWRU LQ WKH 5R GH OD 3ODWD %URZQ FOHDUO\ SUHVHQWV WKH UHRULHQWDWLRQ RI WKH 5LR GH OD 3ODWD HFRQRP\ WKDW VDZ WKH ULVH RI D SDVWRUDO HFRQRP\ RULHQWHG WRZDUG WKH $WODQWLF EXW KH DOVR UHFRJQL]HV WKH FRQWLQXHG GRPLQDQFH RI 3HUXYLDQ VLOYHU ZLWKLQ WKH FRPPHUFLDO VSKHUH RI WKH UHJLRQDO HFRQRP\ 7KH 5LR GH OD 3ODWDn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£Q UHJLRQ DOVR VXIIHUHG LQ WKH IDFH RI FRPSHWLWLRQ WULJJHUHG E\ WKH YLFHUHJDO HUDnV DGMXVWPHQWV %XW IXOO UHJLRQDO GHSHQGHQFH UDWKHU WKDQ UHOLDQFH DZDLWHG WKH SRVWLQGHSHQGHQFH \HDUV ZKHQ WKH 3HUXYLDQ VLOYHU VHFWRU KDG FROODSVHG RYHUVHDV WUDGH FOLPEHG KLJKHU DQG KLJKHU DQG LQGXVWULDO WHFKQRORJ\ EHJDQ WR SOD\ D PRUH DQG PRUH LPSRUWDQW UROH LQ ERWK SURGXFWLYH DQG H[WUDFWLYH WHFKQLTXHV

PAGE 53

7KH ZRUNV RI $VVDGRXULDQ +DOSHULQ'RQJKL *DUDYDJOLD DQG %URZQ UHSUHVHQW WKH EHVW V\QWKHVLV RI WKH 5R GH OD 3ODWDn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nV IRXQGDWLRQ LQ KLV UHJLRQDO VWXG\ RI 5LR GH OD 3ODWD +H FRQFHQWUDWHV RQ WKH FULWLFDO DGMXVWPHQWV WKDW GLPLQLVKHG WKH UROH RI WKH PLQLQJ VHFWRU ZLWKLQ WKLV UHJLRQ D SURFHVV WKDW DOVR DOWHUHG FRPPHUFLDO UHODWLRQVKLSV DQG SURPRWHG D QHZ FLW\ WR SRVLWLRQV RI DGPLQLVWUDWLYH DQG HFRQRPLF GRPLQDQFH +LV FRQFOXVLRQV PRGLI\ WKRVH RI $VVDGRXULDQ 2QH 6RXWK $PHULFDQ UHJLRQ DW OHDVW EHJDQ WR ZLWKGUDZ IURP WKH JUHDWHU FRQMXQFWLRQ DQG OHDQ PRUH DQG PRUH LQ WKH GLUHFWLRQ RI WKH $WODQWLF HFRQRP\

PAGE 54

*DUDYDJOLD XQGHUVFRUHV WKH FRPSOH[LW\ RI WKLV SURFHVV +LV WLWKH GDWD FRQILUPV WKH UHRULHQWDWLRQ RI WKH 5R GH OD 3ODWDnV KLGHSURGXFLQJ HFRQRP\ DQG LQWURGXFHV DQRWKHU LPSRUWDQW DFWLYLW\ *UDLQ FXOWLYDWLRQ KH VKRZV HPHUJHG DV D NH\ FRPSRQHQW RI WKH /LWRUDO HFRQRP\ DQG FRQWULEXWHG WR UHJLRQDO GHYHORSPHQW *DUDYDJOLDnV VWXG\ HPSKDVL]HV WKH LPSRUWDQFH RI FDUHIXO UHJLRQDO DQDO\VLV E\ GHPRQVWUDWLQJ WKH VXEWOH GLIIHUHQFHV IURP DUHD WR DUHD WKDW PDUNHG WKH G\QDPLF YLFHUHJDO SHULRG $QG E\ LGHQWLI\LQJ WKUHH IXQGDPHQWDO FRPSRQHQW UHJLRQV RI WKH 5LR GH OD 3ODWD *DUDYDJOLD IDFLOLWDWHV IXUWKHU H[DPLQDWLRQ RI WKH FRORQ\n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nV VWDSOH WKHRU\ OD\V WKH JURXQGZRUN IRU D FORVHU ORRN DW 7XFXP£QnV UHJLRQDO HFRQRP\

PAGE 55

&+$37(5 7:2 7+( 78&80$1 5(*,21 ,Q ZKHQ 'RQ $ORQVR &DUUL GH OD 9DQGHUD SHUKDSV EHWWHU NQRZQ E\ KLV SHQ QDPH &RQFRORUFRUYR OHIW %XHQRV $LUHV RQ DQ H[WHQGHG RYHUODQG WULS WR /LPD KH HQWHUHG WKH 7XFXP£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f (O /D]DULOOR $ *XLGH IRU ,QH[SHULHQFHG 7UDYHOOHUV EHWZHHQ %XHQRV $LUHV DQG /LPD 7UDQVODWHG E\ :DOWHU .OLQH %ORRPLQJWRQ f $ ZLGHO\ FLWHG 6SDQLVK HGLWLRQ RI WKLV ZRUN LV (O OD]DULOOR GH FLHJRV FDPLQDQWHV GHVGH %XHQRV $LUHV KDVWD /LPD %XHQRV $LUHV f 7KH HQWLUH WULS IURP %XHQRV $LUHV WR /LPD &RQFRORUFRUYR FDOFXODWHG DSSURDFKHG OHDJXHV WKH 7XFXP£Q SRUWLRQ IURP WKH IURQWLHU ZLWK %XHQRV $LUHV SURYLQFH WR WKH ERUGHU EHWZHHQ -XMX\ DQG /D 4XLDFD LQ WKH QRUWK VSDQQHG DSSUR[LPDWHO\ OHDJXHV

PAGE 56

JRRG SDVWXUHODQGV WKDW VXSSRUWHG KHUGV RI PXOHV FDWWOH R[HQ KRUVHV DQG VKHHS LUULJDWHG IDUPV LQ WKH SRSXODWHG YDOOH\V RI WKH MXULVGLFWLRQ JUHZ FURSV RI PDL]H ZKHDW DQG EDUOH\ $QQXDO LQFRPH IURP WKH PXOH DQG FDWWOH WUDGHV DORQH H[FHHGHG SHVRV &RQFRORUFRUYR FODLPHG DGGLQJ WKDW WKH FLW\ RI &UGRED FDSLWDO RI RQH RI WKH PRVW SURVSHURXV DUHDV KH ZRXOG VHH LQ KLV VXEVHTXHQW WUDYHOV UDQNHG DPRQJ WKH ZHDOWKLHVW FLWLHV RI LWV VL]H LQ 6SDQLVK $PHULFD 7KH FLW\nV SRSXODWLRQ QXPEHUHG MXVW RYHU ZKHQ &RQFRORUFRUYR VDZ LW WKH MXULVGLFWLRQnV SRSXODWLRQ FRXQWHG DOPRVW 7KH FLW\nV PDQ\ ZHDOWK\ SULQFLSDO FLWL]HQV PRVWO\ SDVWXUH RZQHUV DQG PHUFKDQWV OLYHG LQ ILQH KRXVHV DQG NHSW PDQ\ EODFN DQG PXODWWR VODYHV 6HDW RI WKH ELVKRSULF RI 7XFXP£Q DQG KRPH WR D FDWKHGUDO &RUGRED DOVR ERDVWHG 'RPLQLFDQ DQG )UDQFLVFDQ PRQDVWHULHV WZR FRQYHQWV D FURZQVXSSRUWHG FROHJLR DQG D )UDQFLVFDQ XQLYHUVLW\ ,Q IHZ SODFHV RI HTXDO VL]H LQ $PHULFD &RQFRORUFRUYR FODLPHG GRHV RQH ILQG VR PXFK ZHDOWK ,ELG &RQFRORUFRUYR SURYLGHV WKLV GHVFULSWLRQ SRSXODWLRQ ILJXUHV IRU &UGRED DQG WKH RWKHU 7XFXP£Q GLVWULFWV FRPH IURP -RUJH &RPDGU£Q 5XL] (YROXFLQ GHPRJU£ILFD DUJHQWLQD &RQFRORUFRUYR (O OD]DULOOR

PAGE 57

7HQ \HDUV ODWHU LQ WKH FLW\ ZRXOG EH QDPHG VHDW RI WKH QHZ ,QWHQGHQF\ RI &UGRED GH 7XFXP£Q ZLWK LWV MXULVGLFWLRQ VSUHDGLQJ WKURXJKRXW WKH VRXWKHUQ MXULVGLFWLRQV RI WKH ,QWHULRU &RQFRORUFRUYR VDZ &UGRED MXVW DV LW ZDV HPHUJLQJ IURP D ORQJ GHSUHVVLRQ 7KH SUHYLRXV FHQWXU\ KDG VHHQ WKH VWHDG\ FRQWUDFWLRQ RI WKH SURYLQFLDO HFRQRP\ DQG DV ODWH DV WKH FDELOGR RI &RUGRED KDG FRPSODLQHG RI ZLGHVSUHDG SRYHUW\ LQ WKH MXULVGLFWLRQ FRPSOLFDWHG E\ D ORQJ GURXJKW WKDW LQIODWHG WKH SULFHV RI EDVLF IRRGVWXIIV LQ WKH FLW\nV PDUNHWSODFH 6LQFH WKH EHJLQQLQJ RI WKH HLJKWHHQWK FHQWXU\ WKH FDELOGR H[SODLQHG GURXJKW KDG GLPLQLVKHG WKH MXULVGLFWLRQnV SURGXFWLRQ KXUWLQJ WKH OLYHVWRFN VHFWRU DV ZHOO DV DJULFXOWXUH DQG KDG WULJJHUHG WKH UXUDOL]DWLRQ RI WKH HQWLUH SURYLQFH 0DQ\ RI WKH PRVW UHVSHFWDEOH &DUWD GH &DELOGR GH &UGRED DO 5H\ LQ &DUORV $ 6HJUHWL HG &UGRED FLXGDG \ SURYLQFLD 6HFUQ UHODWRV GH YLDMHURV Y RWURV WHVWLPRQLRV &UGRED f )RU D PRUH FRPSOHWH GLVFXVVLRQ RI WKLV SURFHVV RI WKH UXUDOL]DWLRQ RI &RUGREDnV VRFLHW\ VHH $VVDGRXULDQ ,QWHJUDFLQ \ GHVLQWHJUDFLQ UHJLRQDO &HIHULQR *DU]Q 0DFHGD 7XFXP£Q (FRQRPD QDWXUDO Y HFRQRPD PRQHWDULD &UGRED f DOVR GLVFXVVHV WKH SURYLQFLDO GHSUHVVLRQ DQG LWV FRQVHTXHQFHV LQFOXGLQJ WKH VKRUWDJH RI FLUFXODWLQJ FXUUHQF\ DQG LQFUHDVLQJ UXUDOL]DWLRQ RI 7XFXP£Q

PAGE 58

FLWL]HQV KDG OHIW WKH FLW\ IRU WKHLU UDQFKHV FLWLQJ WKH JUHDWHU FRPIRUWV DQG VDYLQJV RI WKH FRXQWU\VLGH %\ KRZHYHU &RUGREDnV HFRQRP\ EHJDQ LWV UHFRYHU\ 7KH FDELOGR QRZ ZURWH RI DEXQGDQW SURYLVLRQV DQG JUHDW QXPEHUV RI ORFDO OLYHVWRFNFDWWOH VKHHS JRDWV R[HQ KRUVHV DQG PXOHVRQFH DJDLQ HQWHULQJ WKH 3HUXYLDQ WUDGH 7KH PRVWO\ FUHROH DQG FDVWD SRSXODWLRQ ZDV ZLGHO\ GLVSHUVHG OLYLQJ LQ QLQH SDUWLGRV RU MXULVGLFWLRQV WKDW ZHUH VXIILFLHQWO\ ZDWHUHG E\ \HDUURXQG ULYHUV DQG VWUHDPV &UGRED KLVWRULDQ (IUDLQ %LVFKRII IRXQG WKDW WKHVH UHVLGHQWV FUHDWHG PRUH WKDQ QHZ HVWDQFLDV LQ WKH MXULVGLFWLRQ &DUWD GHO 2ELVSR GH 7XFXP£Q GRQ -XDQ GH 6DUULFROD DO 5H\ LQ 6HJUHWL &UGRED FLXGDG \ SURYLQFLD ,QIRUPH GHO &DELOGR GH &UGRED DO 5H\ LQ 6HJUHWL &UGRED FLXGDG Y SURYLQFLD 6HH WKH 2ILFLR GHO JREHUQDGRULQWHQGHQWH GH &UGRED 0DUTXV GH 6REUHPRQWH DO YLUUH\ 0DUTXV GH /RUHWR GDWHG 1RYHPEHU LQ $UFKLYR *HQHUDO GH ,QGLDV $*,f %XHQRV $LUHV &RUUHVSRQGHQFLD FRQ ORV *REHUQDGRUHV GH 7XFXP£Q IROLRV QRW QXPEHUHGf 7KLV GRFXPHQW LV DOVR WUDQVFULEHG LQ -RVH 7RUUH 5HYHOR (O 0DUTXV GH 6REUHPRQWH *REHUQDGRU ,QWHQGHQWH GH &UGRED \ 9LUUH\ GHO 5R GH OD 3ODWD (QVD\R KLVWULFR %XHQRV $LUHV f [FLFLLL 6REUHPRQWH LQFOXGHG WKH SRSXODWLRQV RI WKH DGGLWLRQDO VHWWOHPHQWV LQ WKH &UGRED GLVWULFW 5LR 6HJXQGR 5R 7HUFHUR 5R 4XDUWR &DODPXFKLWD 7UDV OD 6LHUUD 7XOXPED 3XQLOOD
PAGE 59

GXULQJ WKH V DQG V %\ WKH V DW DQ\ UDWH &UGRED KDG UHHVWDEOLVKHG LWV SRVLWLRQ DV WKH VWDJLQJ JURXQG IRU WKH 3HUXYLDQ PXOH WUDGH /RFDO ODQGRZQHUV RQFH DJDLQ SXUFKDVHG ODUJH QXPEHUV RI \RXQJ PXOHV IURP EUHHGHUV LQ %XHQRV $LUHV 6DQWD ) DQG &RUULHQWHV 7KHVH DQLPDOV ZLQWHUHG LQ WKH IHUWLOH SDVWXUHV RI &UGRED IRU ODWHU VDOH WR 6DOWD GHDOHUV DQG XOWLPDWHO\ WR 3HUXYLDQ EX\HUV 7KLV PXOH WUDGH &RQFRORUFRUYR QRWHG GRPLQDWHG &RUGREDnV HFRQRP\ DV ZHOO DV WKDW RI WKH HQWLUH 7XFXP£Q UHJLRQ &RUGREDn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nV DEXQGDQFH &RUGREDnV (IUDQ %LVFKRII +LVWRULD GH &UGRED &XDWUR VLJORV &UGRED f &RQFRORUFRUYR (O OD]DULOOR

PAGE 60

3/ r 3 e 8 )LJXUH 7XFXP£Q DQG &X\R 5HJLRQV F

PAGE 61

ELVKRS UHFRJQL]HG LQ DURVH IURP WKH IHUWLOH SDVWXUHV WKDW VXSSRUWHG WKHVH SDVWRUDO LQGXVWULHV DQG QXUWXUHG WKH JURZWK WKDW VDZ WKH SRSXODWLRQ LQFUHDVH IURP D ORZ RI SHUKDSV LQKDELWDQWV LQ )LYH PLOLWDU\ SRVWV WR WKH VRXWK JXDUGHG WKH IURQWLHU DQG GHIHQGHG &RUGREDn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£Qf LQ 5HYLVWD GH %XHQRV $LUHV YROXPHV %XHQRV $LUHV f YROXPH f $OWKRXJK WKLV LQIRUPH LV QRW GDWHG RWKHUV DUJXH WKDW LW ZDV ZULWWHQ LQ VHH (GEHUWR 2VFDU $FHYHGR /D LQWHQGHQFLD GH 6DOWD GH 7XFXP£Q HQ HO YLUUHLQDWR GHO 5R GH OD 3ODWD 0HQGR]D f IRRWQRWH 0RVFRVRnV SRSXODWLRQ HVWLPDWH FDPH IURP D UHODFLQ VXEPLWWHG E\ WKH %LVKRS 3HGUR 0LJXHO GH $UJDQGRD LQ 6REUHPRQWH 2ILFLR f 6REUHPRQWH GHVFULEHG WKH IURQWLHU DV UXQQLQJ IURP WKH )XHUWH GH ODV 7XQDV LQ %XHQRV $LUHVn MXULVGLFWLRQ WR 6DQ /XLV LQ &RUGREDnV WKH IRUWV WKDW &UGRED VXSSRUWHG LQFOXGH WKH WZR IXHUWHV RI 6DODGLOOR DQG 6DXFH DQG WKH IRUWLQHV RI 6DQ %HUQDUGR 6DQWD &DWKDOLQD DQG &RQFHSFLQ GHO 5R &XDUWR

PAGE 62

LQGLRV ZKLFK WRJHWKHU FRPSULVHG RQO\ WULEXWDULHV ZKR JHQHUDOO\ SDLG WKHLU WULEXWHV ZLWK OHQJWKV RI FRWWRQ FORWK $ QXPEHU RI &RUGREDnV ODQGRZQHUV HYHQ FODLPHG HQFRPLHQGD ULJKWV RQ YHU\ VPDOO QXPEHUV RI ,QGLDQV GXULQJ WKH YLFHUHJDO HUD WKH QXPEHUV SUREDEO\ QHYHU VXUSDVVHG PDQ\ PRUH WKDQ VHYHUDO GR]HQ HQFRPHQGHURV ZLWK RQH WZR WKUHH RU IRXU DVVLJQHG ,QGLDQV DSLHFH 2QH KXQGUHG DQG ILIWHHQ OHDJXHV QRUWK RI &UGRED &RQFRORUFRUYR UHDFKHG WKH PXFK VPDOOHU FLW\ RI 6DQWLDJR GHO (VWHUR 6LWXDWHG RQ WKH EDQNV RI WKH 5R 'XOFH WKH FLW\ FRXQWHG IHZHU WKDQ UHVLGHQWV ZKLOH WKH MXULVGLFWLRQ QXPEHUHG RYHU 7KH DUHDnV SRYHUW\ VWUXFN LWV YLVLWRUV &RQFRORUFRUYR GHVFULEHG WKH MXULVGLFWLRQ DV VDOWSHWURXV DQG H[SRVHG WR IORRGV DQG VDLG WKDW PRVW RI WKH MXULVGLFWLRQnV UHVLGHQWV VFDWWHUHG DERXW LQ KXWV DUH PLVHUDEOH VRXOV %LVKRS 0RVFRVR DGGHG WKDW WKH HQWLUH MXULVGLFWLRQ ODFNHG DQ\ PRUDO FXOWXUH DQG ZDV IDOOLQJ IURP FLYLOL]DWLRQFRQGLWLRQV GXH KH VXJJHVWHG WR WKH ,ELG 6REUHPRQWH OLVWHG WKHVH SXHEORV 6DQ $QWRQLR 1RQVDFDWH 4XLOLQR 6DQ -DFLQWR 6RWR 3LFKDQD 6DOVDFDWH 1RQR &R]TXQ /D 7RPD DQG /RV 5DQFKRV 6HH $GROIR /XV *RQ]£OH] 5RGUJXH] /D HQFRPLHQGD HQ 7XFXP£Q 6HYLOOH f ,ELG

PAGE 63

SUHYDOHQFH RI WKH 4XHFKXD ODQJXDJH DPRQJ WKH UXUDO LQKDELWDQWV 6DQG\ VRLOV OLPLWHG WKH DJULFXOWXUDO SRWHQWLDO RI WKH MXULVGLFWLRQ DQG WKH ORFDO HFRQRP\ GHSHQGHG XSRQ WKH %XHQRV $LUHV/LPD WUDGH :LWK OLWWOH OLYHVWRFN SURGXFWLRQ DQG HYHQ OHVV FRPPHUFLDO IDUPLQJ WKH MXULVGLFWLRQ ZDV EHWWHU NQRZQ IRU WKH KDQGZRYHQ SRQFKRV EODQNHWV DQG VDGGOHEODQNHWV WKDW SURYLGHG LQFRPH IRU WKH UXUDO SRSXODWLRQ &RQFRORUFRUYR DOVR QRWHG WKDW WKH PHQ RI 6DQWLDJR GHO (VWHUR HQMR\HG UHSXWDWLRQV DV WKH EHVW VROGLHUV LQ WKH SURYLQFH ORQJ IDPLOLDU ZLWK &KDFR ,QGLDQ UDLGV :LWK LWV ODUJHO\ ,QGLDQ SRSXODWLRQ SUHYDLOLQJ SRYHUW\ DQG WKH ORQJ KLVWRU\ RI IURQWLHU KRVWLOLWLHV WKH MXULVGLFWLRQ EHFDPH DQ LPSRUWDQW VRXUFH RI DJULFXOWXUDO ODERU IRU WKH /LWRUDO UHJLRQ GXULQJ WKH YLFHUHJDO SHULRG )RUW\ OHDJXHV QRUWK WKH WUDYHOOHU HQWHUHG WKH FLW\ RI 6DQ 0LJXHO GH 7XFXP£Q KLJKHU LQ HOHYDWLRQ WKDQ WKH VRXWKHUQ 0RVFRVR ,QIRUPH DV IROORZV 1R HV PHQRV WDUGLD VX FXOWXUD HQ HO PRUDO SHUR PDV GH QRWDUVH HVWLORV TXH GHVGLFHQ GH OD FLYLOL]DFLQ FRQVHUYDQ OD OHQJXD TXLFKXDFDUL SRU LGLRPD GRPLQDQWH GH WRGRV VXV YHFLQRV +DOSHUQ'RQJKL 3ROLWLFV (FRQRPLFV DQG 6RFLHW\ FKDUDFWHUL]HV WKLV GRPHVWLF ZHDYLQJ DV D IORXULVKLQJ DFWLYLW\ &RQFRORUFRUYR VDLG LW ZDV PHDJHU ,ELG

PAGE 64

MXULVGLFWLRQV DQG PRUH SURVSHURXV WKDQ 6DQWLDJR GHO (VWHUR &RQFRORUFRUYR DGPLUHG WKH MXULVGLFWLRQnV JRRG SDVWXUHV H[WHQVLYH IRUHVWV DQG DEXQGDQFH RI ILQH ZRRGV DOO LPSRUWDQW WR WKH ORFDO HFRQRP\ %LVKRS 0RVFRVR GHVFULEHG DOO WKH QDWXUDO DGYDQWDJHV WKDW FRPH WRJHWKHU WR EHQHILW WKLV SODFH 7KH MXULVGLFWLRQnV SRSXODWLRQ H[FHHGHG ZLWK DERXW LQ WKH FLW\ LWVHOI WKH DSSUR[LPDWHO\ SULQFLSDO UHVLGHQWV SURVSHUHG PDLQO\ IURP WKH FDUU\LQJ WUDGH WKDW ZDV VR LPSRUWDQW WR WKH MXULVGLFWLRQnV HFRQRP\ 5DQFKLQJ HVSHFLDOO\ WKH EUHHGLQJ DQG WUDLQLQJ RI R[HQ IRU WKH FDUWLQJ WUDGH DOVR FRQWULEXWHG WR WKH ORFDO HFRQRP\ 7KH MXULVGLFWLRQ DOVR ILJXUHG DV DQ LPSRUWDQW FUDIW FHQWHU ZKHUH KLGH WDQQLQJ DQG WKH H[SRUW RI OHDWKHUV HPSOR\HG PDQ\ DQG FDUSHQWU\ PDQ\ PRUH &XW ZRRG DQG WULPPHG OXPEHU DQG KDQGFUDIWHG IXUQLWXUH IURP 6DQ 0LJXHO GH 7XFXP£Q VROG WKURXJKRXW WKH ,QWHULRU DV ZHOO DV LQ WKH /LWRUDO VHWWOHPHQWV 7KH FRQVWUXFWLRQ RI ODUJH FDUWV DV PDQ\ DV HDFK \HDU UHIOHFWHG WKH FLW\nV UROH LQ WKH %XHQRV $LUHV3RWRV WUDGH &RQFRORUFRUYR (O OD]DULOOR 0RVFRVR 2ILFLR &DUORV 3£H] GH OD 7RUUH +LVWRULD GH 7XFXP£Q %XHQRV $LUHV f 2VYDOGR 5DO %D]£Q +LVWRULD GHO QRURHVWH DUJHQWLQR %XHQRV $LUHV f

PAGE 65

$JULFXOWXUH ZDV VSDUVH LQ WKLV MXULVGLFWLRQ EXW ULFH JURZQ KHUH PHULWHG VSHFLDO QRWH LQ D FRQVXODGR UHSRUW WR WKH YLFHUR\ LQ DQG FLWUXV HVSHFLDOO\ RUDQJHV ZDUUDQWHG VSHFLILF PHQWLRQ LQ (O &RUUHR 0HUFDQWLO GH (VSDD Y VXV ,QGLDV LQ WKH VDPH \HDU 7KH MXULVGLFWLRQ DOVR SURGXFHG D ILQH WREDFFR FDOOHG $QGXOOR WKDW VROG WKURXJKRXW WKH SURYLQFH DQG LQ $OWR 3HU EXW FRPSHWHG ZLWK WREDFFR JURZQ LQ 3DUDJXD\ DQG 1XHYD *UDQDGD ,Q WKH FRQWDGRU -XDQ )UDQFLVFR 1DYDUUR WUDYHOOLQJ WR D QHZ SRVLWLRQ LQ %XHQRV $LUHV UHFRPPHQGHG WKDW WKH FURZQ VWRS EX\LQJ WKHVH RWKHU W\SHV RI WREDFFR IRU VDOH LQ 3HUX DQG OLPLW FRPPHUFH WR WKH 6DQ 0LJXHO GH 7XFXP£Q YDULHW\ &LWLQJ LWV HTXDO RU HYHQ VXSHULRU TXDOLW\ 1DYDUUR QRWHG WKH FKHDSHU WUDQVSRUWDWLRQ FRVWV DQG KHQFH WKH JUHDWHU SURILWDELOLW\ RI 7XFXP£Q WREDFFR ,Q KRZHYHU RIILFLDOV DW WKH 5HDO 5HQWD GH 7REDFR SURKLELWHG IXUWKHU FXOWLYDWLRQ RI WREDFFR LQ 6DQ 0LJXHO GH 7XFXP£Q DV SXQLVKPHQW IRU IUDXG DQG EDG IDLWK LQ 6HH $FHYHGR /D ,QWHQGHQFLD GH 6DOWD IRU D GLVFXVVLRQ RI ULFH FXOWLYDWLRQ LQ WKH GLVWULFW DQG 3£H] GH OD 7RUUH +LVWRULD GH 7XFXP£Q IRU WKH WH[W RI (O &RUUHR 0HUFDQWLO (GEHUWR 2VFDU $FHYHGR (O YLDMH GHO FRQWDGRU 1DYDUUR HQWUH /LPD \ %XHQRV $LUHV HQ LQ 5HYLVWD GH +LVWRULD $PHULFDQD Y $UJHQWLQD f

PAGE 66

LWV FRPPHUFH ZLWK &X\R &RQVHTXHQWO\ WKLV SRWHQWLDO DVVHW WR WKH SURYLQFLDO HFRQRP\ QHYHU IXOO\ GHYHORSHG 6LPLODUO\ 1DYDUUR FRPPHQWHG RQ WKH MXULVGLFWLRQnV OLPLWHG VXJDU FXOWLYDWLRQ LQ ZKLFK KH DJDLQ VDZ FRQVLGHUDEOH SRWHQWLDO +H UHFRPPHQGHG HQFRXUDJLQJ LWV H[SDQVLRQ LQWR WKH 3HUXYLDQ PDUNHW DJDLQ FLWLQJ ORZ WUDQVSRUWDWLRQ FRVWV 6XJDU SURGXFWLRQ H[SDQGHG VORZO\ LQ 6DQ 0LJXHO GH 7XFXP£Q KRZHYHU DQG GLG QRW EHFRPH D VLJQLILFDQW LWHP LQ SURYLQFLDO H[SRUWV XQWLO DIWHU WKH FRORQLDO UHJLPH 6DOWD DSSHDUHG QH[W RQ WKH %XHQRV $LUHV3RWRV URDG DSSUR[LPDWHO\ OHDJXHV EH\RQG 6DQ 0LJXHO GH 7XFXP£Q ,Q &RQFRORUFRUYRnV GD\ 3HUXYLDQ PHUFKDQWV KDG DOUHDG\ PDGH 6DOWD IDPRXV IRU WKH JUHDW OLYHVWRFN IDLU KHOG RQ WKH FLW\nV RXWVNLUWV 6DOWD KDG RQFH ULYDOOHG &UGRED IRU WKH GRPLQDQW SRVLWLRQ LQ WKH 5R GH OD 3ODWD LQWHULRU LQ LW EHFDPH VHDW RI WKH ,QWHQGHQF\ RI 6DOWD GH 7XFXP£Q ZLWK MXULVGLFWLRQ RYHU WKH RWKHU FLWLHV RI 6DQWLDJR GHO (VWHUR 6DQ 0LJXHO GH 7XFXP£Q &DWDPDUFD DQG 6DQ 6DOYDGRU GH -XMX\ $FHYHGR /D LQWHQGHQFLD GH 6DOWD $FHYHGR (O YLDMH GH &RQWDGRU 1DYDUUR &RQFRORUFRUYR (O OD]DULOOR &RQFRORUFRUYR HVWLPDWHG WKDW 6DOWD DQQXDOO\ VHQW VRPH PXOHV DQG KRUVHV WR 3HUX D ILJXUH WKDW VHHPV KLJK LQ OLJKW RI H[LVWLQJ UHFRUGV RI WKH WUDGH

PAGE 67

6DOWDnV SRSXODWLRQ ZDV TXLWH VPDOOSHUKDSV LQ WKH FLW\ DQG VRPH LQ WKH MXULVGLFWLRQ EXW WKH ODQGRZQLQJ FODVV FRQVWLWXWHG D SRZHUIXO IRUFH DQG WKH FLW\nV NH\ UROH LQ WKH 3HUXYLDQ WUDGH JDYH LW DQ LQIOXHQWLDO SRVLWLRQ LQ YLFHUHJDO DIIDLUV 7KH 3HUXYLDQ WUDGH GRPLQDWHG WKH MXULVGLFWLRQnV HFRQRPLF OLIH ZKLFK FHQWHUHG DURXQG WKH PXOH WUDGH DQG FRPPHUFH 7KH MXULVGLFWLRQnV ILQH SDVWXUHV VWUHQJWKHQHG WKH \RXQJ PXOHV EURXJKW IURP WKH VRXWKDV &RQFRORUFRUYR H[SODLQHG WKH RZQHUV RI 6DOWDn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f %XHQRV $LUHV f

PAGE 68

(LJKWHHQ OHDJXHV SDVW 6DOWD WKH WUDYHOOHU DUULYHG LQ 6DQ 6DOYDGRU GH -XMX\ WKH QRUWKHUQPRVW FLW\ LQ WKH 7XFXP£Q UHJLRQ $ FLW\ RI RQO\ UHVLGHQWV LQ D MXULVGLFWLRQ ZLWK DURXQG 6DQ 6DOYDGRU GH -XMX\ KDG RQFH NQRZQ EHWWHU WLPHV %\ WKH RQVHW RI WKH YLFHUHJDO HUD KRZHYHU -XMX\ KDG GHFOLQHG WR D SRVLWLRQ RI VHFRQGDU\ LPSRUWDQFH GHVFULEHG E\ %LVKRS 0RVFRVR DV D SODFH RI OLWWOH VRFLHW\ :KLOH 6DOWD FRQWUROOHG 7XFXP£QnV PXOH WUDGH -XMX\ FODLPHG WKH PXFK OHVV OXFUDWLYH FDWWOH WUDGH ZLWK $OWR 3HU VHOOLQJ VHYHUDO WKRXVDQG DQLPDOV DQQXDOO\ WR EX\HUV IURP WKH SURYLQFHV RI &KLFKDV DQG 3RUFR -XMX\nV ODUJH ,QGLDQ SRSXODWLRQ DOVR FRQWULEXWHG VLJQLILFDQW DPRXQWV WR WKH UR\DO WUHDVXU\ FRQFHQWUDWHG LQ DQ DUHD QRUWK DQG ZHVW RI WKH FLW\ NQRZQ DV /D 3XQD WKH SXHEORV GH LQGLRV WKDW LQFOXGHG 5LQFRQDGD &RFKLQRFD 3XUPDPDUFD 7XPEDLD 7LOFDUD DQG +XPDKXDFD WRJHWKHU SDLG VHYHUDO WKRXVDQG SHVRV LQ \HDUO\ WULEXWH REOLJDWLRQV %XW -XMX\nV ORFDWLRQ DV WKH QRUWKHUQPRVW MXULVGLFWLRQ LQ 7XFXP£Q SURYLGHG LWV PRVW LPSRUWDQW DGYDQWDJH JLYLQJ LW FRQWURO RI WKH WHUPLQXV RI WKH FDUW URXWH WKURXJK WKH SURYLQFH DQG D PRQRSRO\ RQ WKH &RQFRORUFRUYR (O OD]DULOOR $*, %XHQRV $LUHV &XHQWDV GH 5HDO +DFLHQGD GH 6DOWD \ -XMXL f

PAGE 69

WUDQVVKLSPHQW RI PHUFKDQGLVH LQWR $OWR 3HU RQ WKH EDFNV RI WDPHG PXOHV 2QO\ PXOHV EURNHQ DQG WUDLQHG IRU WKH WDVN LQ WKH SDVWXUHV RI WKH MXULVGLFWLRQ FRXOG PDQDJH WKH GLIILFXOW OHDJXH FDUULDJH IURP 6DQ 6DOYDGRU GH -XMX\ WR 3RWRV 7KH 6DOWD DQG -XMX\ MXULVGLFWLRQV DOVR VXSSRUWHG D OLQH RI IURQWLHU IRUWLILFDWLRQV LQWHQGHG WR NHHS KRVWLOH &KDFR ,QGLDQ EDQGV IURP UDLGLQJ YXOQHUDEOH KDFLHQGDV 6XSSRUWHG E\ WKH -XMX\ WUHDVXU\ WKH SUHVLGLRV RI /RV 'RORUHV /HGHVPD 6DQ %HUQDUGR DQG 6DQWD %£UEDUD JDUULVRQHG SHUKDSV VROGLHUV 7KH 6DOWDVXSSRUWHG SRVWV LQFOXGLQJ WKH SUHVLGLRV RI 6DQ /XLV DQG 6DQ &DUORV RFFXSLHG PRUH 7RJHWKHU WKH WZR MXULVGLFWLRQV VSHQW RYHU SHVRV HDFK \HDU SD\LQJ VDODULHV DQG VXSSO\LQJ SURYLVLRQV IRU WKHVH GHIHQVHV 7ZR RWKHU 7XFXP£Q MXULVGLFWLRQV RII WKH PDLQ URDG FODLPHG VRPH LPSRUWDQFH $OWKRXJK WKH\ JHQHUDWHG OHVV $FHYHGR ,QWHQGHQFLD GH 6DOWD $F£UHWH GX %LVFD\ $Q $FFRXQW RI D 9R\DJH XS WKH 5LYHU GH OD 3ODWD DQG WKHQFH 2YHUODQG WR 3HUX 1RUWKKDYHQ /RQGRQ f $*, %XHQRV $LUHV ([SHGLHQWHV VREUH OD 6LVD GH 7XFXP£Q \ UHGXFFLQ GH LQGLRV f D GRFXPHQW WLWOHG 3ODQR GH OD WURSD GH ODV IURQWHUDV GH HVWD FLXGDG WR 6DOWD \ OD GH -XMX\ IROLRV QRW QXPEHUHGf

PAGE 70

YLEUDQW HFRQRPLHV WKH &DWDPDUFD DQG /D 5LRMD MXULVGLFWLRQV FRQWULEXWHG LQ VSHFLDOL]HG ZD\V WR WKH 7XFXP£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nV UXUDO SRSXODWLRQ DQG VPDOO SXHEORV GH LQGLRV SURGXFHG TXDQWLWLHV RI FRDUVH FRWWRQ OLQHQV WKDW ZHUH FRQVXPHG ORFDOO\ RU VROG LQ QHLJKERULQJ MXULVGLFWLRQV )DUPHUV LQ &DWDPDUFD DOVR SUDFWLFHG VRPH LUULJDWHG PDUNHW JDUGHQLQJ YLWLFXOWXUH DQG WREDFFR FXOWLYDWLRQ DQG LQ WKH KLJKHU DUHDV VRPH ZKHDW FXOWLYDWLRQ EXW &DWDPDUFDnV LQKDELWDQWV FRQVXPHG PRVW RI WKLV SURGXFWLRQ ORFDOO\ +DOSHULQ'RQJKL 3ROLWLFV (FRQRPLFV DQG 6RFLHW\ )RU PRUH GLVFXVVLRQ RI &DWDPDUFD VHH $FHYHGR /D ,QWHQGHQFLD GH 6DOWD %D]£Q +LVWRULD GHO QRURHVWH

PAGE 71

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nV SURGXFWV FDPH IURP &UGRED /D 5LRMDnV MXULVGLFWLRQ LQFOXGHG WKH PLQHV RI )DPDWLQD ZKHUH SHRSOH SRSXODWHG D IDLUO\ IHUWLOH DUHD WKDW QHYHUWKHOHVV VDZ OLWWOH DUJHQWRO &DUORV YLOODIXHUWH DQG 5RJHOLR 0DFKDGR &DWDPDUFD FDPLQR \ WLHPSR %XHQRV $LUHV QGf )RU PRUH RQ &DWDPDUFDnV WH[WLOHV VHH &DUORV $ 'HOOHVSLDQH \ &DOFHQD /D DUWHVDQD GHO WHMLGR HQ &DWDPDUFD LQ 3ULPHU &RQJUHVR GH +LVWRULD GH &DWDPDUFD YROXPHV &DWDPDUFD f YROXPH ,,, 6REUHPRQWH 2ILFLR f DQG 0RVFRVR ,QIRUPH ERWK QRWH /D 5LRMDnV VPDOO HFRQRP\ 6REUHPRQWHnV UHSRUW LQFOXGHV D OLVW RI WKH HOHYHQ SXHEORV GH LQGLRV6DQDJDVWD 0DFKLQDJDVWD $LPRJDVWD 6DXFHV 3LWXLO )DPDWLQD 0DOOLJDVWD $QJXLQDP 6DQRJDVWD 8LFKLJDVWD DQG 2LWDWKDW WRJHWKHU FRPSULVHG RQO\ WULEXWDULHV ZKR JHQHUDOO\ SDLG WKHLU WULEXWHV ZLWK OHQJWKV RI FRWWRQ OLHQ]RV

PAGE 72

FXOWLYDWLRQ 7KH PLQHV EDUHO\ SURGXFHG ZKHQ 6REUHPRQWH YLVLWHG LQ WKH\ KDG ORQJ VLQFH SOD\HG RXW DQG WKH PDQ\ SRRU VRXOV VWLOO PLQLQJ WKH DUHD EDUHO\ VFUDWFKHG RXW D OLYLQJ )DOOLQJ RXWVLGH WKH 7XFXP£Q UHJLRQ SURSHU DV GHILQHG E\ *DUDYDJOLDf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

PAGE 73

%XHQRV $LUHV 7KH MXULVGLFWLRQ DOVR HQJDJHG LQ VRPH UDQFKLQJ DOEHLW RQ D VPDOOHU VFDOH DQG GLUHFWHG PDLQO\ WRZDUG WKH ORFDO PDUNHW RU IRU H[SRUW WR &KLOH 5DQFKLQJ FRQFHQWUDWHG LQ WKH 9DOOH GH 8FR ZKHUH ILQH DOIDOID SDVWXUHV VXSSRUWHG KHDOWK\ KHUGV DQG H[SRUWV RI DQLPDO E\n SURGXFWV WKDW LQFOXGHG KLGHV VRDS WDOORZ DQG JUHDVH 7UDQVSRUWDWLRQ DQG FRPPHUFLDO DFWLYLWLHV DQG PLQLQJ DOVR ILJXUHG DPRQJ 0HQGR]DnV LPSRUWDQW HFRQRPLF VHFWRUV &DUU\LQJ ERWK (XURSHDQ LPSRUWV WR PDUNHWV LQ &KLOH DQG WKH MXULVGLFWLRQnV RZQ SURGXFWV WR PDUNHW LQ %XHQRV $LUHV EHWZHHQ DQG FDUWV WUDYHOOHG EHWZHHQ 0HQGR]D DQG WKH 5LYHU 3ODWH HDFK \HDU DQG WKRXVDQGV PRUH PXOHV FRQWLQXHG WKH VKRUW EXW DUGXRXV MRXUQH\ RYHU WKH $QGHV ,Q WKH 9DOOH GH 8VSDOODWD LQ WKH VLHUUD QRUWK DQG ZHVW RI WKH FLW\ WUDFHV RI JROG VLOYHU DQG FRSSHU VXSSRUWHG VPDOO PLQLQJ HIIRUWV DQG JHQHUDWHG 6REUHPRQWHnV FRQVLGHUDEOH HQWKXVLDVP LQ $V LQ )DPDWLQD KRZHYHU WKH 8VSDOODWD PLQHV QHYHU EHFDPH DQ LPSRUWDQW VRXUFH RI LQFRPH 3HGUR 6DQWRV 0DUWQH] +LVWRULD HFRQPLFD GH 0HQGR]D GXUDQWH HO YLUUHLQDWR f 0DGULG f 3HGUR 6DQWRV 0DUWQH] HW DO +LVWRULD GH 0HQGR]D %XHQRV $LUHV f DQG -RUJH 0 6FDODYLQL +LVWRULD GH 0HQGR]D 0HQGR]D f 'HVSLWH WKH SUHGLFWLRQV RI )UDQFLVFR 6HUUD &DQDOV ZKR VHUYHG DV WKH 6XSHULQWHQGHQW RI 5R\DO DQG 3XEOLF :RUNV IRU WKH 3URYLQFH RI &X\R WKH PLQHV QHYHU EHFDPH LPSRUWDQW

PAGE 74

-XVW QRUWK RI 0HQGR]D DOVR LQ WKH $QGHV IRRWKLOOV WKH MXULVGLFWLRQ RI 6DQ -XDQ FRXQWHG VRPH PRVWO\ PHVWL]R LQKDELWDQWV ZLWK DURXQG RI WKHVH LQ WKH FLW\ RI 6DQ -XDQ 7KLV MXULVGLFWLRQ VSHFLDOL]HG LQ WKH SURGXFWLRQ RI DJXDUGLHQWH HVSHFLDOO\ GRXEOHGLVWLOOHG RU UHVDFDGR RI WKH EHVW TXDOLW\ DQG VR VWURQJ DFFRUGLQJ WR &RQFRORUFRUYR WKDW PL[LQJ LW ZLWK FRPPRQ VWRFN JLYHV LW DV PXFK ILUH DV WKDW RI $QGDOXFLD RU &DWDOXD 3ULRU WR WKH FUHDWLRQ RI WKH YLFHUR\DOW\ 6REUHPRQWH QRWHG 6DQ -XDQnV DJXDUGLHQWH VROG ZLGHO\ WKURXJKRXW WKH 5LYHU 3ODWH DQG LQ 3HUX EXW LW VXIIHUHG GHFOLQLQJ GLVWULEXWLRQ LQ WKH IDFH RI FRPSHWLQJ TXDQWLWLHV LPSRUWHG IURP 6SDLQ 6DQ -XDQn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£Q GDWHG IROLRV QRW QXPEHUHGf &RQFRORUFRUYR (O OD]DULOOR &RQFRORUFRUYR QRWHG WKDW WKLV VWURQJ EUDQG\ ZDV DOVR FDOOHG DFUXDUGLHQWH GH FDEH]D SHUKDSV LQ UHIHUHQFH WR LWV VWUHQJWK 2ILFLR GHO 0DUTXV GH 6REUHPRQWH 1RY 6HH DOVR &DUPHQ 3 GH 9DUHVH DQG +FWRU $ULDV +LVWRULD GH 6DQ -XDQ 0HQGR]D f

PAGE 75

WKH ORFDO PDUNHW &DUWLQJ QHYHU GHYHORSHG LQ 6DQ -XDQ EHFDXVH PXOHV SURYHG EHWWHUVXLWHG WR FDUU\LQJ WKH DUHDn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f 6REUHPRQWHnV 2ILFLR DOVR LQFOXGHV D JRRG GHVFULSWLRQ RI HFRQRPLF FRQGLWLRQV LQ WKLV GLVWULFW

PAGE 76

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f DQG RFFDVLRQDOO\ FKHHVH %\ WKH ODWH HLJKWHHQWK FHQWXU\ WKH 7XFXP£Q MXULVGLFWLRQV FRPSULVHG DQ HFRQRPLFDOO\ GLYHUVLILHG UHJLRQ ZLWK D YDULHW\ RI SURGXFWLYH DFWLYLWLHV DQG D VWURQJ 1H] +LVWRULD GH 6DQ /XLV

PAGE 77

FRPPHUFLDO VHFWRU 7KH SDVWRUDO VHFWRU SUHGRPLQDWHG SURYLGLQJ LQFRPH WR HDFK RI WKH MXULVGLFWLRQV DQG FRQVWLWXWLQJ WKH LQIUDVWUXFWXUH WKDW VXSSRUWHG WKH GHYHORSPHQW RI VHFRQGDU\ DFWLYLWLHV VXFK DV WDQQLQJ ZHDYLQJ DQG PDUNHW DJULFXOWXUH 7KH YLWDOLW\ RI WKLV UHJLRQDO HFRQRP\ GHSHQGHG RQ ERWK DFFHVV WR DQG UHODWLRQV ZLWK WKH PDUNHWV LQ ERWK %XHQRV $LUHV DQG 3HUX )XUWKHUPRUH WKH 7XFXP£Q UHJLRQ LPSRUWHG IHZ JRRGV DVLGH IURP OX[XU\ JRRGV DQG KDUGZDUH $OPRVW DOO WKH VWDSOH IRRGV WH[WLOHV DQG UDZ PDWHULDOV FRQVXPHG LQ WKH UHJLRQ FDPH IURP ORFDO SURGXFHUV &DUU\LQJ WKLV SURGXFWLRQ WR PDUNHW DQG KDQGOLQJ WKH %XHQRV $LUHV3HUXYLDQ WUDGH DGGHG DQRWKHU LPSRUWDQW HOHPHQW WR WKH UHJLRQDO HFRQRP\ 7KH IROORZLQJ FKDSWHUV H[DPLQH WKH SURGXFWLYH WKH FRPPHUFLDO DQG WKH WUDQVSRUW DFWLYLWLHV RI 7XFXP£Q PRUH FORVHO\ 7KH GHPRJUDSKLF FKDUDFWHULVWLFV RI WKH 7XFXP£Q UHJLRQ GXULQJ WKH YLFHUHJDO HUD KRZHYHU UHIOHFWHG JHRJUDSKLF DQG HFRQRPLF GLIIHUHQFHV WKDW DOVR FKDUDFWHUL]HG WKH UHJLRQ 7KH QXPEHUV RI SHRSOH SRSXODWLQJ HDFK MXULVGLFWLRQ DQG WKH QXPEHUV OLYLQJ LQ HDFK FLW\ YDULHG ZLGHO\ ZLWKLQ WKH UHJLRQ 7KH UHJLRQ SURYHG UDWKHU UDFLDOO\ EDODQFHG RYHUDOO EXW H[KLELWHG VLJQLILFDQW ORFDO FRQWUDVWV &OXVWHUHG SRSXODWLRQV RI ,QGLDQV FDVWDV PL[HGUDFHf DQG 6SDQLVK DQG

PAGE 78

FUHROH EODQFRV WHQGHG WR JLYH VSHFLILF DSSHDUDQFHV WR GLIIHUHQW MXULVGLFWLRQV DQG VXJJHVW WKDW ORFDO HFRQRPLF FRQGLWLRQV ZLWKLQ WKH UHJLRQ ZHUH DVVRFLDWHG ZLWK WKH UDFLDO FRPSRVLWLRQ RI WKH ORFDO SRSXODWLRQ 7KH FRPELQHG SRSXODWLRQ RI WKH 7XFXP£Q MXULVGLFWLRQV WRWDOOHG DOPRVW LQ &UGRED ZLWK MXVW RYHU RU SHU FHQW RI WKH UHJLRQDO SRSXODWLRQ FRQVWLWXWHG WKH ODUJHVW 6DQ 0LJXHO GH 7XFXP£Q ZLWK MXVW RYHU UHVLGHQWV RU DERXW SHU FHQW RI WKH WRWDO UHJLRQDO SRSXODWLRQ ZDV WKH VHFRQG ODUJHVW /D 5LRMD ZLWK RQO\ DERXW SHU FHQWf DQG 6DOWD ZLWK DERXW SHU FHQWf ZHUH WKH VPDOOHVW MXULVGLFWLRQV -XMX\ &DWDPDUFD DQG 6DQWLDJR GHO (VWHUR HDFK FODLPHG URXJKO\ SHU FHQW RI WKH WRWDO UHJLRQDO SRSXODWLRQ 7KH QRUWKHUQ DQG ZHVWHUQ UHDFKHV RI WKH UHJLRQ UHFRUGHG JHQHUDOO\ VPDOOHU SRSXODWLRQV WKDQ WKH VRXWKHUQ SDUWV 6DOWD DQG -XMX\ FRPELQHG IRU LQVWDQFH VWLOO KDG IHZHU LQKDELWDQWV WKDQ &UGRED &DWDPDUFD DQG /D 5LRMD WRJHWKHU ZHUH VPDOOHU VWLOO :HOO RYHU KDOI WKH UHJLRQDO 7KH IROORZLQJ ILJXUHV DUH DGDSWHG IURP &RPDGU£Q 5XL] (YROXFLQ GHPRJU£ILFD DUJHQWLQD &RPDGU£Q 5XL] EDVHV KLV GLVFXVVLRQ RQ D QXPEHU RI VRXUFHV DQG IRU WKH ,QWHULRU UHOLHV PRVW KHDYLO\ XSRQ WKH FHQVXVHV DQG VXPPDULHV SURGXFHG E\ WKH ELVKRSULFV RI 6DQWLDJR GH &KLOH DQG 7XFXP£Q VHH SDJH IRRWQRWH f

PAGE 79

SRSXODWLRQ OLYHG LQ WKH WKUHH MXULVGLFWLRQV RI &UGRED 6DQWLDJR GHO (VWHUR DQG 6DQ 0LJXHO GH 7XFXP£Q 7DEOH SUHVHQWV MXULVGLFWLRQ DQG FLW\ SRSXODWLRQV IRU WKH 7XFXP£Q DQG WKH &X\R UHJLRQV 7DEOH UHYHDOV VHYHUDO LPSRUWDQW GHPRJUDSKLF FKDUDFWHULVWLFV RI WKH 7XFXP£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f DQG 6DQ 0LJXHO GH 7XFXP£Q SHU FHQWf ERWK FRXQWHG SRSXODWLRQV WKDW ZHUH PRUH WKDQ KDOI FDVWD ZKLOH &UGRED FRXQWHG MXVW XQGHU KDOI LWV SRSXODWLRQ SHU FHQWf DV FDVWD 6DOWDnV SRSXODWLRQ

PAGE 80

7DEOH 3RSXODWLRQV 7XFXP£Q DQG &X\R 7XFXP£Q -XULVGLFWLRQ &LW\ &UGRED 6DQWLDJR GHO (VWHUR 6DQ 0LJXHO GH 7XFXP£Q 6DOWD 6DQ 6DOYDGRU GH -XMX\ &DWDPDUFD /D 5LRMD WRWDO &X\R 0HQGR]D 6DQ -XDQ 6DQ /XLV WRWDO 6RXUFH -RUJH &RPDGU£Q 5XL] (YROXFLQ GHPRJU£ILFD DUJHQWLQD

PAGE 81

7DEOH 3RSXODWLRQV E\ 5DFH DQG &DVWH 7XFXP£Q -XULVGLFWLRQ EODQFRV FDVWDV QDWXUDOHV WRWDOV &UGRED bf bf bf 6DQWLDJR bf GHO (VWHUR bf bf 6DQ 0LJXHO bf GH 7XFXP£Q bf bf 6DOWD bf bf bf 6DQ 6DOYDGRU GH -XMX\ bf bf bf &DWDPDUFD bf bf bf /D 5LRMD bf bf bf WRWDOV bf bf bf 6RXUFH &RPDGUDQ 5XL] (YROXFLQ GHPRFUU£ILFD DUDHQWLQD SURYHG WKH PRVW EDODQFHG ZLWK URXJKO\ SHU FHQW FDVWD SHU FHQW ,QGLDQ DQG SHUFHQW ELDQFR :LWK -XMX\nV ODUJH ,QGLDQ SRSXODWLRQ WKH QRUWK FRXQWHG RYHU KDOI LWV LQKDELWDQWV SHU FHQWf DV ,QGLDQ IDU PRUH WKDQ WKH VRXWKHUQ SHU FHQW ,QGLDQf RU WKH ZHVWHUQ SHU FHQW ,QGLDQf MXULVGLFWLRQV 7KH VRXWKHUQ MXULVGLFWLRQV

PAGE 82

RI &UGRED 6DQWLDJR GHO (VWHUR DQG 6DQ 0LJXHO GH 7XFXP£Q LQ FRQWUDVW WRJHWKHU FRXQWHG D SRSXODWLRQ WKDW ZDV DERXW SHU FHQW FDVWD DQG OHVV WKDQ SHU FHQW ,QGLDQ 2QO\ LQ &UGRED DQG /D 5LRMD GLG EODQFRV RXWQXPEHU FDVWDV DQG RQO\ LQ &UGRED DQG &DWDPDUFD GLG EODQFRV RXWQXPEHU ,QGLDQV ,Q PRVW SODFHV ,QGLDQV SURYHG WKH PLQRULW\ 7KH ZHVWHUQ MXULVGLFWLRQV RI &DWDPDUFD DQG /D 5LRMD FRXQWHG D IDLUO\ EDODQFHG SRSXODWLRQURXJKO\ EODQFRV SHU FHQWf FDVWDV SHU FHQWf DQG ,QGLDQV SHU FHQWf 7DEOH ,, DOVR UHYHDOV D GHFLGHGO\ UXUDO SRSXODWLRQ LQ WKH 7XFXP£Q UHJLRQ ZLWK MXVW XQGHU SHU FHQW RI WKH WRWDO SRSXODWLRQ UHVLGLQJ LQ WKH FLWLHV 7KH UHVW RI WKH UHJLRQnV SRSXODWLRQ OLYHG ZLGHO\ GLVSHUVHG WKURXJKRXW D YDVW WHUULWRU\ YHU\ VHOGRP FRPLQJ LQWR FRQWDFW ZLWK WKH FLWLHV FKXUFK RU UR\DO JRYHUQPHQWZKDW 6REUHPRQWH FDOOHG FLYLO OLIH 6REUHPRQWH ZURWH DW WKH HQG RI KLV ORQJ UHSRUW WR WKH FURZQ LQ WKDW WKH PRVW VHULRXV GLIILFXOWLHV LQ KLV &UGRED GH 7XFXP£Q LQWHQGHQF\ ZHUH WKH ODFN RI IRUPDO WRZQV WKH VKRUWDJH RI SULHVWV DQG WKH SHUVLVWHQFH RI UXVWLF FXVWRPV 7KH SHUVHYHUDQFH RI UXVWLF FXVWRPV DQG WKH LJQRUDQFH RI UHOLJLRQ RU D WUXH XQGHUVWDQGLQJ RI ZKDW D YDVVDO RZHV KLV VRYHUHLJQ PDNHV WKH FROOHFWLRQ RI WD[HV DQG 6REUHPRQWH 2ILFLR f

PAGE 83

WLWKHV YHU\ GLIILFXOW 6REUHPRQWH FRPSODLQHG ,I 6REUHPRQWH DWWULEXWHG PXFK RI WKH ZLGHVSUHDG WKHIW RI OLYHVWRFN LQ WKH FRXQWU\VLGH WR WKH LVRODWLRQ DQG SRYHUW\ RI VR PDQ\ UXUDO LQKDELWDQWV KH DOVR UHFRJQL]HG WKH GHILFLHQW DGPLQLVWUDWLRQ RI WKH FRXQWU\VLGH ,JQRUDQFH FRUUXSWLRQ DQG D ODFN RI ]HDO WRR RIWHQ FKDUDFWHUL]HG WKH DOFDOGHV RI WKH UXUDO MXULVGLFWLRQV RI 7XFXP£Q :KDW WKH LQWHQGHQF\ PRVW QHHGHG 6REUHPRQWH VXJJHVWHG ZDV QHZ WRZQV DORQJ WKH UR\DO URDGV WR ERWK %XHQRV $LUHV DQG 0HQGR]D &RUGREDnV VRXWKHUQ MXULVGLFWLRQV RI 5RV 7HUFHUR DQG &XDUWR SDUWLFXODUO\ QHHGHG QHZ WRZQV WR JLYH WKHLU LQKDELWDQWV EHWWHU RSSRUWXQLWLHV WR VHOO WKHLU FDWWOH 9LOODV RI WR SHRSOH ZLWK D KRXVH IRU HDFK IDPLO\ DQG D FKXUFK ZRXOG EHJLQ WR DGGUHVV WKH VKRUWFRPLQJV RI WKH FRXQWU\VLGH 6REUHPRQWHnV SODQ FDOOHG IRU WKH FRQVWUXFWLRQ RI WZR VXFK YLOODV DW D FRVW RI SHVRV IRU PDWHULDOV DQG WKH VDODULHV DQG UDWLRQV RI ZRUNHUV +H HYHQ VXJJHVWHG WKDW WKH SURMHFW EH IXQGHG ZLWK UHYHQXHV IURP WKH VDOHV RI SOD\LQJ FDUGV DQG WREDFFR EXW OLNH PDQ\ SODQV IRU WKH GHYHORSPHQW RI KLV MXULVGLFWLRQ 6REUHPRQWHnV FDOO ZHQW XQKHHGHG LQ %XHQRV $LUHV DQG LQ 6SDLQ 6REUHPRQWHnV SURSRVDO LV IRXQG LQ DQ XQWLWOHG UHSRUW DGGUHVVLQJ WKH ODFN RI SXHEORV IRUPDOHV LQ &RUGRED GH 7XFXP£QVHH $*, %XHQRV $LUHV IROLRV QRW

PAGE 84

7KLV EULHI HFRQRPLF DQG GHPRJUDSKLF VXUYH\ VXJJHVWV WKUHH YDJXHO\ GLVWLQFW ]RQHV ZLWKLQ WKH 7XFXP£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£Q WKH HFRQRP\ SURYHG PRUH GLYHUVLILHG /LYHVWRFN DQG UDQFKLQJ VWLOO GRPLQDWHG EXW WKLV DFWLYLW\ KHUH VWLPXODWHG SURFHVVLQJ RI SDVWRUDO E\SURGXFWV +LGHV ILJXUHG DV WKH PRVW LPSRUWDQW EXW ZRRO DQG ZRROHQ JRRGV DOVR EHFDPH PDMRU H[SRUWV IURP WKH VRXWKHUQ ]RQH 7KLV VRXWKHUQ ]RQH DOVR EHQHILWWHG IURP LWV EHWWHU DFFHVV WR %XHQRV $LUHV D FULWLFDO PDUNHW IRU DOO WKH VRXWKHUQ SURGXFWV H[FHSW PXOHV QXPEHUHGf GDWHG &UGRED 1RYHPEHU

PAGE 85

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£Q UHJLRQDO HFRQRP\ (DFK MXULVGLFWLRQ VSHFLDOL]HG LQ RQH SULPDU\ H[SRUW ZLWKRXW HYHQ WKH FDUU\LQJ RU FRPPHUFLDO VHFWRUV WR H[SORLW &UGRED HIIHFWLYHO\ GRPLQDWHG WKH UHJLRQDO PDUNHWLQJ RI WKH ZHVWHUQ MXULVGLFWLRQVn SURGXFWV PXFK RI &DWDPDUFDnV FRWWRQ DQG OLQHQV DQG /D 5LRMDnV ZLQH VROG WKURXJK WKH ODUJHU FLW\nV SOD]D ,QWHUHVWLQJO\ WKH ZHVWHUQ ]RQH H[KLELWHG WKH PRVW UDFLDOO\EDODQFHG SRSXODWLRQ LQ 7XFXP£Q ZLWK URXJKO\ HTXDO QXPEHUV RI ZKLWH FDVWD DQG ,QGLDQ SRSXODWLRQV 7KH 7XFXP£Q UHJLRQ WKHQ IHDWXUHG FRQVLGHUDEOH ORFDO GLIIHUHQWLDWLRQ 3URVSHURXV DQG GLYHUVLILHG DUHDV VXFK DV &UGRED DQG 6DQ 0LJXHO GH 7XFXP£Q FRQWUDVWHG ZLWK SRRUHU

PAGE 86

PRUH VSHFLDOL]HG MXULVGLFWLRQV VXFK DV -XMX\ DQG /D 5LRMD 7KH UHJLRQ DOVR ERDVWHG LPSRUWDQW FLWLHV MXVW DV LW ODPHQWHG LWV YDVW VWUHWFKHV RI GHVRODWH FRXQWU\VLGH ,QGLDQ ]RQHV VXFK DV /D 3XQD DQG ZHVWHUQ &DWDPDUFD UHPDLQHG LVRODWHG IURP PHVWL]R DQG 6SDQLVK DUHDV DQG UXVWLF UXUDO VRFLHW\ FODVKHG VKDUSO\ ZLWK WKH XUEDQ DPELHQFH RI &UGRED DQG 6DOWD %XW WKH ORFDO GLIIHUHQFHV ZHUH RXWZHLJKHG E\ WKH UHJLRQDO XQLW\ OHQW E\ WKH SULQFLSDO HFRQRPLF VHFWRUWKH H[SRUW RI SDVWRUDO SURGXFWV 7KH FRPSRQHQW 7XFXP£Q MXULVGLFWLRQV IXQFWLRQHG DV D FRKHVLYH UHJLRQDO HFRQRP\ WKURXJK WKHLU XQFKDOOHQJHG SURGXFWLRQ RI OLYHVWRFN WKDW SURYLGHG WKH PHDQV WR H[SORLW 3HUXnV QHHG IRU OLYHVWRFN DQG %XHQRV $LUHVn FODPRU IRU KLGHV 7XFXP£QnV FRPPHUFLDO UROH DV LQWHUPHGLDU\ LQ WKH %XHQRV $LUHV3HUX WUDGH OHQW IXUWKHU FRKHVLRQ WR WKH UHJLRQ /RFDO PHUFKDQWV SDVVHG ODUJH TXDQWLWLHV RI YDOXDEOH (XURSHDQ LPSRUWV WKURXJK WKH 7XFXP£Q MXULVGLFWLRQV HDFK \HDU )LQDOO\ WKHVH FRPPHUFLDO SXUVXLWV FRPSOLPHQWHG DQG VWLPXODWHG WKH FDUU\LQJ WUDGH LQ 7XFXP£Q DQRWKHU UHJLRQDO VSHFLDOW\ WKDW OHQW XQLW\ DQG HYHQ D VHQVH RI LGHQWLW\ WR WKH UHJLRQ

PAGE 87

&+$37(5 7+5(( 352'8&7,21 5DQFKLQJ OLYHVWRFN H[SRUWV DQG WKH SURFHVVLQJ RI SDVWRUDO E\SURGXFWV GRPLQDWHG WKH 7XFXP£Q UHJLRQDO HFRQRP\ 7KH H[SRUW RI PXOHV WR 3HUX ILJXUHG DV WKH UHJLRQnV PRVW SURPLQHQW DFWLYLW\ EXW FDWWOH H[SRUWV DQG WKH SURGXFWLRQ RI KLGHV OHDWKHUV DQG VRDS DQG WKHLU H[SRUW WR %XHQRV $LUHV &KLOH DQG 3HUX DOVR FRQWULEXWHG /RFDO FRQVXPSWLRQ RI PHDW LQ WKH UHJLRQnV FLWLHV DQG FRXQWU\VLGH IXUWKHU DGGHG WR VWDWLVWLFV /LYHVWRFN SURGXFWLRQ LQFOXGHG VKHHS UDLVLQJ ZRRO IURP &RUGREDnV ODUJH QXPEHUV RI VKHHS SURYHG DQRWKHU LPSRUWDQW UHVRXUFH 7KH UHJLRQ H[SRUWHG VRPH UDZ ZRRO EXW SURFHVVHG PXFK PRUH LQWR WH[WLOHV DQG ILQLVKHG JRRGV VXFK DV SRQFKRV DQG EODQNHWV /LYHVWRFN DQG SDVWRUDO E\SURGXFWV SOXV D QXPEHU RI RWKHU DJULFXOWXUDO DQG PDQXIDFWXUHG JRRGV SURYLGHG WKH 7XFXP£Q UHJLRQ ZLWK WKH PDWHULDO EDVH IRU ERWK PRGHUDWH SURVSHULW\ DQG PHDVXUDEOH JURZWK 3URYLQFLDO WD[ UHJLVWHUV WKDW DIIRUG D FORVH H[DPLQDWLRQ RI WKH SURGXFWLYH VLGH RI 7XFXP£QnV HFRQRP\ UHFRUGHG PXFK RI WKLV DFWLYLW\ 7KLV FKDSWHU SUHVHQWV D VXUYH\ RI HFRQRPLF SURGXFWLRQ LQ

PAGE 88

7XFXP£Q ILUVW H[DPLQLQJ WKH OLYHVWRFN DQG SDVWRUDO E\n SURGXFW VHFWRUV RI WKH HFRQRP\ DQG WKHQ WXUQLQJ WR WKH UDQJH RI VHFRQGDU\ DFWLYLWLHV WKDW LQFOXGHG FRWWRQ FXOWLYDWLRQ DQG WKH PDQXIDFWXUH RI LQH[SHQVLYH FRWWRQ DQG ZRROHQ WH[WLOHV YLWLFXOWXUH DQG WKH SURGXFWLRQ RI ZLQH DQG DJXDUGLHQWH OXPEHU SURFHVVLQJ IURP UHJLRQDO IRUHVWV DQG PLQHUDO H[WUDFWLRQ IURP WKH KLJK LVRODWHG PRXQWDLQV RI ZHVWHUQ 7XFXP£Q $V &RQFRORUFRUYR QRWHG LQ WKH PXOH WUDGH FRQVWLWXWHG WKH SULQFLSDO EXVLQHVV IRU WKH ZHDOWKLHVW 7XFXP£Q ODQGRZQHUV 7KLV PXOH WUDGH WKHQ VHUYHG WKH VHHPLQJO\ OLPLWOHVV 3HUXYLDQ PDUNHW ZKHUH WKH DQLPDOV QRW RQO\ ILOOHG WKH GHPDQGV RI 3RWRVnV PLQLQJ VHFWRU DQG FRORQLDO WUDQVSRUWDWLRQ DFWLYLWLHV EXW DOVR FRQVWLWXWHG D PDMRU LWHP LQ WKH UHSDUWLPLHQWR GH PHUFDQFDV WKDW ZLGHO\ IHDWXUHG WKH IRUFHG VDOH RI D YDULHW\ RI JRRGV LQFOXGLQJ PXOHV WR $QGHDQ ,QGLDQ FRPPXQLWLHV 5HVSRQGLQJ WR WKHVH PDUNHWV IURP WKH HDUOLHVW \HDUV RI WKH FRORQLDO SHULRG DQG HVSHFLDOO\ DIWHU WKH HFRQRPLF UHFRYHU\ WKDW IROORZHG WKH PLGHLJKWHHQWK FHQWXU\ PXOH UDLVLQJ KDG D ORQJ KLVWRU\ LQ WKH 7XFXP£Q UHJLRQ $ QXPEHU RI VWXGLHV H[DPLQH WKLV WUDGH HVSHFLDOO\ IRU WKH PRVW SURVSHURXV \HDUV 7KHVH VWXGLHV PRVWO\ FRXQW WKH QXPEHUV RI DQLPDOV H[SRUWHG IURP WKH UHJLRQ

PAGE 89

XVLQJ WUHDVXU\ UHFRUGV IURP 6DOWD WKH FLW\ WKDW PDUNHWHG WKH DQLPDOV LQWR $OWR 3HU $VVDGRXULDQnV YDULRXV VWXGLHV RI WKH 5R GH OD 3ODWD HFRQRP\ LQFOXGH RQH H[DPLQDWLRQ RI &RUGREDnV PXOH WUDGH WKURXJKRXW LWV FRORQLDO KLVWRU\ +H GLVWLQJXLVKHV WKUHH SKDVHV FKDUDFWHUL]LQJ WKLV WUDGH H[WHQGLQJ WKHP WR WKH HQWLUH 7XFXP£Q UHJLRQ DQG DUJXLQJ WKDW WKH\ UHIOHFW WKH EURDGHU HFRQRPLF KLVWRU\ RI KLV 3HUXYLDQ HFRQRP\ +LV DQDO\VLV LGHQWLILHV DQ LQLWLDO SKDVH RI JHQHUDO SURVSHULW\ D SHULRG RI H[SDQVLRQ DQG WKHQ VWDELOLW\ PDUNLQJ URXJKO\ WKH HQWLUH VHYHQWHHQWK FHQWXU\ $ VWHDG\ GHFOLQH VSDQQHG WKH ILUVW KDOI RI WKH HLJKWHHQWK FHQWXU\ IROORZHG E\ D ORQJ SHULRG RI UHFRYHU\ DQG JURZWK IURP XQWLO WKH HQG RI WKH FRORQLDO HUD 6KRUWWHUP WUHQGV HPHUJH ZLWKLQ WKHVH ORQJHU SKDVHV EXW $VVDGRXULDQnV RXWOLQH SURYLGHV D UHDVRQDEOH SLFWXUH RI WKH 7XFXP£Q H[SHULHQFH (DUO\ LQ WKH VHYHQWHHQWK 6HH (VWHOD % 7ROHGR (O FRPHUFLR GH PXDV HQ 6DOWD LQ $QXDULR GHO ,QVWLWXWR GH ,QYHVWDDFLRQHV +LVWULFDV f 1LFRO£V 6£QFKH]$OERUQR] HW DO /D VDFD GH PXDV GH 6DOWD DO 3HU LQ $QXDULR GHO ,QVWLWXWR GH ,QYHVWLJDFLRQHV +LVWULFDV f DQG 6£QFKH]$OERUQR] /D H[WUDFFLQ GH PXDV GH -XMX\ DO 3HU )XHQWHV YROPHQ \ QHJRFLDQWHV LQ (VWXGLRV GH +LVWRULD 6RFLDO f $VVDGRXULDQ (FRQRPD UHJLRQDO \ PHUFDGR LQWHUQR (O FDVR GH &UGRED HQ ORV VLJORV ;9, \ ;9,, LQ (O VLVWHPD GH OD HFRQRPD FRORQLDO

PAGE 90

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n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

PAGE 91

&RQFRORUFRUYRnV UHODWLRQ LQFOXGHV D YDOXDEOH GLVFXVVLRQ RI WKH HFRQRPLFV RI WKLV PXOH WUDGH 7XFXP£Qn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nV ZLQWHU SDVWXUHV 7KH \RXQJ PXOHV UHPDLQHG DW SDVWXUH DERXW PRQWKV DW D FRVW RI RU UHDOHV HDFK SOXV D ERQXV RI DQLPDOV SHU JLYHQ WR WKH SDVWXUH RZQHUf ([SHQVHV WKHQ ZRXOG KDYH DGGHG DQRWKHU UHDOHV WR WKH FRVW RI HDFK DQLPDO &RQFRORUFRUYR FRPSXWHG WKDW HDFK PXOH EURXJKW WR &UGRED IURP WKH VRXWK FRVW DURXQG UHDOHV PRUH RU OHVV E\ WKH WLPH LW VROG WR QRUWKHUQ EX\HUV IRU DURXQG UHDOHV $ OLWWOH PRUH WKDQ RQH \HDU DIWHU LWV SXUFKDVH WKHQ D KHUG RI DQLPDOV EURXJKW IURP %XHQRV $LUHV DQG

PAGE 92

VROG D \HDU ODWHU FRXOG EULQJ D SURILW RI DSSUR[LPDWHO\ SHVRV $IWHU D \HDU RU VR LQ &RUGREDnV SDVWXUHV KHUGV JHQHUDOO\ QXPEHULQJ EHWZHHQ WR DQLPDOV ZHUH GULYHQ QRUWK WR 6DOWD GXULQJ WKH IDOO PRQWKV $SULO WKURXJK -XQHf 7KLV GULYH UHTXLUHG DERXW PHQ ZLWK KRUVHV DGGLQJ DERXW UHDOHV LQ FRVWV WR HDFK DQLPDO 7KHVH ODUJHU KHUGV ZLQWHUHG DJDLQ LQ 6DOWDnV SDVWXUHV DW UHDOHV SHU KHDG E\ VSULQJ ZKHQ WKH\ ZHUH VROG WR EX\HUV IURP WKURXJKRXW 3HUX WKHLU FRVW KDG ULVHQ WR DSSUR[LPDWHO\ UHDOHV 7KH VHOOLQJ SULFH DW WKH IDLU KRZHYHU DYHUDJHG DURXQG RU SHVRV WR UHDOHVf SHU KHDG EULQJLQJ D IDLU SURILW IRU D VHFRQG WLPH WR 7XFXP£Q ODQGRZQHUV +HUGV OHDYLQJ 6DOWD QXPEHUHG DURXQG WR KHDG GULYHQ E\ RU PHQ ZLWK KRUVHV DQG RU SDFN PXOHV IRU FDUU\LQJ SURYLVLRQV 7KH KHUGV ZHQW DV IDU DV 3RWRV 2UXUR DQG &X]FR ZKHUH WKH\ VROG IRU WR SHVRV WR UHDOHVf SHU KHDG RU PRUH $Q H[FLVH WD[ FDOOHG WKH VLVD FROOHFWHG DJDLQVW HDFK PXOH H[SRUWHG IURP 6DOWD SURYLGHV WKH EHVW PHDQV RI &RQFRORUFRUYR (O OD]DULOOR 2QH SHVR HTXDOOHG UHDOHV 6£QFKH] $OERUQR] /D VDFD GH PXDV IRRWQRWH

PAGE 93

PHDVXULQJ 7XFXP£QnV PXOH WUDGH 7KH 6SDQLVK FURZQ LPSRVHG WKH VLVD WD[ WKURXJKRXW WKH HPSLUH RQ DQ\ JRRGV RI SDUWLFXODU ORFDO FRPPHUFLDO YDOXH ,Q WKH 5R GH OD 3ODWD SURYLQFHV PXOHV EUDQG\ \HUED PDWH WREDFFR DQG VHYHUDO RWKHU LWHPV DSSHDUHG RQ WKH VLVD OLVW ,Q 7XFXP£Q WKH ILUVW VLVD WD[ RQ PXOHV DPRXQWLQJ WR WZR UHDOHV SHU DQLPDO DSSHDUHG LQ WKH HDUO\ HLJKWHHQWK FHQWXU\ ZKHQ WKH FURZQ DVVLJQHG LWV LQFRPH WR GHIHQVH RI WKH IURQWLHU DQG WR RIIHQVLYH FDPSDLJQV DJDLQVW &KDFR ,QGLDQV :LWK WKH VXSSRUW RI SURYLQFLDO ODQGRZQHUV WKRVH PRVW LQWHUHVWHG LQ WHUULWRULDO GHIHQVH WKH VLVD EHFDPH DQ LPSRUWDQW VRXUFH RI UHYHQXH IRU VXSSRUW RI WKH UHJLRQn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

PAGE 94

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f KDG SURSHUO\ SDLG DOO WD[HV RQ KLV KHUG DW WKH 6DOWD IDLU DQG ZDV OHJDOO\ HQWLWOHG WR GULYH D GHWHUPLQHG QXPEHU RI DQLPDOV IURP WKH LQWHQGHQF\ 5R\DO ODZ REOLJHG WKH IRUHPHQ RI WKHVH KHUGV RU WURSDV WR SUHVHQW WKHLU JXDV WR WKH SRVW JXDUGV ZKR ZHUH UHVSRQVLEOH IRU YHULI\LQJ WKH KHUG VL]H DQG FROOHFWLQJ WKH VLVD SD\PHQW DQG VHHLQJ

PAGE 95

WKDW DOO GRFXPHQWV LQFOXGLQJ WKH OLEUR DQG WKH JXDV ZHUH VLJQHG 7KH KHUGV WKHQ SDVVHG 7KH HIILFLHQF\ RI WKLV V\VWHP GHSHQGHG XSRQ WKH KRQHVW\ RI WKH JXDUGV ZKR SDWUROOHG WKH YDULRXV URXWHV QRUWK *HRJUDSK\ DOVR FRQWUROOHG WUDIILF DQG OLPLWHG RSWLRQV VR WKDW WKH KHUGV FRXOG QRW HDVLO\ DYRLG WKH JXDUGV 7KH PDLQ URXWH WDNHQ E\ PRVW KHUGV UDQ QRUWKZHVW IURP 6DOWD VNLUWLQJ ZHVW RI 6DQ 6DOYDGRU GH -XMX\f WKURXJK WKH 4XHEUDGD GHO 7RUR D FDQ\RQ SDVVDJH SDWUROOHG E\ WKH JXDUGV 7HQ GD\V WR WZR ZHHNV ODWHU WKH KHUGV UHDFKHG DQRWKHU SRVW WKH ODVW EHIRUH WKHLU DVFHQW WR $OWR 3HU $ VHFRQG OHVV WUDYHOOHG URXWH SDVVHG WKURXJK WKH -XMX\ GLVWULFW DQG WKHQ QRUWK WKURXJK WKH 4XHEUDGD GH +XPDKXDFD WR 7DULMD 3RVWV ORFDWHG EHWZHHQ 6DOWD DQG -XMX\ DQG DJDLQ DW /D 4XLDFD ZHOO WR WKH QRUWK ZDWFKHG WKLV URXWH 7KH WZR URXWHV GHWHUPLQHG E\ WKH UHODWLYH HDVH RI WUDYHO LQ WKH TXHEUDGDV RU FDQ\RQV HIIHFWLYHO\ FKDQQHOHG DOPRVW DOO WUDIILF QRUWK 7KLV FDUHIXO V\VWHP ZDV QRW HQRXJK WR SUHYHQW DOO IUDXG KRZHYHU 7KH &DWDPDUFD DQG /D 5LRMD GLVWULFWV ZHUH VXVSHFWHG RI VXSSRUWLQJ DQ LOOLFLW FRPPHUFH LQ OLYHVWRFN 6HH WKH ,QIRUPH GH -XDQ 9LFWRULQR 0DUWQH] GH 7LQHR D (O 0DUTXV GH 6REUHPRQWH GDWHG -XQH 6DOWDf LQ $*, %XHQRV $LUHV IROLRV QRW QXPEHUHGf ,ELG 6£QFKH]$OERUQR] HVWLPDWHV WKDW EHWZHHQ DQG SHU FHQW RI DOO WUDIILF SDVVHG WKURXJK WKH 4XHEUDGD GHO 7RUR URXWH 7KH SRVWV KH DGGV ZHUH DGPLQLVWHUHG RQO\ IURP )HEUXDU\ WKURXJK $XJXVW EHFDXVH KDUVK

PAGE 96

7KH VLVD UHFRUGV IURP 6DOWD UHSUHVHQW WKH JUHDW PDMRULW\ RI WKH PXOHV UDLVHG LQ DQG H[SRUWHG IURP WKH 7XFXP£Q UHJLRQ 7ZR VHSDUDWH VHWV RI UHFRUGV FRYHU WKH VSDQ IURP WR 1LFRO£V 6£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nV GLVFXVVLRQ RI WKH %XHQRV $LUHV DFFRXQWV PRVWO\ LQ KLV IRRWQRWHV LQ ,ELG

PAGE 97

6XPPDULHV UHFRUG WKH VXEVHTXHQW \HDUV 6HYHUDO \HDUV UHFRUG RQO\ WKH DPRXQW LQ SHVRV FROOHFWHG E\ WKH WD[ WKHVH ILJXUHV KRZHYHU SHUPLW D IDLUO\ DFFXUDWH HVWLPDWLRQ RI WKH QXPEHU RI DQLPDOV H[SRUWHG ,Q WKLV KDOIFHQWXU\ VSDQ LQ ZKLFK DW OHDVW PXOHV OHIW WKH 7XFXP£Q UHJLRQ RQO\ WKH ILJXUHV IRU WKH \HDUV DQG DUH PLVVLQJ ,Q VRPH \HDUV WKH JXDUGV GLG QRW FROOHFW IRU DOO WKH DQLPDOV WKDW SDVVHG WKHLU SRVWV 0RVW DQQXDO ILJXUHV FRUUHVSRQG KRZHYHU ZLWK WKH VLVD FROOHFWHG URXJKO\ UHSUHVHQWLQJ WKH UHSRUWHG QXPEHU RI PXOHV SDVVLQJ IURP WKH GLVWULFW :KHQ GHEWV GLG LQFXU WKH\ JHQHUDOO\ ZHUH SDLG ZLWKLQ D \HDU RU WZRRIWHQ ZKHQ WKH VLVD IDOOV VKRUW RQH \HDU LW ZDV PDGH XS WKH QH[W ,Q RUGHU WR DOOHYLDWH DQ\ GLVWRUWLRQ FDXVHG E\ VLVD GHEWV WKH GDWD LV EHVW SUHVHQWHG LQ ILYH\HDU EORFNV WKDW SURYLGH PRUH UHOLDEOH ILJXUHV $QDO\]LQJ WKH ILJXUHV IRU VXFK SHULRGV DOOHYLDWHV WKH VPDOO SUREOHPV ZLWK WKH GDWD DQG SUHVHQWV D EHWWHU SLFWXUH RI $*, %XHQRV $LUHV &XHQWDV GH 6LVD GH 6DOWD \ -XMXL (VWLPDWLRQV EDVHG RQ VLVD LQFRPH LQ SHVRV GHULYHG IURP D VLPSOH FDOFXODWLRQ 6LVD DPRXQW LQ SHVRVf ; UHDOHV UHDOHV WD[ RQ HDFK PXOHf 6HH $SSHQGL[ IRU D FRPSOHWH \HDUE\\HDU OLVWLQJ RI PXOH H[SRUWV DQG VLVD LQFRPH IURP PXOHV LQ 6DOWD IRU WKH \HDUV

PAGE 98

ORQJWHUP WUHQGV 7DEOH SUHVHQWV ILYH\HDU WRWDOV DQG DQQXDO DYHUDJHV IRU WKH 6DOWD MXULVGLFWLRQ IRU WKH \HDUV IURP WR 7DEOH 2IILFLDO 0XOH H[SRUWV DQG 6LVD 6DOWD 'LVWULFW ,Q ,QWHUYDOV 5HYHQXH IURP )LYH
PAGE 99

FROOHFWHG LQ VLVD UHYHQXH 7KH \HDUV IROORZLQJ WKH 7XSDF $PDUX UHEHOOLRQ LQ 3HUX VKRZ D VLJQLILFDQW GHFOLQH LQ WKLV FRPPHUFH $QQXDO H[SRUWV IHOO WR DQ DYHUDJH RI DQLPDOV EHWZHHQ DQG 7KH SHULRG IURP WR PDUNV WKH UHFRYHU\ RI WKH WUDGH DQQXDO DYHUDJHV URVH WR DQLPDOV IURP WR WKHQ WR DQLPDOV EHWZHHQ DQG DQG WR DQLPDOV IURP WR )LJXUH SUHVHQWLQJ 6DOWDnV PXOH H[SRUWV IURP WR LOOXVWUDWHV WKHVH WUHQGV &RPSDUDWLYH ILJXUHV IURP WKH 6DQ 6DOYDGRU GH -XMX\ VLVD UHFRUGV VSDQQLQJ WKH \HDUV IURP WR GHPRQVWUDWH 6DOWDnV GRPLQDQW SRVLWLRQ LQ WKH UHJLRQDO PXOH WUDGH -XMX\nV H[SRUWV DQG UHYHQXHV IURP WR UHSUHVHQW D VPDOO IUDFWLRQ RI 6DOWDnV WUDGH $OWKRXJK -XMX\nV DQQXDO H[SRUWV RFFDVLRQDOO\ UHDFKHG KHDG DQQXDO WRWDOV JHQHUDOO\ DYHUDJHG DERXW SHU FHQW RI 6DOWDnV H[SRUWV DQG FRQVWLWXWHG DERXW SHU FHQW RI WKH 7XFXP£Q WRWDO IRU WKH \HDUV H[DPLQHG 7KH -XMX\ VLVD VXPPDULHV DOVR SURYLGH ERWK WKH QXPEHU RI PXOHV DQQXDOO\ H[SRUWHG DV ZHOO DV WKH WRWDO VLVD UHYHQXHV FROOHFWHG HDFK \HDU $ FRPSDULVRQ RI WKH 6DOWD DQG -XMX\ ILJXUHV LOOXVWUDWHV WKH LPEDODQFH EHWZHHQ WKH WZR FLWLHV 7DEOH LQFOXGHV WKUHH FROXPQV RI GDWD SUHVHQWLQJ HDFK FLW\nV DQQXDO PXOH H[SRUWV DQG VLVD

PAGE 100

7KRXVDQGV J ‘ J J P 6 ‘ )LJXUH 5HFRUGHG 0XOH ([SRUWV IURP 6DOWD -XULVGLFWLRQ .-

PAGE 101

UHYHQXH SOXV WKH WRWDO IRU WKH WZR FLWLHV FRPELQHG D ILJXUH UHSUHVHQWLQJ UHJLRQDO PXOH H[SRUWV WR 3HUX 9DULRXV VRXUFHV LQ WKH $UFKLYR +LVWULFR OD 3URYLQFLD GH &UGRED UHFRUG WKH &UGRED MXULVGLFWLRQnV PXOH VDOHV WR GHDOHUV LQ WKH QRUWK 7KH KDFLHQGD RU WUHDVXU\ UHFRUGV IURP WKH \HDUV IURP WR SOXV VRPH ODWHU \HDUV LQFOXGH VLVD DQG 1XHYR ,PSXHVWR DFFRXQWV DQG OLEURV WKDW WRJHWKHU SUHVHQW D FOHDU SLFWXUH RI SURYLQFLDO SURGXFWLRQ DQG FRPPHUFH 'RFXPHQWLQJ WKH WD[DWLRQ RI DOO FRPPHUFLDO WUDIILF WKURXJK WKH FLW\ WKH 1XHYR ,PSXHVWR VRXUFHV SHUPLW FORVH VWXG\ RI 7XFXP£Qn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

PAGE 102

7DEOH 2IILFDO 0XOH ([SRUWV DQG 6LVD 5HYHQXHV 6DOWD DQG -XMX\ 'LVWULFWV
PAGE 103

7KH 1XHYR ,PSXHVWR ERRNV LQFOXGH UHFRUGV RI &RUGREDnV PXOH H[SRUWV WR WKH QRUWKHUQ GLVWULFWV 7KH\ UHYHDO D FRQVLGHUDEOH OLYHVWRFN WUDIILF XVXDOO\ PRUH WKDQ DQLPDOV VHQW QRUWK DQQXDOO\ EHWZHHQ DQG 9LHZHG DORQJVLGH WKH 6DOWD H[SRUWV IRU WKH VDPH \HDUV UHGXFHG GXULQJ WKLV GHFDGH E\ WKH UHEHOOLRQ LQ 3HUX &RUGREDnV UHFRUGV VKRZ WKDW WKLV MXULVGLFWLRQnV H[SRUWV XVXDOO\ DFFRXQWHG IRU EHWZHHQ RQHWKLUG DQG RQHKDOI RI WKH QRUWKHUQ FLW\nV DQQXDO H[SRUWV &RUGREDnV H[SRUWV DYHUDJHG RYHU WKLV SHULRG IHOO MXVW VKRUW RI KHDG HDFK \HDU FRPSDUHG WR 6DOWDnV DQQXDO DYHUDJH RI RYHU WKH VDPH SHULRG RU DQLPDOV DQQXDOO\ LI WKH \HDU LV H[FOXGHGf ,Q LWV EHVW \HDUV &UGRED VHQW RYHU DQLPDOV QRUWK EHFDXVH RI WKH FRPPHUFLDO LQWHUUXSWLRQ LQ 3HUX LQ &UGRED VHQW PRUH PXOHV QRUWK WKDQ 6DOWD DQG -XMX\ ZHUH DEOH WR VHOO WR 3HUXYLDQ EX\HUV 2YHU WKH WHQ \HDU VSDQ PHDVXUHG &UGRED VXSSOLHG MXVW RYHU KDOI WKH PXOHV VROG DW WKH 6DOWD IDLU RI f 'XULQJ WKH VDPH \HDUV &UGRED VXSSOLHG SHUFHQW RI WKH DQLPDOV &RUGREDnV 1XHYR ,PSXHVWR UHFRUGV IRU SHULRG IURP WR DUH WR EH IRXQG LQ WKH $UFKLYR +LVWULFR GH OD 3URYLQFLD GH &UGRED $+3&f 6HULH +DFLHQGD IROORZLQJ OHJDLRV 1R /LEUR GH 6LVD \ 1XHYR ,PSXHVWR f 1R /LEUR GH &DUJDV \ (QWUDGDV *HQHUDOHV GHO 1XHYR ,PSXHVWR f 1R /LEUR *HQHUDO $GPLQLVWUDWLYR GHO 5DPR GH 1XHYR ,PSXHVWR f 1R /LEUR 0DQXDO GH 1XHYR ,PSXHVWR f 1R /LEUR GH 1XHYR ,PSXHVWR f 1R /LEUR GH 1XHYR ,PSXHVWR f 1R /LEUR GH 1XHYR ,PSXHVWR f

PAGE 104

H[SRUWHG IURP 6DOWD DQG -XMX\ FRPELQHG RI f DV H[SUHVVHG LQ 7DEOH 7DEOH 0XOH ([SRUWV IURP &UGRED DV D 3HUFHQWDJH RI 7RWDO IURP 7XFXP£Q
PAGE 105

6DOWDnV HDFK \HDU ,Q &UGRED VWLOO KRYHUHG DW WKH PDUNRQHILIWK RI 6DOWDnV H[SRUWV )RU VRPH UHDVRQ WKH &RUGRED MXULVGLFWLRQnV SURGXFWLRQ GURSSHG VKDUSO\ DQG ZLWKLQ WKH HQWLUH 7XFXP£Q UHJLRQ WKH &UGRED MXULVGLFWLRQ EHFDPH D OHVV VLJQLILFDQW VXSSOLHU RI PXOHV WR WKH 3HUXYLDQ WUDGH &RUGREDnV GLPLQLVKHG PXOH H[SRUWV PD\ KDYH EHHQ WKH UHVXOW RI VRPH ORFDO VKRUWWHUP FDXVH $OO WKH 7XFXP£Q UHJLRQ UHPDLQHG VXVFHSWLEOH WR GURXJKW WKDW GDPDJHG SDVWXUHV DQG FXW LQWR ODQGRZQHUVn DELOLW\ WR ZLQWHU WKH DQQXDO KHUGV 'LVHDVH DOVR SUHVHQWHG D VHULRXV DQG SRWHQWLDOO\ GHYDVWDWLQJ WKUHDW WR WKH OLYHVWRFN VHFWRU RI WKH SURYLQFLDO HFRQRP\ (GEHUWR $FHYHGR FLWHV D QXPEHU RI FRQVXODGR UHSRUWV ODPHQWLQJ WKH LPSDFW RI HLWKHU GURXJKW RU GLVHDVH RQ 7XFXP£QnV OLYHVWRFN LQ WKH\ UHSRUWHG D SHVWH GH JUDQR DIWRVD RU KRRIDQGPRXWK GLVHDVHf WKDW HVSHFLDOO\ VWUXFN KRUVHV DQG FDWWOH GLPLQLVKLQJ WKH KHUGV DQG DOOHJHGO\ NLOOLQJ PDQ\ UHVLGHQWV ZKR DWH LQIHFWHG PHDW ,Q WKH GLVHDVH UHWXUQHG WKLV WLPH DIIOLFWLQJ WKH PXOH KHUGV FDXVLQJ JUHDW ORVVHV DQG KXUWLQJ SURYLQFLDO H[SRUWV ( $FHYHGR /D LQWHQGHQFLD GH 6DOWD $JDLQ $FHYHGR FLWHV FRQVXODGR UHSRUWV IURP WKH $*1 LQ %XHQRV $LUHV 2EYLRXVO\ WKH LPSDFW RI GURXJKW DQG HVSHFLDOO\ GLVHDVH RQ 7XFXP£QnV OLYHVWRFN VHFWRU LV RI JUHDW LPSRUWDQFH DQG PHULWV FORVHU VWXG\

PAGE 106

,Q DQ\ FDVH WKH ILJXUHV FRPSDULQJ &UGRED DQG 6DOWD VXJJHVW WKDW PXOHUDLVLQJ ILJXUHG SURPLQHQWO\ WKURXJKRXW WKH UHJLRQ &UGRED DSSDUHQWO\ VXSSOLHG URXJKO\ KDOI WKH PXOHV H[SRUWHG DQQXDOO\ IURP 6DOWD OHDYLQJ WKH RWKHU KDOI RI WKH PDUNHW WR RWKHU MXULVGLFWLRQV JHQHUDOO\ RYHUORRNHG LQ GLVFXVVLRQV RI WKH PXOH WUDGH 6DQ 0LJXHO GH 7XFXP£Q ZLWK D JRRG FOLPDWH DQG IHUWLOH SDVWXUHV SUREDEO\ SURYLGHG PDQ\ 6DQWLDJR GHO (VWHUR PD\ KDYH H[SRUWHG PXOHV RU PRUH HDFK \HDU ,W VHHPV WKDW DOO WKH MXULVGLFWLRQV ZLWKLQ WKH 7XFXP£Q UHJLRQ FRQWULEXWHG WR UHJLRQDO PXOH SURGXFWLRQ &UGRED DQG 6DOWD PD\ KDYH GRPLQDWHG WKLV VHFWRU EXW WKH 3HUXYLDQ PDUNHW UHPDLQHG RSHQ IRU RWKHU GLVWULFWV DV ZHOO /LYHVWRFN H[SRUWV IURP 7XFXP£Q LQFOXGHG FDWWOH DOVR WD[HG E\ WKH VLVD DQG LQFOXGHG LQ WKH UHFRUGV IRU ERWK 6DOWD DQG -XMX\ $ FRPSDULVRQ RI WKHVH ILJXUHV UHYHDOV WKDW -XMX\ GRPLQDWHG WKLV FRPPHUFH ZLWK $OWR 3HU VXUSDVVLQJ 6DOWDnV PHDJHU H[SRUWV LQ DOO EXW WKH ODVW \HDU UHFRUGHG 6XUYLYLQJ UHFRUGV ZKLFK LQFOXGH WKH WRWDO QXPEHU RI FDWWOH YDFDVf DQQXDOO\ H[SRUWHG DV ZHOO DV WKH DQQXDO VLVD UHYHQXH IURP WKLV WUDGH LQGLFDWH WKDW FDWWOH H[SRUWV SOD\HG D PXFK PRUH LPSRUWDQW UROH LQ -XMX\nV HFRQRP\ WKDQ $FHYHGR /D LQWHQGHQFLD GH 6DOWD $*, %XHQRV $LUHV ([SHGLHQWHV VREUH 6LVD GH 7XFXP£Q \ UHGXFFLQ GH ,QGLRV IROLRV QRW QXPEHUHGf 6HH DOVR WKH XQWLWOHG H[SHGLHQWH ZLWK WKH KHDGLQJ ([WUDFWR KHFKR GH XQ TXLQTXHQLR VDFDGR GHO OLEUR GH WKHVRUHUD GH OD 5 &D[D GH HVWD FLXGDG GH 6DOWD GHVGH 0DU]R GH KDVWD GHO GLFKR PHV GH LQ $*, %XHQRV $LUHV

PAGE 107

WKH\ GLG LQ 6DOWDnV 7DEOH SUHVHQWV DQG FRPSDUHV FDWWOH H[SRUWV DQG VLVD UHYHQXH IRU WKH WZR FLWLHV 7DEOH &DWWOH ([SRUWV DQG 6LVD 5HYHQXH LQ 6DOWD DQG -XMX\
PAGE 108

ILJXUHV SURYH PXFK ORZHU H[SRUWV DYHUDJHG OHVV WKDQ WHQ SHU FHQW RI -XMX\n6 DQQXDOO\ EHWZHHQ DQG D \HDU EHWZHHQ DQG DQG HYHQ IHZHU LQ VXEVHTXHQW \HDUV PDUNV DQ DEHUUDWLRQ IRU VRPH UHDVRQ 6DOWD UHSODFHG -XMX\ WKDW \HDU ZLWK H[SRUW DQG LQFRPH ILJXUHV UHYHUVHGf 2YHU WKH SHULRG IURP WR -XMX\ DFFRXQWHG IRU PRUH WKDQ SHU FHQW RI WKH 7XFXP£Q UHJLRQnV FDWWOH H[SRUWV WR 3HUX 7KH FRQWULEXWLRQV RI FDWWOH VDOHV WR VLVD UHYHQXHV DOVR GLIIHU PDUNHGO\ IURP RQH FLW\ WR WKH RWKHU SURYLQJ PXFK PRUH LPSRUWDQW WR -XMX\nV WUHDVXU\ %HWZHHQ DQG WKH \HDUV WKDW DIIRUG WKH EHVW FRPSDULVRQ -XMX\nV VLVD LQFRPH IURP FDWWOH VDOHV DPRXQWHG WR SHVRV FRPSDUHG WR SHVRV IURP PXOH VDOHV RYHU WKH VDPH SHULRG 6DOWDnV VLVD UHYHQXH IURP FDWWOH VDOHV UHDFKHG RQO\ SHVRV FRPSDUHG WR DOPRVW SHVRV IURP PXOH VDOHV RYHU WKH VDPH SHULRG $OWKRXJK WKHVH ILJXUHV UHSUHVHQW UHODWLYHO\ HDUO\ \HDUV LQ UHODWLRQ WR WKLV VWXG\ DQG WKH WUHQGV WKH\ UHYHDO PD\ QRW DSSO\ WR ODWHU \HDUV JURZLQJ FDWWOH H[SRUWV IURP WR OLNH WKH JURZLQJ PXOH H[SRUWV IURP WKH UHJLRQ LQ WKH VDPH \HDUV GHPRQVWUDWH WKH LQFUHDVLQJ SURVSHULW\ FRPPHQWHG XSRQ E\ WKH &UGRED FDELOGR LQ DQG E\ 6REUHPRQWH \HDUV ODWHU

PAGE 109

7KH LQFUHDVLQJ LPSRUWDQFH RI WKH FDWWOH HFRQRP\ LQ WKH 5LYHU 3ODWH UHJLRQ RXWOLQHG LQ WKH ILUVW FKDSWHU DQG WKH SUHGRPLQDQFH RI WKH UDQFKLQJ HFRQRP\ LQ WKH ,QWHULRU WRJHWKHU IRVWHUHG WKH HPHUJHQFH RI D UHODWHG VHFWRU LQ WKH 7XFXP£Q UHJLRQ 7KH SURFHVVLQJ RI DQLPDO E\SURGXFWV HVSHFLDOO\ UDZ KLGHV RU FXHURV DQG WDQQHG OHDWKHUV FDOOHG VXHODV ILJXUHG DPRQJ 7XFXP£QnV SULQFLSDO HFRQRPLF DFWLYLWLHV 7KH PDQXIDFWXUH DQG H[SRUW RI JUHDVH JUDVDf WDOORZ VHERf DQG VRDS MDEQf DOVR FRQWULEXWHG WR WKH UHJLRQDO HFRQRP\ 7KH 1XHYR ,PSXHVWR UHFRUGV IURP &UGRED DQG WKH VLVD UHFRUGV IURP 6DOWD DQG -XMX\ UHYHDO D EXV\ H[SRUW RI WKHVH JRRGV DOO WKH MXULVGLFWLRQV RI 7XFXP£Q LW VHHPV SDUWLFLSDWHG WR VRPH GHJUHH LQ WKHLU SURGXFWLRQ DQG FRPPHUFH -RKQ /\QFK LQ KLV VWXG\ RI WKH ,QWHQGHQW V\VWHP LQ WKH %XHQRV $LUHV YLFHUR\DOW\ VXJJHVWHG WKDW WKH KLGH LQGXVWU\ PD\ KDYH EHHQ WKH RQO\ HFRQRPLF VHFWRU WKDW EHQHILWWHG IURP WKH RSHQLQJ RI WKH SRUW WR IUHH WUDGH $V *DUDYDJOLD GHPRQVWUDWHG WKH 7XFXP£Q UHJLRQ HVSHFLDOO\ WKH &UGRED MXULVGLFWLRQ VRRQ EHFDPH FORVHO\ WLHG WR WKH JURZLQJ H[SRUW -RKQ /\QFK 6SDQLVK &RORQLDO $GPLQLVWUDWLRQ 7KH ,QWHQGHQW 6\VWHP LQ WKH 9LFHURYDOWY RI WKH 5R GH OD 3ODWD 1HZ
PAGE 110

RI KLGHV IURP %XHQRV $LUHV :LWKLQ 7XFXP£Q KRZHYHU WKH WDQQLQJ FXUWLGHULDf LQGXVWU\ VKDUHG WKLV SURVSHULW\ ,Q 6REUHPRQWH SUDLVHG WKH ILQH OHDWKHUV DQG FRUGRYDQV PDGH IURP SURYLQFLDO KHUGV RI VKHHS DQG JRDWV DQG UHPDUNHG RQ WKH QRWHG TXDOLW\ RI 7XFXP£QnV VXHODV %\ WKH WUDIILF LQ VXHODV IURP WKH LQWHULRU SURYHG EULVN HQRXJK WR SURPSW WKH %XHQRV $LUHV FDELOGR WR SURSRVH D WDULII RI WZR UHDOHV RQ HYHU\ LPSRUWHG %XW ZKLOH ERWK SURFHVVHG DQG XQSURFHVVHG KLGHV IURP &RUGREDnV FDWWOH ZHUH FDUULHG WR %XHQRV $LUHV IRU VDOH WR (XURSHDQ EX\HUV PDQ\ PRUH ZHUH 6REUHPRQWHnV 2ILFLR f HVWLPDWHV WKH WRWDO QXPEHU RI FDWWOH RU JDQDGR YDFXQR LQ &RUGREDnV SDVWXUHV DW DURXQG KHDG 6HH 6DQWRV 0DUWQH] /DV LQGXVWULDV HQ HO YLUUHLQDWR %URZQ $ 6RFLRHFRQRPLF +LVWRU\ RI $UJHQWLQD -RV 0 0DULOX] 8UTXLMR 1RWLFLDV VREUH ODV LQGXVWULDV GHO YLUUHLQDWR GHO 5R GH OD 3ODWD HQ OD SRFD GHO 0DUTXV GH $YLOHV f LQ 5HYLVWD GH +LVWRULD $PHULFDQD \ $UJHQWLQD f 5LFDUGR 5 &DLOORW%RLV $SXQWHV SDUD OD KLVWRULD HFRQPLFD GHO YLUUHLQDWR *RELHUQR ,QWHQGHQFLD GH 6DOWD GH 7XFXP£Q LQ $QXDULR GH +LVWRULD $UJHQWLQD f DQG 5LFDUGR /HYHQH 5LTXH]D LQGXVWULDV \ FRPHUFLR GXUDQWH HO YLUUHLQDWR LQ 5LFDUGR /HYHQH HG +LVWRULD GH OD 1DFLQ $UJHQWLQD GHVGH ORV RUJHQHV KDVWD OD RUJDQL]DFLQ GHILQLWLYD HQ YROXPHV %XHQRV $LUHV f YROXPH ,9 VHFWLRQ 0DUTXV GH 6REUHPRQWH 1RWLFLDV VREUH OD ,QWHQGHQFLD GH &UGRED GH 7XFXP£Q f UHSULQWHG LQ 5HYLVWD GH %XHQRV $LUHV WRPR YL f 6DQWRV 0DUWQH] /DV LQGXVWULDV GXUDQWH HO YLUUHLQDWR

PAGE 111

WDQQHG LQ SURYLQFLDO ZRUNVKRSV DQG PDGH LQWR WKH WUXQNV SHWDFDVf DQG EDVNHWV WLSDVf WKDW ZHUH XVHG WR VWRUH DQG FDUU\ TXDQWLWLHV RI RWKHU UHJLRQDO SURGXFWV 6DQ 0LJXHO GH 7XFXP£Q DOVR EHFDPH NQRZQ DV DQ LPSRUWDQW KLGHSURGXFLQJ GLVWULFW UHFRJQL]HG IRU LWV WDQQHULHV DQG WKH TXDOLW\ RI LWV VXHODV %\ WKH PLGGOH RI WKH V WKH FRQVXODGR LQ %XHQRV $LUHV HVWLPDWHG WKH FLW\nV SURGXFWLRQ DW WR VXHODV DQQXDOO\ )RU WKH QRUWKHUQ GLVWULFWV RI WKH 7XFXP£Q UHJLRQ WDQQLQJ ZDV D VLPSOH QHFHVVLW\XQWDQQHG FXHURV FRXOG QRW WUDYHO DV IDU VRXWK DV %XHQRV $LUHV ZLWKRXW URWWLQJ DQG VXIIHULQJ VLJQLILFDQW ORVV :KHQ WKH\ ZHUH QRW H[SRUWHG 6DQ 0LJXHOnV KLGHV WDQQHG DQG XQWDQQHG VHUYHG DV D EDVLF UHVRXUFH LQ WKH ZRUNVKRSV WKDW SURGXFHG OHDWKHU JRRGV DQG IXUQLWXUH &DWDPDUFD DOVR SURGXFHG DQG H[SRUWHG H[FHOOHQW FRUGRYDQV LQ DGGLWLRQ WR VXHODV WKDW ULYDOOHG WKRVH RI 6DQ 0LJXHO IRU WKHLU TXDOLW\ &DWDPDUFDnV LQGXVWU\ RQH DXWKRU VXJJHVWV PD\ KDYH EHQHILWWHG IURP WKH ORFDO DEXQGDQFH RI FHELO WUHHV *HUP£Q ( 7MDUNV 3DQRU£PD GHO FRPHUFLR LQWHUQR GHO YLUUHLQDWR GHO 5R GH OD 3ODWD HQ VXV SRVWULPHUDV LQ +XPDQLGDGHV f 6DQWRV 0DUWQH] /DV LQGXVWULDV GXUDQWH HO YLUUHLQDWR 7KH DXWKRU DOVR GLVFXVVHV WKH HQRUPRXV GDPDJHV WR KLGHV FDXVHG E\ PRWKV RU OD SROLOOD

PAGE 112

D ULFK VRXUFH RI WDQQLQ WKDW JDYH ORFDO WDQQHUV D VOLJKW FRPSHWLWLYH HGJH 6XHODV LQ IDFW ZHUH SURGXFHG WKURXJKRXW WKH 7XFXP£Q UHJLRQ DV ZHOO DV LQ &X\R ZKHUH DUWLVDQV LQ 0HQGR]D 6DQ -XDQ DQG 6DQ /XLV PDGH WKHP LQWR WKH RGUHV RU EDJV WKDW FDUULHG PXFK RI WKH ORFDO ZLQH DQG EUDQG\ 7KH SRRU HYHU\ZKHUH XVHG ERWK UDZ KLGHV DQG VXHODV LQ WKH FRQVWUXFWLRQ RI WKHLU KRPHV LQ WKH IDLUO\ GU\ FOLPDWH RI WKH ,QWHULRU KLGHV FRQYHQLHQWO\ IXQFWLRQHG DV GRRUV ZDOOV DQG URRIV &RUGREDnV 1XHYR ,PSXHVWR ERRNV IURP WR LQFOXGH UHFRUGV RI FXHUR DQG VXHOD VKLSPHQWV WR %XHQRV $LUHV 7KH ERRNV JHQHUDOO\ PHDVXUHG WKHVH VKLSPHQWV LQ XQLWV FDOOHG FDUUHWDGDV URXJKO\ HTXDO WR RQH FDUWORDG RI DSSUR[LPDWHO\ WR DUUREDV HDFK RU WR SRXQGVf $ FDUUHWDGD HTXDWHG URXJKO\ WR RU FXHURV RU VXHODV 7KH OLEUR IRU H[DPDSOH QRWHV 'RQ )UDQFLVFR %HGR\DnV ODUJH VKLSPHQW RI FXHURV WR %XHQRV $LUHV LQ FDUWV RU WKH DFWLYH PHUFKDQW 'RQ
PAGE 113


PAGE 114

7KH ILJXUHV GR QRW LQFOXGH FRPELQHG VKLSPHQWV RU VKLSPHQWV PHDVXUHG LQ FDUJDV UDWKHU WKDQ FDUUHWDGDV &RQVHTXHQWO\ WKH ILJXUHV UHSUHVHQW D PLQLPXP QXPEHU RI KLGHV WDQQHG DQG XQWDQQHG H[SRUWHG IURP &UGRED DQG SURYLGH D PLQLPDO HVWLPDWLRQ RI UHJLRQDO KLGH SURGXFWLRQ ,QFOXGLQJ WKH FRPELQHG VKLSPHQWV FDUJDV DQG RWKHU OHVV VSHFLILF HQWULHV ZRXOG SUREDEO\ GRXEOH WKH ILJXUHV SUHVHQWHG IRU PRVW \HDUV 0XOWLSO\LQJ WKH QXPEHUV RI FDUUHWDGDV E\ WKH HVWLPDWHG QXPEHU RI FXHURV RU VXHODV LQ D FDUUHWDGDf SURYLGHV D PLQLPXP HVWLPDWH RI WKH QXPEHU RI XQLWV H[SRUWHG 7KHVH ILJXUHV ILQDOO\ GR QRW LQFOXGH WKH QXPEHUV RI KLGHV DQG OHDWKHUV FRQVXPHG ZLWKLQ WKH 7XFXP£Q UHJLRQ LQ WKH PDQXIDFWXUH RI WKRXVDQGV RI FRQWDLQHUV DQG RWKHU JRRGV -XGJLQJ IURP WKH HQWULHV UHFRUGHG LQ WKH OLEURV GH 1XHYR ,PSXHVWR WKHVH QXPEHUV FRXOG SRVVLEO\ DJDLQ GRXEOH WKH HVWLPDWHV $OWKRXJK PRVW RI LWV UHFRUG LV ORVW WR KLVWRU\ VXIILFH LW WR VD\ WKDW SURFHVVHG DQG XQSURFHVVHG KLGH SURGXFWLRQ FRQVWLWXWHG D ODUJH DQG LPSRUWDQW HOHPHQW RI WKH 7XFXP£Q UHJLRQDO HFRQRP\ $+3& 6HULH +DFLHQGD

PAGE 115

7DEOH &UGRED +LGH ([SRUWV LQ &DUUHWDGDV
PAGE 116

OLYHVWRFN EXW LW LQGLFDWHV WKDW -XMX\ DSSUHFLDWHG DQG H[SORLWHG LWV SRVLWLRQ DV D VRXUFH RI OLYHVWRFN DQG UDQFKLQJ E\SURGXFWV IRU 8SSHU 3HUX 7KH 1XHYR ,PSXHVWR UHFRUGV IURP &UGRED HVSHFLDOO\ IRU WKH ODVW \HDUV RI WKH YLFHUHJDO SHULRG LQGLFDWH WKDW VRDS KDG EHFRPH D JURZLQJ H[SRUW IURP WKH VRXWKHUQ GLVWULFWV RI 7XFXP£Q 7KH OLEUR UHFRUGV DW OHDVW SHWDFDV FUDWHVf WHQ FDUJDV DQG HOHYHQ SLH]DV RU SLHFHV RI VRDS FDUULHG IURP &UGRED ,Q D WRWDO RI OHDVW SHWDFDV GH MDEQ DQG FDUJDV OHIW &RUGREDnV SOD]D LQFOXGLQJ VRPH IRU WKH FLWLHV RI %XHQRV $LUHV &DWDPDUFD /D 5LRMD DQG 6DQ -XDQ ,Q H[SRUWV LQFUHDVHG DJDLQ ZLWK DW OHDVW SHWDFDV VKLSSHG WR %XHQRV $LUHV ZLWK DQRWKHU HOHYHQ WR 6DQWD ) DQG VL[ WR &DWDPDUFD 7KH %XHQRV $LUHV VKLSPHQWV LQFOXGHG RQH FDUJR RI SHWDFDV DQG WZR RI SHWDFDV HDFK ,W VHHPV DSSDUHQW WKDW &UGRED UDQFKHUV KDG UHFRJQL]HG WKH SURILWDEOLW\ RI VRDS LQ WKH %XHQRV $LUHV PDUNHW 7H[WLOH PDQXIDFWXUH KHOG D SRVLWLRQ RI VHFRQGDU\ LPSRUWDQFH LQ 7XFXP£Q GXULQJ WKH YLFHUHJDO SHULRG $OWKRXJK VHFRQGDU\ WR UDQFKLQJ DQG WKH SURFHVVLQJ RI SDVWRUDO E\n SURGXFWV WKH ZHDYLQJ RI ERWK ZRROHQ DQG FRWWRQ JRRGV HVSHFLDOO\ OLQHQV SRQFKRV DQG EODQNHWV SURYLGHG PXFK RI $+3& 6HULH +DFLHQGD

PAGE 117

WKH UXUDO SRSXODWLRQ D VRXUFH RI LQFRPH DQG D SRVLWLRQ LQ WKH UHJLRQnV HFRQRPLF VWUXFWXUH &UGRED DQG 6DQ 0LJXHO GH 7XFXP£Q ZLWK ODUJHU SRSXODWLRQV DQG EHWWHU DFFHVV WR WKH %XHQRV $LUHV PDUNHW GRPLQDWHG WKLV DFWLYLW\ IROORZHG E\ FRWWRQSURGXFLQJ &DWDPDUFD :HDYLQJ UHPDLQHG SULPDULO\ D UXUDO GRPHVWLF DFWLYLW\ SUDFWLFHG HLWKHU E\ FDPSHVLQD ZRPHQ RU LQ WKH VPDOO VFDWWHUHG ,QGLDQ FRPPXQLWLHV 7KHLU LQH[SHQVLYH FRDUVH WH[WLOHV VROG PRVWO\ ZLWKLQ WKH 7XFXP£Q DQG &X\R UHJLRQV ZLWK VRPH TXDQWLWLHV H[SRUWHG WR %XHQRV $LUHV WKH /LWRUDO DQG &KLOH 6XSSO\LQJ D ODUJH LQWHUQDO PDUNHW RI RYHU FRQVXPHUV DQG D VXUSULVLQJO\ VWURQJ GHPDQG LQ %XHQRV $LUHV WH[WLOH SURGXFWLRQ DQG H[SRUWV UHDFKHG LPSUHVVLYH OHYHOV DQG FRQVWLWXWHG DQ LPSRUWDQW HOHPHQW RI WKH UHJLRQDO HFRQRP\ 7H[WLOH PDQXIDFWXUH HPHUJHG HDUO\ DV 7XFXP£QnV SULPDU\ OLQN WR WKH 3HUXYLDQ PLQLQJ HFRQRP\ %HIRUH WKH EHJLQQLQJ RI WKH VHYHQWHHQWK FHQWXU\ WKH 7XFXP£Q UHJLRQ ZDV DOUHDG\ UHFRJQL]HG DV DQ LPSRUWDQW FRWWRQJURZLQJ ]RQH H[SRUWLQJ FRQVLGHUDEOH TXDQWLWLHV RI FRWWRQ OLQHQV FDUSHWV EHGn FRYHUV DQG FRDUVH ,QGLDQ FORWKHV WR 3RWRV 7KH FLW\ DQG GLVWULFW RI &UGRED HPHUJHG DV WKH FHQWHU RI WKLV /XV &DSRFKH 5HODFLQ JHQHUDO GH OD 9LOOD ,PSHULDO GH 3RWRV 0DGULG f

PAGE 118

SURGXFWLRQ UHO\LQJ RQ ERWK GRPHVWLF DFWLYLW\ DQG UXUDO REUDMHV 3URYLQFLDO ODQGRZQHUHQFRPHQGHURV FRRSHUDWLQJ ZLWK 3HUXYLDQ PHUFKDQWV GHYHORSHG WKH LQGXVWU\ E\ ILQDQFLQJ WKH ZRUNVKRSV RUJDQL]LQJ WKH WHFKQRORJ\ DQG SURYLGLQJ WKH ,QGLDQ RU VODYH ODERUHUV WKDW PDGH FKHDS SURILWDEOH H[SRUWV SRVVLEOH 'HVSLWH FKHDS ODERU &RUGREDnV WH[WLOH WUDGH SURYHG VKRUWOLYHG $VVDGRXULDQ FRQWHQGV WKDW E\ RU WKH VHFWRU EHJDQ WR IDGH +H DWWULEXWHV WKLV WR VHYHUDO IDFWRUV LQFOXGLQJ WKH UDSLG GHFOLQH RI WKH ,QGLDQ SRSXODWLRQ DQG WKH FRQVHTXHQW GHWHULRUDWLRQ RI WKH HQFRPLHQGD V\VWHP ,QFUHDVLQJ WH[WLOH SURGXFWLRQ LQ SDUWV RI $OWR 3HU FXW LQWR 7XFXP£QnV PDUNHW DQG WKH WH[WLOH VHFWRU IXUWKHU VXIIHUHG DV UHJLRQDO ODQGRZQHUV WXUQHG WRZDUG UDQFKLQJ DQG OLYHVWRFN WR RIIVHW WKHLU ORVVHV $OWKRXJK WH[WLOH SURGXFWLRQ QHYHU FRPSOHWHO\ GLVDSSHDUHG IURP WKH 7XFXP£Q HFRQRP\ LQ WKH VHYHQWHHQWK FHQWXU\ LW UHORFDWHG DQG HYHQWXDOO\ EHFDPH FRQFHQWUDWHG LQ &DWDPDUFD DQG /D 5LRMD 3URGXFWLRQ LQ WKH QHZ FHQWHUV KRZHYHU QHYHU UHDFKHG ROG 6HH 6HPSDW $VVDGRXULDQ (FRQRPLDV UHJLRQDOHV \ PHUFDGR LQWHUQR FRORQLDO (O FDVR GH &UGRED HQ ORV VLJORV ;9, \ ;9,, LQ (O VLVWHPD GH OD HFRQRPD FRORQLDO DQG *DU]Q 0DFHGD (FRQRPD GH 7XFXP£Q

PAGE 119

,OO OHYHOV DQG IRU PRVW RI WKH FHQWXU\ LPSRUWHG WH[WLOHV IURP 3DUDJXD\ DQG 3HUX DOVR VROG LQ 7XFXP£Q PDUNHWV ,Q WKH VHYHQWHHQWK FHQWXU\ WH[WLOH SURGXFWLRQ XQGHUZHQW IXUWKHU FKDQJHV ,Q &DWDPDUFD /D 5LRMD DQG 6DQWLDJR GHO (VWHUR GLVWULFWV ZLWK ODUJHU VXUYLYLQJ ,QGLDQ SRSXODWLRQV SURGXFWLRQ UHPDLQHG FRQFHQWUDWHG LQ HQFRPLHQGD YLOODJHV +HUH ,QGLDQ ZRPHQ DQG ER\V VSHFLDOL]HG LQ VSLQQLQJ FRWWRQ WKUHDG EHIRUH WKH PHQ ZRYH LW LQWR WKH FRDUVH OLQHQV %RWK WKH ,QGLDQ ZRUNHUV DQG 6SDQLVK REVHUYHUV FRQVLGHUHG WKH REOLJDWLRQV H[FHSWLRQDOO\ GLIILFXOW TXRWDV IRU WKUHDG VRPHWLPHV UHDFKHG D SRXQG RU PRUH D ZHHN DQG HQFRPHQGHURV RIWHQ HQFORVHG ZRUNHUV LQ FRUUDOV DQG NHW D FORVH ZDWFK RQ WKHLU DFWLYLWLHV ,Q &UGRED DQG 6DQ 0LJXHO GH 7XFXP£Q GRPHVWLF ZHDYLQJ WUDQVIHUUHG WR WKH 6HPSDW $VVDGRXULDQ (FRQRPLDV UHJLRQDOHV \ PHUFDGR LQWHUQR )RU GLVFXVVLRQ RI 7XFXP£QnV FRORQLDO WH[WLOH VHFWRU VHH *DUDYDJOLD /RV WH[WLOHV GH OD WLHUUD HQ HO FRQWH[WR FRORQLDO ULRSODWHQVH 8QD UHYROXFLQ LQGXVWULDO IDOOHFLGD" LQ $QXDULR GHO ,QVWLWXWR GH (VWXGLRV +LVWULFR 6RFLDOHV f ZKLFK FRQVWLWXWHV WKH RQO\ QRWHZRUWK\ VWXG\ RI FRORQLDO 7XFXP£QnV WH[WLOH VHFWRU )XUWKHU LQIRUPDWLRQ UHJDUGLQJ WKH HQFRPLHQGD LQ VHYHQWHHQWK FHQWXU\ 7XFXP£Q LV VSDUVH $GROIR /XLV *RQ]£OH] 5RGUJXH] SURYLGHV D ERRNOHQJWK VWXG\ RI HQFRPLHQGD SRSXODWLRQV LQ 7XFXP£Q EXW DV *DUDYDJOLD VD\V SDJH IRRWQRWH f KH GHGLFDWHV QRW D VLQJOH OLQH WR WKH HQFRPLHQGD DV D PHFKDQLVP RI DSSURSULDWLRQ H[SORLWHG E\ 6SDQLVK LPSUHVDULRV

PAGE 120

UXUDO DUHDV DQG UHOLDQW XSRQ WKH ODERU RI ZRPHQ SURYLGHG D VHFRQG VRXUFH RI WH[WLOHV %\ WKH PLGGOH RI WKH HLJKWHHQWK FHQWXU\ WKLV EDVLF VWUXFWXUH FKDUDFWHUL]HG 7XFXP£QnV WH[WLOH VHFWRU &DWDPDUFD FRPPXQLWLHV HVSHFLDOO\ GRPLQDWHG WKH SURGXFWLRQ RI FRWWRQ OLQHQV ZKHUHDV ZRRO EHFDPH WKH ILEHU RI FKRLFH LQ WKH VRXWK UHIOHFWLQJ WKH LQFUHDVLQJ SUHVHQFH RI VKHHS LQ VRXWKHUQ SDVWXUHV +HUH ZRROHQ EDL]HV DQG FRDUVHU FORWKV SOXV EODQNHWV IUH]DGDVf VDGGOH EODQNHWV SHOORQHVf FDUSHWV DOIRPEUDVf IULH]HV MHUJDVf DQG SRQFKRV UHSODFHG WKH WUDGLWLRQDO FRWWRQ OLQHQV 3URGXFHG PRVWO\ IRU WKH UHJLRQDO PDUNHW 6REUHPRQWH FODLPHG WKDW VRPH RI WKHVH LWHPV DOVR UHDFKHG PDUNHWV LQ %XHQRV $LUHV 0HQGR]D &KLOH DQG HYHQ 3HUX :KLOH HQFRPLHQGD ,QGLDQV ZRUNHG WKH ORRPV LQ WKH QRUWKHUQ GLVWULFWV ZRPHQ FRQVWLWXWHG WKH ZHDYLQJ ZRUNIRUFH 6 *DUDYDJOLD /RV WH[WLOHV GH OD WLHUUD *DUDYDJOLD DUJXHV WKDW WKH LQFUHDVLQJ PLVFHJHQDWLRQ SURPSWHG WKH XUEDQWRUXUDO VKLIW RI WKH WH[WLOH VHFWRUV LQ &UGRED DQG 7XFXP£QDQ H[SODQDWLRQ WKDW ILWV QHDWO\ ZLWK $VVDGRXULDQnV UHDVRQV IRU WKH GHFOLQH RI WH[WLOH SURGXFWLRQ LQ WKHVH GLVWULFWV 6REUHPRQWHnV 2ILFLR f FODLPV RYHU VKHHS IRU &RUGREDnV SDVWXUHV ,ELG *DUDYDJOLD KRZHYHU GRXEWV WKDW PDQ\ RI 7XFXP£QnV ZRROHQ JRRGV HYHU SDVVHG WKH 4XHEUDGD GH +XPDKXDFDVHH /RV WH[WLOHV GH OD WLHUUD

PAGE 121

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nV REVHUYDWLRQV ZHUH SUREDEO\ DFFXUDWH EXW XQIDLU WR WKH KXVEDQGV RI 7XFXP£QnV ZRPHQ 0DQ\ PHQ LQ WKH UHJLRQ SUREDEO\ ZRUNHG LQ RWKHU VHFWRUV VXFK DV LQ KHUGLQJ RU SURFHVVLQJ RU IRXQG HPSOR\PHQW LQ WUDGHV WKDW NHSW WKHP DZD\ IURP KRPH IRU ORQJ VWUHWFKHV RI WLPH 5RXQGLQJ XS ZLOG FDWWOH LQ YDTXHUDV GULYLQJ KHUGV RI PXOHV QRUWK DQG HPSOR\PHQW RQ WKH PXOH WUDLQV DQG FDUW FDUDYDQV WKDW KDXOHG 7XFXP£QnV UHJLRQDO FRPPHUFH ZRXOG DOO KDYH NHSW PHQ DZD\ IURP WKHLU KRPHV DQG IDPLOLHV IRU H[WHQGHG SHULRGV 6REUHPRQWH 1RWLFLDV f 'RPLQJR ) 6DUPLHQWR /LIH LQ WKH $UJHQWLQH 5HSXEOLF LQ WKH 'D\V RI WKH 7\UDQWV RU &LYLOL]DWLRQ DQG %DUEDULVP 1HZ
PAGE 122

*DUDYDJOLDnV YDOXDEOH VWXG\ UHIHUV WR WKH VHFRQG KDOI RI WKH HLJKWHHQWK FHQWXU\ DV WKH HWDSD GH SRQFKRV UHIHUULQJ WR WKH SUHGRPLQDQFH RI SRQFKR SURGXFWLRQ LQ ERWK &UGRED DQG 6DQ 0LJXHO GH 7XFXP£Q +H WUDFHV WKH RULJLQV RI WKLV JDUPHQW DQG DWWULEXWHV LWV JURZLQJ SRSXODULW\ WR WKH VSUHDG RI $UDXFDQLDQ FXOWXUDO LQIOXHQFHV LQ WKH UXUDO SDUWV RI WKH 7XFXP£Q DQG &X\R UHJLRQV %\ WKH PLGGOH RI WKH FHQWXU\ WKUHH EDVLF VW\OHV KDG HYROYHG LQFOXGLQJ RQH IRU WKH 3DPSD ,QGLDQ WUDGH DQRWKHU SRSXODU ZLWK WKH &UGRED ZHDYHUV DQG D WKLUG FRPPRQ WR 6DQWLDJR GHO (VWHUR 7KH PDLQ GLIIHUHQFH DPRQJ WKHVH WKUHH W\SHV ZDV WKH ZD\ WKH ZHDYHUV SURFHVVHG WKH ZRRO WKH\ XVHGWKH &UGRED SRQFKR PRUH ZLGHO\ ZRUQ LQ WKH 7XFXP£Q UHJLRQ XVHG FUXGHU PDWHULDOV DQG ZDV FKHDSHU WR PDNH 7KH 6DQWLDJR DQG WUDGH SRQFKR XWLOL]HG EHWWHU ZRRO RU RIWHQ D PL[ RI FRWWRQ DQG ZRRO DQG VROG IRU KLJKHU SULFHV LQ UHJLRQDO PDUNHWV 8QIRUWXQDWHO\ WKH ODFN RI TXDQWLILDEOH GDWD SUHFOXGHV DQ\ SUHFLVH PHDVXUHPHQW RI 7XFXP£QnV WH[WLOH SURGXFWLRQ $ QXPEHU RI SULPDU\ DQG VHFRQGDU\ VRXUFHV DIIRUG HVWLPDWHV IRU WKH YLFHUHJDO \HDUV EXW FRQFOXVLRQV FDQ RQO\ EH DSSUR[LPDWLRQV *DUDYDJOLD IRU H[DPSOH XVLQJ WKH %XHQRV *DUDYDJOLD /RV WH[WLOHV GH OD WLHUUD ,ELG

PAGE 123

$LUHV FXVWRPV JXDV HVWLPDWHV WKDW URXJKO\ RQHKDOI bf RI WKH ,QWHULRUnV WH[WLOH H[SRUWV WR %XHQRV $LUHV FRQVLVWHG RI EODQNHWV DQG SRQFKRV RQHIRXUWK bf FRQVLVWHG RI FRWWRQ OLQHQV DQG URXJKO\ RQHILIWK bf FRQVLVWHG RI LQH[SHQVLYH URSD GH 3HU 7RJHWKHU WKHVH WH[WLOHV FRPSULVHG DERXW WHQ SHU FHQW RI WKH WRWDO YDOXH RI WKH ,QWHULRUnV H[SRUWV &RUGREDnV SURGXFWLRQ GRPLQDWHG ERWK WKH YROXPH DQG YDOXH RI WKH 7XFXP£Q UHJLRQnV H[SRUWV SHUKDSV DV PXFK DV SHU FHQW RI WKH WRWDO %XW DFFRUGLQJ WR FRQWHPSRUDU\ REVHUYHUV VXFK DV 6REUHPRQWH PRVW RI 7XFXP£QnV WH[WLOHV IRXQG PDUNHWV ZLWKLQ WKH UHJLRQ RU LQ UHJLRQV RWKHU WKDQ %XHQRV $LUHV 7KH 1XHYR ,PSXHVWR ERRNV IURP &UGRED SURYLGH DQ DGGLWLRQDO HVWLPDWH RI 7XFXP£QnV WH[WLOH H[SRUWV 7UHDVXU\ RIILFLDOV OHIW D URXJK UHFRUG RI WH[WLOH WUDGH HVSHFLDOO\ LQ SRQFKRV 8VXDOO\ PHDVXUHG LQ XQLWV FDOOHG IDUGRV RU WLJKWO\SDFNHG EXQGOHV D FRQVLGHUDEOH QXPEHU RI SRQFKRV DQQXDOO\ SDVVHG WKURXJK &UGRED RQ WKHLU ZD\ WR %XHQRV $LUHV ,Q IRU H[DPSOH DW OHDVW IDUGRV OHIW ,ELG 6REUHPRQWHnV 2ILFLR FRPPHQWHG IRU H[DPSOH WKDW PRVW RI &RUGREDnV WH[WLOHV IRXQG PDUNHWV ZLWKLQ WKH 7XFXP£Q UHJLRQ DQG WKH 1XHYR ,PSXHVWR UHFRUGV IURP &UGRED LQGLFDWH WKDW VRPH RI 7XFXP£QnV SRQFKRV IRXQG EX\HUV LQ 3DUDJXD\ DQG &KLOH

PAGE 124

&RUGREDnV SOD]D IRU %XHQRV $LUHV 6HYHUDO QRWHV LQ WKH OLEURV HTXDWH D IDUGR ZLWK SRQFKRV LW ZRXOG VHHP WKHQ WKDW DW OHDVW 7XFXP£Q SRQFKRV ZHQW WR %XHQRV $LUHV LQ 6XEVHTXHQW \HDUV LQGLFDWH D GURS LQ H[SRUWV GXULQJ WKH V WKH UHFRUGV VKRZ RQO\ IDUGRV H[SRUWHG LQ LQ DQG LQ 3DUW RI WKLV DSSDUHQW GHFOLQH PLJKW EH DWWULEXWDEOH WR LQFRQVLVWHQW UHFRUGn NHHSLQJ VLQFH LQ VRPH \HDUV VRPH VKLSPHQWV DUH UHFRUGHG LQ XQLWV FDOOHG WHUFLRV FDUJDV RU FDUUHWDGDV 2WKHU HQWULHV UHFRUG PL[HG IUHLJKWV WKDW LQFOXGH XQVSHFLILHG QXPEHUV RI SRQFKRV VHLV FDUUHWDV GH SRQFKRV \ PDGHUDf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

PAGE 125

6LPLODU GLIILFXOWLHV DSSO\ WR PHDVXULQJ UHJLRQDO H[SRUWV RI FRWWRQ IDEULFV ,Q PRVW \HDUV WKH ,PSXHVWR UHFRUGV PDNH QR UHIHUHQFH WR OLHQ]RV OLQHQVf RU DQ\ RWKHU FRDUVH IDEULFV ,W VHHPV OLNHO\ WKDW WKHVH JRRGV DUH LQFOXGHG VLPSO\ DV HIHFWRV GH OD WLHUUD VR DUH LPSRVVLEOH WR PHDVXUH DFFXUDWHO\ 0DQ\ VKLSPHQWV RI IDUGRV GH HIHFWRV GH OD WLHUUD SDVVHG WKURXJK &UGRED HDFK \HDU EXW WKH OLEURV SURYLGH QR ZD\ WR NQRZ KRZ PDQ\ RI WKHVH HQWULHV UHIHU WR WKH OLHQ]RV WKDW ZHUH H[SRUWHG &RUGREDnV ,PSXHVWR UHJLVWHUV GLG KRZHYHU NHHS D IDLUO\ FRQVLVWHQW UHFRUG RI WKH VKLSPHQW RI &DWDPDUFDnV XQSURFHVVHG FRWWRQ WKDW HQWHUHG WKH &UGRED PDUNHW 0RVW RI WKLV FRWWRQ VWD\HG LQ &UGRED DW OHDVW IRU D ZKLOH EXW VRPH GLG PRYH WKURXJK WR %XHQRV $LUHV $OPRVW DOO 2WKHU VRXUFHV SURYLGH HVWLPDWHV WKDW VXSSOHPHQW WKH 1XHYR ,PSXHVWR UHFRUGV ,Q IRU H[DPSOH $PEURVLR )XQHV YHFLQR RI &UGRED DQG ORFDO GHSXW\ RI WKH %XHQRV $LUHV FRQVXODGR HVWLPDWHG &RUGREDnV WH[WLOH SURGXFWLRQ DW URXJKO\ SRQFKRV DQQXDOO\ SOXV YDUDV RI EDL]H YDUDV RI IULH]H DQG YDUDV RI VDFNFORWKVHH WKH 7HOJUDIR 0HUFDQWLO 5HLPSUHVLQ )DFVLPLODU YROXPHV %XHQRV $LUHV f YROXPH ,, -XQH $ 6DQWLDJR GHO (VWHUR FRQVXODGR UHSRUW IURP FODLPV WKDW WKH ZRPHQ RI WKDW GLVWULFW SURGXFHG EHWZHHQ DQG SRQFKRV DQQXDOO\ DQG DQRWKHU FRQVXODGR UHSRUW IURP 6DQ 0LJXHO GH 7XFXP£Q GDWHG HVWLPDWHV WKDW GLVWULFWnV DQQXDO SURGXFWLRQ DW VDGGOH EODQNHWV SHOORQHVf SRQFKLOORV YDUDV RI SLFRWHV DQG YDUDV RI FRWWRQ OLQHQ VHH $FHYHGR /D LQWHQGHQFLD GH 6DOWD f

PAGE 126

&DWDPDUFDnV FRWWRQ FDPH WR PDUNHW LQ FDUJDV GH PXDV PHDVXUHPHQWV RI DSSUR[LPDWHO\ WR SRXQGV VRPH KRZHYHU GLG FRPH LQ WHUFLRV RU RWKHU XQLWV WKDW PDNH SUHFLVH PHDVXUHPHQWV LPSRVVLEOH %XW URXJK HVWLPDWHV DJDLQ PLQLPXPV VXJJHVW D FRQVLGHUDEOH SURGXFWLRQ LQ VRPH \HDUV DQG LQFUHDVLQJ VKLSPHQWV LQ WKH ILQDO \HDUV RI WKH FRORQLDO SHULRG DQG UHJLVWHUHG DW OHDVW FDUJDV RU DSSUR[LPDWHO\ SRXQGV WRQVf RI FRWWRQ HQWHULQJ &UGRED UHJLVWHUHG DW OHDVW FDUJDV UHJLVWHUHG DW OHDVW DQRWKHU FDUJDV UHJLVWHUHG WKH JUHDWHVW DPRXQW LQ WKLV GHFDGH DW OHDVW FDUJDV DIWHU ZKLFK WKH ILJXUHV GURSSHG RII WR FDUJDV LQ FDUJDV LQ DQG FDUJDV LQ %\ KRZHYHU VKLSPHQWV KDG VXUSDVVHG WKH HDUOLHU OHYHOV ZLWK UHJLVWHULQJ DW OHDVW FDUJDV UHJLVWHULQJ DW OHDVW FDUJDV SRXQGV RU WRQVf DQG UHJLVWHULQJ DW OHDVW DQRWKHU FDUJDV :LQHPDNLQJ DQG DJXDUGLHQWHGLVWLOOLQJ DOVR HPHUJHG DV VHFRQGDU\ RU VXSSOHPHQWDU\ DFWLYLWLHV ZLWKLQ WKH 7XFXP£Q UHJLRQDO HFRQRP\ 'HVSLWH WKH FRQVLGHUDEOH TXDQWLWLHV PDGH $+3& 6HULH +DFLHQGD $JDLQ WKHVH ILJXUHV DUH PLQLPXP HVWLPDWHV WKH\ GR QRW LQFOXGH UHFRUGHG VKLSPHQWV WKDW ZHUH PHDVXUH LQ WHUFLRV

PAGE 127

LQ DQG H[SRUWHG IURP 0HQGR]D DQG 6DQ -XDQ /D 5LRMD DQG SDUWV RI WKH ZHVWHUQ GLVWULFWV RI 7XFXP£Q DOVR EHFDPH SURGXFHUV RI FDOGRV RU ZLQH DQG VSLULWV DQG VRPHWLPHV YLQHJDU DQG UDLVLQVf PDUNHWHG LQ &RUGRED DQG SHUKDSV LQ WKH QRUWKHUQ FLWLHV ,Q 6REUHPRQWH HVWLPDWHG /D 5LRMDnV DQQXDO SURGXFWLRQ DW DUUREDV 7KH SDUWLGRV RI )DPDWLQD DQG $UDXFR DQG VHYHUDO RI WKH HQFRPLHQGD SXHEORV GH LQGLRV QRWDEO\ $QJXLQDP FRQWULEXWHG WR WKHVH TXDQWLWLHV &RUGREDnV UHFRUGV VKRZ WKDW VHYHUDO RWKHU GLVWULFWV LQ ZHVWHUQ 7XFXP£Q SURGXFHG VRPH ZLQH RU DJXDUGLHQWH DW OHDVW DIWHU &DWDPDUFDnV FDOGRV DSSHDU LQ &RUGREDnV PDUNHW LQ DQG ZKHQ RIILFLDOV NHSW PRUH GHWDLOHG UHFRUGV WKH VPDOOHU VHWWOHPHQWV 6DQWD /XFLD GH /D 5LRMD DQG 6LPERODU DQG WKH HQFRPLHQGDV RI $QJXOOQ DQG $QFDOOR DOVR UHFRUGHG VKLSPHQWV 7KH 1XHYR ,PSXHVWR ERRNV IURP WKH V UHFRUG /D 5LRMDnV FDOGR WUDGH LQ FDUJDV DSSUR[LPDWHO\ HTXLYDOHQW WR WKUHH DUUREDV RU QLQH JDOORQVf 9LQWQHUV SDFNDJHG WKHLU FDOGRV LQ RGUHV RU SLWFKOLQHG JRDWVNLQV WZR RI ZKLFK 6REUHPRQWH 2ILFLR VR 6HH WKH 1XHYR ,PSXHVWR ERRNV $+3& 6HULH +DFLHQGD HVSHFLDOO\ DQG

PAGE 128

FRQVWLWXWHG D FDUJD 0DQ\ HQWULHV UHFRUGHG FRPELQHG VKLSPHQWV RI ZLQH DQG DJXDUGLHQWH RU ZLQH DQG VRPHWKLQJ HOVH DQG WKH\ GR QRW VSHFLI\ WKHLU RULJLQV DV GR WKH ERRNV IURP DQG 7KH IROORZLQJ GDWD SUHVHQWV D VXPPDU\ RI LPSXHVWR SD\PHQWV E\ 7XFXP£Q YLQWQHUV IRU WKHLU ZLQH DJXDUGLHQWH YLQHJDU DQG UDLVLQV SDVDVf IRU WKH \HDUV IURP WR 7KH WR UHFRUGV GR QRW VSHFLILFDOO\ QRWH WKH RULJLQV RI WKH VKLSPHQWV DV GR WKRVH IURP DQG DIWHU FDUJDV ZLQH FDUJDV DJXDUGLHQWH FDUJDV ZLQH DQG DJXDUGLHQWH FDUJDV ZLQH DQG YLQHJDU FDUJDV ZLQH FDUJDV ZLQH DQG DJXDUGLHQWH FDUJDV RI ZLQH FRWWRQ DQG SHSSHUV DLLf FDUJDV ZLQH FDUJDV DJXDUGLHQWH FRQWLQXHG 7KHVH PHDVXUHPHQWV DUH EDVHG RQ LQIRUPDWLRQ JOHDQHG IURP LQFLGHQWDO FRPPHQWV WKDW DSSHDU LQ D YDULHW\ RI FRPPHUFLDO UHFRUGV )RU UHIHUHQFH WR WKH ZHLJKW RI D FDUJD RI YLQR VHH $*, %XHQRV $LUHV I 5HODFLQ TXH GHPXHVWUD HO (VWDGR GH (VFDVH] R DEXGDQFLD 0HV GH 0D\R %XHQRV $LUHV &RQVXODGRf D UHSRUW RQ SULFHV RI ERWK HIHFWRV GH &DVWLOOD DQG HIHFWRV GH OD WLHUUD LQ &DWDPDUFD YLQR D SHVRV FDGD DUURED GH HQ FDUJD $Q HQWU\ LQ &RUGREDnV /LEUR GH &DUJDV Y (QWUDGDV *HQHUDOHV GH 1XHYR ,PSXHVWR f $+3& 6HULH +DFLHQGD f LQFOXGHV DQ HQWU\ IRU FDUJDV GH DJXDUGLHQWH HQ RGUHV

PAGE 129

FDUJDV ZLQH FDUJDV DJXDUGLHQWH FDUJDV RI ZLQH DQG YLQHJDU FDUJDV RI ZLQH DQG UDLVLQV FDUJDV RI UDLVLQV FDUJDV RI ZLQH FDUJDV RI DJXDUGLHQWH FDUJDV RI ZLQH DQG DJXDUGLHQWH FDUJDV RI FDOGRV FDUJDV RI ZLQH FDUJDV RI DJXDUGLHQWH FDUJDV RI ZLQH DQG DJXDUGLHQWH EDUUHOV RI ZLQH DQG DJXDUGLHQWH FDUJDV RI ZLQH FDUJDV DQG EDUUHOV RI DJXDUGLHQWH FDUJDV RI ZLQH DQG DJXDUGLHQWH FDUJDV RI ZLQH DQG YLQHJDU FDUJDV RI ZLQH DQG UDLVLQV FDUJDV RI ZLQH DQG RWKHU IUXLWV FDUJDV RI ZLQH FDUJDV RI DJXDUGLHQWH FDUJDV RI ZLQH DQG UDLVLQV FDUJDV RI ZLQH DJXDUGLHQWH DQG UDLVLQV FDUJDV RI UDLVLQV FDUJDV RI ZLQH FDUJDV RI ZLQH DQG UDLVLQV FDUJDV RI ZLQH FDUJDV RI ZLQH DQG UDLVLQV FDUJDV RI ZLQH DQG DQV FDUJDV RI ZLQH DQG RUDQJHV FDUJDV RI UDLVLQV FDUJDV RI ZLQH FRQWLQXHG

PAGE 130

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

PAGE 131

IURP /D 5LRMD FDUJDV RI ZLQH FDUJDV RI ZLQH DQG RUDQJHV FDUJDV RI RUDQJHV FDUJDV RI YLQHJDU IURP )DPDWLQD FDUJDV RI ZLQH IURP $QJDOOR FDUJDV RI ZLQH IURP 6LPERODU FDUJDV RI ZLQH IURP $QJXOOQ FDUJDV RI ZLQH IURP 6DQWD /XFLD FDUJDV RI ZLQH IURP &KXJXLVDFD FDUJDV RI ZLQH 7KHVH GDWD LQGLFDWH /D 5LRMDnV IDLUO\ VWHDG\ VDOH RI LWV FDOGRV LQ &UGRED EHWZHHQ DQG ZLWK UHODWLYHO\ JRRG \HDUV LQ DQG WKHQ D GHFOLQH LQ VDOHV IURP WKURXJK 7KH ILJXUHV IURP WR UHODWH DQ LPSUHVVLYH UHFRYHU\ WR HDUOLHU OHYHOV ,I 6REUHPRQWHnV HVWLPDWLRQV ZHUH DFFXUDWH WKDW /D 5LRMDnV ZLQH SURGXFWLRQ UHDFKHG DUUREDV FDUJDVf D \HDU WKHQ LW VHHPV WKDW &UGRED SXUFKDVHG LW DOO SOXV TXDQWLWLHV IURP RWKHU GLVWULFWV 7KH OLEUR IRU H[DPSOH UHFRUGV WKH VDOH RI FDUJDV RI ZLQH DQG FDUJDV RI ZLQH DQG UDLVLQV IURP 6DQ -XDQ WKH OLEUR VKRZV DQRWKHU VDOH RI FDUJDV RI ZLQH DQG YLQHJDU IURP 6DQ -XDQ %XW WKH TXDQWLWLHV UHFRUGHG LQ WKH 1XHYR ,PSXHVWR ERRNV SUREDEO\ GR QRW DFFRXQW IRU DOO ZLQH SURGXFHG LQ WKH 7XFXP£Q UHJLRQ DUUREDV RI ZLQH HTXDOV DSSUR[LPDWHO\ WR JDOORQV RI ZLQH SHU \HDU RU DERXW WZR JDOORQV SHU SHUVRQ MXVW LQ WKH FLW\ RI

PAGE 132

&HUWDLQO\ QRW DOO WKH UHVLGHQWV RI HLWKHU WKH FLW\ RU WKH GLVWULFW FRXOG DIIRUG WR GULQN ZLQH \HDUURXQG EXW /D 5LRMDnV SURGXFWLRQ VHHQ LQ WKLV OLJKW GRHV QRW VHHP OLNH PXFK DQG FHUWDLQO\ OHIW URRP LQ WKH PDUNHW IRU PRUH 6HYHUDO HQWULHV RI &DVWLOOLDQ ZLQH DSSHDU LQ WKH OLEURV EXW WKH\ DUH LQIUHTXHQW DQG UHSUHVHQW IDLUO\ VPDOO TXDQWLWLHV /DQGRZQHUV ZLWKLQ WKH &UGRED MXULVGLFWLRQ PLJKW KDYH EHHQ SURGXFLQJ VLJQLILFDQW TXDQWLWLHV RI ZLQH WKDW GR QRW DSSHDU LQ WKH OLEURV %\ WKH V SUREDEO\ HDUOLHU 7XFXP£Q KDG DOVR EHFRPH DQ H[SRUWHU RI FXW DQG WULPPHG FRQVWUXFWLRQ OXPEHU DV ZHOO DV XQWULPPHG PDGHUD ZRRGf &RUGREDnV 1XHYR ,PSXHVWR ERRNV UHFRUG D VWHDG\ FRPPHUFH LQ PDGHUD WDEODV DQG FRVWDHUDV UDIWHUV RU EHDPVf DQG OHVV IUHTXHQW VKLSPHQWV RI HMHV RU D[OHV XVHG LQ WKH FRQVWUXFWLRQ RI FDUWV DQG EDWHDV RU ODUJH ZRRGHQ WXEV RU WURXJKV SUHVXPDEO\ XVHG IRU DQ\ QXPEHU RI SXUSRVHV VXFK DV ZDWHULQJ OLYHVWRFN RI VRDNLQJ KLGHV IRU WDQQLQJ %XHQRV $LUHV IXUWKHU UHTXLUHG D VWHDG\ VXSSO\ RI EXLOGLQJ PDWHULDOV 7KH 6DQ 0LJXHO GH 7XFXP£Q GLVWULFW EHQHILWWHG IURP LWV SRVLWLRQ WKDW HQDEOHG LW WR H[SORLW WKH &DVWLOOLDQ ZLQH XVXDOO\ DUULYHG LQ &RUGRED ZLWK RWKHU VKLSPHQWV HQWHUHG LQWR WKH 1XHYR ,PSXHVWR ERRNV DV (IHFWRV GH &DVWLOOD 6HH WKH VPDOO VKLSPHQWV UHFRUGHG LQ $+3& 6HULH +DFLHQGD IRU 'LFLHPEUH RU 0DLR

PAGE 133

ULFK IRUHVWV DGPLUHG E\ &RQFRORUFRUYR $Q LQWHUHVWLQJ GRFXPHQW IURP WKH $UFKLYR *HQHUDO GH ,QGLDV PDS FROOHFWLRQ OLVWV D QXPEHU RI WUHHV IRXQG LQ WKH 7XFXP£Q UHJLRQ DQG GHVFULEHV WKHLU XVHV 7KH PRVW LPSRUWDQW IROORZ WKH 4XHEUDFKR D KDUGZRRG XVHG IRU EHDPV YLJDVf LQ FRQVWUXFWLRQ DQG LQ FDUWPDNLQJ WKH $OJRUURER XVHG WR WR PDNH EHDPV IRU FRQVWUXFWLRQ DQG FDUWV WKH 0LVWRO XVHG WR PDNH D[HOV DQG DUURSH WKH &KDDU WKH 0ROOH DQG WKH 3LVFUXLOOLQ XVHG WR PDNH DUURSH D UHVLQ WKH WZR VSHFLHV RI &RURQLOOD WKH ILUVW XVHG WR PDNH G\H DQG WKH VHFRQG XVHG WR PDNH SRVWV DQG WKH )DOD XVHG WR PDNH FDUWZKHHOV FDPDV GH UXHGDV GH FRFKH SDUD FRUUHRVDf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£Q DOWXUD )UXWR FDOLGDGHV \ VHUELFLR QR GDWHf

PAGE 134

VLQJOH HQWU\ IRU FDUUHWDGDV RI HIHFWRV GH MDEQ \ PDGHUD SURYHG D IDLUO\ W\SLFDO \HDU VDZ D VLPLODU QXPEHU RI HQWULHV UHJLVWHULQJ ,PSXHVWR SD\PHQWV IRU GLIIHUHQW VKLSPHQWV WKDW LQFOXGHG FDUUHWDGDV RI PDGHUD FDUUHWDGDV RI WDEODV RQH FDUUHWDGD RI FRVWDHUDV DQG FDUUHWDGDV RI PL[HG VKLSPHQWV RI OXPEHUV ZRRGV KLGHV DQG VXHODV 6XEVHTXHQW \HDUV GURS RII VRPH EXW WKH OHVV IUHTXHQW HQWULHV VWLOO LQFOXGH VKLSPHQWV VXFK DV IUD\ -RVH &DUHVFRnV 0DUFK FDUJR RI VL[ FDUUHWDGDV RI EDWHDV DQG HMHV GRQ 0LJXHO GH 9LOODIDHnV -XQH VKLSPHQW RI HLJKW FDUUHWDGDV RI VXHODV DQG VL[ RI EDWHDV DQG WDEODV RU 0LJXHO 6DQWXFKRnV 0D\ IUHLJKW RI WKUHH FDUUHWDGDV RI HMHV 6XUSULVLQJO\ WKH OLEURV IURP WKURXJK GR QRW VSHFLI\ OXPEHU RU ZRRG LQ WKHLU HQWULHV SUHVXPDEO\ VXFK SURGXFWV DUH LQFOXGHG DV HIHFWRV GH OD WLHUUD ,W VHHPV UDWKHU GRXEWIXO WKDW %XHQRV $LUHV FHDVHG LPSRUWLQJ 7XFXP£QnV WLPEHUV JLYHQ LWV FRQWLQXHG JURZWK DQG WKH LQFUHDVLQJ UK\WKPV RI WKH /LWRUDO HFRQRP\ WKDW ZRXOG KDYH LQFUHDVHG GHPDQG IRU IXHO DQG RWKHU UDZ PDWHULDOV 0LQLQJ DQG WKH H[WUDFWLRQ RI PLQHUDO UHVRXUFHV FRQVWLWXWHG \HW DQRWKHU VHFWRU ZLWKLQ WKH 7XFXP£Q UHJLRQDO HFRQRP\ 0RVWO\ FRQFHQWUDWHG LQ WKH QRUWKHUQ DQG ZHVWHUQ $+3& 6HULH +DFLHQGD

PAGE 135

GLVWULFWV RI WKH UHJLRQ WKHVH UHPDLQHG PLQRU DFWLYLWLHV WKDW QHYHU UHDOO\ DVVXPHG SRVLWLRQV RI LPSRUWDQFH 7KH FHUURV RI 7XFXP£Q SURGXFHG VPDOO DPRXQWV RI JROG DQG VLOYHU PRGHVW TXDQWLWLHV RI FRSSHU DQG RFFDVVLRQDO VKLSPHQWV RI VDOW OLPH FDGf VXOSKHU D]XIUHf DQG VXOSKLWH FDSDUURVDf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£Q 2ILFLR GH 0HVWUH £ *£OYH] 6DOWD GH -XOLR GH LQ $*, %XHQRV $LUHV

PAGE 136

0ROLQRV DQG 6DQWD 0DULD KDG EHHQ DEDQGRQHG DV KDG WKH FRSSHU PLQHV LQ /RV 0ROLQRV DQG 6DQWD 0DULD 0LQLQJ LQ HIIHFW IDFHG QXPHURXV GLIILFXOWLHV 2QH RIILFLDO H[SODLQHG WKDW WKH GLIILFXOW\ LQ REWDLQLQJ PHUFXU\ KLQGHUHG VLOYHU SURGXFWLRQ DQG PDGH SURYLQFLDQRV UHOXFWDQW WR LQYHVW LQ DQ\ W\SH RI PLQLQJ RSHUDWLRQ 7KH ELJJHVW SUREOHP KRZHYHU ZDV ODERU RU DFFXPXODWLQJ D ZRUNIRUFH IRU WKH PLQHV 6DOWD GH 7XFXP£Q ,QWHQGHQW 5DIDHO GH OD /X] H[SODLQHG LQ WKDW WKH ,QGLDQV DQG ORZHU FDVWHV DUH QRW DFFXVWRPHG WR ZRUN LQ PLQHV DQG VKRZ JUHDW KDWUHG HYHQ ZKHQ SDLG JHQHURXVO\ ,Q KH VXJJHVWHG XVLQJ KHDOWK\ DQG OLWWOH RFFXSLHG ,QGLDQV DV ZHOO DV YDJUDQW ZKLWHV PHVWL]RV DQG FDVWDV EXW DJDLQ WKHVH JURXSV VLPSO\ UHIXVHG WR SHUIRUP VXFK ODERU DQG IRUFHG RIILFLDOV WR GURS WKHLU SODQV IRU GHYHORSLQJ WKH UHJLRQnV PLQLQJ SRWHQWLDO ,ELG 6HH DOVR 6DQWRV 0DUWLQH] /DV LQGXVWULDV GXUDQWH HO YLUUHLQDWR (DFK FLWHV DQ ,QIRUPH E\ 6DOWD GH 7XFXP£Q ,QWHQGHQW 5DIDHO GH OD /X] WR 9LFHUR\ GHO 3LQR IURP GDWHG 0D\ $*, %XHQRV $LUHV f ,ELG $FHYHGR FLWHV 2ILFLR GH OD /X] D GHO 3LQR 6DOWD 0D\ $*, %XHQRV $LUHV f ,ELG $FHYHGR FLWHV 2ILFLR GH GHO 3LQR DO 5H\ %XHQRV $LUHV -XQH $*, %XHQRV $LUHV f

PAGE 137

$OWKRXJK WKH PLQLQJ RI SUHFLRXV PHWDOV QHYHU EHFDPH DQ LPSRUWDQW HOHPHQW RI WKH UHJLRQDO HFRQRP\ LQ WKH YLFHUHJDO HUD VRPH PHUFKDQWV LQ WKH 7XFXP£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£Q VDOLQDV 6REUHPRQWH H[SODLQHG ZDV DEXQGDQW DQG FKHDS DQG SURYLGHG D FRQYHQLHQW VRXUFH RI LQFRPH IRU WKRVH ZKR OLYHG QHDU WKHP 6HYHUDO 7XFXP£Q PHUFKDQWV PDGH VL]HDEOH VKLSPHQWV RI DOO WKHVH PLQHUDOV EHWZHHQ DQG ,Q -XQH IRU H[DPSOH GRQ &DVLPLUR 2OLYHUD VHQW FDUUHWDGDV RI VDOW WR %XHQRV $LUHV LQ FDUWV SD\LQJ D WD[ RI RYHU SHVRV ,Q -XO\ GRQ )UDQFLVFR 6DQWLDJR /RUHQ]R VKLSSHG VDFUXLWRV RI VXOSKXU WR %XHQRV $LUHV ,Q 2FWREHU RI WKH VDPH \HDU GRQ 3KHOLSH *RQ]DOH] VHQW FDUUHWDV RI OLPH WR %XHQRV $LUHV LQ D ODUJH 6REUHPRQWH 2ILFLR f

PAGE 138

WURSD SD\LQJ DQ LPSXHVWR RI SHVRV ,Q $XJXVW GRQ $JXVWLQ
PAGE 139

IDUPV WKDW RIWHQ OLQHG WKH UHJLRQDO ZDWHUZD\V QHDU WKH FLWLHV DQG VR LPSUHVVHG &RQFRORUFRUYR LQ DSSDUHQWO\ PDQDJHG WR ILQG VXIILFLHQW EX\HUV LQ UHJLRQDO FLWLHV DQG ORFDO PDUNHWV IRU WKHLU FURSV /HVV IUHTXHQWO\ WKH VLVD DQG 1XHYR ,PSXHVWR ERRNV VKRZ WKHLU PDUNHWV LQFOXGHG WKH 5LYHU 3ODWH WKH SURYLQFHV RI 3HUX DQG VRPHWLPHV HYHQ WKH VHWWOHPHQWV RI &X\R DQG WKH /LWRUDO 7KH SDVWRUDO VHFWRU SURYLGHG WKH IRXQGDWLRQ RI WKH 7XFXP£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

PAGE 140

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n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

PAGE 141

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£Q UHJLRQ DQG RI UHJLRQDO FRPPHUFH ZLWK QHLJKERULQJ HFRQRPLHV FDQ VKHG PRUH OLJKW RQ DOO WKUHH SKDVHV DQG ORFDO PDQLIHVWDWLRQV RI SURVSHULW\ DQG FULVLV DQG ORFDO DWWHPSWV WR PDQDJH WKHP ERWK

PAGE 142

&+$37(5 )285 &200(5&( 7KLV FKDSWHU SUHVHQWV D VWXG\ RI YLFHUHJDO 7XFXP£QnV FRPPHUFLDO DFWLYLW\ZKDW $VVDGRXULDQ DQG VHYHUDO PRUH UHFHQW VWXGHQWV RI WKH 5LR GH OD 3ODWDnV HFRQRPLF KLVWRU\ UHIHU WR DV PHUFDQWLOH FLUFXODWLRQ ,Q SUHVHQWLQJ D UHFRQVWUXFWLRQ RI YDULRXV SDWWHUQV RI UHJLRQDO FRPPHUFH LW DGGUHVVHV D VHULHV RI REMHFWLYHV WKDW LQFOXGH H[DPLQLQJ DYDLODEOH GDWD LQ DQ DWWHPSW WR WUDFH WKH KLVWRULFDO WUHQGV PDUNLQJ 7XFXP£QnV FRPPHUFLDO KLVWRU\ EHWZHHQ DQG ZLWK WKH JRDO RI LGHQWLI\LQJ \HDUV RI JURZWK DQG SURVSHULW\ DQG \HDUV RI FRQWUDFWLRQ DQG GHFOLQH $ VXUYH\ RI WKHVH VDPH UHFRUGV DOVR UHYHDOV WKH FHQWHUV RI UHJLRQDO FRPPHUFLDO DFWLYLW\ DQG SUHSDUHV D GLVFXVVLRQ RI WKH UHODWLYH 6HH $VVDGRXULDQ 6REUH XQ HOHPHQWR GH OD HFRQRPD FRORQLDO 6LOYLD 3DORPHTXH /D FLUFXODFLQ PHUFDQWLO HQ ODV SURYLQFLDV GHO LQWHULRU LQ $QXDULR GHO ,QVWLWXWR GH (VWXGLRV +LVWULFRV6RFLDOHV $QXDULR ,(+6f f .ODXV 0OOHU &RPHUFLR LQWHUQR \ HFRQRPD UHJLRQDO HQ +LVSDQRDPULFD FRORQLDO $SUR[LPDFLQ FXDQWLWDWLYD D OD KLVWRULD GH 6DQ 0LJXHO GH 7XFXP£Q LQ -DKUEXFK f DQG 0LJXHO $QJHO 5RVDO 7UDQVSRUWHV WHUUHVWHV \ FLUFXODFLQ GH PHUFDQFDV HQ HO HVSDFLR 5RSODWHQVH LQ $QXDULR ,(+6 f

PAGE 143

PHUFDQWLOH LPSRUWDQFH RI 7XFXP£QnV VHYHQ FLWLHV 7KH GLVFXVVLRQ WKHQ WXUQV WR LGHQWLI\LQJ WKH W\SHV RI FRPPHUFLDO DFWLYLW\ FKDUDFWHULVWLF RI 7XFXP£Qn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£Q UHJLRQVSHFLILFDOO\ \HUED PDWH IURP 3DUDJXD\ DJXDUGLHQWH IURP &X\R DQG WREDFFR IURP WKH /LWRUDO

PAGE 144

$OFDEDOD UHFRUGV SURYLGH DQ HTXDOO\ YDOXDEOH VRXUFH IRU WKH VWXG\ RI UHJLRQDO FRPPHUFH 7KH DOFDEDOD ZDV D VDOHV WD[ LPSRVHG RQ FRPPHUFLDO WUDQVDFWLRQV WKURXJKRXW WKH 6SDQn LVK HPSLUH ,Q WKH 7XFXP£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£Q VSHFLILFDOO\ WKH DFFRXQWV HQWLWOHG 5HODFLQ MXUDGD GH OD FXHQWD HQ ILQ GH GLFLHPEUH ZKLFK LQFOXGH D GHVFULSWLRQ RI HDFK RI WKH UDPRV RU KHDGLQJV LQFOXGHG LQ WKH WUHDVXU\ DFFRXQWV

PAGE 145

WKH WD[ DQG WKH UHYHQXH HQWHUHG WKH WUHDVXU\ RI WKH MXULVGLFWLRQ RI WKH VDOH ,Q DQ\ FDVH PRGHUQ VWXGHQWV RI 7XFXP£Qn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£Q UHJLRQ VHH $VVDGRXULDQ 6REUH XQ HOHPHQWR GH OD HFRQRPD FRORQLDO 3DORPHTXH /D FLUFXODFLQ PHUFDQWLO DQG 0OOHU &RPHUFLR LQWHUQR :KHQ WKH OLEURnV GHVFULSWLRQ RI WKH H[FKDQJH LV QRW GHWDLOHG RU FRPSOHWH QRWLQJ SUHFLVH LWHPV DQG TXDQWLWLHV LW DW OHDVW GLVWLQJXLVKHV EHWZHHQ EHWZHHQ HIHFWRV GH &DVWLOOD DQG HIHFWRV GH OD WLHUUDD GLVWLQFWLRQ LPSRUWDQW WR WKH VWXG\ RI FRPPHUFLDO H[FKDQJH

PAGE 146

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£Q UHJLRQnV DOFDEDOD DFFRXQWV GUDZV RQ D FRPELQDWLRQ RI WKHVH GRFXPHQWV DOO ORFDWHG LQ WKH $UFKLYR *HQHUDO GH ,QGLDV LQ 6HYLOOH )RU .ODXV 0OOHU DQ DQDO\VLV RI 6DQ 0LJXHO GH 7XFXP£QnV DOFDEDOD UHYHQXHV HQDEOHV WKH SXUVXLW RI VHYHUDO REMHFWLYHV 7KH ILUVW DLP RI 0OOHUnV VWXG\ LV WR REWDLQ D TXDQWLWDWLYH XQGHUVWDQGLQJ RI RQH MXULVGLFWLRQnV FRPSOHWH FRPPHUFLDO DFWLYLW\ +H FRXSOHV KLV UHYLHZ RI DOFDEDOD UHFRUGV ZLWK D FORVH H[DPLQDWLRQ RI WKH FRPPHUFLDO JXDV WKDW DOVR UHFRUGHG YLFHUHJDO FRPPHUFLDO WUDIILF +LV VHFRQG 7KH 7XFXP£Q DOFDEDOD DFFRXQWV XVHG LQ WKLV VWXG\ DUH IRXQG LQ WKH $*, 8QGHU WKH %XHQRV $LUHV UDPR OHJDMRV WKURXJK SHUWDLQ WR WKH WUHDVXU\ DFFRXQWV RI 6DOWD DQG 6DQ 6DOYDGRU GH -XMX\ IURP WR DQG OHJDMRV WKURXJK FRQWDLQ WKH DFFRXQWV RI WKH WUHDVXU\ RI &UGRED

PAGE 147

JRDO LV WR UHYHDO WKH MXULVGLFWLRQn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£Q UHJLRQ )LUVW 0OOHU FRQWHQGV WKH V\VWHP RI DGPLQLVWUDWLYH FRQWUROV LQYROYLQJ JXDV UHVJXDUGRV DQG ILQHV DJDLQVW YLRODWRUV ZRUNHG EHWWHU ZLWKLQ VRPH VSKHUHV RI DFWLYLW\ WKDQ ZLWKLQ RWKHUV 7KH UHVJXDUGRV SODFHG DW VWUDWHJLF SRLQWV DORQJ SULPDU\ WUDGH URXWHV SURYHG HIIHFWLYH DW FRQWUROOLQJ LOOHJDO WUDIILF LQ HIHFWRV GH &DVWLOOD DOPRVW DOO RI ZKLFK HQWHUHG WKH 7XFXP£Q UHJLRQ WKURXJK %XHQRV $LUHV 'HVSLWH RFFDVLRQDO LQVLJQLILFDQW LQFLGHQWV RI LOOLFLW LPSRUW RI HIHFWRV GH &DVWLOOD 7XFXP£Q PHUFKDQWV ZHUH QRW DEOH WR WUDGH LOOHJDOO\ RQ D ODUJH VFDOH 7KH DQQXDO YROXPH RI WUDIILF QHYHU H[FHHGHG RIILFLDOVn 0OOHU &RPHUFLR LQWHUQR

PAGE 148

FDSDFLW\ WR DFFRXQW IRU LW DOO DQG FRPSHWLWLRQ DPRQJ PHUFKDQWV JHQHUDOO\ DVVXUHG WKDW VPXJJOHG VKLSPHQWV FDPH WR WKH DWWHQWLRQ RI RIILFLDOV 0OOHU QRWHV WKDW IRU WKH MXULVGLFWLRQ RI 6DQ 0LJXHO GH 7XFXP£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£Q IURP 6DQ -XDQ $JXDUGLHQWH RI JUHDWHU YDOXH DQG EHDULQJ D KLJK 1XHYR ,PSXHVWR WD[ SHU FHQWf WKDQ PRVW RWKHU HIHFWRV GH OD WLHUUD ZDV IUHTXHQWO\ WKH REMHFW RI VPXJJOLQJ DFWLYLWLHV DORQJ URXWHV WKDW H[SORLWHG WKH OLWWOHSRSXODWHG DUHDV IRXQG WKURXJKRXW WKH 7XFXP£Q UHJLRQ 7UDIILFNHUVn IDPLOLDULW\ ZLWK ERWK WKH LVRODWHG WUDLOV DQG WKH ORFDWLRQ RI WKH UHVJXDUGRV VHUYHG WKHP LQ ,ELG 0OOHU FLWHV D FRQVXODGR UHSRUW SUHVHQWHG E\ WKH PHUFKDQW 6DOYDGRU $OEHUGL LQ 6HH IRRWQRWH S ,ELG

PAGE 149

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£Q RIILFLDO JXLDV DXWKRUL]LQJ LQWUDSURYLQFLDO FRPPHUFH UHJLVWHUHG SHUKDSV RQ RQHKDOI WKH WRWDO FRPPHUFH LQ HIHFWRV GH OD WLHUUD

PAGE 150

RI DOO LPSRUWV $VVXPLQJ WKDW LOOLFLW WUDGH LQ HIHFWRV GH OD WLHUUD ZDV URXJKO\ HTXDO WKURXJKRXW WKH UHJLRQ DOFDEDOD GDWD FDQ EH XVHG WR MXGJH WKH UHODWLYH FRPPHUFLDO LPSRUWDQFH RI 7XFXP£QnV VHYHQ FLWLHV 'LVFXVVLRQ RI WKH UHODWLYH YDOXH RI WUDGH LQ HIHFWRV GH &DVWLOOD FRPSDUHG WR WKH WUDGH LQ HIHFWRV GH OD WLHUUD PXVW EH DGMXVWHG 0OOHUnV IDFWRU DQG D QXPEHU RI DGGLWLRQDO VRXUFHV WKDW GLVFXVV LOOLFLW FRPPHUFH KRZHYHU PDNH WKLV DGMXVWPHQW HDVLHU 7DEOH SUHVHQWV WKH DQQXDO DOFDEDOD UHYHQXHV RI WKH VHYHQ 7XFXP£Q MXULVGLFWLRQV IRU PRVW RI WKH \HDUV EHWZHHQ DQG &XOOHG IURP D QXPEHU RU VRXUFHV WKDW LQFOXGH WKH OLEURV PDQXDOHV OLEURV PD\RUHV DQG OLEURV GH FDMDV RI VHYHUDO 7XFXP£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£Q PDUNHW 6HH SDJHV

PAGE 151

ILJXUHV SUHVHQWHG LQ WDEOH DQQXDO DOFDEDOD UHYHQXH DYHUDJHV UHFRUG HVWLPDWHV WR WKH QHDUHVW SHVR $OWKRXJK WKH WDEOH LV QRW FRPSOHWH IRU DOO \HDUV WKH ILJXUHV GR UHSUHVHQW D FORVH DSSUR[LPDWLRQ RI WKH UHODWLYH OHYHOV RI FRPPHUFLDO DFWLYLW\ RI WKH VHYHQ 7XFXP£Q FLWLHV &UGRED DQG 6DOWD FOHDUO\ WKH FRPPHUFLDO FHQWHUV RI WKH 7XFXP£Q UHJLRQ EHVW LOOXVWUDWH WKH WUHQGV WKDW FKDUDFWHUL]HG WKH UHJLRQnV FRPPHUFLDO DFWLYLW\ )URP D SHULRG WKDW VDZ WKH FUHDWLRQ RI WKH YLFHUR\DOW\ LQ DQG WKH SURPXOJDWLRQ RI IUHH WUDGH LQ DOFDEDOD UHYHQXH UHDFKHG D UHODWLYH ORZ SRLQW FRPSDUHG WR WKH \HDUV WKDW IROORZHG 6DOWD FROOHFWHG WKH KLJKHVW DQQXDO DYHUDJH UHYHQXH RI RYHU SHVRV &UGRED IROORZHG ZLWK MXVW XQGHU $OWKRXJK WKH ILJXUHV IURP WR DUH PLVVLQJ WKH SHULRG IURP WR H[SHULHQFHG D YHU\ ODUJH LQFUHDVH &RUGREDnV DQQXDO DYHUDJH UHYHQXH URVH WR RYHU SHVRV D \HDU DOPRVW D IRXUIROG LQFUHDVH 6DOWDnV DQQXDO DYHUDJH UHYHQXH PRUH WKDQ GRXEOHG WR RYHU SHVRV D \HDU 7KH ILJXUHV LQGLFDWH WKDW 7XFXP£QnV UHJLRQDO FRPPHUFLDO DFWLYLW\ XQGHUZHQW D VKDUS LQFUHDVH LQ

PAGE 152

7DEOH $QQXDO $OFDEDOD 5HYHQXHV LQ SHVRV 7XFXP£Q 5HJLRQ
PAGE 153

7KRXVDQGV )LJXUH $QQXDO $YHUDJH $OFDEDOD 5HYHQXHV LQ SHVRV &RUGRED DQG 6DOWD

PAGE 154

)LJXUH $QQXDO $YHUDJH $OFDEDOD 5HYHQXHV LQ SHVRV 6DQ 6DOYDGRU GH -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q

PAGE 155

7DEOH $QQXDO $OFDEDOD ,QFRPH RYHU )LYH
PAGE 156

WKH \HDUV LPPHGLDWHO\ IROORZLQJ WKH ILUVW FRPPHUFLDO UHIRUPV WKDW DFFRPSDQLHG WKH QHZ YLFHUHJDO V\VWHP 7KH SHULRG IURP WR EURXJKW D VKDUS GURS LQ WKHVH UHYHQXHV &RUGREDnV DQQXDO DYHUDJH IHOO WR DERXW SHU FHQW RI SUHYLRXV OHYHOV 6DOWDnV IHOO WR DERXW SHU FHQW RI LWV SUHYLRXV OHYHOV 7KLV GHFOLQH FOHDUO\ FRUUHVSRQGV ZLWK WKH \HDUV RI UHGXFHG PXOH H[SRUWV WKDW IROORZHG WKH 3HUXYLDQ XSULVLQJV 6XEVHTXHQW \HDUV EHJLQQLQJ LQ VKRZ LQFUHDVLQJ GLIIHUHQWLDWLRQ &RUGREDnV DQQXDO DYHUDJH UHYHQXHV LQFUHDVHG VWHDGLO\ WR MXVW RYHU SHVRV IURP WR WR DOPRVW SHVRV IURP WR WR DOPRVW SHVRV IURP WR 6DOWD GLG QRW UHFRYHU DV GUDPDWLFDOO\ DIWHU :KLOH 6DOWDnV GHFOLQH DIWHU ZDV QRW DV GUDVWLF DV WKDW RI &UGRED VXEVHTXHQW \HDUV LQGLFDWH D VWDJQDWLRQ RI FRPPHUFLDO DFWLYLW\ $QQXDO DOFDEDOD UHYHQXHV OHYHOOHG RII DW DURXQG SHVRV D \HDU IURP WR QHYHU DV KLJK DV WKH EHVW \HDUV IURP WR 6DQ 6DOYDGRU GH -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q FRQVWLWXWHG WKH VHFRQGDU\ FLWLHV ZLWKLQ WKH UHJLRQDO )RU D JHQHUDO GLVFXVVLRQ RI %RXUERQ 5HIRUPV VHH $ %UDGLQJ %RXUERQ 6SDLQ DQG LWV $PHULFDQ (PSLUH LQ &DPEULGJH +LVWRU\ RI /DWLQ $PHULFD YROXPH IRU D PRUH VSHFLILF GLVFXVVLRQ RI WKH UHIRUPV LQ WKH 5LR GH OD 3ODWD VHH 5RFN $UJHQWLQD

PAGE 157

FRPPHUFLDO KLHUDUFK\ 7DEOHV DQG ERWK GLVSOD\ VKDUS GLIIHUHQFHV LQ WKH DQQXDO DYHUDJH DOFDEDOD UHYHQXHV EHWZHHQ WKHVH WZR FLWLHV DQG &UGRED DQG 6DOWD $OFDEDOD UHYHQXHV LQ -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q WRWDOOHG DSSUR[LPDWHO\ WR SHU FHQW RI WKRVH LQ &UGRED DQG 6DOWD LQ WKH VDPH \HDUV 'HVSLWH WKHVH GLIIHUHQFHV KRZHYHU -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q H[SHULHQFHG VLPLODU FRPPHUFLDO WUHQGV )LJXUH LOOXVWUDWHV WKDW ERWK FLWLHV VDZ DOFDEDOD UHYHQXHV LQFUHDVH VKDUSO\ IURP WR -XMX\nV DOFDEDOD LQFRPH GRXEOHG 6DQ 0LJXHO GH 7XFXP£QnV DOPRVW TXDGUXSOHG 7KH QH[W SHULRG IURP WR VKRZV WKH VDPH PDUNHG GHFOLQH IHOW E\ WKH ODUJHU FLWLHV WR DERXW SHUFHQW RI SUHYLRXV OHYHOV IRU -XMX\ DQG WR DERXW SHUFHQW IRU 6DQ 0LJXHO GH 7XFXP£Q 7KH VXEVHTXHQW KDOIGHFDGH IURP WR KRZHYHU GLG QRW EULQJ UHFRYHU\ WR WKHVH VPDOOHU FLWLHV DV LQ WKH ODUJHU ,Q ERWK -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q WKH SHULRG IURP WR VDZ IXUWKHU GHFOLQH WR DERXW SHUFHQW RI OHYHOV LQ -XMX\ DQG WR DERXW SHUFHQW RI OHYHOV LQ 6DQ 0LJXHO GH 7XFXP£Q ,W VKRXOG EH QRWHG WKDW HYHQ WKHVH OHYHOV VWLOO VXUSDVVHG WKH OHYHOV MXVW DV LQ &UGRED DQG 6DOWDf 7KH ODVW \HDUV RI WKH YLFHUHJDO SHULRG EURXJKW DERXW UHFRYHU\ LQ ERWK WKHVH

PAGE 158

MXULVGLFWLRQV WR DSSUR[LPDWHO\ WKH VDPH OHYHOV DV WKH EHVW \HDUV f 6R DOWKRXJK WKH UHFRYHU\ RI WKHVH VPDOOHU FLWLHV VHHPV GHOD\HG ZKHQ FRPSDUHG WR WKDW RI &UGRED WKH UHFRYHU\ ZDV RI DOPRVW WKH VDPH VFDOH DQG VXJJHVWV WKDW PXFK RI WKH 7XFXP£Q UHJLRQ H[SHULHQFHG ZLGHVSUHDG FRPPHUFLDO SURVSHULW\ DIWHU &DWDPDUFD DQG /D 5LRMD UDQN DV WKH VPDOOHVW FRPPHUFLDO FHQWHUV ZLWKLQ WKH 7XFXP£Q UHJLRQ 6DQWLDJR GHO (VWHUR ZDV VRPHZKDW EXVLHU WKDQ WKHVH WZR FLWLHV EXW VWLOO QHYHU UHDFKHG WKH OHYHOV RI -XMX\ RI 6DQ 0LJXHO GH 7XFXP£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£Q UHJLRQ WKH WUHQG LQ FRPPHUFLDO DFWLYLW\ IROORZHG WKDW H[SHULHQFHG E\ WKH SULPDU\ FLWLHV RI &UGRED DQG 6DOWD ,QFUHDVHG FRPPHUFLDO DFWLYLW\

PAGE 159

FKDUDFWHUL]HG WKH \HDUV IURP WR D VKDUS GHFOLQH PDUNHG WKH QH[W GHFDGH XQWLO DERXW LQ VRPH SODFHVf ZLWK IXOO UHFRYHU\ HYHU\ZKHUH EXW 6DOWD DIWHU 7KLV WUHQG LW LV LPSRUWDQW WR QRWH UHIOHFWV D VLPLODU SDWWHUQ LQ OLYHVWRFN H[SRUWV IURP 6DOWD DQG -XMX\ DQG UHGXFHG KLGH FRWWRQ ZLQH DQG DJXDUGLHQWH SURGXFWLRQ LQ WKH VRXWKHUQ MXULVGLFWLRQV 7KH GLPLQLVKHG PXOH H[SRUWV WR 3HUX DIWHU VHHP WR KDYH WULJJHUHG D VRPHZKDW GHOD\HG FRPPHUFLDO GHFOLQH IHOW WKURXJKRXW WKH WKH HQWLUH 7XFXP£Q UHJLRQ $OFDEDOD HYLGHQFH DW OHDVW LQGLFDWHV WKDW FRPPHUFLDO DFWLYLW\ IHOO WR LWV ORZHVW OHYHOV GXULQJ WKH VDPH \HDUV WR WKDW PXOH H[SRUWV IHOO WR UHFRUGORZ ILJXUHV 7KH 3HUXYLDQ GLVWXUEDQFHV DQG WKH VXEVHTXHQW UHIRUP RI UHSDUWLPLHQWR SUDFWLFHV XOWLPDWHO\ SURYHG PDMRU LQIOXHQFHV RQ 7XFXP£QnV HFRQRPLF KLVWRU\ 7KH DOFDEDOD UHFRUGV IXUWKHU VXJJHVW WKDW WKH VPDOOHU MXULVGLFWLRQV SUREDEO\ H[SHULHQFHG D PRUH VHYHUH FULVLV WKDQ WKH &UGRED MXULVGLFWLRQ &UGRED DW DQ\ UDWH EHJDQ WR LQFUHDVH LWV DOFDEDOD UHYHQXHV VHYHUDO \HDUV VRRQHU WKDQ 6DQWLDJR GHO (VWHUR 6DQ 0LJXHO GH 7XFXP£Q RU 6DQ 6DOYDGRU GH -XMX\ 6DOWD DJDLQ GRHV QRW VHHP WR KDYH EHHQ DEOH WR VLJQLILFDQWO\ LQFUHDVH LWV FRPPHUFLDO DFWLYLW\ DIWHU WKH GHFOLQH PDUNLQJ WKH SHULRG

PAGE 160

5HFRYHU\ ODVWLQJ XQWLO WKH RQVHW RI WKH LQGHSHQGHQFH \HDUV IROORZHG WKH FULVLV \HDUV 7KH VRXWKHUQ MXULVGLFWLRQV OHG WKLV UHFRYHU\ GHVSLWH WKH UHFRYHU\ RI -XMX\ WKH QRUWKHUQ MXULVGLFWLRQV QHYHU DJDLQ UHDFKHG WKH OHYHOV RI &UGRED 6DQ 0LJXHO GH 7XFXP£Q DQG 6DQWLDJR GHO (VWHUR KRZHYHU DOO UHDFKHG DQG VXUSDVVHG WKH ROG OHYHOV WKDW PDUNHG WKH UHJLRQnV PRVW SURVSHURXV \HDUV %\ WKH ODVW IHZ \HDUV RI WKH YLFHUHJDO HUD &UGRED KDG EHFRPH WKH XQGLVSXWHG FRPPHUFLDO FHQWHU RI WKH UHJLRQ ODUJHO\ DW WKH H[SHQVH RI 6DOWDnV FRPPHUFH )LJXUHV SXEOLVKHG E\ 6\OYLD 3DORPHTXH VKRZ WKDW WKH DQQXDO YDOXH RI &RUGREDnV LPSRUWV IURP WR DYHUDJHG PRUH WKDQ SHVRV RU SHU FHQW RI WKH UHJLRQDO WRWDO DQG PRUH WKDQ SHVRV RU SHU FHQW RI WKH UHJLRQDO WRWDO IURP WR 6DOWD KRZHYHU DYHUDJHG RQO\ DERXW SHVRV D \HDU RU SHU FHQW RI WKH UHJLRQDO WRWDO IURP WR DQG SHVRV HDFK \HDU RU DERXW SHU FHQW RI WKH UHJLRQDO WRWDO WKHUHDIWHU 3DORPHTXH /D FLUFXODFLQ PHUFDQWLO 3DORPHTXHnV FDOFXODWLRQV LQGLFDWH WKDW IURP WR &RUGREDnV DOFDEDOD UHYHQXH DFFRXQWHG IRU SHU FHQW RI WKH UHJLRQDO WRWDO 6DOWDnV SHU FHQW 6DQ 0LJXHO GH 7XFXP£QnV SHU FHQW 6DQWLDJR GHO (VWHURnV SHU FHQW -XMX\nV SHU FHQW &DWDPDUFDnV SHU FHQW DQG /D 5LRMDnV SHU FHQW )URP WR &RUGREDnV UHYHQXHV WRWDOOHG SHU FHQW RI WKH UHJLRQDO WRWDO 6DOWDnV SHU FHQW 6DQ 0LJXHO GH 7XFXP£QnV VWLOO SHU FHQW 6DQWLDJR GHO (VWHURnV VWLOO

PAGE 161

$ QXPEHU RI RWKHU IDFWRUV LQ DGGLWLRQ WR WKH GLPLQLVKHG 3HUXYLDQ PDUNHW IRU PXOHV PLJKW DOVR DFFRXQW IRU SDUWLFXODU WUHQGV DQG FKDQJHV ZLWKLQ 7XFXP£QnV HFRQRP\ $JDLQ WKH LPSOHPHQWDWLRQ RI FRQFHUWHG FRORQLDO UHIRUPV E\ &KDUOHV ,OOnV DGPLQLVWUDWRUV FHUWDLQO\ KDG DQ LPSDFW RQ WKH HQWLUH 5LR GH OD 3ODWD HFRQRP\ 7XFXP£QnV LQFUHDVHG FRPPHUFLDO DFWLYLW\ EHWZHHQ DQG PLUURUV VLPLODU WUHQGV LQ WKH 5LYHU 3ODWH 7KH GHFUHHV RI WKH V FOHDUO\ ERRVWHG FRPPHUFLDO DFWLYLW\ LQ %XHQRV $LUHV %HIRUH WKH V 'DYLG 5RFN QRWHV FXVWRPV UHYHQXHV IURP LPSRUWV UDUHO\ H[FHHGHG SHVRV EHWZHHQ DQG UHYHQXHV FOLPEHG WR DQ DYHUDJH RI SHVRV HDFK \HDU %\ WKH V WKLV ILJXUH KDG FOLPEHG WR DOPRVW SHVRV D SHU FHQW -XMX\nV XS WR SHU FHQW &DWDPDUFDnV VWLOO SHU FHQW DQG /D 5LRMD VWLOO SHU FHQW 'LVFXVVLRQV RI WKH HFRQRPLF LPSDFW RI WKH %RXUERQ 5HIRUPV LQ WKH 5LR GH OD 3ODWD LQFOXGH *XLOOHUPR &VSHGHV GHO &DVWLOOR /LPD Y %XHQRV $LUHV 5HRXUFXVLRQHV HFRQPLFDV \ SROWLFDV GH OD FUHDFLQ GHO YLUUHYQDWR GHO 3ODWD 6HYLOOD f $OEHUWR $VVHI /D FUHDFLQ GHO YLUUHLQDWR GHO 5R GH OD 3ODWD \ OD GLVJUHJDFLQ QDFLRQDO LQ (VWUDWHJLD 6HSWHPEHU2FWREHU f -RKQ )LVKHU ,PSHULDO n)UHH 7UDGHn DQG WKH +LVSDQLF (FRQRP\ LQ WKH -RXUQDO RI /DWLQ $PHULFDQ 6WXGLHV f +FWRU 7DQ]L (O 5LR GH OD 3ODWD HQ OD SRFD GH ORV YLUUH\HV /RUHWR \ $UUHGRQGR LQ 5HYLVWD GH +LVWRULD GH $PHULFD -DQXDU\-XQH f +DOSHULQ'RQJKL 3ROLWLFV (FRQRPLFV DQG 6RFLHW\ PD\ SURYLGH WKH EHVW FRQFLVH GLVFXVVLRQ RI WKH PHUFDQWLOH H[SDQVLRQ RI %XHQRV $LUHV

PAGE 162

\HDU LQ FXVWRPV UHYHQXHV IURP IRUHLJQ LPSRUWV UHDFKHG SHVRV ZLWK WKRVH IURP 6SDQLVK JRRGV DGGLQJ DQRWKHU SHVRV %HWZHHQ WKH V DQG WKH V KH DGGV WKH YROXPH RI VKLSSLQJ LQ %XHQRV $LUHV PRUH WKDQ GRXEOHG 7KH UHRULHQWDWLRQ RI WKH 7XFXP£Q UHJLRQDO HFRQRP\ IURP QRUWK WR VRXWK DQG WKH UHSODFHPHQW RI 6DOWD E\ &UGRED DV WKH UHJLRQn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nV GLVFXVVLRQ RI WKH LPSDFW RI WKH %RXUERQ 5HIRUPV RQ WKH FRPPHUFLDO DFWLYLW\ LQ WKH 5LYHU 3ODWH LQFOXGLQJ WKH SRUWV RI 0RQWHYLGHR DQG &RORQLD GR 6DFUDPHQWR LV YHU\ XVHIXO 7KLV LV WKH HVVHQFH RI *DUDYDJOLDnV DUJXPHQW LQ KLV SDSHU (FRQRPLF *URZWK DQG 5HJLRQDO 'LIIHUHQWLDWLRQ /\QFK 6SDQLVK &RORQLDO $GPLQLVWUDWLRQ

PAGE 163

PHDVXUHV VXFFHHGHG LQ WKH 7XFXP£Q UHJLRQ 6REUHPRQWH QDPHG ,QWHQGHQW RI WKH QHZ &UGRED GH 7XFXP£Q MXULVGLFWLRQ LQ FODLPHG WR KDYH LPSURYHG WKH UR\DO WUHDVXU\ RYHU SUHYLRXV \HDUV E\ SHVRV DQQXDOO\ LQ SDUW E\ QDPLQJ QHZ FROOHFWRUV RI WKH DOFDEDOD WD[ ,QFUHDVHG HIIRUWV DQG LPSURYHG PHDQV RI FROOHFWLRQ VXUHO\ DFFRXQWHG IRU D SRUWLRQ RI WKH KLJKHU DOFDEDOD UHYHQXH VHHQ WKURXJKRXW WKH 7XFXP£Q UHJLRQ 7XFXP£QnV UHJLRQDO DOFDEDOD UHFRUGV IXUWKHU VXJJHVW WKDW (XURSHDQ ZDUIDUH DQG LWV GLVUXSWLRQ RI $WODQWLF VKLSSLQJ H[HUWHG OLPLWHG LPSDFW RQ UHJLRQDO FRPPHUFH *URZWK FKDUDFWHUL]HG WKH WKUHH SHULRGV WKDW ZDUIDUH LQWHUUXSWHG RU DW OHDVW UHRUJDQL]HG 6SDLQnV FRORQLDO WUDGH )URP WR ZKHQ 6SDLQ DOOLHG LWVHOI ZLWK )UDQFH DQG WKH (QJOLVK 1RUWK $PHULFDQ FRORQLHV DJDLQVW %ULWDLQ UHJLRQDO FRPPHUFH H[SHULHQFHG LWV ILUVW VKDUS XSVZLQJ 'XULQJ WKH 1DSROHRQLF ZDUV ODVWLQJ IURP XQWLO WKH HQG RI WKH FHQWXU\ WKH 7XFXP£Q UHJLRQ ZKLOH VWLOO 6HH WKH
PAGE 164

VOXJJLVK LQ VRPH SODFHV H[SHULHQFHG RYHUDOO JURZWK OHG E\ VOLJKW LQFUHDVHV LQ WKH &UGRED 6DOWD DQG 6DQWLDJR GHO (VWHUR MXULVGLFWLRQVIURP DQ DQQXDO DYHUDJH RI SHVRV IURP WR WR SHVRV IURP WR 'XULQJ WKH VDPH \HDUV %XHQRV $LUHVn H[SRUWV ZHUH DOPRVW FRPSOHWHO\ FXW RII GXULQJ HSLVRGHV RI ZDUIDUH ZLWK %ULWDLQ QDYDO EORFNDGHV RI 6SDQLVK SRUWV LQ V EURXJKW UHFXUUHQW GHSUHVVLRQ 1RU GLG WKH %ULWLVK LQYDVLRQ RI %XHQRV $LUHV GXULQJ DQG KDYH D QHJDWLYH LPSDFW RQ UHJLRQDO WUDGH )HOL[ $ &RQYHUVRnV VWXG\ RI &RUGREDnV DOFDEDOD UHYHQXHV IURP WR VKRZV WKDW &UGRED FRQWLQXHG DV WKH 7XFXP£Q UHJLRQnV FRPPHUFLDO FHQWHU VXSSO\LQJ RWKHU 5RFN $UJHQWLQD 7KH EHVW VHOHFWLRQV IURP D ODUJH ELEOLRJUDSK\ DGGUHVVLQJ %XHQRV $LUHVn FRPPHUFLDO KLVWRU\ GXULQJ WKH 1DSROHRQLF ZDUV LQFOXGH 5LFDUGR + /HYHQH ,QYHVWLJDFLRQHV DFHUFD GH OD KLVWRULD HFRQPLFD GHO 5R GH OD 3ODWD VHFRQG HGLWLRQf YROXPHV %XHQRV $LUHV f YROXPH 0DQXHO -RV GH /DYDUGQ 1XHYRV DVSHFWRV GHO FRPHUFLR HQ HO 5R GH OD 3ODWD %XHQRV $LUHV f (QULTXH GH *DQGLD %XHQRV $LUHV FRORQLDO %XHQRV $LUHV f 0DQIUHG .RVVRN (O YLUUHYQDWR GHO 5R GH OD 3ODWD 6X HVWUXFWXUD HFRQPLFD VRFLDO %XHQRV $LUHV f (QULTXH :HGRYR\ /D HYROXFLQ HFRQPLFD ULRSODWHQVH D ILQV GHO VLJOR ;9,,, Y SULQFLSLRV GHO VLJOR ;,; D OD OX] GH OD KLVWRULD GHO VHJXUR /D 3ODWD f 6HUJLR 9LOODORERV 5 (O FRPHUFLR Y OD FULVLV FRORQLDO XQ PLWR GH OD LQGHSHQGHQFLD 6DQWLDJR f *DUDYDJOLD &RPHUFLR FRORQLDO H[SDQVLQ \ FULVLV LQ 3ROPLFD f DQG 6RFRORZ (FRQRPLF $FWLYLWLHV RI WKH 3RUWHR 0HUFKDQWV

PAGE 165

MXULVGLFWLRQV ZLWK HIHFWRV GH &DVWLOOD DQG UHGLVWULEXWLQJ ORFDOO\SURGXFHG DQG LPSRUWHG HIHFWRV GH OD WLHUUD &RPPHUFLDO DFWLYLW\ DOVR LQFUHDVHG LQ %XHQRV $LUHV WKH %ULWLVK UHOD[DWLRQ RI WUDGH UHVWULFWLRQV SURYHG D JUHDW ERRVW WR ERWK WKH RYHUVHDV WUDGH DQG WUDGH ZLWK WKH LQWHULRU $V &RQYHUVR H[SODLQV WKH 7XFXP£Q UHJLRQ FRQWLQXHG UHFHLYLQJ PHUFKDQGLVH IURP %XHQRV $LUHV LQ DQ XQFKDQJHG PDQQHU H[FHSW WKDW SRUWHR PHUFKDQWV EHJDQ RIIHULQJ PRUH FUHGLW DW ORZHU LQWHUHVW WR 7XFXP£Q PHUFKDQWV ZLWK HDVLHU ILQDQFLQJ WHUPV WKDQ EHIRUH 7KHVH PHDVXUHV &RQYHUVR FRQFOXGHV H[SODLQ WKH LQFUHDVHG FRPPHUFLDO DFWLYLW\ LQ WKH ,QWHULRU GXULQJ WKH YHU\ ODVW \HDUV RI WKH FRORQLDO UHJLPH $OFDEDOD VLVD JXD DQG 1XHYR ,PSXHVWR UHFRUGV DOVR SURYLGH DQ RXWOLQH RI WKH VWUXFWXUH RI 7XFXP£Q WUDGH 7KH 7XFXP£Q UHJLRQ VXSSRUWHG VHYHUDO VSKHUHV RI FRPPHUFLDO &RQYHUVR (O FRPHUFLR GH &UGRED 6HH + 6 )HUQV %ULWDLQ DQG $UJHQWLQD LQ WKH 1LQHWHHQWK &HQWXU\ 2[IRUG f """" DQG *HUPDQ 2 ( 7MDUNV DQG $OLFLD 9LGDXUUHWD GH 7MDUNV (O FRPHUFLR LQJOHV Y HO FRQWUDEDQGR 1XHYRV DVSHFWRV HQ HO HVWXGLR GH OD SROWLFD HFRQPLFD HQ HO 5R GH OD 3ODWD f %XHQRV $LUHV f &RQYHUVR (O FRPHUFLR GH &UGRED \ ODV LQYDVLRQHV LQJOHVDV

PAGE 166

DFWLYLW\ WKDW ERWK HQKDQFHG LWV FRKHUHQFH DQG VKDSHG LWV UHODWLRQV ZLWK QHLJKERULQJ UHJLRQV )LUVW LQWUDUHJLRQDO WUDGH GLVWULEXWHG WKH EDVLF FRPPRGLWLHV WKDW DIIRUGHG WKH UHJLRQnV FKDUDFWHULVWLF VHOIVXIILFLHQFH 7KH &UGRED 1XHYR ,PSXHVWR ERRNV UHYHDO WKH ORFDO GLVWULEXWLRQ RI PHUFKDQGLVH VXFK DV FRWWRQ DQG FRWWRQ OLHQ]RV IURP &DWDPDUFD ZLQH DJXDUGLHQWH DQG FLWUXV IURP /D 5LRMD ULFH IURP 6DQ 0LJXHO GH 7XFXP£Q DQG VXJDU IURP -XMX\ 3DUWLDOO\ RXWOLQHG LQ WKH SUHYLRXV FKDSWHU WKH OLYHVWRFN VHFWRU GRPLQDWHG WKLV VSKHUH RI FRPPHUFLDO DFWLYLW\ (DFK RI WKH 7XFXP£Q MXULVGLFWLRQV SDUWLFLSDWHG LQ WKH FRQYH\DQFH RI PXOHV DQG FDWWOH WR 6DOWD DQG -XMX\ IRU VDOH WR WKH SURYLQFHV RI $OWR 3HU WKH WKRXVDQGV RI SHVRV HDUQHG IURP WKHVH DQQXDO VDOHV QRW RQO\ VWLPXODWHG ORFDO H[FKDQJH WKURXJKRXW 7XFXP£Q EXW DOVR IXUQLVKHG WKH PHDQV RI LPSRUWLQJ OX[XU\ LWHPV IURP RXWVLGH WKH UHJLRQ ,QWHUUHJLRQDO FRPPHUFH FDQ EH FRQYHQLHQWO\ H[DPLQHG LQ WHUPV RI H[SRUW DFWLYLWLHV DQG LPSRUW DFWLYLWLHV 7XFXP£QnV UHJLRQDO H[SRUWV H[DPLQHG LQ WKH DQDO\VLV RI UHJLRQDO SURGXFWLRQ EDVLFDOO\ ZHQW LQ WZR GLUHFWLRQVOLYHVWRFN QRUWK WR WKH $QGHDQ PLQLQJ GLVWULFWV DQG SDVWRUDO SURGXFWV DQG LQH[SHQVLYH WH[WLOHV VRXWK WR %XHQRV $LUHV DQG WKH /LWRUDO 6RPH MXULVGLFWLRQV DOVR H[SRUWHG OHVVLPSRUWDQW

PAGE 167

FRPPRGLWLHV WR &X\R &KLOH DQG SDUWV RI WKH /LWRUDO ,PSRUW UHODWLRQV FDQ EH H[DPLQHG LQ WXUQ LQ WHUPV RI FRPPHUFH LQ HIHFWRV GH OD WLHUUD DQG FRPPHUFH LQ HIHFWRV GH &DVWLOOD (IHFWRV GH OD WLHUUD FDPH LQWR WKH 7XFXP£Q UHJLRQ IURP DOO WKH QHLJKERULQJ DUHDV LQFOXGLQJ &X\R DQG &KLOH $OWR 3HU %XHQRV $LUHV DQG WKH 5LYHU 3ODWH DQG RWKHU DUHDV RI WKH /LWRUDO 7KH FDWHJRU\ HIHFWRV GH OD WLHUUD LQFOXGHG D ZLGH YDULHW\ RI JRRGV RI ZKLFK WH[WLOHV \HUED PDWH DQG DJXDUGLHQWH SURYHG PRVW FRPPRQ (IHFWRV GH &DVWLOOD LQFOXGHG WKH ZLGH YDULHW\ RI WH[WLOHV DQG KDUGZDUH IURP WKURXJKRXW (XURSH WKDW YLUWXDOO\ DOO HQWHUHG WKH 7XFXP£Q UHJLRQ WKURXJK %XHQRV $LUHV :KLOH FRPPHUFH LQ PRVW ORFDOO\SURGXFHG JRRGV ZDV FRQGXFWHG RQ D VPDOO VFDOH WKH PXOH WUDGH LQYROYHG WKH UHJLRQnV ZHDOWKLHVW ODQGRZQHUV DQG PHUFKDQWV ODUJH VXPV RI PRQH\ DQG RIWHQFRPSOLFDWHG SDUWQHUVKLSV &RQFRORUFRUYR GHVFULEHG WKH RXWOLQH RI WKLV FRPPHUFH DQG ZKLOH SHUKDSV RYHUHVWLPDWLQJ LWV PDJQLWXGH KH IXOO\ UHFRJQL]HG LWV LPSRUWDQFH 7KH PXOH WUDGH FRQVWLWXWHG DQ LPSRUWDQFH IRUFH ZLWKLQ WKH UHJLRQDO HFRQRP\ JLYLQJ ULVH WR QXPHURXV DQG GLYHUVH FRPPHUFLDO WUDQVDFWLRQV EHWZHHQ EUHHGHUV UDLVHUV )ORUHQFLR &RUQHMR (O FRPHUFLR GH PXDV GH 6DOWD FRQ HO /LWRUDO &UGRED $OWR \ %DMR 3HU f LQ &XDUWR &RQJUHVR 1DFLRQDO

PAGE 168

ZLQWHUHUV WUDIILFNHUV PHUFKDQWV FDSLWDOLVWV IRUHPHQ DQG SHRQHV HDFK UHSUHVHQWLQJ VSHFLDOWLHV DQG DOO FORVHO\ ERXQG WRJHWKHU LQ DQ LQWULFDWH QHWZRUN RI HFRQRPLF UHODWLRQV &RUGREDnV VLVD DQG 1XHYR ,PSXHVWR UHFRUGV DIIRUG D JOLPSVH LQWR VRPH RI WKH FKDUDFWHULVWLFV RI RQH FRPSRQHQW RI WKH LQWUDUHJLRQDO PXOH WUDGH )URP WR &RUGREDnV UHJLVWHUV UHFRUGHG VLVD SD\PHQWV IRU KHUGV RI PXOHV GULYHQ QRUWK 7KH DYHUDJH \HDU UHFRUGHG RU SD\PHQWV WKH ERRN KRZHYHU UHFRUGHG RQO\ WZR SD\PHQWV DQG WKH ERRN UHFRUGHG 'XULQJ WKLV \HDU SHULRG GLIIHUHQW LQGLYLGXDOV UHJLVWHUHG DW OHDVW RQH SD\PHQW $W OHDVW RI WKHVH PHQ DQG RQH ZRPDQ GRD &ODUD (FKHQULTXHf UHJLVWHUHG RQO\ RQH SD\PHQW GXULQJ WKLV SHULRG 2QO\ IRXU LQGLYLGXDOV *UHJRULR GH OD +HUDV -XDQ /RSH] GH &RER ;DYLHU 8VVDQGLYDUDV DQG 3HGUR /XFDV GH $OOHQGHf UHJLVWHUHG SD\PHQWV LQ VL[ RU PRUH RI WKHVH \HDUV 2I WKH UHPDLQGHU WZHOYH LQGLYLGXDOV UHFRUGHG SD\PHQWV LQ WZR \HDUV QLQH UHFRUGHG SD\PHQWV LQ WKUHH GLIIHUHQW \HDUV DQG VL[ UHFRUGHG SD\PHQWV LQ IRXU GLIIHUHQW \HDUV ,ELG 6HH WKH 1XHYR ,PSXHVWR ERRNV $+3& 6HULH +DFLHQGD

PAGE 169

2I WKH IRXU LQGLYLGXDOV PDNLQJ SD\PHQWV LQ VL[ RU PRUH \HDUV -XDQ /RSH] GH &RER UHFRUGHG WKH JUHDWHVW VLVD SD\PHQWV +LV SD\PHQWV LQ DQG FRYHUHG WKH SDVVDJH RI PXOHV +LV VPDOOHVW SD\PHQW ZDV IRU DQLPDOV LQ KLV ODUJHVW IRU LQ 3HGUR /XFDV GH $OOHQGH IROORZHG VHQGLQJ D WRWDO RI DOPRVW PXOHV QRUWK LQ VL[ \HDUV 7\SLFDO VLVD SD\PHQWV LQ &UGRED GXULQJ WKHVH \HDUV FRYHUHG DQ\ZKHUH IURP WR DQLPDOV VRPHWLPHV IHZHU DQG VRPHWLPHV PRUH SDWWHUQV VLPLODU WR WKRVH UHFRUGHG ZKHQ WKH VLVD UHFRUGV SLFN XS DJDLQ LQ &RQFRORUFRUYRnV GLVFXVVLRQ RI WKLV FRPPHUFH LQGLFDWHV WKDW QXPHURXV SHRSOH IURP GLIIHUHQW OHYHOV RI VRFLHW\ FRQVLVWHQWO\ HDUQHG SURILWV FRPPLVVLRQV RU ZDJHV IURP WKH DQQXDO GULYHV +HUGV RI WR DQLPDOV UHTXLUHG RQH RU WZR IRUHPHQ DQG DERXW ODERUHUV IRU WKH GULYH QRUWK RU VXFK KHUGV WKHQ HPSOR\HG RU PHQ ZKR HDUQHG PRGHVW ZDJHV %XVLHU \HDUV ZLWK JUHDWHU H[SRUWV XQGRXEWHEO\ HPSOR\HG PRUH /DQGRZQHUV DORQJ WKH SULPDU\ URXWHV DOVR GHPDQGHG SDVWXUH IHHV IURP SDVVLQJ KHUGV (YHQ DIWHU WKHVH DQG RWKHU H[SHQVHV &RUGREDnV PXOH H[SRUWHUV VDZ SURILWV RI RQHDQGDKDOI WR WKUHH SHVRV SHU DQLPDO RU WR $+3& 6HULH +DFLHQGD

PAGE 170

SHVRV SHU KHUG 7KH ZHDOWK JHQHUDWHG E\ PXOH H[SRUWV VSUHDG WKURXJKRXW WKH 7XFXP£Q HFRQRP\ DQG IDFLOLWDWHG RWKHU FRPPHUFLDO DFWLYLW\ 6\OYLD 3DORPHTXHnV VWXG\ RI 7XFXP£Q FRPPHUFH IXUQLVKHV DQ H[FHOOHQW RYHUYLHZ RI UHJLRQDO FRPPHUFLDO UHODWLRQV 3DORPHTXH XVLQJ PRVWO\ DOFDEDOD DQG VLVD UHFRUGV IURP WKH WUHDVXU\ VHFWLRQ RI WKH QDWLRQDO DUFKLYH LQ %XHQRV $LUHV SUHVHQWV D TXDQWLWDWLYH VWXG\ RI WKH PHUFKDQGLVH WKDW FLUFXODWHG ZLWKLQ WKH 7XFXP£Q UHJLRQ DQG RI WKH PHUFKDQGLVH WKDW FLUFXODWHG EHWZHHQ 7XFXP£Q DQG LWV QHLJKERULQJ UHJLRQV 7KLV VWXG\ OLNH 0OOHUnV ILQGV WKH WRWDO YDOXH RI 7XFXP£QnV LQWUDUHJLRQDO FRPPHUFH PHDVXUHG LQ SHVRV DQG H[FOXGLQJ OLYHVWRFNf OHVV WKDQ WKH WRWDO YDOXH RI LQWHUUHJLRQDO FRPPHUFH DW OHDVW EHWZHHQ DQG 7KH &UGRED MXULVGLFWLRQ IRU H[DPSOH UHFHLYHG RQO\ DERXW SHU FHQW RI LWV LPSRUWHG HIHFWRV GH OD WLHUUD IURP RWKHU 7XFXP£Q MXULVGLFWLRQV &DWDPDUFDnV FRWWRQ DQG FRWWRQ OLHQ]RV FRQVWLWXWHG DERXW SHU FHQW RI WKLV LPSRUW WUDGH /D 5LRMDnV ZLQH DQG DJXDUGLHQWH DFFRXQWHG IRU DSSUR[LPDWHO\ HLJKW SHU FHQW PRUH 7KH RWKHU 7XFXP£Q MXULVGLFWLRQV 6HH 3DORPHTXH /D FLUFXODFLQ PHUFDQWLO IRU DQ LQWURGXFWLRQ WR WKLV ORQJ DUWLFOH 3DORPHTXHnV DSSHQGL[ FRQVLVWLQJ RI HLJKW GHWDLOHG WDEOHV RI FRPPHUFLDO GDWD LV HVSHFLDOO\ KHOSIXO WR WKLV VWXG\ SDJHV f

PAGE 171

WRJHWKHU FRQWULEXWHG OHVV WKDQ RQH SHU FHQW RI &RUGREDnV LPSRUWV 2Q WKH RWKHU KDQG WZRWKLUGV RI &RUGREDnV LPSRUWV RULJLQDWHG RXWVLGH WKH 7XFXP£Q UHJLRQLQ 6DQ -XDQ LQ &KLOH DQG LQ %XHQRV $LUHV DQG WKH /LWRUDO 6DOWD UHFHLYHG LPSRUWV RI HIHFWRV GH OD WLHUUD WKDW XOWLPDWHO\ WRWDOOHG SHVRV EHWZHHQ DQG /D 5LRMD UDQNHG DV WKH UHJLRQnV KHDYLHVW H[SRUWHU WR 6DOWD DFFRXQWLQJ IRU DOPRVW WHQ SHU FHQW RI WKH WRWDO YDOXH RI WKH FLW\nV LPSRUWV :KLOH /D 5LRMD VWHDGLO\ SURYLGHG EHWZHHQ WZR DQG WHQ SHUFHQW RI 6DOWDnV LPSRUWV ERWK &DWDPDUFD DQG &UGRED FRQWULEXWHG RQO\ EHWZHHQ RQH DQG WZR SHU FHQW GXULQJ WKHVH \HDUV 6DQWLDJR GHO (VWHURnV DQG 6DQ 0LJXHO GH 7XFXP£QnV WUDGH ZLWK 6DOWD SURYHG QHJOLJLEOH $VLGH IURP RQH \HDU f ZKHQ -XMX\nV H[SRUWV WR 6DOWD ZHUH YHU\ KLJK SHVRV DERXW RQHIRXUWK WKH 6DOWD WRWDO WKDW \HDUf -XMX\ RWKHUZLVH UHJLVWHUHG DOPRVW QR WUDGH ZLWK 6DOWD 7KH EXON RI 6DOWDnV LPSRUWV RI HIHFWRV GH OD WLHUUD DOPRVW SHU FHQW RULJLQDWHG LQ $OWR 3HU DQG VPDOOHU DPRXQWV FDPH IURP &X\R DQG &KLOH 7KH UHPDLQLQJ 7XFXP£Q MXULVGLFWLRQV IROORZHG VLPLODU SDWWHUQV &DWDPDUFDnV FRWWRQ DQG OLHQ]RV DQG /D 5LRMDnV ZLQH DQG DJXDUGLHQWH SURYHG WKH PRVW FRQVLVWHQWO\WUDGHG PHUFKDQGLVH ZLWKLQ WKH UHJLRQ ,Q 6DQ 0LJXHO GH 7XFXP£Q

PAGE 172

&DWDPDUFDnV SURGXFWV PDGH XS SHU FHQW RI LPSRUWV RI HIHFWRV GH OD WLHUUD ZKLOH /D 5LRMDnV FRQWULEXWHG DQRWKHU SHU FHQW 6DOWD DQG -XMX\ FRPELQHG FRQWULEXWHG DERXW VHYHQ SHUFHQW &UGRED DQG 6DQWLDJR GHO (VWHUR UHFRUGHG QR WUDGH ZLWK 6DQ 0LJXHO GH 7XFXP£Q $V ZLWK &UGRED WZR WKLUGV RI 6DQ 0LJXHO GH 7XFXP£QnV LPSRUWV RULJLQDWHG RXWVLGH WKH UHJLRQ &X\R FRQWULEXWHG SHU FHQW RI WKHVH LPSRUWV $OWR 3HU DFFRXQWHG IRU SHU FHQW &KLOH DGGHG DQRWKHU SHU FHQW DQG %XHQRV $LUHV DQG WKH /LWRUDO UHFRUGHG SHU FHQW ,Q 6DQWLDJR GHO (VWHUR &DWDPDUFDnV SURGXFWV PDGH XS MXVW RYHU SHU FHQW RI LPSRUWHG HIHFWRV GH OD WLHUUD ZKLOH /D 5LRMDVn FODLPHG ILYH SHU FHQW -XMX\nV H[SRUWV SUREDEO\ VXJDU DGGHG DQRWKHU SHU FHQW &UGRED 6DOWD DQG 6DQ 0LJXHO GH 7XFXP£Q WTJHWKHU FRQWULEXWHG OHVV WKDQ RQH SHU FHQW 0RVW RI 6DQWLDJR GHO (VWHURnV HIHFWRV GH OD WLHUUD FDPH IURP %XHQRV $LUHV DQG WKH /LWRUDO SHU FHQWf IURP 6DQ -XDQ SHU FHQWf DQG IURP &KLOH SHU FHQWf -XMX\nV LPSRUW SDWWHUQV PLUURUHG 6DOWDnV /D 5LRMD SURYHG WKH ODUJHVW UHJLRQDO H[SRUWHU WR -XMX\ SURYLGLQJ DOPRVW WZHOYH SHU FHQW RI WKH MXULVGLFWLRQnV LPSRUWV :KLOH 6DOWD DGGHG DQRWKHU IRXU SHU FHQW WKH RWKHU 7XFXP£Q MXULVGLFWLRQV FRQWULEXWHG DERXW RQH SHU FHQW RU OHVV $V LQ

PAGE 173

6DOWD $OWR 3HU ILJXUHG DV -XMX\nV PDLQ LPSRUWHU RI HIHFWRV GH OD WLHUUD ILOOLQJ DOPRVW SHU FHQW RI WKH ORFDO PDUNHW 6DQ -XDQ LQ &X\R SHU FHQWf DQG %XHQRV $LUHV DQG WKH /LWRUDO SHU FHQWf VSOLW WKH UHVW 2I WKH WZR ZHVWHUQ MXULVGLFWLRQV &DWDPDUFD FRQGXFWHG ZLGHU WUDGH ZLWK WKH RWKHU 7XFXP£Q MXULVGLFWLRQV $ IXOO SHU FHQW RI &DWDPDUFDnV LPSRUWV RI HIHFWRV GH OD WLHUUD RULJLQDWHG LQ WKH &UGRED MXULVGLFWLRQ SHU FHQW FDPH IURP -XMX\ DQG DOPRVW ILYH SHU FHQW FDPH IURP /D 5LRMD &KLOH DQG &X\R WRJHWKHU DFFRXQWHG IRU KDOI RI &DWDPDUFDnV LPSRUWV /D 5LRMD GHVSLWH LWV ZLGHVSUHDG H[SRUWV PD\ KDYH KDG WKH OHDVW WUDGH ZLWK RWKHU UHJLRQDO MXULVGLFWLRQV &UGRED UDQNHG DV /D 5LRMDnV ODUJHVW WUDGLQJ SDUWQHU ZLWKLQ WKH 7XFXP£Q UHJLRQ DFFRXQWLQJ IRU ILYH SHU FHQW RI WKH VPDOOHU MXULVGLFWLRQnV LPSRUWV $ERXW WZRWKLUGV RI /D 5LRMDnV LPSRUWV KRZHYHU FDPH IURP &KLOH WKH UHPDLQGHU FDPH IURP %XHQRV $LUHV DQG WKH /LWRUDO 7KH WUDGH SDWWHUQV LQ 6DOWD DQG -XMX\ YDU\ VKDUSO\ IURP WKRVH RI WKH VRXWKHUQ MXULVGLFWLRQV 3DORPHTXHnV GDWD VKRZ ILUVW WKDW WKH QRUWKHUQ MXULVGLFWLRQV PDLQWDLQHG PXFK FORVHU FRPPHUFLDO UHODWLRQV ZLWK WKH SURYLQFHV RI $OWR 3HU WKDQ GLG WKH VRXWKHUQ MXULVGLFWLRQV %RWK 6DOWD DQG -XMX\ HDFK UHFHLYHG DV PXFK DV WZRWKLUGV RI WKHLU LPSRUWV RI HIHFWRV

PAGE 174

GH OD WLHUUD IURP $OWR 3HU ZKLOH QR VRXWKHUQ MXULVGLFWLRQ UHFHLYHG DV PXFK DV RQHILIWK &UGRED UHFHLYHG RQO\ DERXW SHU FHQW RI LWV LPSRUWV IURP QRUWKHUQ SURYLQFHV 3DORPHTXH DOVR VKRZV WKDW WKH VRXWKHUQ MXULVGLFWLRQV UHFHLYHG DERXW RQHWKLUG RI WKHLU LPSRUWV IURP RWKHU 7XFXP£Q MXULVGLFWLRQV PDLQO\ &DWDPDUFD DQG /D 5LRMD WKHUHE\ PDQLIHVWLQJ PRUH ZLGHVSUHDG FRPPHUFLDO QHWZRUNV WKDQ VHHQ LQ WKH QRUWK 7KH QRUWKHUQ MXULVGLFWLRQV LQ FRQWUDVW UHFHLYHG RQO\ DERXW WHQ WR ILIWHHQ SHU FHQW RI WKHLU LPSRUWV RU OHVV IURP LQWUDUHJLRQDO WUDGH 0RVW VWULNLQJ SHUKDSV LV WKH YLUWXDO DEVHQFH RI FRPPHUFH H[FHSWLQJ OLYHVWRFNf EHWZHHQ 7XFXP£QnV PRVW SURVSHURXV MXULVGLFWLRQV 3DORPHTXH ILQGV YHU\ OLWWOH WUDGH EHWZHHQ &UGRED DQG 6DOWD DQ DYHUDJH RI OHVV WKDQ SHVRV D \HDU IURP WR 6DOWD DQG -XMX\ LQ IDFW KDUGO\ ORRNHG VRXWK DW DOO H[FHSW IRU /D 5LRMDnV ZLQH DQG DJXDUGLHQWH DQG WKH VRXWK KDUGO\ LPSRUWHG IURP WKH QRUWK (YHQ JLYHQ WKH SUREDELOLW\ RI ZLGHVSUHDG VPXJJOLQJ DFWLYLWLHV WKURXJKRXW WKH UHJLRQ LW VHHPV WKDW OLWWOH PRUH WKDQ WKH PXOH WUDGH OLQNHG WKH QRUWKHUQ DQG VRXWKHUQ SDUWV RI 7XFXP£Q RU DGGHG DQ\ H[WUDGHJUHH RI UHJLRQDO FRKHVLRQ $ UHODWLYHO\ VPDOO QXPEHU RI 7XFXP£Q LQWHUQDGRUHV FRQWUROOHG WKH UHJLRQDO PXOH WUDGH ZLWK $OWR 3HU 6DOWD

PAGE 175

VLVD UHFRUGV IURP WR LQWHUSUHWHG E\ 1LFRO£V 6£QFKH] $OERUQR] UHYHDO VHYHUDO LPSRUWDQW FKDUDFWHULVWLFV RI WKLV FRPPHUFH )LUVW 6£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£QFKH]$OERUQR] /D VDFD GH PXDV GH 6DOWD SRLQWV WR WKH SDUWLFLSDWLRQ RI SHRQHV D IXQGDPHQWDO DFWLYH HOHPHQW RI WKLV WUDGH WR WKH FDSDWDFHV IRUHPHQf DQG WR WKH PHUFKDQWV DQG SDVWXUHRZQHUV WKDW ZHUH QRW DOZD\V LQGLYLGXDOV EXW VRPHWLPHV LQFOXGHG DSRGHUDGRV DJHQWVf RI &UGRED DQG 6DQWD ) PHUFKDQW KRXVHV DV VHYHUDO RI WKHVH GLIIHUHQW VWUDWD

PAGE 176

6£QFKH] $OERUQR] VXJJHVWV FRQVWLWXWHG 7XFXP£QnV VRFLDO DQG HFRQRPLF HOLWH 7KLV YDULHW\ RI GHDOHUV ODUJH DQG VPDOO ILJXUHG DV LPSRUWDQW SDUWLFLSDQWV LQ WKH UHJLRQDO HFRQRP\ SDUWO\ EHFDXVH RI WKH JUHDW TXDQWLWLHV RI FDSLWDO WKH\ PRELOL]HG HDFK \HDU $IWHU WKH 6DOWD IDLU VHQW EHWZHHQ DQG PXOHV QRUWK HDFK \HDU $W SULFHV UDQJLQJ IURP QLQH WR SHVRV D KHDG 3DORPHTXH FDOFXODWHV WKDW PXOHV EURXJKW DQ DYHUDJH UHWXUQ RI RYHU SHVRV D \HDU LQWR FLUFXODWLRQ LQ WKH 7XFXP£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f DOVR DSSHDUV LQ WKH &UGRED UHJLVWHUV LQ 2WKHUV DSSHDULQJ LQ ERWK FLWLHVn UHJLVWHUV LQFOXGH -XDQ *RQ]DOH] 5ROGDQ 0DULDQR 8VVDQGLYDUDV 3HGUR /XFDV GH $OOHQGH $QWRQLR $UUHGRQGR DQG 7RPDV $OOHQGH ,ELG 3DORPHTXH /D FLUFXODFLQ PHUFDQWLO

PAGE 177

$LUHV 3DUDJXD\ &KLOH DQG &X\R 7KH SULQFLSDO VRXUFH RI PRQHWDU\ LQFRPH VKH H[SODLQV FRQVLVWHG RI PXOHV H[SRUWHG QRUWK ZKLFK SURYLFHG IRU D IDYRUDEOH EDODQFH RI WUDGH >7XFXP£QnV@ FRPPHUFLDO UHODWLRQVKLS ZLWK %XHQRV $LUHV ZDV XQIDYRUDEOH LQ WKDW H[SRUWV RI WH[WLOHV VXHODV DQG KLGHV GLG QRW FRYHU WKH FRVW RI LPSRUWV RI HIHFWRV GH OD WLHUUD DQG HIHFWRV GH &DVWLOOD 7KH VLOYHU REWDLQHG WKURXJK WKH PXOH WUDGH SHUPLWWHG &UGRED WR OLTXLGDWH WKH XQIDYRUDEOH EDODQFH DQG SD\ IRU FRWWRQ IURP &DWDPDUFD DJXDUGLHQWH IURP 6DQ -XDQ DQG ZLQH IURP /D 5LRMD 3DORPHTXHnV VWXG\ DOVR FRPSDUHV WKH YDOXH RULJLQV DQG W\SHV RI UHJLVWHUHG LPSRUWV RI HIHFWRV GH OD WLHUUD ZLWK UHJLVWHUHG LPSRUWV RI HIHFWRV GH &DVWLOOD IRU HDFK RI WKH 7XFXP£Q MXULVGLFWLRQV ,Q ERWK &UGRED DQG 6DOWD WKH WRWDO YDOXH RI LPSRUWHG HIHFWRV GH &DVWLOOD H[FHHGHG WKDW RI HIHFWRV GH OD WLHUUD GXULQJ WKH GHFDGH IURP WR 7KH DQQXDO DYHUDJH YDOXH RI &RUGREDnV LPSRUWV RI HIHFWRV GH &DVWLOOD LQ WKLV GHFDGH UHDFKHG SHVRV DQG IRU HIHFWRV GH OD WLHUUD SHVRVD GLIIHUHQFH RI RQO\ SHVRV ,Q 6DOWD WKH DQQXDO DYHUDJH YDOXH RI HIHFWRV ,ELG ,ELG VHH &KDUW RI WKH DSSHQGL[ SDJH

PAGE 178

7DEOH $QQXDO $YHUDJH ,PSRUWV RI (IHFWRV GH &DVWLOOD DQG (IHFWRV GH OD 7LHUUD LQ 3HVRV ZLWKRXW OLYHVWRFNf (IHFWRV&DVWLOOD (IHFWRVWLHUUD &UGRED 6DOWD 6DQ 0LJXHO GH 7XFXP£Q 6DQWLDJR GHO (VWHUR 6DQ 6DOYDGRU GH -XMX\ &DWDPDUFD /D 5LRMD 6RXUFH $GDSWHG IURP 3DORPHTXH PHUFDQWLO &XDGUR /D FLUFXODFLQ f GH &DVWLOOD UHDFKHG SHVRV FRPSDUHG WR SHVRV D \HDU IRU HIHFWRV GH OD WLHUUDD GLIIHUHQFH RI DERXW SHVRV HDFK \HDU ,Q HLWKHU FDVH LI 0OOHUnV HVWLPDWHV UHJDUGLQJ FRQWUDEDQG WUDIILF LQ HIHFWRV GH OD WLHUUD VWDQG LW DSSHDUV OLNHO\ WKDW FRPPHUFH LQ HIHFWRV GH OD WLHUUD HTXDOOHG RU VXUSDVVHG FRPPHUFH LQ HIHFWRV GH &DVWLOOD 7DEOH FRPSDUHV WKH DQQXDO DYHUDJH YDOXHV RI LPSRUWV RI

PAGE 179

HIHFWRV GH &DVWLOOD DQG HIHFWRV GH OD WLHUUD IRU HDFK RI WKH 7XFXP£Q MXULVGLFWLRQV %XHQRV $LUHV SURYLGHG WKH UHJLRQnV RQO\ VRXUFH RI HIHFWRV GH &DVWLOOD $ FRQVXODGR VXPPDU\ IURP LQFOXGHV D UHFRUG RI WKH WRWDO YDOXH RI DOO WKH GLIIHUHQW JRRGV VROG WR WKH SURYLQFHV RI WKH ,QWHULRU 7KH UHSRUW OLVWV GLIIHUHQW LWHPV E\ YDOXH VHYHUDO GLVWLQFW WH[WLOHV GRPLQDWH 2I WKH RYHU SHVRV ZRUWK RI PHUFKDQGLVH VKLSSHG IURP WKH FLW\ LQ %ULWWDQ\ OLQHQV EUHWDDVf WRSSHG WKH OLVW DW RYHU SHVRV IROORZHG E\ 6LOHVLDQ OLQHQV SODWLOODVf DW RYHU SHVRV DQG SDRV HVSHFLDOO\ FKHDS FORWKV DW DOPRVW SHVRV 7KH OLVW IXUWKHU LQFOXGHV %UDPDQW OLQHQV EUDPDQWHVf FDPEULFV HVWRSLOODVf UXDQHV WDIIHWDV ODFH VDWLQ VKDJV WULSHVf YHOYHW WHUFLRSHORVf VLON VLON WKUHDG DQG ULEERQV DQG RWKHU VHZLQJ QRWLRQV PHUFHUDf 7KH VHFRQG FDWHJRU\ RI JRRGV PRVW FRPPRQO\ WUDGH WKURXJK %XHQRV $LUHV FRQVLVWHG RI KDUGZDUH DQG WRROV 2YHU TXLQWDOHV RI LURQ ZRUNHG DQG LQ EDUV DFFRXQWHG IRU DOPRVW SHVRV RI WKH WRWDO GR]HQ NQLYHV DGGHG DQRWKHU SHVRV $*, %XHQRV $LUHV (VWDGRV GH ODV $GXDQDV \ &RPHUFLR GHO 9LUUH\QDWR f IROLRV

PAGE 180

7KH 7XFXP£Q UHJLRQnV LQWHUUHJLRQDO LPSRUWV RI HIHFWRV GH OD WLHUUD FKLHIO\ LQYROYHG RQO\ D IHZ FRPPRGLWLHV WKDW FRXOG QRW EH SURYLGHG ORFDOO\
PAGE 181

-XDQ FODLPHG DQRWKHU WHQ SHU FHQW 6DQ 0LJXHO GH 7XFXP£QnV PHUFKDQWV LPSRUWHG \HUED IURP 3DUDJXD\ DQG DJXDUGLHQWH IURP 6DQ -XDQ HDFK RI ZKLFK FRPSULVHG DERXW SHU FHQW RI LPSRUWHG HIHFWRV GH OD WLHUUD 6XJDU EURXJKW IURP &KLOH PDGH XS DQRWKHU SHU FHQW 5HPDLQLQJ LPSRUWV LQFOXGHG D IDLU SHUFHQWDJH RI WXFX\RV IURP $OWR 3HU 6DQWLDJR GHO (VWHUR UHOLDQW XSRQ OLYHVWRFN DQG SRQFKR H[SRUWV PLUURUHG ERWK &UGRED DQG 6DQ 0LJXHO GH 7XFXP£Q LI RQ D VPDOOHU VFDOH
PAGE 182

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f DQG ZLWK &UGRED WKH UHH[SRUWHU RI 3DUDJXD\DQ \HUED PDWH DQG KDWV PDGH LQ -XMX\ $JXDUGLHQWH IURP 6DQ -XDQ DOVR FODLPHG D PRGHVW SLHFH RI WKH &DWDPDUFD PDUNHW /D 5LRMD WXUQHG HYHQ PRUH VTXDUHO\ WRZDUGV &KLOH ZKLFK FODLPHG D IXOO WZR WKLUGV RI WKH /D 5LRMD PDUNHW 6XJDU DFFRXQWHG IRU SHU FHQW RI WKH &KLOHDQ LPSRUWV \HUED PDWH LPSRUWHG GLUHFWO\ IURP %XHQRV $LUHV FRPSULVHG PRVW RI WKH UHPDLQLQJ LPSRUWV 7KH VHSDUDWH 7XFXP£Q MXULVGLFWLRQV GHVSLWH WKH GHJUHH RI FRKHVLRQ OHQW E\ FRPPRQ SDUWLFLSDWLRQ LQ WKH 3HUXYLDQ PXOH WUDGH FOHDUO\ WXUQHG LQ GLIIHUHQW GLUHFWLRQV LQ SXUVXLW RI VHFRQGDU\ FRPPHUFLDO UHODWLRQV

PAGE 183

&+$37(5 ),9( 75$163257$7,21 7UDQVSRUWDWLRQ VHUYLFHV FRQVWLWXWHG WKH WKLUG LPSRUWDQW VHFWRU RI WKH 7XFXP£Q UHJLRQDO HFRQRP\ *UHDW FDUDYDQV RI R[GUDZQ FDUWV DQG ORQJ WUDLQV RI FDUJRODGHQ PXOHV FULVVFURVVHG WKH UHJLRQ LQ DOO GLUHFWLRQV VXSSRUWLQJ UHJLRQDO SURGXFWLRQ FDUU\LQJ DZD\ H[SRUWV DQG QXUWXULQJ UHJLRQDO FRPPHUFH LQ ERWK HIHFWRV GH OD WLHUUD DQG HIHFWRV GH &DVWLOOD &RQVWLWXWLQJ WKH SULPDU\ RYHUODQG WUDGH URXWH EHWZHHQ WKH $WODQWLF DQG 3HUX WKH 7XFXP£Q UHJLRQ HPHUJHG DV RQH RI WKH IHZ SDUWV RI WKH FRORQLDO ZRUOG WKDW GHYHORSHG D VSHFLDOL]HG WUDQVSRUW LQIUDVWUXFWXUH 7XFXP£QnV FDUULHUV QRW RQO\ OLQNHG WKH UHJLRQ ZLWK LQWHUQDWLRQDO PDUNHWV EXW WKH\ DOVR DGGHG D SURVSHURXV VHFWRU WR WKH UHJLRQDO HFRQRP\ 7KH FDUWHUV RI &RUGRED DQG 6DQ 0LJXHO GH 7XFXP£Q DQG WKH PXOHVNLQQHUV RI 6DQ 6DOYDGRU GH -XMX\ DQG WKH $QGHDQ SDVV EHWZHHQ &KLOH DQG 0HQGR]D HQMR\HG XQULYDOHG SRVLWLRQV ZLWKLQ WKH YLFHUHJDO FRPPHUFLDO V\VWHP DQG GHYHORSHG LPSUHVVLYH HQWHUSULVHV WR H[SORLW WKHP /LPLWV RQ WKH FDSDFLW\ RI SUHn LQGXVWULDO WUDQVSRUWDWLRQ IXUWKHUPRUH VKDSHG HFRQRPLF

PAGE 184

SDWWHUQV ZLWKLQ WKH 7XFXP£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£QnV WUDQVSRUWDWLRQ LQIUDVWUXFWXUH FRPSDULQJ DQG FRQWUDVWLQJ SDUDOOHOV LQ (XURSH DQG LQ RWKHU SDUWV RI 6SDQLVK $PHULFD 7KH UHJLRQDO URDG QHWZRUN H[DPLQHG QH[W GHYHORSHG HDUO\ DV DQ LPSRUWDQW FRPSRQHQW RI WKLV LQIUDVWUXFWXUH DQG UHPDLQHG D FULWLFDO FRQFHUQ RI 7XFXP£QnV WUDQVSRUWHUV HYHQ ODWH LQ WKH FRORQLDO SHULRG 1HZ URXWHV WKH RUJDQL]DWLRQ RI PDLO OLQHV DQG SRVWDV WKH PDLQWHQDQFH RI GHIHQVLYH SUHVLGLRV DQG WKH HPHUJHQFH RI URDGVLGH VHWWOHPHQWV DOO HPSKDVL]HG WKH LQFUHDVLQJ LPSRUWDQFH RI WUDQVSRUWDWLRQ DFWLYLWLHV ZLWKLQ WKH 7XFXP£Q HFRQRP\ )LQDOO\ WKH GLVFXVVLRQ WXUQV WR VSHFLILF FKDUDFWHULVWLFV DQG SDWWHUQV PDQLIHVWHG E\ WKH 7XFXP£Q FDUU\LQJ WUDGH ZLWK DGGLWLRQDO HPSKDVLV RQ &X\R ZKHUH WUDQVSRUW GHYHORSHG DV D

PAGE 185

SDUW RI WKH 7XFXP£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f 6HH DOVR :D\QH .HQQHWK 7DOOH\ ,QWURGXFWLRQ WR 7UDQVSRUWDWLRQ YROXPHV &LQFLQQDWL f YROXPH 3 & 6WXEEV : 7\VRQ DQG 0 4 'DOYL 7UDQVSRUWDWLRQ (FRQRPLFV /RQGRQ f /RQQLH ( +DHIQHU ,QWURGXFWLRQ WR 7UDQVSRUWDWLRQ 6\VWHPV 1HZ
PAGE 186

DQG DUHDV DV SROLWLFDOO\ RU HFRQRPLFDOO\ PRUH VLJQLILFDQW WKDQ RWKHU SODFHV 7UDQVSRUWDWLRQ KH FRQWLQXHV LV OLQNHG WR JHRJUDSK\ DQG KDV D VHWWLQJ LQ VSDWLDO UHODWLRQV LQ WKDW WUDQVSRUW UHVRXUFHV LQWHJUDWH LQWHUGHSHQGHQW FHQWHUV MXVW DV WKH\ GLVWULEXWH FRPPRGLWLHV %HFDXVH RI WUDQVSRUWn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
PAGE 187

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nV SUREOHP ZDV DOZD\V WKH VDPH *RRGV DIWHU WUDQVSRUW KDG WR EULQJ D SULFH WKDW QRW RQO\ FRYHUHG KLV SXUFKDVH SULFH LQFLGHQWDO H[SHQVHV DQG WUDQVSRUWDWLRQ FRVWV EXW DOVR KDG WR EULQJ WKH GHVLUHG SURILW +HDY\ JRRGV RI ORZ YDOXH VXFK DV JUDLQ ZRRG VDOW RU ZLQH GLG QRW DV D UXOH WUDYHO RYHUODQG ORQJ GLVWDQFHV 'DYLG 5 5LQJURVH 7UDQVSRUWDWLRQ DQG (FRQRPLF 6WDJQDWLRQ LQ 6SDLQ 'XUKDP f YLLLL[ )HUQDQG %UDXGHO &LYLOL]DWLRQ DQG &DSLWDOLVP )LIWHHQWK (LJKWHHQWK &HQWXULHV YROXPHV 1HZ
PAGE 188

WKHLU YDOXH QRW MXVWLI\LQJ WKH LQFUHDVLQJ FRVWV RI WUDQVSRUW +LJKHUSULFHG PHUFKDQGLVH RI OHVV EXON DQG JUHDWHU YDOXH EHWWHU DEVRUEHG WKH FRVWV RI WUDQVSRUW DQG MXVWLILHG WKH HIIRUWV DQG H[SHQVHV RI FDUULDJH WR GLVWDQW PDUNHWV 3UHLQGXVWULDO WUDQVSRUWDWLRQ V\VWHPV DUH RIWHQ UHSUHVHQWHG DV LQHIILFLHQW DQG VWDWLFVORZ LQDGHTXDWH LUUHJXODU DQG H[SHQVLYH ZLWK OLWWOH SRWHQWLDO IRU LPSURYHPHQW RU GHYHORSPHQW 7KH HIILFLHQF\ RI SUHn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f LQ ZKLFK KH FKDUDFWHUL]HV KD]DUGRXV WUDQVSRUWDWLRQ V\VWHPV WKDW ZHUH D PXFK JUHDWHU KLQGUDQFH WR WUDGH WKDQ ZDV FRUVDLU DFWLYLW\ %UDXGHO &LYLOL]DWLRQ DQG &DSLWDOLVP YROXPH ,,

PAGE 189

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

PAGE 190

RI WUDQVSRUWDWLRQ DQG WKH 6SDQLVK HFRQRP\ IURP WR LOOXVWUDWHV KRZ WUDQVSRUW OLPLWDWLRQV FRQWULEXWHG WR HFRQRPLF VWDJQDWLRQ GXULQJ WKLV SHULRG 7KH ODFN RI DGHTXDWH WUDQVSRUWDWLRQ LQ WKH 6SDQLVK LQWHULRU VSHFLILFDOO\ FDXVHG WKH SROLWLFDO DQG HFRQRPLF FULVLV RI WKH ODWH HLJKWHHQWK FHQWXU\ E\ WKH V WKH VXSSO\ RI WUDQVSRUW VHUYLFHV KDG IDOOHQ EHKLQG WKH GHPDQG D VLWXDWLRQ WKDW JUHZ FULWLFDO LQ WKH \HDUV LPPHGLDWHO\ SUHFHGLQJ WKH )UHQFK LQYDVLRQ 6SDLQnV WUDGLWLRQDO WUDQVSRUW V\VWHP UHPDLQHG XQDEOH WR SURYLGH LQH[SHQVLYH DQG IOH[LEOH VHUYLFHV QHHGHG WR UHDFK WKH VFDWWHUHG PDUNHWV RI WKH LQWHULRU 'HVSLWH WKH UHODWLYH SURVSHULW\ PDUNLQJ PRVW RI WKH HLJKWHHQWK FHQWXU\ 6SDLQnV LQWHULRU DUHDV LVRODWHG E\ WKLV VKRUWDJH GHYHORSHG OLWWOH ORFDO LQGXVWU\ DQG IDLOHG WR SURYLGH D VLJQLILFDQW PDUNHW IRU FRDVWDO LQGXVWULHV 7KUHH W\SHV RI GHPDQG VKDSHG WKLV V\VWHP 7KH VHDVRQDO QHHG WR GLVWULEXWH KDUYHVWV FKHDSO\ DQ H[FKDQJH ERXQG WR WKH VXEVLVWHQFH HFRQRP\ DQG UK\WKPV RI WKH FRXQWU\VLGH FRQVWLWXWHG WKH ODUJHVW 7KH IDUUHDFKLQJ WUDGH LQ UDZ PDWHULDOV PDQXIDFWXUHG JRRGV DQG LPSRUWV 5LQJURVH 7UDQVSRUWDWLRQ DQG (FRQRPLF 6WDJQDWLRQ YLLL[ ,ELG [L[[[L

PAGE 191

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nV VSHFLDOL]HG WUDQVSRUWHUV 'HVSLWH WKH SUHVHQFH RI D ODUJH ERG\ RI SURIHVVLRQDO FDUWHUV WKH WUDGLWLRQDO WUDQVSRUW LQIUDVWUXFWXUH FRXOG QRW UHVSRQG WR HFRQRPLF FKDQJH PDUNLQJ WKH FHQWXU\ DIWHU :LWKRXW VLJQLILFDQW ZDWHUZD\V WR FKDQQHO LQWR FDQDOV WKH EXUGHQV RI FDUULDJH LQ 6SDLQ XOWLPDWHO\ IHOO XSRQ WKH EDFNV RI SDFN PXOHV ZKLFK DFFRXQWHG IRU DV PXFK DV SHU FHQW RI WKH WUDQVSRUW SRRO 7KH PDMRULW\ RI WKLV IRUFH UHOLHG RQ IDUP DQLPDOV DQG DJULFXOWXUDO ODERU WKDW FRXOG QRW VKLUN ,ELG

PAGE 192

VHDVRQDO REOLJDWLRQV DQG UHPDLQHG XQDYDLODEOH WR VXSSRUW QHZ W\SHV RI HFRQRPLF DFWLYLW\ *HRJUDSK\ DQG WHFKQRORJ\ VKDSHG 6SDLQnV WUDQVSRUW LQIUDVWUXFWXUH DV PXFK DV DJULFXOWXUDO F\FOHV GLG 0RXQWDLQRXV DQG EURNHQ FRXQWU\ ZHDWKHU SDWWHUQV DQG 6SDLQnV WUDGLWLRQDO WUDQVSRUW WHFKQRORJ\ KDG PDMRU LPSOLFDWLRQV IRU WKH VSHFLDOL]HG VHFWRU RIWHQ WKHVH YDULDEOHV GLFWDWHG WKH XVH RI SDFN DQLPDOV VLPSOH FDUWV RU ODUJH ZDJRQV WR PRYH FDUJR $UULHURV RU SURIHVVLRQDO PXOHWHHUV JXLGLQJ ORQJ WURSDV GH PXDV RU WUDLQV RI ODGHQ SDFN DQLPDOV SURYLGHG PXFK RI 6SDLQn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

PAGE 193

UHJLRQV 7KH FDUUHWD D ODUJHU PRUH FDSDFLRXV ZDJRQ ZDV PRUH IUHTXHQWO\ XVHG WR KDXO YDOXDEOH FRPPHUFLDO FDUJRHV LQ UHJLRQV ZKHUH WHUUDLQ SHUPLWWHG $ ORQJ QDUURZ YHKLFOH ZLWK WZR ODUJH VROLG ZKHHOV WKH FDUUHWD ZDV XVXDOO\ SXOOHG E\ WHDPV RI R[HQ DQG FRXOG KDXO XS WR DUUREDV SRXQGVf *DOHUDV OHVVFRPPRQ IRXUZKHHOHG YHKLFOHV SXOOHG E\ WHDPV RI IRXU WR HLJKW PXOHV KDG D FDSDFLW\ RI RYHU SRXQGV 7KLV ,EHULDQ WUDGLWLRQ 5LQJURVH VKRZV FDPH WR 6SDLQnV $PHULFDQ FRORQLHV DOPRVW LQWDFW DQG VKDSHG WKH 7XFXP£QnV WUDQVSRUW VHFWRU 5LQJURVHnV DUWLFOHOHQJWK VWXG\ RI FDUWLQJ LQ WKH +LVSDQLF ZRUOG WUDFHV WKH GHYHORSPHQW RI WKH WUDQVSRUW VHFWRU LQ WKH 5R GH OD 3ODWD IURP DERXW WR WKH PLGGOH RI WKH QLQHWHHQWK FHQWXU\ D SHULRG GXULQJ ZKLFK WKH DUHDnV WUDQVSRUWDWLRQ LQGXVWU\ GUHZ RQ 6SDLQnV PHGLHYDO WUDGLWLRQ DQG VXSSRUWHG VLJQLILFDQW HFRQRPLF JURZWK ,Q WKH 5LR GH OD 3ODWD DV HOVHZKHUH WKH EXON RI WUDQVSRUWDWLRQ LQYROYHG WKH VHDVRQDO H[FKDQJH RI VXEVLVWHQFH FRPPRGLWLHV GLUHFWHG E\ ,ELG %UDXGHO QRWHV WKDW VSHFLDOL]HG WUDQVSRUWHUV HVSHFLDOO\ FDUWHUV ZHUH JHQHUDOO\ GUDZQ WR WKH PRVW SURILWDEOH URXWHVVHH &LYLOL]DWLRQ DQG &DSLWDOLVP YROXPH ,, 'DYLG 5LQJURVH &DUWLQJ LQ WKH +LVSDQLF :RUOG $Q ([DPSOH RI 'LYHUJHQW 'HYHORSPHQW LQ +$+5 )HEUXDU\ f

PAGE 194

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£Q FDUUHWD FRQVLVWHG RI D EHG WKDW PHDVXUHG IRXU IHHW ZLGH E\ WZHOYH IHHW ORQJ ZLWK VRIW ZDOOV DQG D FRYHU PDGH IURP D ERZHG IUDPH DQG FRZKLGHV DOO VXSSRUWHG E\ WZR ODUJH VROLG ZRRGHQ ZKHHOV DQG GUDZQ E\ IRXU VRPHWLPHV WZRf R[HQ :LWK D ,ELG &RQFRORUFRUYR (O OD]DULOOR

PAGE 195

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£Q DQG &X\R FDUUHWHURV 7KH DULG XQSRSXODWHG VWUHWFKHV FDOOHG WUDYHVDV RIWHQ SURYHG IDWDO WR WKH KDUGZRUNHG EHDVWV WKDW GUHZ WKHVH KHDY\ YHKLFOHV 6XFFHVVIXO WUDYHO LQ WKH RIWHQ LQKRVSLWDEOH ,QWHULRU GHSHQGHG XSRQ WKH IUDJLOH URDG QHWZRUN WKDW KDG DSSHDUHG VKRUWO\ DIWHU 6SDQLVK FRQTXHVW LQ WKH VL[WHHQWK FHQWXU\ $V %UDXGHO QRWHV PRVW SUHLQGXVWULDO URDGV HYHQ LQ IODW RSHQ FRXQWU\ ZHUH QRW FOHDUO\ PDUNHG VWULSV XSRQ ZKLFK WUDIILF 6HH 5DPQ &£UFDQR +LVWRULD GH ORV PHGLRV GH FRPXQLFDFLQ \ WUDQVSRUWH HQ OD UHSEOLFD DUJHQWLQD YROXPHV %XHQRV $LUHV f YROXPH 6HH WKH LOOXVWUDWLRQ RI D W\SLFDO 5R GH OD 3ODWD FDUW YROXPH

PAGE 196

IORZHG UHJXODUO\ 7KH\ ZHUH PRUH RIWHQ FRPPRQO\ DFFHSWHG URXWHV PRUH FOHDUO\ GHILQHG E\ WKH WUDIILF WKDW XVHG WKHP WKDQ E\ DQ\ SK\VLFDO IHDWXUHV %XW DQ\ URDG DW DQ\ WLPH DQG LQ DQ\ DUHD IROORZV D IL[HG DQG UHFRJQL]HG FRXUVH XVXDOO\ PDUNHG E\ WKH SUHVHQFH RI FLWLHV WRZQV YLOODJHV KRPHVWHDGV SDVWXUHV DQG ZDWHULQJ SODFHV $Q\ MRXUQH\ UHTXLUHG FDUHIXO SODQQLQJ VR WKDW WKH FDUDYDQ SDVVHG WKURXJK WKH ZRUVW VSRWV DW WKH SURSHU WLPH LQ RUGHU WR ILQG JUDVV DQG ZDWHU DW WKH SURSHU LQWHUYDOV ,Q PRVW RI WKH 5R GH OD 3ODWD WKH EDVLF UHTXLUHPHQWV RI ZDWHU DQG SDVWXUH GHILQHG PRVW URXWHV DQG OLPLWHG WKH WUDQVSRUWHUnV DOWHUQDWLYHV 7KH URDG QHWZRUN VHUYLQJ WKH 5LR GH OD 3ODWD ,QWHULRU ZDV UHDOO\ TXLWH VLPSOH 7KH SULPDU\ URXWH FRQQHFWLQJ %XHQRV $LUHV ZLWK $OWR 3HU OLQNLQJ WKH ILYH PDMRU 7XFXP£Q FLWLHV FRQVWLWXWHG D UHODWLYHO\ VDIH FRUULGRU WKURXJK WKH KHDUW RI WKH YLFHUR\DOW\ 7KH %XHQRV $LUHV0HQGR]D URDG D VHFRQG PDMRU URXWH DOVR KHDYLO\ XVHG E\ FDUUHWDV FRQQHFWHG &KLOH ZLWK WKH YLFHUR\DOW\ DQG RIIHUHG DQ RYHUODQG DOWHUQDWLYH WR WKH KD]DUGRXV VHD URXWH WKDW VHUYHG WKH &KLOHDQ FRDVW YLD WKH 6WUDLWV RI 0DJHOODQ $ QXPEHU RI %UDXGHO &LYLOL]DWLRQ DQG &DSLWDOLVP YROXPH

PAGE 197

VHFRQGDU\ URXWHV VHUYHG WKH 7XFXP£Q DQG &X\R UHJLRQV WKH PRVW LPSRUWDQW RI WKHVH ZDV SUREDEO\ WKH ZHVWHUQ URXWH WKDW OLQNHG &KLOH 0HQGR]D DQG 6DQ -XDQ ZLWK /D 5LRMD &DWDPDUFD 6DQ 0LJXHO GH 7XFXP£Q DQG WKH UHVW RI WKH 7XFXP£Q UHJLRQ $ OHVVHUNQRZQ URXWH FRQQHFWHG 6DQWLDJR GHO (VWHUR ZLWK 6DQWD ) DQG WKH QRUWKHUQ SDUW RI WKH /LWRUDO $QRWKHU URXWH OLQNHG 6DQ -XDQ ZLWK WKH %XHQRV $LUHV0HQGR]D URDG /HDYLQJ 6DQ -XDQ LQ D VRXWKHDVW GLUHFWLRQ WKLV URDG MRLQHG ZLWK WKH RWKHU MXVW HDVW RI 6DQ /XLV SURYLGLQJ WKH DJXDUGLHQWH SURGXFHUV RI 6DQ -XDQ ZLWK D VKRUWFXW URXWH WR PDUNHWV LQ %XHQRV $LUHV 0DQ\ QRZIRUJRWWHQ WHUWLDU\ URXWHV DOVR FULVVFURVVHG WKH 7XFXP£Q DQG &X\R UHJLRQV FRQQHFWLQJ VPDOO YLOODV SXHEORV VHWWOHPHQWV SRVWV IRUWV KDFLHQGDV DQG FKDSHOV ZLWK WKH ODUJHU FLWLHV DQG ZLWK HDFK RWKHU FKDQQHOOLQJ FRPPHUFH DQG SURYLGLQJ VKRUW FXWV DQG VPXJJOLQJ WUDLOV DOORZLQJ IRU WUDFHV RI FRPPHUFLDO DFWLYLW\ WR UHDFK HYHQ WKH PRVW LVRODWHG SODFHV 7KH %XHQRV $LUHV3HUX URDG FRQVWLWXWHG WKH ,QWHULRUnV PRVW LPSRUWDQW URXWH &URZQ RIILFLDOV GHVLJQDWHG LW WKH UR\DO SRVW URDG LQ SODFLQJ LW XQGHU DGPLQLVWUDWLYH 7KH EHVW GLVFXVVLRQ RI WKH 7XFXP£Q UHJLRQnV PLQRU FRPPXQLFDWLRQ URXWHV LV SURYLGHG LQ (IUDLQ 8 %LVFKRII 1RUWH QRUWH QRUWH6X OH\HQGD \ VX KLVWRULD &UGRED f D UHJLRQDO KLVWRU\ RI UXUDO QRUWKHUQ &UGRED SURYLQFH

PAGE 198

3 F S X 3X 3ULPDU\ 7UDGH 5RXWHV &X\R DQG 7XFXP£Q 5HJLRQV F )LJXUH

PAGE 199

VXSHUYLVLRQ DQG LPSURYLQJ WKH RUJDQL]DWLRQ RI VWDJH VWRSV WKDW VORZO\ JXLGHG WUDYHOOHUV DORQJ %\ WKH HQG RI WKH HLJKWHHQWK FHQWXU\ D VXFFHVVLRQ RI VHWWOHPHQWV ULYHU FURVVLQJV DQG ODQGPDUNV VXSSOHPHQWHG WKH RIILFLDO VWRSV &RQFRORUFRUYRnV WUDYHORJXH SURYLGHV WKH EHVW LWLQHUDU\ RI WKLV HQWLUH URXWH IURP %XHQRV $LUHV WR 3RWRV DQG EH\RQG +H NHSW D FDUHIXO OLVW RI DOO WKH VWDJHV OLVWLQJ GLIIHUHQW SRVWV EHWZHHQ (VTXLQD GH OD *XDUGLD DW WKH VRXWKHUQ ERUGHU RI WKH &UGRED MXULVGLFWLRQ WR /D 4XLDFD RQ WKH QRUWKHUQ ERUGHU RI WKH -XMX\ MXULVGLFWLRQ WRJHWKHU VSDQQLQJ D GLVWDQFH RI OHDJXHV &RQFRORUFRUYR SUHVHQWV WKH IROORZLQJ GLVWDQFHV EHWZHHQ 7XFXP£Q FLWLHV 7KH %XHQRV $LUHV WR &UGRED WULS FRYHUHG VWDJHV DQG OHDJXHV IURP &UGRED WR 6DQWLDJR GHO (VWHUR FRYHUHG HLJKW VWDJHV DQG OHDJXHV IURP 6DQWLDJR GHO (VWHUR WR 6DQ 0LJXHO GH 7XFXP£Q FRYHUHG WZR VWDJHV DQG OHDJXHV IURP 6DQ 0LJXHO GH 7XFXP£Q WR 6DOWD FRYHUHG OHDJXHV DQG VHYHQ VWDJHV IURP 6DOWD WR -XMX\ FRYHUHG RQO\ WZR VWDJHV LQ OHDJXHV WR /D 4XLDFD ZDV DQRWKHU VL[ VWDJHV RYHU D GLVWDQFH 6HH 5LFKDUG $ 0D]]DUD ,QWURGXFWLRQ LQ &RQFRORUFRUYR (O /D]DULOOR 6HH &RQFRORUFRUYRnV WDEOHV OLVWLQJ WKH GLVWDQFHV EHWZHHQ VWDJHV DORQJ WKH HQWLUH URXWH IURP %XHQRV $LUHV DQG /LPD LQ (O OD]DULOOR

PAGE 200

RI OHDJXHV 7R 3RWRV IURP /D 4XLDFD LQYROYHG D ILQDO WULS FRYHULQJ DERXW OHDJXHV PDNLQJ D WRWDO RI RYHU OHDJXHV RU PRUH WKDQ PLOHV IURP %XHQRV $LUHV WR 3RWRV $OO EXW WKH ODVW OHDJXHV RU VR RI WKLV GLVWDQFH FRXOG EH WUDYHOOHG E\ R[FDUW 7KH URDG EHWZHHQ %XHQRV $LUHV DQG 0HQGR]D FRYHUHG OHDJXHV &RQFRORUFRUYRnV LQWLQHUDU\ DOVR LQFOXGHV D GHVFULSWLRQ RI WKLV LPSRUWDQW URXWH 7KH ILUVW OHDJXHV RI WKLV URXWH IROORZHG WKH VDPH FRXUVH DV WKH %XHQRV $LUHV &UGRED URXWH WKHQ VSOLW RII ZHVWZDUG DW WKH SRVW RI 6DODGLOOR GH 5X\ 'LD] RQ WKH 5R 6DODGLOOR $OWRJHWKHU WKLV URXWH LQFOXGHG SRVWV ZLWK EHWZHHQ WKH 6DODGLOOR SRVW DQG 0HQGR]D &RQFRORUFRUYR GHVFULEHG WKH URXWH DV IODW DQG JHQHUDOO\ ILUP ZLWK WKH JUHDWHU GLVSDULW\ LQ WKH GLVWDQFHV EHWZHHQ SRVWV DWWULEXWDEOH WR WKH FRORQLVWVn FRQWLQXDO PRYLQJ IURP RQH SODFH WR DQRWKHU 2YHUDOO WKLV SURYHG D PRVWO\ XQSRSXODWHG DULG H[SDQVH ZLWK VHYHUDO RSWLRQV IRU WUDYHOOHUV 7KH SRVWDO URDG GHVFULEHG E\ &RQFRORUFRUYR UDQ QRUWKHUQPRVW OHDYLQJ WKH VWDJH DW 6DODGLOOR GH 5X\ 'LD] WKLV URXWH FRYHUHG OHDJXHV EHIRUH UHDFKLQJ WKH IRUW RI (O 6DXFH WKHQ OHDJXHV PRUH WR WKH 6 ,ELG ,ELG

PAGE 201

IRUG RI WKH 5R &XDUWR WKHQ OHDJXHV WR WKH FLW\ RI 6DQ /XLV DQG ILQDOO\ DQRWKHU OHDJXHV WKH ODVW IROORZLQJ WKH 5LR 7XQX\DQ WR 0HQGR]D 7KH URXWH IURP 0HQGR]D WR 6DQWLDJR GH &KLOH PHDVXUHG OHDJXHV FURVVLQJ WKH $QGHV WKURXJK WKH FDQ\RQ FXW E\ WKH 5LR 0HQGR]D 7KLV URXWH IHDWXUHG HLJKW FDVXFKDV RU VKHOWHUV DQG QXPHURXV ULYHU DQG VWUHDP FURVVLQJV ZLQWHU VQRZV NHSW LW FORVHG DW OHDVW KDOI WKH \HDU $QRWKHU LPSRUWDQW WUDGH URXWH OLQNHG WKH 7XFXP£Q UHJLRQ ZLWK &KLOH DQG &X\R 7KLV URDG OHG QRUWK IURP 0HQGR]D WR 6DQ -XDQ D GLVWDQFH RI DSSUR[LPDWHO\ OHDJXHV DQG WKHQ DQRWKHU OHDJXHV WR D VHWWOHPHQW FDOOHG 9LOOD GH 9DOOH )UWLO OLWWOH PRUH WKDQ D FKXUFK VXUURXQGHG E\ D IHZ 6HH $*, 6HFFLQ GH 0DSDV \ 3ODQRV $XGLHQFLD GH %XHQRV $LUHV 1PHUR 0DSD JHRJU£ILFR TXH FRPSUHQGH WRGRV ORV PRGHUQRV GHVFXEULPLHQWRV GH OD &RVWD 3DWDJRQLD GHVGH HO 5R GH OD 3ODWD KDVWD HO 3XHUWR GH 5R *DOOHJRV \ FDPLQRV SRU OD &DPSDD GH %XHQRV $LUHV 3HUKDSV WKH EHVW SXEOLVKHG PDS RI WKLV URXWH LV IRXQG LQ 9 0DUWLQ GH 0RXVV\ 'HVFULSFLQ JHRJU£ILFR \ HVWDGVWLFD GH OD FRQIHGHUDFLQ DUJHQWLQD %XHQRV $LUHV f SODQFKH ;,, &DUWH GHV SURYLQFHV GH &RUGRYD GH 6DQ /XLV HW GHV UJLRQHV YRLVLQHV 6HH PDS QXPEHU LQ $*, 6HFFLQ GH 0DSDV \ 3ODQRV $XGLHQFLD GH %XHQRV $LUHV HQWLWOHG 3ODQR GH OD *UDQ FRUGLOOHUD GH &KLOH SRU OD SDUWH GH &DPLQR SULQFLSDO TXH OD DWUDYHVD GHVGH OD &LXGDG GH 6DQWLDJR KDVWD 0HQGR]D

PAGE 202

KXQGUHG VHWWOHUV DQG WKHLU OLYHVWRFN /D 5LRMD OD\ DQRWKHU OHDJXHV QRUWK RYHU WKH 6LHUUD GH 9DOOH )UWLO DQG DFURVV WKH 9DOOH GH )DPDWLPD &DWDPDUFD ZDV VWLOO DERXW DQRWKHU OHDJXHV QRUWKHDVW WKH URXWH PRVWO\ VNLUWLQJ ORZ IRRWKLOOV MXVW WR WKH ZHVW )URP &DWDPDUFD WKLV URXWH FRQWLQXHG DOPRVW GXH QRUWK LQWR WKH PRUH UXJJHG 6DQ 0LJXHO GH 7XFXP£Q MXULVGLFWLRQ IROORZLQJ WKH EDVH RI WKH VLHUUD WKDW OD\ WR WKH ZHVW RI 6DQWLDJR GHO (VWHUR ,Q 6DQ 0LJXHO GH 7XFXP£Q WKLV URXWH MRLQHG ZLWK WKH PDLQ URXWH WKDW OHG QRUWK WR 6DOWD -XMX\ DQG $OWR 3HU 7KHVH WKUHH URXWHV FRQVWLWXWHG WKH PDLQ OLQHV RI FRPPXQLFDWLRQ VHUYLQJ WKH ,QWHULRU 6HYHUDO RWKHU URXWHV DFWXDO DQG SURSRVHG DOVR DSSHDU RQ HLJKWHHQWK DQG QLQHWHHQWK FHQWXU\ PDSV 3HUKDSV WKH PRVW LPSRUWDQW RI WKHVH WZR UXQQLQJ IURP HDVW WR ZHVW OLQNHG WKH WKH 7XFXP£Q UHJLRQ ZLWK WKH /LWRUDO DOORZLQJ PHUFKDQWV LQ ERWK DUHDV WR E\SDVV %XHQRV $LUHV PLGGOHPHQ 7KH ILUVW FRQQHFWHG &UGRED ZLWK 6DQWD ) DFURVV WKH VRXWKHUQ &KDFR DQG WKH VHFRQG PRUH 6HH 6REUHPRQWHnV 2ILFLR 6REUHPRQWH GLG QRW FRQVLGHU WKLV VHWWOHPHQW HYHQ D SXHEOR 6HH 0RXVV\ 'HVFULSFLQ JHRJU£ILFD SODQFKH ;,9 &DUWH GHV SURYLQFHV GH /D 5LRMD GH 6DQ -XDQ HW GHV UJLRQHV YRLVLQHV ,ELG SODQFKH ;; &DUWH GHV SURYLQFHV GH &DWDPDUFD GH 7XFXP£Q HW GHV UJLRQHV YRLVLQHV

PAGE 203

VORZO\ GHYHORSHG FRQQHFWHG 6DQWLDJR GHO (VWHUR ZLWK 6DQWD ) $ VKRUW DUWLFOH E\ )HGHULFR *XLOOHUPR &HUYHUD QRWHV WKDW SODQV IRU WKHVH URDGV ILUVW DSSHDUHG ZLWK WKH IRXQGDWLRQ RI WKH 7XFXP£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

PAGE 204

WKH UHVXUJHQW PXOH WUDGH IURP 6DOWD DIWHU WKDW LQFUHDVLQJO\ GUHZ RQ KHUGV RULJLQDWLQJ LQ 6DQWD )nV SDVWXUHV WKLV QRUWKHUQ URDG EHFDPH WKH PDLQ URXWH LQWR WKH ,QWHULRU DVVXULQJ TXLFN DQG VHFXUH FRPPXQLFDWLRQ ZLWK DOO WKH 7XFXP£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£ILFR Y HVWDGVWLFR 3ODQFKH 9 &DUWH GH OD &RQIGHUDWLRQ $UJHQWLQH 3ODQFKH 9,,, &DUWH GHV SURYLQFHV Gn(QWUH5LRV GH 6DQWD) HW GH OD %DQGH 2ULHQWDO 3ODQFKH ;9,, &DUWH GH OD SURYLQFH GH 6DQWLDJR GHO (VWHUR HW GX 7HUULWRLUH ,QGLHQ GX 1RUG RX *UDQ &KDFR DQG 3ODQFKH ;9,,, &DUWH GX *UDQ &KDFR 7HUULWRLUH ,QGLHQ GX 1RUGf HW GHV &RQWUHV YRLVLQHV SRXU VHUYLU D On+LVWRLUH GX %DVVLQ GH OD 3ODWD GH D 6HH $*, 6HFFLQ GH 0DSDV \ 3ODQRV $XGLHQFLD GH %XHQRV $LUHV 1XPEHU 0DSDGHO *UDQ &KDFR *XDODPED

PAGE 205

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£Q DQG 0HQGR]D %\ WKH ODWH HLJKWHHQWK FHQWXU\ DIWHU WKH UHFRYHU\ RI WKH 7XFXP£Q UHJLRQDO HFRQRP\ LQ WKH V KXQGUHGV RI FDUWV IURP WKH ,QWHULRU GHVFHQGHG RQ %XHQRV $LUHV HDFK \HDU ORDGHG ZLWK KLGHV ZRROHQV DQG ZLQH IURP WKH SULPDU\ SURGXFLQJ FHQWHUV $ VPDOOHU QXPEHU UHWXUQHG WR WKHVH FLWLHV ORDGHG ZLWK FDUJRHV RI HIHFWRV GH &DVWLOOD DQG RWKHU LPSRUWV ,, 0RXVV\ 3ODQFKH ;9,,, &DUWH GX *UDQ &KDFR f

PAGE 206

5HFRUGV LQGLFDWH WKDW WKH &X\R URDGV OLQNLQJ 0HQGR]D DQG 6DQ -XDQ ZLWK %XHQRV $LUHV UHFHLYHG WKH PRVW WUDIILF 7KH FDOGR LQGXVWU\ LQ WKHVH FLWLHV VHQW KXQGUHGV RI FDUUHWDV DQG WKRXVDQGV RI PXOHV WR WKH 5LYHU 3ODWH HDFK \HDU %XHQRV $LUHVn /LEUR GH DOFDEDOD SURYLGHV D UHFRUG RI WKH WURSDV GH FDUUHWDV DQG WURSDV GH PXDV WKDW HQWHUHG WKH FLW\ IURP WKH SURYLQFHV RI WKH ,QWHULRU WKURXJK WKH FXVWRPV SRVW ORFDWHG LQ WKH FLW\ RI /XMDQ MXVW RXWVLGH WKH FDSLWDO 7KH /LEUR UHJLVWHUV WKH SDVVLQJ RI GLIIHUHQW YLDMHV FRPHUFLDOHV RU FRPPHUFLDO WULSV IURP 0HQGR]D 6DQ -XDQ &UGRED 6DQWD ) DQG 6DQ 0LJXHO GH 7XFXP£Q 7KH PDMRULW\ RI WKHVH HQWULHV QRWH WKH DUULYDO RI WURSDV GH FDUUHWDV EXW 6DQ -XDQ LV QRWHZRUWK\ DV WKH RULJLQ RI PDQ\ WURSDV GH PXDV ,QGLYLGXDOO\ 0HQGR]D VHQW DW OHDVW FDUUHWDV QRWHG LQ VHSDUDWH HQWULHV &UGRED VHQW DW OHDVW FDUUHWDV UHFRUGHG LQ HQWULHV DQG 6DQ 0LJXHO GH 7XFXP£Q DFFRXQWHG IRU DW OHDVW FDUUHWDV UHFRUGHG LQ HQWULHV 6DQWD ) VHQW DW OHDVW FDUUHWDV QRWHG LQ HQWULHV ZKLOH DQRWKHU FDUUHWDV RULJLQDWHG LQ 6DQ -XDQ 6DQ -XDQ DOVR DFFRXQWHG IRU DW OHDVW FDUJDV GH PXDV $OWRJHWKHU WKH /XMDQ SRVW UHFRUGHG WKH HQWU\ RI DW OHDVW

PAGE 207

FDUWV DQG RYHU SDFN PXOHV IURP WKH YDULRXV VHWWOHPHQWV RI WKH ,QWHULRU LQ $ GHWDLOHG VWXG\ RI WKLV WUDQVSRUW DFWLYLW\ E\ 0LJXHO $QJHO 5RVDO SUHVHQWV D YDOXDEOH GLVFXVVLRQ RI FDUU\LQJ DFWLYLWLHV DQG WKHLU HFRQRPLF LPSRUWDQFH WR ,QWHULRU VHWWOHPHQWV +LV 7UDQVSRUWHV WHUUHVWUHV \ FLUFXODFLQ GH PHUFDQFDV HQ HO HVSDFLR ULRSODWHQVH f GHYHORSV D VWDWLVWLFDO DQDO\VLV RI WKH WUDQVSRUW VHFWRU EDVHG RQ WKUHH VHWV RI FRPPHUFLDO GDWD IURP WKH $UFKLYR *HQHUDO GHO 1DFLQ LQ %XHQRV $LUHV 8VLQJ WKH FLW\nV FRPPHUFLDO JXDV LWV DOFDEDOD UHFRUGV DQG LWV DGXDQD ERRNV IURP WKH \HDUV DQG 5RVDO FRXQWV D WRWDO RI YLDMHV FRPHUFLDOHV LQ WKHVH \HDUV &X\R DQG &KLOH DFFRXQWHG IRU D IXOO SHU FHQW RI WKHVH WULSV ZKLOH &UGRED 6DQWLDJR GHO (VWHUR DQG 6DQ 0LJXHO GH 7XFXP£Q DGGHG DQRWKHU SHU FHQW -XMX\ DQG 6DOWD DFFRXQWHG IRU RQO\ IRXU SHU FHQW RI WKH WRWDO WKH UHPDLQLQJ WULSV RULJLQDWHG LQ VPDOOHU FLWLHV6DQ /XLV 5LR 'RFXPHQWRV SDUD OD +LVWRULD $UJHQWLQD YROXPHV %XHQRV $LUHV f YROXPH ,, 5RVDO 7UDQVSRUWHV WHUUHVWUHV

PAGE 208

&XDUWR &DWDPDUFD DQG /D 5LRMD $OWR 3HU DGGHG DOPRVW ILYH SHU FHQW DQG 6DQWD ) MXVW RYHU WKUHH SHU FHQW 5RVDOnV FDOFXODWLRQV IXUWKHU LQGLFDWH WKDW LQ DGGLWLRQ WR WKH JUHDWHU IUHTXHQF\ RI WUDIILF IURP &X\R WKH UHJLRQ DOVR UHFRUGHG D JUHDWHU YROXPH RI WUDIILF 7KH &X\R&KLOH YLDMHV FRPHUFLDOHV FRXQWHG D WRWDO RI FDUUHWDV DYHUDJLQJ RYHU FDUUHWDV HDFK \HDU 7KH QRUWKHUQ UHJLRQV 7XFXP£Q $OWR 3HU DQG 6DQWD )f DFFRXQWHG IRU D WRWDO RI FDUUHWDV DQG DYHUDJH RI DERXW HDFK \HDU 5RVDO DOVR FRXQWHG WKH DUULYDO RI WURSDV GH PXDV IURP &X\R ZLWK D WRWDO RI DQLPDOV DQ DYHUDJH RI WURSDV HDFK \HDU HDFK ZLWK DSSUR[LPDWHO\ DQLPDOV 7KH QRUWKHUQ FLWLHV RQ WKH RWKHU KDQG DFFRXQWHG IRU D WRWDO RI RQO\ WURSDV GH PXDV LQ WKH \HDUV PHDVXUHG 0HQGR]DnV VLVD UHFRUGV LQGLFDWH D KHDYLHU WUDIILF WKDQ 5RVDO DFNQRZOHGJHV 7KH /LEURV PDQXDOHV GH VLVD Y DUYLWULRV UHJLVWHU VHSDUDWHO\ WKH HQWULHV HQWUDGDVf DQG GHSDUWXUHV VDOLGDVf RI ERWK FDUJDV GH FDUUHWDV DQG FDUJDV GH PXDV &DUUHWDV HDFK SDLG IRXU UHDOHV HQWHULQJ RU GHSDUWLQJ ZKLOH HDFK FDUJD GH PXD SDLG RQHKDOI D UHDO ,Q WKH ,ELG VHH &KDUW SDJH ,ELG ,ELG

PAGE 209

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f f f f DQG f

PAGE 210

PRQWKV RI 'HFHPEHU -DQXDU\ )HEUXDU\ 0DUFK DQG $SULO 7KH UHPDLQGHU RI 0HQGR]DnV WURSDV GH PXDV FRPPXQLFDWHG ZLWK ,QWHULRU FLWLHV WKDW LQFOXGHG 6DQ /XLV &UGRED 6DQWD ) DQG D QXPEHU RI VPDOOHU SODFHV .ODXV 0OOHUnV VWXG\ RI FRPPHUFH LQ 6DQ 0LJXHO GH 7XFXP£Q DUJXHV WKDW WUDQVSRUW DFWLYLWLHV LQ WKH 5LR GH OD 3ODWD LQWHULRU FRQWULEXWHG VXEVWDQWLDO SURILWV WR ORFDO HFRQRPLHV DQG KHOSHG SURYLGH IRU D IDYRUDEOH EDODQFH RI WUDGH LQ DW OHDVW WKH 6DQ 0LJXHO GH 7XFXP£Q MXULVGLFWLRQ 7XFXP£QnV FDUUHWHURV SURYLGHG DQRWKHU PHDQV RI ILQDQFLQJ LPSRUW DFWLYLWLHV WKDW LQ VRPH \HDUV VXUSDVVHG WKH HDUQLQJV RI H[SRUW FRPPHUFH KLV UHVHDUFK HVWLPDWHV WKH YDOXH RI WKHVH VHUYLFHV DW DV PXFK DV SHVRV HDFK \HDU %HWZHHQ DQG 6DQ 0LJXHO GH 7XFXP£Q FDUUHWDV FLUFXODWHG EHWZHHQ %XHQRV $LUHV DQG -XMX\ HDFK \HDU FDUU\LQJ PRVW RI WKH $OWR 3HU FRPPHUFH 7RJHWKHU ZLWK OLYHVWRFN H[SRUWV FDUWLQJ HDUQHG DSSUR[LPDWHO\ WR SHVRV HDFK \HDU IRU WKH MXULVGLFWLRQ DQG SURYLGHG IRU D UHOLDEOH GHJUHH RI VHFXULW\ WR ORFDO FRPPHUFLDO FLUFOHV 7KH PHUFKDQW RU SURGXFHU VHQGLQJ IUHLJKW WR %XHQRV $LUHV KDG VHYHUDO RSWLRQV &RQFRORUFRUYR UHODWHG WKUHH 0OOHU &RPHUFLR LQWHUQR

PAGE 211

GLVWLQFW FDWHJRULHV RI FDUUHWHURV RSHUDWLQJ LQ WKH ,QWHULRU 7KH ILUVW FDWHJRU\ FRQVLVWHG RI WKH PRVW GLVWLQJXLVKHG PHQ IURP 0HQGR]D 6DQ -XDQ 6DQWLDJR GHO (VWHUR DQG 6DQ 0LJXHO GH 7XFXP£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nV GHEWV EXW DOVR WR VXSSO\ WKH QHFHVVLWLHV RI WKH WULS +LV JXLGHERRN DGYLVHV WKH WUDYHOOHU WR SD\ WKH WHQ SHVRV PRUH SHU FDUW WR WKH PHQ RI WKH ILUVW FDWHJRU\ &RQFRORUFRUYR (O OD]DULOOR &RQFRORUFRUYRnV GHVFULSWLRQ LV HFKRHG LQ &£UFDQR +LVWRULD GH ORV 0HGLRV GH &RPXQLFDFLQ YROXPH LQ 5RVDO 7UDQVSRUWHV WHUUHVWUHV DQG LQ 6DQWRV 0DUWQH] +LVWRULD HFRQPLFD GH 0HQGR]D &RQFRORUFRUYR (O OD]DULOOR

PAGE 212

)UHLJKW UDWHV IOHWHVf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n SHVRV DQG IURP &UGRED WR 6DQ -XDQ DQG 0HQGR]D DW VL[ WR HLJKW SHVRV PDNLQJ WKH FRVWV RI VKLSSLQJ E\ PXOH VOLJKWO\ KLJKHU 2QH \HDU ODWHU WKHVH UDWHV KDG LQFUHDVHG WKH IOHWH GH FDUUHWDV IURP &UGRED WR %XHQRV $LUHV ZDV WR SHVRV IURP &UGRED WR 6DOWD WR SHVRV IURP &UGRED WR 0HQGR]D WR SHVRV DQG IURP 0HQGR]D WR %XHQRV $LUHV DURXQG SHVRV 7KH RU VR FDUUHWDV WUDYHOOLQJ WKH $*, %XHQRV $LUHV &RQVXODGR 5HSRUW -XO\

PAGE 213

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£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f ZHQW WR $*, %XHQRV $LUHV &RQVXODGR 5HSRUW 1RYHPEHU % $+3& 6HFFLQ GH +DFLHQGD 1XPEHU 0DQXDO GH 6LVD Y $UYLWULRV GH 6DQ -XDQ

PAGE 214

%XHQRV $LUHV 0RVW RI WKH UHPDLQGHU FDUJDV RU DERXW SHU FHQWf ZHQW WR PDUNHWV LQ WKH 7XFXP£Q UHJLRQ FDUJDV ZHQW WR &UGRED ZHQW WR 6DOWD ZHQW WR -XMX\ ZHQW WR 6DQ 0LJXHO GH 7XFXP£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

PAGE 215

FRORQLDO HUD 7RWDO VLVD UHYHQXHV URVH IURP LQ WR LQ WR LQ $OWKRXJK QRW QHDUO\ DV EXV\ DV 0HQGR]DnV WUDIILF ZLWK %XHQRV $LUHV DQG &KLOH 6DQ -XDQnV WUDIILF ZLWK ERWK %XHQRV $LUHV DQG WKH 7XFXP£Q UHJLRQ SOD\HG D VLJQLILFDQW UROH LQ WKH ORFDO HFRQRP\ $+3& 6HFFLQ GH +DFLHQGD /LEURV GH 6LVD Y $UYLWULRV GH 6DQ -XDQ 1XPEHUV f f f f f f f f f DQG f

PAGE 216

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£Q UHJLRQ DQG JDYH LW HFRQRPLF OLIH

PAGE 217

7KLV FKDSWHU LQ D VHQVH SUHVHQWV D GLVFXVVLRQ RI VHYHUDO VRFLDO DVSHFWV RI 7XFXP£QnV HFRQRP\ 5HJLRQDO VRFLHW\ GLVSOD\HG D WKRURXJK UDFLDO PL[ ZLWK PHVWL]R ELDQFR ZKLWHf ,QGLDQ DQG EODFN SRSXODWLRQV 6XFK FDWHJRULHV QRW RQO\ GHILQHG WKH YLFHUHJDO VRFLDO RUGHU EXW DOVR RIWHQ GHWHUPLQHG WKH SDUDPHWHUV RI DQ LQGLYLGXDOnV HFRQRPLF DFWLYLW\ 7KH ILUVW SDUW WKHQ DGGUHVVHV D VHJPHQW RI 7XFXP£QnV ,QGLDQ SRSXODWLRQ DQG WKH WULEXWH REOLJDWLRQV WKDW LQFFRUSRUDWHG RWKHUZLVH PDUJLQDOL]HG FRPPXQLWLHV LQWR WKH UHJLRQDO HFRQRPLF V\VWHP $OWKRXJK JHRJUDSKLFDOO\ LVRODWHG WULEXWDU\ FRPPXQLWLHV FRQWLQXHG WR SURGXFH PDUNHWDEOH JRRGV HQWHU UHJLRQDO FRPPHUFLDO FLUFXLWV DQG PHHW WKHLU WULEXWH REOLJDWLRQV 7UHDVXU\ GDWD JDWKHUHG LQ WKH $UFKLYR *HQHUDO GH ,QGLDV SHUPLWV D WHQWDWLYH GLVFXVVLRQ RI WKH WULEXWDU\ SRSXODWLRQ DQG D FRPSDULVRQ RI WKH WULEXWH UHYHQXHV RI HDFK RI WKH 7XFXP£Q MXULVGLFWLRQV ,W DOVR DIIRUGV DQ DQDO\VLV RI WKH UHODWLYH LPSRUWDQFH RI ,QGLDQ SURGXFWLRQ WR ORFDO HFRQRPLHV DQG UR\DO WUHDVXU\ DFFRXQWV )LQDOO\ WKHVH UHFRUGV DGG WR WKH VWXG\ RI UHJLRQDO DGMXVWPHQWV GXULQJ WKH YLFHUHJDO HUD &RQWHPSRUDULHV XVHG WKH FDWHJRULHV EODQFRV FDVWDV DQG QDWXUDOHV LQ GHILQLQJ YLFHUHJDO VRFLDO RUGHU 6HH &RPDGU£Q 5XL] (YROXFLQ GHPRJU£ILFD DUJHQWLQD

PAGE 218

7KH UHPDLQGHU RI WKLV FKDSWHU H[DPLQHV SDWWHUQV RI FRPPHUFLDO EHKDYLRU PDQLIHVWHG E\ 7XFXP£QnV PHUFKDQW FRPPXQLW\ )URP WKH ODQGRZQHUPXOH H[SRUWHUV DW WKH WRS RI WKH UHJLRQnV VRFLDO RUGHU WKURXJK D KLHUDUFK\ RI ZKROHVDOH GHDOHUV LQ ERWK HIHFWRV GH &DVWLOOD DQG HIHFWRV GH OD WLHUUD WR UHWDLO VKRSNHHSHUV WKLV FRPPXQLW\ GLVSOD\HG D QXPEHU RI FKDUDFWHULVWLFV WHQGHQFLHV DQG WUHQGV $YDLODEOH FRPPHUFLDO UHFRUGV PDNH LW SRVVLEOH WR LGHQWLI\ LPSRUWDQW SDWWHUQV ZLWKLQ D UHJLRQDO FRPPHUFLDO FXOWXUH IRXQGHG RQ WKH H[SRUW RI OLYHVWRFN DQG SDVWRUDO E\SURGXFWV 6XFK SDWWHUQV LQ WXUQ IXUWKHU KHOS H[SODLQ 7XFXP£QnV UHJLRQDO UHRULHQWDWLRQV DIWHU 6HYHUDO LQGLJHQRXV VRFLHWLHV LQKDELWHG WKH 7XFXP£Q UHJLRQ ZKHQ (XURSHDQV ILUVW DUULYHG LQ WKH PLGGOH RI WKH VL[WHHQWK FHQWXU\ 7KH 3XQHR DQG +XPDKXDFD VRFLHWLHV RFFXSLHG WKH QRUWKHUQPRVW UHDFKHV RI ZKDW EHFDPH WKH -XMX\ MXULVGLFWLRQ 7KH &RPHQFKLJQ VRFLHW\ GRPLQDWHG WKH PRXQWDLQRXV SDUWV RI WKH &RUGRED DQG QRUWKHUQ 6DQ /XLV MXULVGLFWLRQV 7KH 'LDJLWD VRFLHW\ VSUHDG WKURXJKRXW WKH ODUJHVW H[SDQVH IURP WKH /HUPD 9DOOH\ LQ 6DOWD VRXWK LQWR WKH PRXQWDLQRXV SDUWV RI 6DQ -XDQ LQFOXGLQJ SDUWV RI 6DQ 0LJXHO GH 7XFXP£Q WKH ZHVWHUQ SDUW RI 6DQWLDJR GHO (VWHUR

PAGE 219

DQG DOO RI &DWDPDUFD DQG /D 5LRMD VHH PDS f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£Q 5XL] /D HYROXFLQ GHPRJU£ILFD VXPPDUL]HV SUHFRQWDFW SRSXODWLRQ HVWLPDWHV $QJHO 5RVHQEODW /D SREODFLQ LQGJHQD GH $PULFD GHVGH KDVWD OD DFWXDOLGDG %XHQRV $LUHV f SODFHV WKH 7XFXP£Q SRSXODWLRQ DW DQ LQIODWHG ILJXUH LQ WKH ZRUGV RI &RPDGU£Q 5XL] +RUDFLR 'LIULHUL 3REODFLQ LQGJHQD \ FRORQLDO LQ KLV /D $UJHQWLQD 6XPD GH JHRJUDID YROXPHV %XHQRV $LUHV f YROXPH 9,, SXWV WKH 7XFXP£Q SRSXODWLRQ DW DURXQG DW WKH WLPH RI ILUVW FRQWDFW

PAGE 220

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f YROXPHV 1HZ
PAGE 221

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n DGYDQFH 2Q WKH &KDFR SODLQV WR WKH HDVW RI WKH 7XFXP£Q UHJLRQ OHVV VHGHQWDU\ WULEHV PL[HG OLPLWHG DJULFXOWXUDO DFWLYLW\ ZLWK PRUH KXQWLQJ DQG JDWKHULQJ RI QDWXUDOO\RFFXUULQJ IRRGV 2ULJLQDOO\ WKHVH JURXSV WHQGHG WR FRQFHQWUDWH LQ WKH PDUVK\ VWUHWFKHV RI HDVWHUQ &UGRED DQG 6DQWLDJR GHO (VWHUR )UDQFLVFR GH $SDULFLR 7KH &RPHQFKLQJRQ DQG WKHLU 1HLJKERUV LQ WKH 6LHUUDV GH &UGRED LQ +6$, )HUQDQGR 0£UTXH] 0LUDQGD 7KH 'LDJLWD LQ $UJHQWLQD LQ +6$, VHH DOVR 0DQXHO /L]RQGR %RUGD 7XFXP£Q LQGJHQD 'LDJLWDV /XOHV \ 7RQRFDWHV SXHEORV Y OHQJXDV 7XFXP£Q f )RU GLVFXVVLRQ RI WKH FRQTXHVW RI 7XFXP£Q VHH 5REHUWR /HYLOOLHU 1XHYD FUQLFD GH OD FRQTXLVWD GH 7XFXP£Q %XHQRV $LUHV f 0DQXHO /L]RQGR %RUGD +LVWRULD GH OD JREHUQDFLQ GHO 7XFXP£Q VLJOR ;9,,f %XHQRV $LUHV f DQG 9LFHQWH 6LHUUD +LVWRULD GH OD $UJHQWLQD YROXPHV %XHQRV $LUHV f YROXPH

PAGE 222

MXULVGLFWLRQV EXW ZLWK 6SDQLVK SUHVVXUH PRVW RI WKHVH JURXSV WXUQHG WR D PRUH PRELOH OLIHVW\OH WKDW JDYH WKHP JUHDWHU VHFXULW\ IURP 6SDQLVK UDLGLQJ 7KH 0RFRYLH SHRSOH EHFDPH WKH 6SDQLDUGVn SULPDU\ HQHP\ RQ WKH HDVWHUQ IURQWLHU E\ WKH PLGGOH RI WKH VHYHQWHHQWK FHQWXU\ FRORQLVWV KDG EHJXQ PRXQWLQJ RFFDVLRQDO RIIHQVLYHV LQ WKHLU HIIRUWV WR VHFXUH WKHLU LVRODWHG VHWWOHPHQWV IURP ,QGLDQ UDLGV 'HVSLWH WKHLU LQDELOLW\ WR PRXQW ODUJH FRQFHUWHG FDPSDLJQV DJDLQVW WKH 6SDQLDUGV WKH 0RFRYLHV UHPDLQHG HQHPLHV RI WKH 7XFXP£Q FRORQLVWV XQWLO WKH HQG RI WKH FRORQLDO SHULRG 3UHFRORQLDO SRSXODWLRQ OHYHOV DUH GLIILFXOW WR GHWHUPLQH ZLWK DQ\ DFFXUDF\ DQG WKH HDUOLHVW 6SDQLVK UHFRUGV DUH YDJXH DQG RIIHU RQO\ LQGLUHFW HVWLPDWHV RI VL[WHHQWKFHQWXU\ SRSXODWLRQ OHYHOV 7KH ILUVW DFFXUDWH FRXQW RI WKH ,QGLDQ SRSXODWLRQ FRPHV IURP D OHWWHU WR WKH .LQJ RI 6SDLQ IURP 7XFXP£Q JRYHUQRU -XDQ 5DPLUH] GH 9HODVFR GDWHG ZKLFK LQFOXGHG D FRXQW RI WKH ,QGLDQ SRSXODWLRQ GLVWULEXWHG LQ HQFRPLHQGD LQ KLV MXULVGLFWLRQ 9HODVFR HVWLPDWHG WKH HQFRPLHQGD SRSXODWLRQV DW LQ /D 5LRMD LQ &UGRED LQ 6DQWLDJR GHO (VWHUR LQ 6DQ 0LJXHO GH 7XFXP£Q LQ 6DOWD DQG LQ -XMX\ 0£UTXH] 0LUDQGD 7KH &KDFR6DQWLDJR &XOWXUH LQ +6$,

PAGE 223

(VWLPDWHV IRU WKH VHYHQWHHQWK FHQWXU\ DUH EDVHG RQ VLPLODU HQFRPLHQGD FRXQWV 7KH PRVW VWULNLQJ IHDWXUH RI 7XFXP£QnV GHPRJUDSKLF KLVWRU\ LQ DQ\ FDVH LV WKH VWHDG\ GHFOLQH RI WKH ,QGLDQ SRSXODWLRQ WKURXJK WKH VHYHQWHHQWK FHQWXU\ DQG LQWR WKH HDUO\ HLJKWHHQWK 6HH WDEOH 7KH SRSXODWLRQ GHFOLQH LQ WKH 7XFXP£Q UHJLRQ DV LQGLFDWHG E\ OLPLWHG UHFRUGV DSSHDUV DV GUDVWLF DV DQ\ZKHUH HOVH WKH $PHULFDV $V RSSRVHG WR *RYHUQRU 9HODVFRnV UHODWLYHO\ KLJK HVWLPDWHV *RQ]£OH] 5RGULJXH]n UHVHDUFK SODFHV WKH HQFRPLHQGD SRSXODWLRQ IRU DOO WKH 7XFXP£Q UHJLRQ DW DURXQG LQFOXGLQJ FKLOGUHQ ZLWK DERXW FRXQWHG DV WULEXWDULR ,Q WKH &UGRED MXULVGLFWLRQ WKLV SRSXODWLRQ KDG GURSSHG WR RQO\ LQ /D 5LRMD WR &RPDGU£Q 5XL] /D HYROXFLQ GHPRJU£ILFD *RQ]£OH] 5RGUJXH] /D HQFRPLHQGD HQ 7XFXP£Q ERWK ZRUNV FLWH WKH &DUWD GH -XDQ 5DPLUH] GH 9HODVFR D 6X 0DMHVWDG -DQXDU\ f LQ 5REHUWR /HYLOOLHU *REHUQDGRUHV GHO 7XFXP£Q 3DSHOHV GH ORV JREHUQDGRUHV HQ HO VLFUOR ;9, 'RFXPHQWRV GHO $UFKLYR GH ,QGLDV YROXPHV 0DGULG f YROXPH *RQ]£OH] 5RGUJXH] /D HQFRPLHQGD HQ 7XFXP£Q FLWLQJ (PLOLR 5DYLJQDQL /D SREODFLQ LQGJHQD GH ORV UHJLRQHV GHO 5R GH OD 3ODWD HQ OD VHJXQGD PLWDG GHO VLJOR ;9,, LQ $FWDV \ WUDEDMRV FLHQWILFRV GHO ;;9 FRQJUHVR LQWHUQDFLRQDO GH DPHULFDQLVWDV %XHQRV $LUHV f )RU D GLVFXVVLRQ RI WKH OHJDO DVSHFWV RI WKH HQFRPLHQGD LQ 7XFXP£Q VHH 5LFDUGR =RUUDTXQ %HF /D UHJXODFLQ GH ODV HQFRPLHQGDV HQ WHUULWRULR DUJHQWLQR LQ 5HYLVWD GH OD )DFXOWDG GH 'HUHFKR \ &LHQFLDV 6RFLDOHV D SRFD %XHQRV $LUHV f

PAGE 224

LQ -XMX\ WR LQ 6DOWD WR LQ 6DQWLDJR GHO (VWHUR WR DURXQG DQG LQ 6DQ 0LJXHO GH 7XFXP£Q WR 7KHVH ILJXUHV KRZHYHU GR QRW FRXQW WKH ,QGLDQ SRSXODWLRQ QRW LQ HQFRPLHQGD DQG RWKHU DFFRXQWV IURP WKH 7DEOH ,QGLDQ 3RSXODWLRQ (VWLPDWHV 7XFXP£Q (QFRPLHQGD 3RSXODWLRQ 7RWDO 3RRXODWLRQ &UGRED 6DOWD -X M X\ 6DQ 0LJXHO GH 7XFXP£Q 6DQWLDJR GHO (VWHUR /D 5LRMD &DWDPDUFD f§ f§ 6RXUFHV *RQ]£OH] 5RGULJXH] /D HQFRPLHQGD HQ 7XFXP£Q &RPDGU£Q 5XL] /D HYROXFLQ GHPRJU£ILFD

PAGE 225

f 2 f 2 &/ \HDU )LJXUH 3XOSHUD 5HYHQXHV LQ SHVRV &UGRED DQG 6DOWD

PAGE 226

SHVRV UU n \HDU )LJXUH 3XOSHUD 5HYHQXHV LQ SHVRV 6DQ 6DOYDGRU GH -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q

PAGE 227

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£OH] 5RGUJXH] DWWULEXWHV WKLV GHFOLQH WR VHYHUDO FDXVHV :DUIDUH WKH HQFRPLHQGD V\VWHP DQG IRUFHG UHPRYDO RQO\ SDUWLDOO\ H[SODLQ GHPRJUDSKLF FROODSVH HSLGHPLF GLVHDVH RIWHQ DFFRPSDQLHG E\ IDPLQH VXUHO\ UDWHV IRUHPRVW RQ WKH OLVW RI FDXVHV 7KLV OLVW IXUWKHU LQFOXGHV YROXQWDU\ IOLJKW IURP WKH YLOODJHV D IDLUO\ FRPPRQ UHVSRQVH WR WKH 6HH *DVWRQ 'RXFHW ,QWURGXFLQ DO HVWXGLR GH OD YLVLWD GHO 2LGRU 'RQ $QWRQLR 0DUWQH] GH /XMDQ GH 9DUJDV D ORV HQFRPLHQGDV GH 7XFXP£Q LQ %ROHWQ GHO ,QVWLWXWR GH +LVWRULD $UJHQWLQD \ $PHULFDQD DR f 6HH $GHOD )HUQ£QGH] $OH[DQGHU GH 6FKRUU (O VHJXQGR OHYDQWLPLHQWR &DOFKDTX 7XFXP£Q f /L]RQGR %RUGD (O 7XFXP£Q HQ ORV VLJORV ;9,, \ ;9,,, LQ /HYHQH HGLWRU +LVWRULD GH OD QDFLQ $UJHQWLQD YROXPH ,,, *RQ]£OH] 5RGUJXH] /D HQFRPLHQGD HQ 7XFXP£Q

PAGE 228

GHPDQGV LPSRVHG XSRQ ,QGLDQ FRPPXQLWLHV E\ 6SDQLVK RYHUVHHUV $ SDUW RI 7XFXP£QnV ,QGLDQ SRSXODWLRQ OHIW WKHLU YLOODJHV IRU WKH 6SDQLVK VHWWOHPHQWV &RPDGU£Q 5XL] HVWLPDWHV WKDW ,QGLDQ UHVLGHQWV LQWHJUDWHG LQWR WKH XUEDQ SRSXODWLRQ WKURXJK HQFRPLHQGD REOLJDWLRQV WKH ODERU GUDIW RU VLPSO\ DV IUHH YDVVDOV RI WKH &URZQ ZKR FKRVH WR UHORFDWH LQ WKH FLWLHV PDGH XS WR SHU FHQW RI WKH HDUO\ SRSXODWLRQ RI WKH ILUVW VHWWOHPHQWV 'HVSLWH WKH VHYHQWHHQWKFHQWXU\ SRSXODWLRQ GHFOLQH WKH HQFRPLHQGD UHPDLQHG D FRPPRQ IHDWXUH RI WKH 7XFXP£Q HFRQRP\ HYHQ LQWR WKH HLJKWHHQWK FHQWXU\ (DFK RI WKH 7XFXP£Q MXULVGLFWLRQV FRXQWHG D QXPEHU RI HQFRPHQGHURV LQ LWV SRSXODWLRQ DQG DOWKRXJK RQO\ OLPLWHG QXPEHUV RI ,QGLDQV OLYHG XQGHU HQFRPLHQGD REOLJDWLRQV WKHLU GLVWULEXWLRQ LQGLFDWHV WKDW 7XFXP£QnV XSSHU FODVV VWLOO YDOXHG WKH LQVWLWXWLRQ ,Q WKH &UGRED MXULVGLFWLRQ IRU H[DPSOH FRXQWHG HQFRPHQGHURV DPRQJ LWV SRSXODWLRQ ZLWK LQGLRV WULEXWDULRV GLVWULEXWHG DPRQJ WKHP 6DOWD ZLWK HQFRPHQGHURV FRXQWHG WULEXWDULRV -XMX\ ZLWK RQO\ HLJKW HQFRPHQGHURV FRXQWHG WULEXWDULRV 6DQ 0LJXHO GH 7XFXP£Q FRXQWHG HQFRPHQGHURV ZLWK WULEXWDULRV ,ELG &RPDGU£Q 5XL] /D HYROXFLQ GHPRJU£ILFD

PAGE 229

6DQWLDJR GHO (VWHUR ZLWK HQFRPHQGHURV FRXQWHG WULEXWDULRV WKH PRVW LQ WKH 7XFXP£Q UHJLRQ /D 5LRMD WR FRQWUDVW FRXQWHG HQFRPHQGHURV DQG RQO\ WULEXWDULRV &DWDPDUFD ILQDOO\ FRXQWHG RQO\ WULEXWDULRV XQGHU GLIIHUHQW HQFRPHQGHURV 'HVSLWH WKH VPDOO QXPEHUV LQYROYHG HQFRPLHQGD SULYLOHJHV SURYLGHG ERWK PRQHWDU\ LQFRPH DQG ODERU IRU WKH HQFRPHQGHUR FODVV 7KH\ DOVR UHPDLQHG DQ LPSRUWDQW VWDWXVHQGRZLQJ IHDWXUH RI WKH UHJLRQnV VRFLDO KLHUDUFK\ EHVWRZLQJ D FHUWDLQ UDQN DQG KLJKHU SRVLWLRQ XSRQ WKH LQGLYLGXDOV ZKR HQMR\HG WKHVH SULYLOHJHV 7KH FHQVXV RI WKH 7XFXP£Q UHJLRQ VXJJHVWV D VOLJKW UHFRYHU\ DPRQJ WKH ,QGLDQ SRSXODWLRQ )RU WKH YLFHUHJDO SHULRG KRZHYHU WUHDVXU\ UHFRUGV LQGLFDWH WKDW D ODUJH SDUW RI WKLV SRSXODWLRQ OLYHG LQ ,QGLDQ SXHEORV ZKHUH PHQ RI \HDUV DQG ROGHU RZHG ILYH SHVRV HDFK \HDU LQ UR\DO WULEXWHV 7UHDVXU\ UHFRUGV IURP &UGRED 6DOWD DQG 6DQ 6DOYDGRU GH -XMX\ ZKLFK LQFOXGH VHYHUDO VHULHV RI WULEXWH UHYHQXHV IRU WKH GLIIHUHQW 7XFXP£Q MXULVGLFWLRQV FRQWDLQ HQRXJK LQIRUPDWLRQ WR SHUPLW D WHQWDWLYH GLVFXVVLRQ RI WKH *RQ]£OH] 5RGUJXH] /D HQFRPLHQGD HQ 7XFXP£Q 6HH WKH -XMX\ &DUWD &XHQWD IURP $*, %XHQRV $LUHV

PAGE 230

WULEXWH REOLJDWLRQV LPSRVHG XSRQ WKH 7XFXP£Q ,QGLDQ SRSXODWLRQ 6REUHPRQWHn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nV DYHUDJH WULEXWH UHYHQXHV LQGLFDWH WKDW DW OHDVW WULEXWDULRV XVXDOO\ PHW WKHLU DQQXDO REOLJDWLRQV GXULQJ WKH YLFHUHJDO SHULRG 6REUHPRQWH 2ILFLR f 6HH WKH &UGRED KDFLHQGD UHFRUGV $*, %XHQRV $LUHV 6HH $*, %XHQRV $LUHV &DUWD &XHQWD IURP -XMX\ &RPPXQLWLHV SDLG WKHLU WULEXWHV WZLFH D \HDU WKH ILUVW KDOI\HDU REOLJDWLRQ RU WHUFLR GH 6DQ -XDQ DW PLG\HDU DQG WKH VHFRQG RU WHUFLR GH 1DYLGDG DW WKH HQG RI WKH \HDU

PAGE 231

,Q WKH QRUWK WKH 3XQD DUHD LQ -XMX\ SURGXFHG WKH ODUJHVW WULEXWH UHYHQXHV $ QXPEHU RI 3XQD SXHEORV DQG GRFWULQDV UHSUHVHQWLQJ DSSUR[LPDWHO\ WULEXWDULRV DYHUDJHG DURXQG SHVRV LQ WULEXWH SD\PHQWV HDFK \HDU EHWZHHQ DQG 7KH ODUJHVW LQFOXGHG WKH GRFWULQDV RI
PAGE 232

7R FRPSDUH WKH 6DQ 0LJXHO GH 7XFXP£Q MXULVGLFWLRQ FROOHFWHG DQ DYHUDJH RI SHVRV LQ WULEXWH UHYHQXH HDFK \HDU )RU WKH HQWLUH 6DOWD LQWHQGHQF\ ZKLFK LQFOXGHG WKH WKH VXERUGLQDWH WUHDVXULHV RI -XMX\ &DWDPDUFD 6DQ 0LJXHO GH 7XFXP£Q DQG 6DQWLDJR GHO (VWHUR WULEXWH UHYHQXHV UHFRUGHG LQ WKH 6DOWD FDUWD FXHQWDV VXEPLWWHG HDFK \HDU WRWDOOHG IURP WR SHVRV D \HDU EHWZHHQ DQG VHH 7DEOH f 7KH WULEXWH WRWDO IRU H[DPSOH GHWDLOHG LQ WKH FDUWD FXHQWD DPRXQWHG WR SHVRV FROOHFWHG GLVWULFW IURP WKH $WDFDPD MXULVGLFWLRQ RI $OWR 3HU $*, %XHQRV $LUHV 7KH 6DQ 0LJXHO GH 7XFXP£Q WUHDVXU\ UHFHLYHG RU SHVRV LQ WULEXWH UHYHQXHV LQ VHYHQ RI WKH HLJKW \HDUV UHFRUGHG EHWZHHQ DQG LQ WKH WUHDVXU\ FROOHFWHG SHVRV

PAGE 233

7DEOH 7ULEXWH 5HYHQXHV 6DOWD DQG 7XFXP£Q ,QWHQGHQFLHV &UGRED 6DOWD f§ f§ f§ f§ f§ f§ f§ 6RXUFHV $+3& 6HULH +DFLHQGD IURP WKH YQGLRV IRU£QHRV \ RULJLQDULRV RI WKH SURYLQFH HDFK FRQWULEXWLQJ SHVRV HDFK \HDU RI ZKLFK E\ ROGHU REOLJDWLRQV WKH\ FRQWULEXWH UHDOHV WR WKH GRFWULQD

PAGE 234

SULHVWV RI HDFK WRZQ SHVRV IURP &DOFKDTXL SHVRV IURP &KLFXDQD SHVRV IURP WKLV MXULVGLFWLRQ SHVRV IURP 7XFXP£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f SHVRV IRU RQHKDOI WKH \HDU IURP WKH WULEXWDULRV RULJLQDOO\ IURP 3RWRV ZKR OLYHG LQ WKH GRFWULQD GH &DOFKDTXL SHVRV IURP -XMX\ IRU WKH VHFRQG KDOI RI DQG WKH ILUVW KDOI RI SHVRV IURP WULEXWDULRV LQ &DWDPDUFD DQG SHVRV IURP 6DQ 0LJXHO GH 7XFXP£Q 7KH WULEXWH UHYHQXHV IRU WKH LQWHQGHQF\ UHDFKHG SHVRV WKH $*, %XHQRV $LUHV &DUWD &XHQWD $*, %XHQRV $LUHV &DUWD &XHQWD

PAGE 235

UHYHQXH WRWDOOHG SHVRV ,Q ERWK WKHVH \HDUV DV LQ WKH SUHYLRXV WKH -XMX\ FRPPXQLWLHV OHG E\ WKH 3XQD SXHEORV DQG WKH 6DOWD FRPPXQLWLHV DFFRXQWHG IRU WKH JUHDW EXON RI WKH LQWHQGHQF\nV WULEXWH UHYHQXH 7KH ILJXUHV LQ 7DEOH DOVR SRLQW WR WKH LPSUHVVLYH GLIIHUHQFHV EHWZHHQ WULEXWH UHYHQXHV LQ WKH QRUWKHUQ MXULVGLFWLRQV DQG LQ WKH VRXWKHUQ MXULVGLFWLRQV 2YHUDOO &RUGREDnV UHYHQXHV DPRXQWHG WR DQ\ZKHUH IURP RQHIRXUWK WR RQHWHQWK RI 6DOWDnV IURP WR &RUGREDnV WULEXWH UHYHQXHV DYHUDJHG SHVRV HDFK \HDU ZKLOH 6DOWDnV DYHUDJHG SHVRVVL[ WLPHV PRUH 7KH QH[W GHFDGH EURXJKW DQ LQFUHDVH LQ WKLV JDS &RUGREDnV DYHUDJH GURSSHG WR SHVRV HDFK \HDU DV 6DOWDnV URVH WR SHVRV PRUH WKDQ VHYHQ WLPHV PRUH 7KH -XMX\ MXULVGLFWLRQ OHG E\ WKH 3XQD SXHEORV UHJXODUO\ FRQWULEXWHG RQHKDOI WR WKUHH IRXUWKV RI WKH 6DOWD WRWDOIURP WR IRU H[DPSOH -XMX\ WULEXWHnV UHYHQXHV DYHUDJHG SHVRV HDFK \HDU $*, %XHQRV $LUHV &DUWD &XHQWD $*, %XHQRV $LUHV DQG 7ULEXWH UHYHQXHV LQ WKH -XMX\ MXULVGLFWLRQ IURP WR ZHUH UHFRUGHG DV IROORZV SHVRV LQ SHVRV LQ SHVRV LQ SHVRV LQ DQG RQO\ SHVRV LQ 2I WKHVH WRWDOV WKH 3XQD SXHEORV FRQWULEXWHG DW OHDVW SHVRV LQ SHVRV LQ SHVRV LQ SHVRV LQ DQG SHVRV LQ

PAGE 236

7KHVH VL]HDEOH UHYHQXHV PDGH WKH WULEXWH UDPR WKH PRVW LPSRUWDQW LQ WKH -XMX\ WUHDVXU\ 8QOLNH WKH 6DOWD DQG &UGRED MXULVGLFWLRQV ZKHUH DOFDEDOD VLVD DQG 1XHYR ,PSXHVWR UHYHQXHV VXUSDVVHG WULEXWH UHYHQXHV VHH WDEOHV DQG f -XMX\nV WULEXWH UHYHQXHV IDU VXUSDVVHG HLWKHU DOFDEDOD RU VLVD HDUQLQJV ,Q QHLWKHU &UGRED QRU 6DOWD ZHUH WULEXWH UHYHQXHV DV ORFDOO\ LPSRUWDQW DV LQ -XMX\ $YDLODEOH VRXUFHV RQO\ KLQW DW WKH ZD\V YDULRXV ,QGLDQ FRPPXQLWLHV PDGH WKHLU WULEXWH SD\PHQWV ,Q &UGRED DQG /D 5LRMD FDFLTXHV SDLG WKHLU FRPPXQLWLHVn REOLJDWLRQV LQ FDVK GLQHUR HIHFWLYRf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n MXULVGLFWLRQ FRPSDULVRQ RI WKH UHODWLYH LPSRUWDQFH RI HDFK UDPR 6HH $*, %XHQRV $LUHV WKH &DUWD &XHQWD IRU 6DOWD ZKLFK UHIHUV WR WKH WULEXWH IURP /D 5LRMD RI ZKLFK SHVRV ZHUH SDLG LQ FDVK DQG DQRWKHU SHVRV ZHUH SDLG LQ \DUGV RI FRWWRQ OLHQ]RV

PAGE 237

FORWKV RU PRUH FRPPRQO\ VKLSPHQW WR %XHQRV $LUHV 7KLV ZRRO VROG IRU SULFHV WHQ WLPHV DV KLJK DV ODPEnV ZRRO DQG UDZ FRWWRQ LQ VRPH \HDUV ODUJH TXDQWLWLHV UHDFKHG %XHQRV $LUHV 8OWLPDWHO\ KRZHYHU UHFRUGV DUH WRR VSDUVH WR DIIRUG DQ\ ILUP FRQFOXVLRQV UHJDUGLQJ WKH HFRQRPLF DFWLYLW\ RI DQ\ VSHFLILF ,QGLDQ SXHEOR RWKHU WKDQ WR VD\ WKDW LQ OLJKW RI WKH OLPLWHG UHVRXUFHV OHIW WR WKH 7XFXP£Q ,QGLDQ SRSXODWLRQ DIWHU WKH FRQTXHVW DQG LQWR WKH HLJKWHHQWK FHQWXU\ WULEXWH REOLJDWLRQV PXVW KDYH EHHQ EXUGHQVRPH IRU PRVW RI WKH SXHEOR SRSXODWLRQV $W WKH RSSRVLWH HQG RI WKH VRFLDO VSHFWUXP IURP WKH ,QGLDQ FRPPXQLWLHV 7XFXP£QnV VPDOO VRFLDO DQG HFRQRPLF HOLWH FRQVLVWHG RI WKH KDQGIXOV RI SULQFLSDO IDPLOLHV 7KH &UGRED 1XHYR ,PSXHVWR UHFRUGV LQFOXGH VFDWWHUHG HQWULHV IRU VKLSPHQWV RI ODQD GH YLFXD DQG ODQD GH JXDQDFR SDVVLQJ WKURXJK WKH FLW\ RQ LWV ZD\ WR %XHQRV $LUHV IURP WKH QRUWK $+3& 6HULH +DFLHQGD 6HH 0OOHU &RPHUFLR LQWHUQR \ HFRQRPD UHJLRQDO WKH %XHQRV $LUHV &RQVXODGR UHSRUWV IURP DQG LQGLFDWH WKDW VHYHUDO WRQV RI WKLV ZRRO UHDFKHG WKH SRUW WKHVH \HDUV ,Q IRU H[DPSOH UHJLVWHUHG WUDGH LQFOXGHG DUUREDV RI ODQD GH YLFXD DQG DUUREDV RI ODQD GH JXDQDFR ,Q WKHVH ILJXUHV KDG LQFUHDVHG WR DUUREDV RI ODQD GH YLFXD DUUREDV RI ODQD GH JXDQDFR DQG DUUREDV RI ODQD GH DOSDFDVHH $*, %XHQRV $LUHV (VWDGRV GH ODV $GXDQDV \ &RPHUFLR GH 9LUUHLQDWR IROLRV

PAGE 238

QRWHG E\ &RQFRORUFRUYR LQ HDFK RI WKH UHJLRQnV FLWLHV ,Q 7XFXP£Q WKLV JURXS FRQVLVWHG RI WKH UDQFKHUV DQG PHUFKDQWV ZKR GRPLQDWHG OLYHVWRFN SURGXFWLRQ WKH PXOH WUDGH DQG FRPPHUFH $V LQ PRVW RI FRORQLDO 6SDQLVK $PHULFD WKH JUHDWHVW SUHVWLJH DQG SRZHU ZHQW WR 7XFXP£Qn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f VHH HVSHFLDOO\ SDJHV

PAGE 239

VWDWXV E\ YLUWXH RI H[WHQVLYH KROGLQJV DQG D OLIHVW\OH EHILWWLQJ D QRELOLW\ WKH 7XFXP£Q ODQGRZQHUV OLNH WKRVH HYHU\ZKHUH LQ WKH 6SDQLVK FRORQLHV QRW RQO\ SURGXFHG WKH KHUGV DQG FURSV WKDW VXSSRUWHG WKHLU SULYLOHJHG SRVLWLRQV EXW WKH\ DOVR SXUVXHG LPSRUWDQW QRQSDVWRUDO LQWHUHVWV :LWKLQ WKH 7XFXP£Q UHJLRQ EXW SDUWLFXODUO\ LQ 6DOWD DQG -XMX\ WKH ODQGRZQLQJ FODVV FRQVWLWXWHG ZKDW +DOSHULQ 'RQJKL FDOOV D YLUWXDO DULVWRFUDF\ ERWK DUURJDQW DQG ZHDOWK\ ZKLFK WKURXJK LWV FRQWURO RI PXOH H[SRUWV HQMR\HG D FRQFHQWUDWLRQ RI HFRQRPLF SRZHU XQHTXDOOHG LQ WKH 5LYHU 3ODWH 7KH OLVW RI 6DOWDnV ZHDOWKLHVW IDPLOLHV SUHVHQWHG E\ $FHYHGR LQFOXGHV PDQ\ WKDW UDQN DPRQJ WKH 7XFXP£Q UHJLRQnV ODUJHVW PXOH H[SRUWHUV WR $OWR 3HU -RVH 9LFHQWH DQG -RVH -RDTXLQ 7ROHGR $QWRQLR )UDQFLVFR DQG $SROLQDULR )LJXHURD )HOL[ $SROLQDU DQG 3HGUR 3DEOR $ULDV 9HODVTXH] $OHMDQGUR DQG 3HGUR -RVH 6DUDYLD -RVHSK $OYDUDGR /RUHQ]R 0DUWLQH] GH 0ROOLQHGR DQG *DVSDU )RU D GLVFXVVLRQ RI FRORQLDO 6SDQLVK $PHULFDQVn QREOH LGHDO VHH -DPHV /RFNKDUW 6RFLDO 2UJDQL]DWLRQ DQG 6RFLDO &KDQJH LQ &RORQLDO 6SDQLVK $PHULFD LQ %HWKHOO HGLWRU &+/$ YROXPH ,, HVSHFLDOO\ SDJHV +DOSHULQ'RQJKL

PAGE 240

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f GRPDLQ RYHU HQFRPLHQGD ,QGLDQV YLQH\DUGV SUHVVHV DQG VWLOOV IRU SURFHVVLQJ JUDSHV D VRDS IDFWRU\ DQG VHYHUDO XUEDQ SURSHUWLHV 7KH VRQ RI D GLVWLQJXLVKHG PLOLWDU\ IDPLO\ DQG WKH ODVW JRYHUQRU RI WKH 6DOWD LQWHQGHQF\ ,VDVPHQGL 6HH $FHYHGRnV OLVW RI 6DOWDnV SURPLQHQW IDPLOLHV LQ /D ,QWHQGHQFLD GH 6DOWD GH 7XFXP£Q 6£QFKH] $OERUQR] /D VDFD GH PXDV GH 6DOWD SURYLGHV D OLVW RI WKH 7XFXP£Q UHJLRQnV ODUJHVW PXOH H[SRUWHUV )RU PDWHULDO RQ )LJXHURD VHH &RUQHMR (O FRPHUFLR GH PXDV GH 6DOWD )RU PDWHULDO RQ WKH 0DUTXV GHO 9DOOH GH 7RMR VHH $FHYHGR /D ,QWHQGHQFLD GH 6DOWD GH 7XFXP£Q WKH ZHDOWK RI ,VDVPHQGL LV GLVFXVVHG LQ +DOSHULQ'RQJKL 3ROLWLFV (FRQRPLFV DQG 6RFLHW\ LQ $WLOLR &RUQHMR &RQWULEXFLQ D OD KLVWRULD GH OD SURSLHGDG LQPRELODULD GH 6DOWD HQ OD SRFD YLUUHLQDO %XHQRV $LUHV f ZKLFK LQFOXGHV D GHWDLOHG LQYHQWRU\ RI ,VDVPHQGLnV SURSHUW\ DQG LQ WKH VDPH DXWKRUnV $SXQWHV KLVWULFRV VREUH 6DOWD %XHQRV $LUHV f ZKLFK LQFOXGHV VRPH PDWHULDO RQ WKH ,VDVPHQGL IDPLO\

PAGE 241

SURYLGHV D JRRG H[DPSOH RI WKH 7XFXP£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nV GLIIHUHQW H[SRUWV LQFOXGHG WKH SDVVDJH RI PXOHV LQ LQ DJDLQ LQ LQ LQ DQG LQ ,W LV SRVVLEOH WKDW KH VHQW DGGLWLRQDO KHUGV QRUWK LQ ODWHU \HDUV

PAGE 242

WKH H[SRUW RI DW OHDVW PXOHV IURP &UGRED GXULQJ WKH YLFHUHJDO SHULRGDQG SUREDEO\ PDQ\ PRUH &RUGREDnV ODQGRZQLQJ PXOHH[SRUWLQJ IDPLOLHV LQFOXGHG D QXPEHU RI FLYLF DQG PLOLWDU\ RIILFLDOV $ OLVW RI H[SRUWHUV UHFRUGHG LQ WKH 1XHYR ,PSXHVWR ERRNV LQFOXGHV WKH DOFDOGH LQ %HUQDUGR *UHJRULR GH ODV +HUDV ZKR VHQW PXOHV WR 6DOWD WKDW \HDU RYHU LQ LQ LQ LQ DQG LQ 2WKHU ORFDO ODQGRZQLQJ RIILFLDOV UHFRUGLQJ 1XHYR ,PSXHVWR SD\PHQWV IRU PXOH H[SRUWV LQFOXGHG WKH UHJLGRU FRXQFLOPDQf -RVHI GH $OOHQGH ZKR H[SRUWHG PXOHV LQ WKH 6U *HQHUDO 7KRPDV GH $OOHQGH ZKR VHQW PXOHV QRUWK WKH VDPH \HDU WKH VDUJHQWR PD\RU )UDQFLVFR GHO 6LJQR ZKR VHQW PXOHV QRUWK LQ DQG LQ FRORQHO )UDQFLVFR $QWRQLR 'LD] ZKR UHFRUGHG D SD\PHQW IRU PXOHV LQ DQG WKH PDHVWUHV GH FDPSR EULJDGH FRPPDQGHUVf )UDQFLVFR 'HVD LQ f -RVH GH
PAGE 243

7KH )XQHV IDPLO\ FRQVWLWXWHG DQRWKHU RI &RUGREDn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nV 1XHYR ,PSXHVWR ERRNV VKRZ WKDW 'RPLQJR )XQHV UHFRUGHG WKH LPSRUW RI QLQH FDUJDV RI ZLQH LQ WKDW $PEURVLR LPSRUWHG WHUFLRV RI FRWWRQ IURP 6DQ 0LJXHO GH 7XFXP£Q DQG 6DQWLDJR GHO (VWHUR LQ WKDW 3HGUR -XDQ )XQHV EURXJKW FDUJDV RI FRWWRQ DQG WKUHH FDUJDV RI ZLQH LQ DQG WKDW -XDQ /XLV )XQHV H[SRUWHG WHQ FUDWHV RI VRDS DQG WZR IDUGRV RI SRQFKRV DQG EODQNHWV WR %XHQRV $LUHV LQ 7KH )XQHV IDPLO\ GHPRQVWUDWHV WKH HDVH ZLWK ZKLFK 7XFXP£QnV ZHDOWK\ IDPLOLHV FRPELQHG ODQGRZQLQJ DQG FRPPHUFH $+3& 6HULH +DFLHQGD $+3& 6HULH +DFLHQGD

PAGE 244

LQ ZD\V WKDW DXJPHQWHG WKHLU SRZHU DQG SUHVWLJH 7XFXP£QnV PHUFKDQW FRPPXQLW\ DOVR KHOG D NH\ SODFH LQ WKH UHJLRQDO HFRQRPLF VWUXFWXUH IURP WKH JUHDW LPSRUW PHUFKDQWV ZKR ZHUH FORVHO\ OLQNHG WR WKH KLJKHVW VRFLDO OHYHOV WR WKH VFRUHV RI VKRSNHHSHUV RU SXOSHURV DQG LQWLQHUHQW WUDGHUV DQG SHGGOHUV FDOOHG PHUFDFKLIOHV ZKR FLUFXODWHG WKURXJK WKH FRXQWU\VLGH 7XFXP£Qn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£QnV ZHDOWKLHVW PHUFKDQWV $ FDUHIXO VWXG\ RI )UDJXHLURnV FDUHHU E\ +FWRU 6HH /XJDUnV GLVFXVVLRQ RI FRORQLDO PHUFKDQWV LQ KHU HVVD\ 0HUFKDQWV LQ +REHUPDQ DQG 6RFRORZ HGLWRUV &LWLHV DQG 6RFLHW\

PAGE 245

5DPQ /RERV DV ZHOO DV )UDJXHLURnV UHFRUG LQ WKH &UGRED 1XHYR ,PSXHVWR ERRNV GHPRQVWUDWH WKH YDULHW\ RI WKLV PHUFKDQWn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f LQ &XDUWR &RQJUHVR 1DFLRQDO WRPR 6HH DOVR WKH &UGRED 1XHYR ,PSXHVWR UHFRUGV $+3& 6HULH +DFLHQGD

PAGE 246

VXIILFLHQW TXDQWLW\ WR DOORZ KLP WR FRPSHWH LQ WKH %XHQRV $LUHV PDUNHW %\ KLV KROGLQJV LQFOXGHG D VXEXUEDQ ORW ZLWK KLV ZRUNVKRS PDFKLQHU\ YDWV ZDWHUZRUNV DQG DQLPDOV WRJHWKHU YDOXHG DW RYHU SHVRV %\ KH EHJDQ WR PDNH UHJXODU VKLSPHQWV RI KLV KLGHV VXHODV LQ FDUUHWDV LQ DQG DW OHDVW WHQ FDUUHWDV PRUH LQ f :KHQ KH GLHG LQ )UDJXHLURn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£Q &RUULHQWHV DQG &KLOH ZDV WKLUG DQG RI WKH OHDVW LPSRUWDQFH ,Q H[DPLQLQJ &RUGREDnV /RERV /RV )UDJXHLUR

PAGE 247

DOFDEDOD ERRNV /RERV FRXQWV VHSDUDWH VKLSPHQWV RI HIHFWRV GH &DVWLOOD UHFHLYHG E\ )UDJXHLUR EHWZHHQ 0D\ DQG 6HSWHPEHU ZLWK D WRWDO YDOXH RI RYHU SHVRV 7KH VDPH VSDQ VDZ DW OHDVW VKLSPHQWV RI HIHFWRV GH OD WLHUUD WR %XHQRV $LUHV LQFOXGLQJ OXPEHU FXHURV VXHODV SRQFKRV EODQNHWV DQG OHQJWKV RI OLHQ]RV DM VRDS JXDQDFR DQG YLFXD ZRRO EDWHDV VXOSKXU DQG DOXP 'HVSLWH KLV ODUJHVW VKLSPHQW RI HIHFWRV GH &DVWLOOD LQ ZRUWK SHVRV WKH V SURYHG )UDJXHLURnV VORZHVW GHFDGH ZLWK RQO\ VL[ WUDQVDFWLRQV RQH IRU HLJKWHHQ FUDWHV RI OLTXRUVf WRWDOOLQJ MXVW RYHU SHVRV %\ KRZHYHU )UDJXHLURnV DFWLYLW\ EHJDQ WR LQFUHDVH EHWZHHQ DQG WKH WRWDO YDOXH KLV LPSRUWV RI HIHFWRV GH &DVWLOOD VXUSDVVHG SHVRV 'XULQJ WKHVH \HDUV VLJQLILFDQWO\ )UDJXHLURnV H[SRUWV WR %XHQRV $LUHV LQFUHDVLQJO\ FRQVLVWHG RI FXHURV VXHODV DQG ZRROHQVD WUHQG PRUH DQG PRUH FRPPRQ DPRQJ &RUGREDnV PHUFKDQWV 7KH 6LJQRV)UDQFLVFR -XDQ 6DQWLDJR DQG &DUORV DSSHDU LQ WKH &UGRED 1XHYR ,PSXHVWR UHFRUGV DV DQRWKHU EXV\ PHUFKDQW IDPLO\ 6HUJHDQW 0DMRU )UDQFLVFR GHO 6LJQR SXUVXHG D ZLGH YDULHW\ RI FRPPHUFLDO DFWLYLW\ LQFOXGLQJ PXOH H[SRUWV WR 6DOWD LQ DQG VXHODV DQG OXPEHU WR 6HH /RERVn FKDUW RQ SDJH RI /RV )UDJXHLUR

PAGE 248

%XHQRV $LUHV LQ DQG SRQFKRV WR %XHQRV $LUHV LQ DQG LPSRUWV RI HIHFWRV GH &DVWLOOD LQ DQG DQG VHUYLFHV DV DJHQW IRU RWKHU PHUFKDQWV LQ DQG 7KLV SDWWHUQ VHHPV W\SLFDO RI &RUEREDn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

PAGE 249

RI SRQFKRV DQG FDUUHWDV RI XQVSHFLILHG FRPPHUFH ZKLOH KLV LPSRUWV LQFOXGHG IDUGRV RI HIHFWRV GH &KLOH DQG FDUJDV RI FRWWRQ IURP &DWDPDUFD -XDQ GHO 6LJQRnV LQFUHDVLQJ FRPPHUFH LQ KLGHV DQG ZRROHQV HVSHFLDOO\ SRQFKRV VHHPV WR UHIOHFW D PRUH ZLGHVSUHDG SDWWHUQ RI ORFDO FRQFHQWUDWLRQ RQ WKHVH JRRGV 6HYHUDO ROGHU H[SRUWV LQFOXGLQJ ZRRG DQG OXPEHU UDZ FRWWRQ DQG ZRRO PLQHUDOV DQG VDOW DSSHDU WR KDYH EHHQ H[SRUWHG LQ VPDOOHU TXDQWLWLHV E\ &RUGREDn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

PAGE 250

%XHQRV $LUHV DQG IDUGRV RI XQVSHFLILHG WH[WLOHV WR 0RQWHYLGHR 7KHVH FKDQJLQJ FRPPHUFLDO SDWWHUQV VXJJHVWHG E\ WKH SUDFWLFHV RI WKH 6LJQRV SRLQW WR WKH WUHQGV DQG FRPPHUFLDO DGMXVWPHQWV WKDW DSSHDU WR KDYH EHHQ HPHUJLQJ ODWH LQ WKH YLFHUHJDO SHULRG :LWK WKH UHFRYHU\ IURP WKH FULVLV RI WKH V DQG ZLWK WKH FRQWLQXHG JURZWK RI WKH %XHQRV $LUHV PDUNHW &RUGREDnV PHUFKDQWV VHHP WR KDYH FRQFHQWUDWHG WKHLU H[SRUW DFWLYLW\ RQ KLGHV DQG ZRROHQV +LGH H[SRUWV EHQHILWWHG IURP D YDVW (XURSHDQ PDUNHW DEOH WR DEVRUE DOO WKH YLFHUR\DOW\nV SURGXFWLRQ ZKLOH ZRROHQ JRRGV DV ZHOO DV FRWWRQ WH[WLOHV VROG LQ JUHDWHU DQG JUHDWHU TXDQWLWLHV WR WKH UDSLGO\ JURZLQJ SRSXODWLRQ RI WKH /LWRUDO DUHD 2WKHU IDPLOLHV DQG LQGLYLGXDOV ILOOHG LQ &RUGREDnV PHUFDQWLOH KLHUDUFK\ WKHLU SUDFWLFHV UHIOHFWLQJ WKH JHQHUDO WUHQGV FKDUDFWHULVLWLF RI 7XFXP£QnV HFRQRPLF IRUWXQHV )UDQFLVFR 5HFDOGH IRU H[DPSOH SXUVXHG OLPLWHG FRPPHUFH IURP XQWLO WKH V H[SRUWLQJ PRGHVW TXDQWLWLHV RI GLIIHUHQW HIHFWRV GH OD WLHUUD DQG DFWLQJ DV D ORFDO DJHQW IRU VHYHUDO%XHQRV $LUHV PHUFKDQWV LQ WKH &UGRED PDUNHW %\ KRZHYHU 5HFDOGH DV GLG WKH GHO 6LJQRV DQG $QWRQLR )UDJXHLUR KDG FRQFHQWUDWHG KLV DFWLYLW\ RQ KLGHV DQG $+3& 6HULH +DFLHQGD

PAGE 251

SRQFKRV ZLWK WKH 3DUDJXD\ PDUNHW LQFUHDVLQJO\ LPSRUWDQW 7KH ORQJ OLVW RI VPDOOHU &UGRED PHUFKDQWV SXUVXLQJ VLPLODU FRPPHUFLDO HQWHUSULVHV UHYHDOV D VWHDG\ JUDGXDO VFDOH RI PHUFDQWLOH DFWLYLW\ IURP WKH ODUJH ZKROHVDOH PHUFKDQWV WR WKH VPDOOHVW RQHWLPH RU LQIUHTXHQW PHUFKDQWV 6RPH LQGLYLGXDOV VXFK DV $SROLQDULR 9LDQD EHJDQ WR FRQFHQWUDWH WKHLU FRPPHUFLDO HIIRUWV RQ VHFRQGDU\ PDUNHWV %HWZHHQ DQG 9LDQDnV H[SRUWV LQFOXGHG HIHFWRV GH OD WLHUUD WR %XHQRV $LUHV DQG PXOHV WR 6DOWD EXW E\ WKH EXON RI KLV WUDGH ZDV ZLWK &KLOH )URP WR 9LDQD LPSRUWHG RYHU FDUJDV DOPRVW IDUGRV DQG RYHU WHUFLRV LQFOXGLQJ WHUFLRV RI VXJDU IURP &KLOH SD\LQJ 1XHYR ,PSXHVWR WD[HV RI RYHU SHVRV LQWR WKH PXQLFLSDO WUHDVXU\ 2WKHU VPDOOHU PHUFKDQWV VXFK DV $QWRQLR 6DYLG 6HEDVWLDQR 5RGULJXH] $QWRQLR GH OD 4XLQWDQD 'RPLQJR GH OD 4XDGUD DQG -RVHI
PAGE 252

7KH FRPPHUFLDO DFWLYLW\ RI WKHVH RFFDVLRQDO PHUFKDQWV E\ IDU WKH PDMRULW\ RI WKRVH QDPHG LQ WKH UHJLVWHUV ZDV DSSDUHQWO\ D PDWWHU RI FRQYHQLHQFH RU VSHFLDO RSSRUWXQLW\ VXFK LQGLYLGXDOV PD\ DSSHDU LQ WKH FRPPHUFLDO UHFRUGV WKURXJKRXW WKH 7XFXP£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

PAGE 253

PDGH DOFDEDOD SD\PHQWV LQ ILYH RU PRUH GLIIHUHQW \HDUV $OPRVW DOO WKH UHFRUGHG SD\PHQWV ZHUH IRU VDOHV RI HIHFWRV GH &DVWLOOD *UHJRULR GH OD &HJDGD SURYHG -XMX\n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f DQG WKUHH ER[HV RI NQLYHV 7KH VHFRQG SD\PHQW SHVRV FRYHUHG WKH VDOH RI HLJKW PRUH FUDWHV RI PHUFKDQGLVH WKUHH EDUUHOV RI NQLYHV ER[HV RI FODYD]Q EDUUHOV RI ZKLWH ZLQH DQG TXLQWDOHV RI LURQ 7KH WKLUG SD\PHQW SHVRV PHW WKH WD[ RQ WKH VDOH RI FUDWHV DQG IRXU ER[HV RI XQVSHFLILHG PHUFKDQGLVH &HJDGD DOVR SDLG DOFDEDOD WD[HV LQ ODWH $*, %XHQRV $LUHV &DUWD &XHQWDV GH -XMX\ $*, %XHQRV $LUHV &DUWD &XHQWD GH -XMX\

PAGE 254

DQG DOPRVW DOZD\V RQ VDOHV RI JRRGV WKDW LQFOXGHG TXDQWLWLHV RI LURQ DQG VWHHO ,Q 6DOWD WKH DJXDUGLHQWH WUDGH SOD\HG DQ LPSRUWDQW UROH LQ WKH PHUFDQWLOH FRPPXQLW\ 6DOWD VHUYHG DV WKH VWDJLQJ SRLQW IRU VKLSPHQWV WR $OWR 3HU DQG LWV WUDGH LQ VSLULWV RIWHQ UHDFKHG FRQVLGHUDEOH SURSRUWLRQV $V KDV EHHQ VKRZQ IRU RWKHU FRPPHUFLDO VHFWRUV D VPDOO KDQGIXO RI PHUFKDQWV JHQHUDOO\ GRPLQDWHG WKLV WUDGH ZKLFK QHYHUWKHOHVV ZDV IUHTXHQWO\ HQWHUHG E\ RFFDVLRQDO GHDOHUV 6DOWDn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nV DJXDUGLHQWH LPSRUWHUV ZHUH 3HGUR
PAGE 255

1XHYR ,PSXHVWR FKDUJHV WRWDOOLQJ SHVRV IRU SHVRV ZRUWK RI EUDQG\ DQG 0DQXHO $VWRUJD ZKR SDLG WD[HV WRWDOOLQJ SHVRV RQ WKH LPSRUW RI SHVRV ZRUWK -XDQ )HUPLQ (FKHFKLSLD ILQDOO\ PDGH WKH ODUJHVW VLQJOH HQWU\ RI DJXDUGLHQWH SD\LQJ D WD[ RI SHVRV IRU WKH LPSRUW RI TXLQWDOHV TXLQWDOHV RI DJXDUGLHQWH DIRUDGR DQG WKH UHVW FODVVLILHG DV RUGLQDU\ 'HVSLWH WKH ODUJH WUDGH GLUHFWHG E\ WKHVH VHYHUDO LQGLYLGXDOV WKH LPSRUWDQW IHDWXUH RI 6DOWDnV DJXDUGLHQWH WUDGH ZDV WKH FRPPRQ SDUWLFLSDWLRQ RI RFFDVLRQDO WUDIILFNHUV 7KH UHJLRQDO PXOH WUDGH &RUGREDnV DQG 6DOWDnV FRPPHUFH LQ HIHFWRV GH &DVWLOOD DQG &RUGREDnV H[SRUWV RI HIHFWRV GH OD WLHUUD DOO H[KLELW D VLPLODU SDWWHUQ &RPPHUFH WKURXJKRXW WKH 7XFXP£Q UHJLRQ GHVSLWH EHLQJ GRPLQDWHG E\ D FRUH RI ODUJHVFDOH PHUFKDQWV ZKR WUDGHG RYHU ORQJ SHULRGV VWLOO SUHVHQWHG DEXQGDQW RSSRUWXQLWLHV IRU RFFDVLRQDO RU VSHFXODWLYH WUDGHUV ZKR HQWHUHG WKH PDUNHWSODFH RQO\ RQFH RU WZLFH LQ DQ\ VSDQ RI \HDUV $ VLPLODU SDWWHUQ RI EHKDYLRU DOVR VHHPV WR KDYH FKDUDFWHUL]HG WKH UHWDLOPDUNHWLQJ VHFWRU LQ WKH UHJLRQ 7KH VPDOO UHWDLO JURFHUV FDOOHG SXOSHURV FRPPRQ WKURXJKRXW FRORQLDO 6SDQLVK $PHULFD JHQHUDOO\ FRQVWLWXWHG ,ELG

PAGE 256

WKH ODUJHVW JURXS RI VPDOO LQGHSHQGHQW HQWUHSUHQHXUV RSHUDWLQJ ZLWKLQ WKH UHJLRQDO FRPPHUFLDO V\VWHP -D\ .LQVEUXQHUnV VWXG\ RI WKH SXOSHURV DQG WKHLU VKRSV RU SXOSHUDV LQ IRXU GLIIHUHQW FRORQLDO FLWLHV DUJXHV WKDW WKHVH VKRSNHHSHUV HQMR\HG OLWWOH VRFLDO VWDWXV 5DQNLQJ QHDU WKH ERWWRP RI +LVSDQLF VRFLHW\ PDQ\ SXOSHURV HVSHFLDOO\ LQ UXUDO DUHDV SODFHG FRQVLGHUDEOH HPSKDVLV RQ WKH VDOH RI ZLQH DQG DJXDUGLHQWH LQ JURFHU\ VWRUHV WKDW VHHP PRUH OLNH GULQNLQJ KRXVHV 7KH 5R GH OD 3ODWDn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f ,ELG

PAGE 257

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£QnV UHJLRQDO FLWLHV DQG VKRZ WKDW SXOSHUD FRPPHUFH IROORZHG WKH VDPH IRUWXQHV DV RWKHU FRPPHUFLDO VHFWRUV DQG H[KLELWHG VLPLODU SDWWHUQV RI PHUFKDQW SDUWLFLSDWLRQ -XVW DV PXOH H[SRUWV DQG ORFDO DOFDEDOD UHYHQXHV H[SHULHQFHG D VKDUS GRZQWXUQ LQ WKH V DQG HDUO\ V DQG WKHQ UHFRYHU\ DIWHUZDUGV UHFRUGHG UHYHQXHV IURP SXOSHUD IHHV FROOHFWHG ,ELG

PAGE 258

LQ WKH FLWLHV RI &UGRED 6DOWD -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q H[KLELW VLPLODU FXUYHV 7DEOH SUHVHQWV WKH SXOSHUD UHYHQXHV IRU HDFK RI WKHVH FLWLHV IURP WR 7DEOH 3XOSHUD 5HYHQXHV LQ SHVRVf &UGRED 6DOWD -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q
PAGE 259

7KHVH UHYHQXH ILJXUHV H[KLELW VHYHUDO LPSRUWDQW IHDWXUHV )LUVW WKH\ XQGHUVFRUH WKH IDFW WKDW &UGRED DQG 6DOWD FRPPHUFLDOO\ GRPLQDWHG WKH UHJLRQ ZKLOH WKH RWKHU ILYH FLWLHV SOD\HG VHFRQGDU\ UROHV )URP WKURXJK &RUGREDnV SXOSHUD UHYHQXHV DYHUDJHG RYHU SHVRV HDFK \HDU ZLWK -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q FROOHFWLQJ OHVV WKDQ KDOI WKDW DPRXQW WKH 6DOWD ILJXUHV DUH LQFRPSOHWH IRU WKHVH \HDUV EXW VXJJHVW DQ DQQXDO DYHUDJH SXOSHUD UHYHQXH RI SHUKDSV SHVRV D \HDUf &RUGREDnV ODUJHU SRSXODWLRQ FOHDUO\ FRQWULEXWHG WR WKH SUHVHQFH RI PRUH VKRSV LQ WKH FLW\ 7KH SXOSHUD UHYHQXH UHFRUGV DOVR FDVW DGGLWLRQDO OLJKW RQ WKH UHJLRQDO HFRQRPLF FULVLV EURXJKW RQ E\ WKH 3HUXYLDQ LQVXUUHFWLRQ RI WKH HDUO\ V 3XOSHUD UHYHQXHV WKURXJKRXW WKH 7XFXP£Q UHJLRQ H[SHULHQFHG D VKDUS GHFOLQH GXULQJ WKH nV WKH VDPH \HDUV WKDW ERWK PXOH H[SRUWV WR 3HUX DQG DOFDEDOD UHYHQXHV UHDFKHG WKHLU ORZHVW WRWDOV &RUGREDnV SXOSHUD UHYHQXHV IRU H[DPSOH GURSSHG IURP WKH DYHUDJH RI SHVRV D \HDU IURP WR WR DERXW SHVRV D \HDU IURP XQWLO 6DOWD -XMX\ DQG 6DQ 0LJXHO GH 7XFXP£Q DOO PDQLIHVWHG VLPLODU GHFOLQHV GXULQJ WKH VDPH \HDUV UHDFKLQJ ORZ SRLQWV GXULQJ PLGGHFDGH&UGRED $*, %XHQRV $LUHV

PAGE 260

IURP WR 6DOWD GXULQJ DQG -XMX\ IURP WR DQG DJDLQ LQ DQG 6DQ 0LJXHO GH 7XFXP£Q LQ DQG )LJXUHV DQG LOOXVWUDWH WKHVH WUHQGV (DFK RI WKH FLWLHV H[FHSW -XMX\ EHJDQ WR UHFRYHU E\ WKH HQG RI WKH GHFDGH ZLWK &RUGREDnV UHYHQXHV DJDLQ VXUSDVVLQJ SHVRV LQ DQG 6DOWD DQG 6DQ 0LJXHO GH 7XFXP£Q VKRZLQJ VWHDG\ DQQXDO LQFUHDVHV DIWHU -XMX\ DSSHDUV WR KDYH EHHQ VWLOO VWUXJJOLQJ LQWR WKH V 7KH SXOSHUD UHFRUGV DW DQ\ UDWH QRW RQO\ VKRZ WKDW 7XFXP£QnV FRPPHUFLDO PDODLVH RI WKH nV H[WHQGHG WR WKH XUEDQ UHWDLO VHFWRU ZLWK IHZHU VKRSNHHSHUV ZLOOLQJ RU DEOH WR SD\ IRU WKHLU SXOSHUD OLFHQVHV EXW DOVR UHYHDO WKDW WKH FULVLV HQGHG ZLWK D ZLGHVSUHDG UHFRYHU\ WKDW ZDV VWURQJHU LQ WKH VRXWKHUQ MXULVGLFWLRQV WKDQ LQ WKH QRUWK &ORVHU H[DPLQDWLRQ RI VRPH RI WKH ORFDO FKDUDFWHULVWLFV RI WKH UHWDLO VHFWRU UHYHDOV ZLGHVSUHDG WHQGHQFLHV WKDW KHOS LOOXPLQDWH WKH QDWXUH RI FRPPHUFLDO DFWLYLW\ LQ WKH 7XFXP£Q UHJLRQ GXULQJ WKH YLFHUHJDO HUD &RUGREDnV VZRUQ KDFLHQGD VXPPDU\ RI IRU H[DPSOH OLVWV WKH QDPHV RI WKH LQGLYLGXDOV ZKR SDLG VRPH DPRXQW WR WKH WUHDVXU\ LQ RUGHU WR

PAGE 261

RSHUDWH WKHLU VKRSV IRU YDU\LQJ OHQJWKV RI WLPH LQ 2I WKH QDPHV OLVWHG RQO\ DUH QRWHG DV SD\LQJ WR RSHQ WKHLU VKRSV IRU DOO WKH \HDU 7ZHOYH SDLG RQO\ HQRXJK WR RSHQ WKHLU VKRSV IRU MXVW VHYHUDO PRQWKVILYH SDLG WR NHHS RSHQ IRU VL[ PRQWKV IRXU SDLG WR NHHS RSHQ IRU WKUHH PRQWKV RQH SDLG IRU QLQH PRQWKV RQH SDLG IRU IRXU PRQWKV DQG RQH SDLG IRU RQO\ WZR PRQWKV 2QO\ RQH RI WKHVH LQGLYLGXDOV LW VKRXOG EH QRWHG DSSHDUV LQ &RUGREDnV 1XHYR ,PSXHVWR UHFRUG DV DQ LPSRUWHU RI HIHFWRV GH &DVWLOOD IURP %XHQRV $LUHV -XMX\n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

PAGE 262

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nV UHJLVWHUHG SXOSHURV OLNH WKH UHJLRQnV PXOH H[SRUWHUV DQG ODUJHVFDOH LPSRUWHUV DQG H[SRUWHUV DFWHG RQO\ RFFDVLRQDOO\ RU SHUKDSV VSHFXODWLYHO\ HQWHULQJ UHJLRQDO FRPPHUFLDO OLIH LQIUHTXHQWO\ RU ZKHQ SURPLVLQJ RSSRUWXQLWLHV DURVH ,QVWHDG WKH VPDOO QXPEHU RI SXOSHURV ZKR UHJXODUO\ SDLG WR UHJLVWHU WKHLU HQWHUSULVHV DQG PDLQWDLQHG D \HDUVORQJ SUHVHQFH ZLWKLQ WKH ORFDO FRPPHUFLDO FRPPXQLW\ FRQVWLWXWHG WKH FRUH RI WKH XUEDQ UHWDLO FRPPXQLW\

PAGE 263

&21&/86,21 %\ WKH ODVW \HDUV RI WKH HLJKWHHQWK FHQWXU\ WKH 7XFXP£Q UHJLRQ FRQVWLWXWHG D YDVW HFRQRPLFDOO\ GLYHUVH UHJLRQ WKDW H[KLELWHG D YDULHW\ RI SURGXFWLYH DFWLYLWLHV DQG D YLEUDQW FRPPHUFLDO QHWZRUN $ VWURQJ SDVWRUDO VHFWRU EDVHG RQ PXOH FDWWOH DQG VKHHS UDQFKLQJ XQLILHG WKH VHYHQ FRQVWLWXHQW MXULVGLFWLRQV DQG GRPLQDWHG WKLV UHJLRQDO HFRQRP\ 5DQFKLQJ DQG OLYHVWRFN SURGXFWLRQ GLVWULEXWHG LQFRPH WR DOO MXULVGLFWLRQV IXHOHG UHJLRQDO FRPPHUFLDO DFWLYLW\ DQG FUHDWHG DQ LQIUDVWUXFWXUH WKDW VXSSRUWHG D QXPEHU RI VHFRQGDU\ DFWLYLWLHV WKDW LQFOXGHG WDQQLQJ ZHDYLQJ DQG PDUNHW DJULFXOWXUH 3URVSHULW\ GHSHQGHG RQ DFFHVV WR DQG WUDGH ZLWK PDUNHWV LQ ERWK $OWR 3HU DQG %XHQRV $LUHV 6HOIVXIILFLHQF\ RWKHUZLVH FKDUDFWHUL]HG WKLV KHDOWK\ H[SRUW HFRQRP\WKH 7XFXP£Q UHJLRQ LPSRUWHG IHZ LWHPV DVLGH IURP OX[XU\ JRRGV DQG KDUGZDUH 0RVW VWDSOH IRRGV DQG FRPPRGLWLHV FRQVXPHG LQ WKH UHJLRQ RULJLQDWHG ZLWK ORFDO SURGXFHUV %XW WKLV EURDG UHOLDQFH XSRQ WKH SDVWRUDO VHFWRU EHOLHG VRPH LPSRUWDQW GLIIHUHQFHV IURP MXULVGLFWLRQ WR MXULVGLFWLRQ

PAGE 264

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£Q DQG 6DQWLDJR GHO (VWHUR MXULVGLFWLRQV H[KLELWHG ODUJHU DQG PRUH UDFLDOO\ PL[HG SRSXODWLRQV DQG D PRUH GLYHUVLILHG HFRQRP\ :LWK ODUJHU SURSRUWLRQV RI EODQFRV DQG FDVWDV DQG ORFDO

PAGE 265

SURVSHULW\ VWLOO GHSHQGHQW RQ UDQFKLQJ DQG OLYHVWRFN H[SRUWV WKLV VRXWKHUQ ]RQH DOVR VXSSRUWHG PRUH FRPPRGLW\n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

PAGE 266

VHFRQGDU\ H[SRUWV H[SHULHQFHG D VLPLODU KLVWRU\ ZLWK KLGHV WH[WLOHV FDOGRV DQG OXPEHU H[SRUWV DOO GLPLQLVKHG GXULQJ WKH V DQG HDUO\ V $OWKRXJK SURVSHULW\ PDUNHG HDUO\ DQG ODWH \HDUV RI YLFHUHJDO HUD LQ 7XFXP£Q UHJLRQ WKH \HDU SHULRG IURP XQWLO FRQVWLWXWHG D SHULRG RI VLJQLILFDQWO\ UHGXFHG H[SRUWV $OFDEDOD GDWD UHYHDO D VRPHZKDW PRUH FRPSOLFDWHG KLVWRU\ &UGRED DQG 6DOWD EHVW LOOXVWUDWH WKH WUHQGV WKDW PDUNHG WKH UHJLRQn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£QnV YLFHUHJDO HFRQRPLF KLVWRU\ E\ WULJJHULQJ D WHPSRUDU\ HFRQRPLF PDODLVH DQG KDVWHQLQJ WKH ORFDO DGMXVWPHQWV DQG UHRULHQWDWLRQV RFFDVLRQHG E\ FKDQJLQJ PDUNHW FRQGLWLRQV DQG QHZ FRPPHUFLDO RSSRUWXQLWLHV

PAGE 267

7KH \HDUV IURP WR PDUNHG D JHQHUDO UHFRYHU\ WKURXJKRXW WKH UHJLRQ ZLWK WKH H[FHSWLRQ RI WKH 6DOWD MXULVGLFWLRQ 7KH VSHFLILF FKDUDFWHULVWLFV RI WKLV UHFRYHU\ IXUWKHUPRUH XQGHUVFRUH WKH HPHUJLQJ GLIIHUHQWLDWLRQ WKDW GHYHORSHG DIWHU $QQXDO DOFDEDOD UHYHQXHV LQFUHDVHG PRUH VKDUSO\ LQ WKH VRXWKHUQ MXULVGLFWLRQV FRPSDUHG WR WKH QRUWKHUQ MXULVGLFWLRQV ZKHUH FRPPHUFLDO DFWLYLW\ DSSHDUV WR KDYH VWDJQDWHG DIWHU %\ &UGRED KDG FOHDUO\ VXUSDVVHG 6DOWD DV WKH UHJLRQnV SULQFLSDO FRPPHUFLDO FHQWHU 7KH VRXWKHUQ MXULVGLFWLRQV OHG E\ &UGRED WXUQHG DZD\ IURP PXOH H[SRUWV GHYHORSHG D FRPPRGLW\ SURFHVVLQJ VHFWRU DQG SXUVXHG LQFUHDVLQJO\ FORVHU WUDGH UHODWLRQV ZLWK %XHQRV $LUHV DQG WKH /LWRUDO EDVHG RQ WKH JURZLQJ GHPDQG IRU KLGHV DQG WH[WLOHV 7KH QRUWKHUQ ]RQH VWLOO GHSHQGHQW RQ WKH 3HUXYLDQ OLYHVWRFN PDUNHWV SUHVHUYHG LWV WUDGLWLRQDO FRPPHUFLDO WLHV ZLWK $OWR 3HU DQG PLVVHG WKH VXUJH RI JURZWK WKDW FKDUDFWHUL]HG WKH VRXWKHUQ ]RQH %\ WKH HQG RI WKH FRORQLDO SHULRG WKH QRUWKHUQ ]RQH VWLOO ORRNHG QRUWK WR 3HUX DQG FRQGXFWHG DOPRVW QR WUDGH ZLWK WKH VRXWKHYHQ WKH RQFHWKULYLQJ PXOH WUDGH EHWZHHQ &UGRED DQG 6DOWD KDG GLPLQLVKHG ,Q WKH ILQDO DQDO\VLV WKH 7XFXP£Q UHJLRQDO HFRQRP\ XQGHUZHQW VXEWOH \HW SURIRXQG FKDQJH GXULQJ WKH ODVW \HDUV

PAGE 268

RI WKH HLJKWHHQWK FHQWXU\ DQG WKH ILUVW \HDUV RI WKH QLQHWHHQWK 7KH UHJLRQ EHJDQ WKH YLFHUHJDO HUD FRQMRLQHG E\ WKH H[WHQVLYH PXOH WUDGH WKDW VXSSOLHG WKH 3HUXYLDQ PLQLQJ HFRQRP\ DQG HQGHG WKH HUD FOHDUO\ GLVMRLQWHG 1HZ DQG SRZHUIXO HFRQRPLF IRUFHV HPDQDWLQJ IURP %XHQRV $LUHV IUDFWXUHG WKH WUDGLWLRQDO LQWHUQDO FRKHVLRQ PDUNLQJ WKH ,QWHULRU 7KH JURZWK RI WKH 5LYHU 3ODWH SRSXODWLRQ DQG WKH QHZ RSSRUWXQLWLHV SURYLGHG E\ (XURSHnV HPHUJLQJ LQGXVWULHV GUHZ WKH VRXWKHUQ MXULVGLFWLRQV RI &UGRED 6DQWLDJR GHO (VWHUR DQG 6DQ 0LJXHO GH 7XFXP£Q LQWR WKH TXLFNHQLQJ UK\WKPV RI WKH $WODQWLF HFRQRP\ 7KH QRUWKHUQ MXULVGLFWLRQV RI 6DOWD DQG 6DQ 6DOYDGRU GH -XMX\ PHDQZKLOH SUHVHUYHG ROG WLHV ZLWK 3HUX XQZLOOLQJ RU XQDEOH WR SDUWLFLSDWH LQ WKH H[SRUW ERRP UHVKDSLQJ WKH VRXWK 7KHVH IXQGDPHQWDO DGMXVWPHQWV WR FKDQJLQJ JOREDO FRQGLWLRQV KDG ZLGHUHDFKLQJ LPSOLFDWLRQV IRU WKH GLIIHUHQW FRQVWLWXHQW DUHDV RI WKH 7XFXP£Q UHJLRQ DIWHU $OWKRXJK ODQGRZQHUV DQG PHUFKDQWV LQ WKH QRUWKHUQ MXULVGLFWLRQV PDQDJHG WR LQFUHDVH WKHLU OLYHVWRFN H[SRUWV GXULQJ WKLV SHULRG WKLV VWUDWHJ\ H[FOXGHG WKHP IURP WKH PRGHVW EXW FULWLFDO SURFHVV RI UHRULHQWDWLRQ SXUVXHG E\ WKHLU FRXQWHUSDUWV LQ WKH VRXWK 7KH VRXWKHUQHUV DGMXVWHG WR FKDQJLQJ FRQGLWLRQV E\ WXUQLQJ WKHLU SDVWXUHV IURP PXOH

PAGE 269

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£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

PAGE 270

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£QnV YLFHUHJDO KLVWRU\ WKH SHULRG RI HFRQRPLF PDODLVH EURXJKW DERXW E\ SRSXODU UHEHOOLRQ LQ 3HUX FDQ EH FRQVLGHUHG D SUHFLSLWDWLQJ IDFWRU LQ WKH VRXWKHUQ MXULVGLFWLRQVn UHRULHQWDWLRQV 7KH ORVV RI WKHVH PDUNHWV EHJLQQLQJ LQ DQG ODVWLQJ XQWLO WKH V DFFHOHUDWHG WKH VKLIW IURP OLYHVWRFN H[SRUWV WR SDVWRUDO E\n SURGXFW SURFHVVLQJ ([SRUW UHFRUGV UHYHDO WKH GLPLQLVKHG PXOH H[SRUWV IROORZLQJ WKH 7XSDF $PDUX UHEHOOLRQ RI VDOHVWD[ UHFRUGV FRQYH\ WKH \HDU GHFOLQH LQ FRPPHUFLDO DFWLYLW\ LQ DOO 7XFXP£QnV FLWLHV &RUGREDnV VLVD UHFRUGV LQ SDUWLFXODU LQGLFDWH WKDW DV WKH UHJLRQ UHFRYHUHG IURP WKLV FULVLV LW HPHUJHG DV WKH QHZO\VWUXFWXUHG VKDUSO\ GLIIHUHQWLDWHG HFRQRP\ 7KH VRXWKHUQ UHRULHQWDWLRQ WRZDUG WKH %XHQRV $LUHV H[SRUW HFRQRP\ PD\ KDYH LQHYLWDEOH

PAGE 271

EXW WKH WHPSRUDU\ GHWHULRUDWLRQ RI WKH WUDGLWLRQDO 3HUXYLDQ PDUNHW XQGRXEWHGO\ KDVWHQHG WKH SURFHVV

PAGE 272

%,%/,2*5$3+< $FHYHGR (GEHUWR 2VFDU (O YLDMH GHO FRQWDGRU 1DYDUUR HQWUH /LPD \ %XHQRV $LUHV HQ LQ 5HYLVWD GH +LVWRULD $PHULFDQD Y $UJHQWLQD f $FHYHGR (GEHUWR 2VFDU /D ,QWHQGHQFLD GH 6DOWD GH 7XFXP£Q HQ HO YLUUHLQDWR GHO 5R GH OD 3ODWD 0HQGR]D f $SDULFLR )UDQFLVFR GH 7KH &RPHQFKLJQ DQG WKHLU 1HLJKERUV LQ WKH 6LHUUDV GH &UGRED LQ -XOLDQ + 6WHZDUG HGLWRU +DQGERRN RI 6RXWK $PHULFDQ ,QGLDQV YROXPHV 1HZ
PAGE 273

%DNHZHOO 3HWHU 0LQLQJ LQ /HVOLH %HWKHOO HGLWRU 7KH &DPEULGJH +LVWRU\ RI /DWLQ $PHULFD YROXPHV &DPEULGJH f YROXPH ,, %DUULRV 3LQWRV $QEDO +LVWRULD GH OD JDQDGHUD HQ HO 8UXJXD\ 0RQWHYLGHR QGf %D]£Q 2VYDOGR 5DO +LVWRULD GHO QRURHVWH DUJHQWLQR %XHQRV $LUHV f %LVFD\ $F£UHWH GX $Q $FFRXQW RI D 9R\DJH XS WKH 5LYHU GH OD 3ODWD DQG WKHQFH 2YHUODQG WR 3HUX 1RUWKKDYHQ f %LVFKRII (IUDQ 8 +LVWRULD GH &UGRED &XDWUR VLJORV &UGRED f %LVFKRII (IUDQ 8 1RUWH 1RUWH 1RUWH 6X OH\HQGD \ VXV KLVWRULD &UGRED f %RQDYLD 0LFKDHO 5 7KH (FRQRPLFV RI 7UDQVSRUW &DPEULGJH f %UDGLQJ 'DYLG $ 0LQHUV DQG 0HUFKDQWV LQ %RXUERQ 0H[LFR &DPEULGJH f %UDGLQJ 'DYLG $ %RXUERQ 6SDLQ DQG LWV $PHULFDQ (PSLUH LQ /HVOLH %HWKHOO HGLWRU 7KH &DPEULGJH +LVWRU\ RI /DWLQ $PHULFD YROXPHV &DPEULGJH f YROXPH %UDXGHO )HUQDQG &DSLWDOLVP DQG 0DWHULDO /LIH 1HZ
PAGE 274

&DLOORW%RLV 5LFDUGR 5 $SXQWHV SDUD OD KLVWRULD HFRQPLFD GHO YLUUHLQDWR *RELHUQR ,QWHQGHQFLD GH 6DOWD GH 7XFXP£Q LQ $QXDULR GH +LVWRULD $UJHQWLQD f &DQDOV )UDX 6DOYDGRU 3REODFLRQHV LQGJHQDV GH OD $UJHQWLQD %XHQRV $LUHV f &DQDOV )UDX 6DOYDGRU /RV FLYLOL]DFLRQHV SUHKLVWULFDV GH $PULFD %XHQRV $LUHV f &DSRFKH /XLV 5HODFLQ JHQHUDO GH OD 9LOOD ,PSHULDO GH 3RWRV 0DGULG f &£UFDQR 5DPQ +LVWRULD GH ORV PHGLRV GH FRPXQLFDFLQ Y WUDQVSRUWH HQ OD UHSEOLFD DUJHQWLQD YROXPHV %XHQRV $LUHV f &DUGRVR (QULTXH DQG (Q]R )DOHWWR 'HSHQGHQFLD \ GHVDUUROOR HQ $PULFD /DWLQD 0H[LFR &LW\ f &DUUHWHUR $QGUV 2UJHQHV GH OD GHSHQGHQFLD HFRQPLFD DUJHQWLQD %XHQRV $LUHV f &DVDQRYD (GXDUGR 7KH &XOWXUHV RI WKH 3XQD DQG WKH 4XHEUDGD GH +XPDKXDFD LQ -XOLDQ + 6WHZDUG HGLWRU +DQGERRN RI 6RXWK $PHULFDQ ,QGLDQV YROXPHV 1HZ
PAGE 275

&RFNFURIW -DPHV $QGU *XQGHU )UDQN DQG 'DOH / -RKQVRQ 'HSHQGHQFH DQG 8QGHUGHYHORSPHQW *DUGHQ &LW\ f &RPDGU£Q 5XL] -RUJH (YROXFLQ GHPRJU£ILFD DUJHQWLQD GXUDQWH HO SHURGR KLVS£QLFR f %XHQRV $LUHV f &RQFRORUFRUYR $ORQVR &DUUL GH OD 9DQGHUDf (O OD]DULOOR GH FLHJRV FDPLQDQWHV GHVGH %XHQRV $LUHV KDVWD /LPD %XHQRV $LUHV f &RQFRORUFRUYR $ORQVR &DUUL GH OD 9DQGHUDf (O /D]DULOOR $ *XLGH IRU ,QH[SHULHQFHG 7UDYHOOHUV EHWZHHQ %XHQRV $LUHV DQG /LPD WUDQVODWHG E\ :DOWHU .OLQH %ORRPLQJWRQ f &RQL (PLOLR +LVWRULD GH ODV YDTXHUDV GHO 5R GH OD 3ODWD %XHQRV $LUHV f &RUQHMR $WLOLR $SXQWHV KLVWULFRV VREUH 6DOWD %XHQRV $LUHV f &RUQHMR $WLOLR &RQWULEXFLQ D OD KLVWRULD GH OD SURSLHGDG LQPRELODULD GH 6DOWD HQ OD SRFD YLUUHLQDO %XHQRV $LUHV f &RUQHMR )ORUHQFLD 6 (O FRPHUFLR GH PXDV GH 6DOWD FRQ HO /LWRUDO &UGRED $OWR \ %DMR 3HU f LQ &XDUWR FRQJUHVR QDFLRQDO \ UHJLRQDO GH KLVWRULD DUJHQWLQD f YROXPHV %XHQRV $LUHV f YROXPH &RUUDGL -XDQ $QWRQLR $UJHQWLQD LQ 5RQDOG + &KLOFRWH DQG -RHO & (GHOVWHLQ HGLWRUV /DWLQ $PHULFD 7KH 6WUXJJOH ZLWK 'HSHQGHQF\ DQG %H\RQG &DPEULGJH f 'HOOHVSLDQH \ &£OFHQD &DUORV $ /D DUWHVDQD GHO WHMLGR HQ &DWDPDUFD LQ 3ULPHU FRQJUHVR GH OD KLVWRULD GH &DWDPDUFD YROXPHV &DWDPDUFD f YROXPH 'LIULHUL +RUDFLR /D $UJHQWLQD 6XPD GH JHRJUDID YROXPHV %XHQRV $LUHV f

PAGE 276

'RFXPHQWRV SDUD OD +LVWRULD GH $UJHQWLQD YROXPHV %XHQRV $LUHV f 'RXFHW *DVWRQ ,QWURGXFFLQ DO HVWXGLR GH OD YLVLWD GHO 2LGRU 'RQ $QWRQLR 0DUWQH] GH /XM£Q GH 9DUJDV D ODV HQFRPLHQGDV GHO 7XFXP£Q LQ %ROHWQ GHO ,QVWLWXWR GH +LVWRULD $UJHQWLQD 'RFWRU (PLOLR 5DYLTQDQL f (OKX\DU )DXVWR GH 0HPRULD VREUH HO LQIOXMR GH OD PLQHUD HQ 1XHYD (VSDD 0H[LFR &LW\ f )HUQ£QGH] $OH[DQGHU GH 6FKRUU $GHOD (O VHJXQGR OHYDQWLPLHQWR &DOFKDJX 6DQ 0LJXHO GH 7XFXP£Q f )HUQV + 6 %ULWDLQ DQG $UJHQWLQD LQ WKH 1LQHWHHQWK &HQWXU\ 2[IRUG f )LVKHU -RKQ ,PSHULDO n)UHH 7UDGHn DQG WKH +LVSDQLF (FRQRP\ LQ -RXUQDO RI /DWLQ $PHULFDQ 6WXGLHV 0D\ f )UDQN $QGU *XQGHU &DSLWDOLVP DQG 8QGHUGHYHORSPHQW LQ /DWLQ $PHULFD 1HZ
PAGE 277

*DUDYDJOLD -XDQ &DUORV (FRQRPLF *URZWK DQG 5HJLRQDO 'LIIHUHQWLDWLRQV 7KH 5LYHU 3ODWH 5HJLRQV RI WKH (QG RI WKH (LJKWHHQWK &HQWXU\ LQ +LVSDQLF $PHULFDQ +LVWRULFDO 5HYLHZ )HEUXDU\ f *DUDYDJOLD -XDQ &DUORV /RV WH[WLOHV GH OD WLHUUD HQ HO FRQWH[WR FRORQLDO ULRSODWHQVH 8QD UHYROXFLQ LQGXVWULDO IDOOHFLGD" LQ $QXDULR GHO ,QVWLWXWR GH (VWXGLRV +LVWULFR6RFLDOHV f *DUDYDJOLD -XDQ &DUORV (O 5R GH OD 3ODWD HQ VXV UHODFLRQHV DWO£QWLFDV 8QD EDODQ]D FRPHUFLDO f LQ (FRQRPD VRFLHGDG Y UHJLRQHV %XHQRV $LUHV f *DU]Q 0DFHGD &HIHULQR 7XFXP£Q (FRQRPD QDWXUDO Y HFRQRPD PRQHWDULD &UGRED f *LEHUWL +RUDFLR & ( +LVWRULD HFRQPLFD GH OD JDQDGHUD DUJHQWLQD %XHQRV $LUHV f *RQ]£OH] 5RGUJXH] $GROIR /XLV /D HQFRPLHQGD HQ 7XFXP£Q 6HYLOOH f +DHIQHU /RQQLH ( ,QWURGXFWLRQ WR 7UDQVSRUWDWLRQ 6\VWHPV 1HZ
PAGE 278

+REHUPDQ /XLVD 6FKHOO DQG 6XVDQ 0LJGHQ 6RFRORZ HGLWRUV &LWLHV DQG 6RFLHW\ LQ &RORQLDO /DWLQ $PHULFD $OEXTXHUTXH f ,QQLV +DUDOG $ 7KH )XU 7UDGH RI &DQDGD 7RURQWR f -XVWR /LERULR 1XHVWUD SDWULD YDVDOOD 'H ORV %RUERQHV D ORV %DULQJ %URWKHUV %XHQRV $LUHV f .LQVEUXQHU -D\ 3HWW\ &DSLWDOLVP LQ 6SDQLVK $PHULFD 7KH 3XOSHURV RI 3XHEOD 0H[LFR &LW\ &DUDFDV DQG %XHQRV $LUHV %RXOGHU f .RVVRN 0DQIUHG (O YLUUHYQDWR GHO 5R GH OD 3ODWD 6X HVWUXFWXUD HFRQPLFDVRFLDO %XHQRV $LUHV f /DUVRQ %URRNH 5XUDO 5K\WKPV RI &ODVV &RQIOLFW LQ (LJKWHHQWK&HQWXU\ &RFKDEDPED LQ +LVSDQLF $PHULFDQ +LVWRULFDO 5HYLHZ $XJXVW f /DYDUGQ 0DQXHO -RV GH 1XHYRV DVSHFWRV GHO FRPHUFLR HQ HO 5R GH OD 3ODWD %XHQRV $LUHV f /HYHQH 5LFDUGR + 5LTXH]D LQGXVWULDV \ FRPHUFLR GXUDQWH HO YLUUHLQDWR LQ 5LFDUGR + /HYHQH HGLWRU +LVWRULD GH OD QDFLQ DUJHQWLQD GHVGH ORV RUJHQHV KDVWD OD RUJDQL]DFLQ GHILQLWLYD HQ YROXPHV %XHQRV $LUHV f YROXPH VHFWLRQ /HYHQH 5LFDUGR + ,QYHVWLJDFLRQHV DFHUFD GH OD KLVWRULD HFRQPLFD GHO 5R GH OD 3ODWD VHFRQG HGLWLRQf YROXPHV %XHQRV $LUHV f /HYLOOLHU 5REHUWR *REHUQDGRUHV GHO 7XFXP£Q 3DSHOHV GH ORV JREHUQDGRUHV HQ HO VLJOR ;9, 'RFXPHQWRV GHO $UFKLYR GH ,QGLDV YROXPHV 0DGULG f /HYLOOLHU 5REHUWR 1XHYD FUQLFD GH OD FRQTXLVWD GHO 7XFXP£Q %XHQRV $LUHV f /L]RQGR %RUGD 0DQXHO +LVWRULD GH OD JREHUQDFLQ GHO 7XFXP£Q VLJOR ;9,,f %XHQRV $LUHV f

PAGE 279

/L]RQGR %RUGD 0DQXHO (O 7XFXP£Q HQ ORV VLJORV ;9,, \ ;9,,, LQ 5LFDUGR + /HYHQH HGLWRU +LVWRULD GH OD QDFLQ DUJHQWLQD GHVGH ORV RUJHQHV KDVWD OD RUJDQL]DFLQ GHILQLWLYD HQ f YROXPHV %XHQRV $LUHV f YROXPH /L]RQGR %RUGD 0DQXHO 7XFXP£Q LQGJHQD 'LDJXLWDV /XOHV \ 7RQRFRWH SXHEORV \ OHQJXDV 6DQ 0LJXHO GH 7XFXP£Q f /L]RQGR %RUGD 0DQXHO +LVWRULD GHO 7XFXP£Q 6LJOR ;9, 6DQ 0LJXHO GH 7XFXP£Q f /RERV +FWRU 5DPQ /RV )UDJXLHUR 8QD IDPLOLD GH FRPHUFLDQWHV FRUGREHVHV GHO ILQHV GHO VLJOR [YLLL \ SULQFLSLRV GHO [L[ 3ULPHUD SDUWH GRQ $QWRQLR %HQLWR )UDJXLHUR f LQ &XDUWR FRQJUHVR QDFLRQDO Y UHJLRQDO GH KLVWRULD DUJHQWLQD f YROXPHV %XHQRV $LUHV f YROXPH /RFNKDUW -DPHV 6RFLDO 2UJDQL]DWLRQ DQG 6RFLDO &KDQJH LQ &RORQLDO 6SDQLVK $PHULFD LQ /HVOLH %HWKHOO HGLWRU 7KH &DPEULGJH +LVWRU\ RI /DWLQ $PHULFD YROXPHV &DPEULGJH f YROXPH /XJDU &DWKHULQH 0HUFKDQWV LQ /RXLVD 6FKHOO +REHUPDQ DQG 6XVDQ 0LJGHQ 6RFRORZ HGLWRUV &LWLHV DQG 6RFLHW\ LQ &RORQLDO /DWLQ $PHULFD $OEXTXHUTXH f /\QFK -RKQ 6SDQLVK &RORQLDO $GPLQLVWUDWLRQ 7KH ,QWHQGHQW 6\VWHP LQ WKH 9LFHURYDOWY RI WKH 5R GH OD 3ODWD 1HZ
PAGE 280

0D]]DUD 5LFKDUG $ ,QWURGXFWLRQ LQ &RQFRORUFRUYR $ORQVR &DUUL GH OD 9DQGHUDf (O /D]DULOOR $ *XLGH IRU ,QH[SHULHQFHG 7UDYHOOHUV EHWZHHQ %XHQRV $LUHV DQG /LPD WUDQVODWHG E\ :DOWHU .OLQH %ORRPLQJWRQ f 0F$OLVWHU /\OH 1 6SDLQ DQG 3RUWXJDO LQ WKH 1HZ :RUOG 0LQQHDSROLV f 0RQFDXW &DUORV $ (VWDQFLDV ERQDHUHQVHV &RQ OD PHQXGD KLVWRULD GH DOJXQRV HVWDEOHFLPLHQWRV HQWUH WRGRV GH ORV SDUWLGRV GH &KDVFRPXV 5DQGRV 0DJGDOHQD *HQHUDO OD 9DOOH \ /XL£Q +LVWRULD \ WUDGLFLQ &LW\ %HOO f 0RQWR\D $OIUHGR +LVWRULD GH ORV VDODGHURV DUJHQWLQRV %XHQRV $LUHV f 0RQWR\D $OIUHGR /D JDQDGHUD \ OD LQGXVWULD GH VDOD]Q GH FDUQHV HQ HO SHURGR %XHQRV $LUHV f 0XOOHU .ODXV &RPHUFLR LQWHUQR \ HFRQRPD UHJLRQDO HQ +LVSDQRDPULFD FRORQLDO $SUR[LPDFLQ FXDQWLWDWLYD D OD KLVWRULD GH 6DQ 0LJXHO GH 7XFXP£Q LQ -DKUEXFK IXU *HVFKLFKWH YRQ 6WDDW :LUVWVFKDIW XQG *HVVHOOVFKDIW /DWHLQDPHULNDV f 0RXVV\ 9 0DUWLQ GH 'HVFULSFLQ JHRJU£ILFD Y HVWDGVWLFD GH OD FRQIHGHUDFLQ DUJHQWLQD %XHQRV $LUHV f 1H] 8UEDQR +LVWRULD GH 6DQ /XLV %XHQRV $LUHV f 3£H] GH OD 7RUUH &DUORV +LVWRULD GH 7XFXP£Q %XHQRV $LUHV f 3DORPHTXH 6LOYLD /D FLUFXODFLQ PHUFDQWLO HQ ODV SURYLQFLDV GHO LQWHULRU LQ $QXDULR GHO ,QVWLWXWR GH (VWXGLRV +LVWULFR6RFLDOHV f 5DPUH] 6XVDQ ( /DUJH /DQGRZQHUV LQ /RXLVD 6FKHOO +REHUPDQ DQG 6XVDQ 0LJGHQ 6RFRORZ HGLWRUV &LWLHV DQG 6RFLHW\ LQ &RORQLDO /DWLQ $PHULFD $OEXTXHUTXH f

PAGE 281

5DYLJQDQL (PLOLR /D SREODFLQ LQGJHQD GH ORV UHJLRQHV GHO 5R GH OD 3ODWD HQ OD VHJXQGD PLWDG GHO VLJOR ;9,, LQ $FWDV Y WUDEDMRV FLHQWILFRV GHO ;;9 FRQJUHVR LQWHUQDFLRQDO GH DPHULFDQLVWDV %XHQRV $LUHV f 5HYLVWD GH %XHQRV $LUHV YROXPHV %XHQRV $LUHV f 5LQJURVH 'DYLG + &DUWLQJ LQ WKH +LVSDQLF :RUOG $Q ([DPSOH RI 'LYHUJHQW 'HYHORSPHQW LQ +LVSDQLF $PHULFDQ +LVWRULFDO 5HYLHZ )HEUXDU\ f 5LQJURVH 'DYLG + 7UDQVSRUWDWLRQ DQG (FRQRPLF 6WDJQDWLRQ LQ 6SDLQ 'XUKDP f 5RFN 'DYLG $UJHQWLQD %HUNHOH\ f 5RVD -RV 0DUD $Q£OLVLV KLVWULFR GH OD GHSHQGHQFLD DUJHQWLQD %XHQRV $LUHV f 5RVDO 0LJXHO $QJHO 7UDQVSRUWHV WHUUHVWUHV \ FLUFXODFLQ GH PHUFDQFDV HQ HO HVSDFLR ULRSODWHQVH LQ $QXDULR GHO ,QVWLWXWR GH (VWXGLRV +LVWULFR6RFLDOHV f 5RVHQEODW $QJHO /D SREODFLQ LQGJHQD GH $PULFD GHVGH KDVWD OD DFWXDOLGDG %XHQRV $LUHV f 6£QFKH]$OERUQR] 1LFRO£V /D H[WUDFFLQ GH PXDV GH -XMX\ DO 3HU )XHQWHV YROPHQ \ QHJRFLDQWHV LQ (VWXGLRV GH +LVWRULD 6RFLDO f 6£QFKH]$OERUQR] 1LFRO£V 3DWULFLD 2WWROHQJKL GH )UDQNPDQQ 0DQXHO 8UELQD DQG 'RURWK\ 5 :HEE /D VDFD GH PXDV GH 6DOWD DO 3HU LQ $QXDULR GHO ,QVWLWXWR GH ,QYHVWLJDFLRQHV +LVWULFDV f 6DQWRV 0DUWQH] 3HGUR +LVWRULD HFRQPLFD GH 0HQGR]D GXUDQWH HO YLUUHLQDWR 0DGULG f 6DQWRV 0DUWQH] 3HGUR /DV LQGXVWULDV GXUDQWH HO YLUUHLQDWR f %XHQRV $LUHV f 6DQWRV 0DUWQH] 3HGUR 5DPRQD GHO 9DOOH +HUUHUD $QD (GHOPLUD &DVWUR DQG $QEDO 0DULR 5RPDQR +LVWRULD GH 0HQGR]D %XHQRV $LUHV f

PAGE 282

6DUPLHQWR 'RPLQJR ) /LIH LQ WKH $UJHQWLQH 5HSXEOLF LQ WKH 'D\V RI WKH 7\UDQWV RU &LYLOL]DWLRQ DQG %DUEDULVP 1HZ
PAGE 283

7MDUNV *HUP£Q 2 ( DQG $OLFLD 9LGDXUUHWD GH 7MDUNV (O FRPHUFLR LQJOV Y HO FRQWUDEDQGR 1XHYRV DVSHFWRV HQ HO HVWXGLR GH OD SROWLFD HFRQPLFD HQ HO 5R GH OD 3ODWD %XHQRV $LUHV f 7ROHGR (VWHOD % (O FRPHUFLR GH PXDV HQ 6DOWD LQ $QXDULR GHO ,QVWLWXWR GH ,QYHVWLJDFLRQHV +LVWULFDV f 7RUUH 5HYHOR -RV (O 0DUTXV GH 6REUHPRQWH *REHUQDGRU ,QWHQGHQWH GH &UGRED Y 9LUUH\ GHO 5R GH OD 3ODWD (QVD\R KLVWULFR %XHQRV $LUHV f 7UR[HO (PHU\ 7KH (FRQRPLFV RI 7UDQVSRUW YROXPHV 1HZ
PAGE 284

%,2*5$3+,&$/ 6.(7&+ -HUHP\ 6WDKO ZDV ERUQ LQ LQ 1HZ -HUVH\ DQG UHFHLYHG PRVW RI KLV HDUO\ HGXFDWLRQ LQ 7XOVD 2NODKRPD ZKHUH KH JUDGXDWHG IURP KLJK VFKRRO LQ ,Q KH UHFHLYHG KLV %$ GHJUHH ZLWK D PDMRU LQ DQWKURSRORJ\ IURP WKH 8QLYHUVLW\ RI 2NODKRPD ,Q KH UHFHLYHG KLV 0$ IURP WKH 8QLYHUVLW\ RI )ORULGD KDYLQJ FRQFHQWUDWHG RQ /DWLQ $PHULFDQ KLVWRU\ 6LQFH KH KDV SXUVXHG KLV VWXG\ RI /DWLQ $PHULFDQ KLVWRU\ KDV WUDYHOOHG VRPH LQ 6RXWK $PHULFD DQG LQ (XURSH DQG KDV SOD\HG IDLUO\ FRQVLVWHQWO\ DV DQ LQILHOGHU DQG OHDGRII KLWWHU IRU WKH 'XFNV

PAGE 285

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k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

PAGE 286

, FHUWLI\ WKDW KDYH UHDG WKLV VWXG\ DQG WKDW LQ P\ RSLQLR LW FRQIRUPV WR DFFHSWDEOH VWDQGDUGV RI VFKRODUO\ SUHVHQWDWLRQ DQG LV IXOO\ DGHTXDWH LQ VFRSH DQG TXDOLW\ DV D GLVVHUWDWLRQ IRU WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ + f >$MR /\OH } 0F$OLVWHU 'LVWLQJXLVHG 6HUYLFH 3URIHVVRU (PHULWXV 7KLV GLVVHUWDWLRQ ZDV VXEPLWWHG WR WKH *UDGXDWH )DFXOW\ RI WKH 'HSDUWPHQW RI +LVWRU\ LQ WKH &ROOHJH RI /LEHUDO $UWV DQG 6FLHQFHV DQG WR WKH *UDGXDWH 6FKRRO DQG ZDV DFFHSWHG DV SDUWLDO IXOILOOPHQW RI WKH UHTXLUPHQWV IRU WKH GHJUHH RI 'RFWRU RI 3KLORVRSK\ $SULO 'HDQ *UDGXDWH 6FKRRO

PAGE 287

/'

PAGE 288

/'


PRODUCTION, COMMERCE AND TRANSPORTATION
IN A REGIONAL ECONOMY:
TUCUMAN, 1776-1810
By
JEREMY D. STAHL
A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL
OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR THE DEGREE OF
DOCTOR OF PHILOSOPHY
UNIVERSITY OF FLORIDA
1994

ACKNOWLEDGEMENTS
I would like to take this opportunity to thank all
those individuals and institutions whose support and
assistance made the completion of this project possible.
Foremost among these, of course, is the chair of my
dissertation committee, Professor Murdo J. MacLeod, whose
patient guidance has been most instrumental to the
successful realization of this dissertation. Other
committee members include Professors David Bushnell, Jeffrey
Needell, Robert Hatch and Allan Burns, each of whom offered
encouragement and valuable guidance as the project
progressed. Professor Jane Landers of Vanderbilt University
added fresh insights, warm friendship and bracing
encouragement when it was needed most. Professor Lyle N.
McAlister merits special appreciation for directing my early
years of graduate study, for sharing the pleasure of Latin
American History and for remaining a source of inspiration.
My debt to each of these individuals is considerable.
The University of Florida Department of History, under
the direction of Professors David Colburn, Kermit Hall and
11

Fred Gregory, has supported my studies as much as one could
hope; special departmental assistance helped make possible
research trips to Austin, Texas, to Buenos Aires, Argentina
and to Seville, Spain. The University of Florida Center for
Latin American Studies, by providing funding with a grant
from the Tinker Foundation for preliminary dissertation
research, also subsidized research in Argentina. Professor
Samuel Proctor of the University of Florida helped arrange a
fellowship from the Institución de Cooperación Ibero-
Americana that facilitated three months of critical
investigation in the Archivo General de Indias in Seville,
Spain.
Many other individuals--my friends, family and
colleagues--also merit acknowledgement and my deepest
appreciation for their support during the past years. My
dear friends Joe and Toni Thompson especially have helped
make my graduate years so enjoyable; their warm friendship
and generous hospitality eased the most difficult periods
and created some of the best. Ted and Gwen Snow have long
been supporters, helping whenever they could; Caroline King
assisted during the final push to complete this project and
deserves special thanks. The list of those meriting thanks
goes on and on: the many graduate students and the faculty
iii

and staff of the History Department, the staff of the
University of Florida Libraries, my many friends and
acquaintances in Córdoba, Argentina, my Duck teammates,
Holbrook Travel of Gainesville. Let me take this
opportunity to thank them all collectively and express my
heartfelt appreciation for their years of assistance and
friendship.
Finally, I must acknowledge those whose encouragement,
confidence and patience has been most important. My best
friends and brothers Pete, Mark and Doug have always let me
know that I've been doing the right thing all these past
years. My parents Harry and Ann Stahl, however, have made
it all possible. The support they have so generously and so
often provided, the patience they have so long shown and the
love they so completely bestow have been my greatest
inspiration and compel me dedicate this work to them.
IV

TABLE OF CONTENTS
page
ACKNOWLEDGMENTS ii
ABSTRACT vi
INTRODUCTION 1
CHAPTERS
ONE THE RIO DE LA PLATA ECONOMY . . 8
TWO THE TUCUMAN REGION 4 7
THREE PRODUCTION 7 9
FOUR COMMERCE 134
FIVE TRANSPORTATION 175
SIX SOCIETY 208
CONCLUSION 255
BIBLIOGRAPHY 264
BIOGRAPHICAL SKETCH 276
v

Abstract of Dissertation Presented to the Graduate School
of the University of Florida in Partial Fulfillment of the
Requirements for the Degree of Doctor of Philosophy
PRODUCTION, COMMERCE AND TRANSPORTATION
IN A REGIONAL ECONOMY:
TUCUMAN, 1776-1810
By
Jeremy D. Stahl
April, 1994
Chair: Murdo J. MacLeod
Major Department: History
This dissertation presents a study of production,
commerce and transportation in the pre-industrial regional
economy of Tucumán in the viceroyalty of the Río de la Plata
during the last decades of Spanish administration. It
examines sisa and alcabala records from the cities of
Córdoba, Salta and San Salvador de Jujuy in order to
evaluate the economic adjustments that accompanied the
fundamental commercial changes that transformed this part of
the world. The expansion of the Atlantic economy after 1750
nurtured the emergence of southern Spanish America, a region
well-suited to the production of livestock, hides and wool--
products that all found strong markets in the growing global
system. The economy of the Tucumán region, responding to
vi

this process as well as to the recovery of the Peruvian
silver-mining complex, experienced a series of little-
discussed modifications that are the subject of this study.
Chapter One develops the historiographical context for
this study; it presents an explication of four major studies
of the Rio de la Plata economy that best advance the
discussion of the historic processes that determined
regional history. Chapter Two is a brief economic geography
of the Tucumán region with special emphasis on the
demographic characteristics of the seven component
districts. Chapter Three surveys the productive activities
that integrated the Tucumán region with both the Peruvian
and Atlantic markets and simultaneously afforded a degree
of local self-sufficiency. Chapter Four addresses commerce
and the commercial relations that contributed to the
region's relative prosperity and further tied it to
neighboring markets. Chapter Five analyzes the
transportation sector that served Tucumán and physically
linked these three different regional economies. Chapter
Six is a study of some of the economic activities of the
tribute-paying Indian towns of northern Tucumán and of the
commercial pursuits of the region's property-owning
residents.
Vll

INTRODUCTION
The creation of the Río de la Plata viceroyalty at the
end of the eighteenth century (1776) signaled the
culmination of a long process that prompted the gradual
emergence of the River Plate region of South America as an
increasingly important part of Spain's American empire.
Both the revival of silver mining in Peru and the steady
growth of European mercantilism after the middle of the
eighteenth century stimulated economic production and
exchange throughout southern South America, a part of the
world ideally situated to benefit from industrializing
Europe's commercial revival and growing hunger for certain
primary commodities. These dynamic forces triggered
dramatic changes in the several component regions of the new
Rio de la Plata viceroyalty and forced adjustments and re¬
orientations within the long-established regional economies
of the Interior.
The vast sub-tropical South American Interior,
especially what is today northern Argentina, constituted the
1

2
oldest of these regions. A more traditional part of the
viceroyalty than Buenos Aires or other settlements with
easier access to sea routes, the Tucumán region incorporated
the pastoral jurisdictions of Córdoba, Santiago del Estero,
San Miguel de Tucumán, Salta, San Salvador de Jujuy,
Catamarca and La Rioja, which together established a
corridor of Hispanic settlement that reached from the
Peruvian highlands to the River Plate estuary. Recognized
since the sixteenth century as a region devoted to livestock
production for the supply of Peru, the Tucumán region was
among those facing fundamental changes with the advent of
the viceregal era. Drawn increasingly to two different
markets, the traditional markets of Upper Peru and the
emerging market of Buenos Aires, the region quickly
experienced far-reaching adjustments which marked a clear
break with the past. While the region retained its pastoral
economy, new conditions triggered subtle re-orientations.
Whereas the entire region had once devoted itself to mule¬
raising and livestock exports to Peru prior to about 1780,
the decades following 1780 saw a gradual re-orientation of
the southern jurisdictions. An increasing reliance upon the
production of hides and woolens for the Buenos Aires market
marked this process. The northern jurisdictions, on the

3
other hand, remained closely tied to the Peruvian market.
The once-single orientation of regional production gave way
to a more diversified export economy that now looked in two
directions.
The first chapter of this study provides a discussion
of the complex historiographical debate surrounding the
economic aspects of the Río de la Plata's viceregal history.
Basically an explication of the work of four historians who
provide the fullest analysis of a wide range of questions,
this chapter establishes a foundation for the remainder of
the work by introducing the questions and topics that are
fundamental to any investigation into viceregal economic
history. Subtle differences between the explanations
offered by Carlos Sempat Assadurian, Tulio Halperin-Donghi,
Juan Carlos Garavaglia and Jonathon C. Brown provide the
starting point for this study and its attempt to describe a
little more clearly the adjustments forced upon certain
sectors of the Tucumán regional economy.
The second chapter provides an introduction to the
Tucumán region as a unit of economic geography. While the
region displayed an overall economic coherence, the seven
component jurisdictions each exhibited distinct economic and
demographic characteristics that influenced its position

4
within the whole. Eighteenth-century descriptions and
relations provide vivid sources for this brief survey;
contemporary census figures allow for a short discussion of
regional demographic characteristics.
The third, fourth and fifth chapters constitute the
heart of this study. Chapter Three presents a survey of the
primary productive activities throughout the region. It
looks first at the pastoral sector of the economy that was
most heavily influenced by the mule-raising and mule¬
exporting enterprises that defined the region. The
measurement of annual mule exports uncovers a sudden and
sharp decline decline in the years after 1781 when popular
rebellion in Peru cut deeply into Andean purchases of these
animals. Gradual recovery of this market followed, but the
crisis occasioned by the years of hardship precipitated
significant adjustments within the economies of the southern
jurisdictions.
Chapter Three then turns to a related sector, that of
the production and processing of pastoral by-products that
included cattle hides, grease, tallow, soap and,
significantly, wool from the large herds of sheep that also
grazed regional pastures. Agriculture, especially the
cultivation of cotton and grapevines that contributed to the

5
local production of cotton textiles and wine and brandy in
the jurisdictions of Catamarca and La Rioja, also merits
discussion here. Finally, this chapter also examines the
less-important activities of mining and lumber production
which nevertheless figured into the regional export economy.
The fourth chapter is a discussion of commercial
patterns within the Tucumán regional economy. Through
analysis of sales tax revenues, it looks first at the
overall trends marking the volume of commercial activity in
each of the seven jurisdictions. These records reveal a
decade-long commercial malaise marking the years 1785-1795,
followed by a strong recovery in Tucumán's southern
jurisdictions and a weaker recovery in the north. Emphasis
then turns to a discussion of the direction and content of
commercial exchanges both within the region and with
neighboring regions.
Chapter Five offers an analysis of transportation, the
third critical component of the regional economy. First
this part presents a theoretical discussion of the
importance of transportation services within a pre¬
industrial economy. Next it turns to a discussion of the
road network serving the region, including the heavily-
travelled royal roads that channeled most commercial traffic

6
from producer to market, and the less-important routes that
served secondary commercial circuits. It turns last to the
carters and muleteers who actually transported the region's
produce and commerce. It considers questions of volumes of
traffic, costs and freight rates for carriage, and the
overall efficacy of the transportation sector in serving the
regional economy.
The last chapter looks at two important social groups--
the tribute paying Indian population and the Hispanic
merchant community. This attempt to describe the economic
activities of these groups, and reach a better understanding
of their economic behavior, builds on treasury records and
tax ledgers that offer penetrating insights into individual
and group behavior. The merchant community especially
exhibited signs of a complex nature, from a few wealthy and
powerful landowners primarily occupied with livestock
exports, to the merchants of either locally-produced or
imported goods, to the small urban shopkeepers who kept the
city-dwellers of the region supplied with their basic
necessities.
From a broader perspective, this study also addresses
the origins of the Argentine nation and the factors that
helped shape the earliest economic and political crises that

7
defined Argentina's early nation-building process. The
viceregal era saw considerable economic growth in the
Tucumán region and even more in the River Plate; the
struggle between the conflicting interests of these regions
shaped the political battles of the first fifty years of
nationhood. The production of the Tucumán region
increasingly depended upon the Buenos Aires market for
consumers of its woolen goods and for access to European
consumers of it hides. The last years of colonial
administration, consequently, witnessed the Interior slip to
a secondary position within the viceregal system. The
adjustments that enabled the southern jurisdictions of
Tucumán to benefit from Buenos Aires' prosperity, however,
remained unattainable for the northern and western
jurisdictions. These areas, only marginally linked to the
Atlantic economy even late in the viceregal periods, were to
slip even further behind the prospering areas and become
economic backwaters in the nineteenth and twentieth
centuries.

CHAPTER ONE
THE RIO DE LA PLATA ECONOMY
This chapter presents a discussion of the scholarship
of four important investigators of the economic structure of
the Río de la Plata colony as a first step in the
exploration of an especially complex topic. The viceregal
era witnessed profound changes that brought once-isolated
settlements to the front of the colonial economic system.
The work of Carlos Sempat Assadourian, Tulio Halperin-
Donghi, Juan Carlos Garavaglia and Jonathon C. Brown provide
the basis for understanding these changes and their local
manifestations that often differed in nature from one region
to another.
Writing for two decades on the South American past, the
Argentinian historian Carlos Sempat Assadourian gradually
developed an elaborate interpretation of colonial economic
history. In a number of essays and monographs devoted to
the emergence and dynamics of South America's colonial
economy, Assadourian pioneered the study of the economic
8

9
spaces, the interprovincial commerce and the internal
sectors that defined the continent's economic development.
His studies of the South American economy not only
constitute a broad field of investigation distinguished by
the elaboration of a regional approach to colonial history,
but also present a useful framework for a closer examination
of Río de la Plata's commercial history and the role of its
pre-industrial transportation sector.1
Assadourian maintains that by the beginning of the
seventeenth century, Spanish America already consisted of
several large regional economies. The South American or
Peruvian regional economy, dominated by silver mining,
included the regions of present-day Ecuador, Peru, Bolivia,
Chile, Paraguay and Argentina. The formation of this vast
economy created a system of economic relationships that led
to the emergence of regional specializations. By the end of
the seventeenth century the Peruvian regional economy
1. See Carlos Sempat Assadourian, El sistema de la
economía colonial: mercado interno, regiones v espacio
económico (Lima, 1982), a compilation of six essays written
during the 1960s and 1970s developing a model of the
colonial Peruvian economy. See also Assadourian, Guillermo
Beáto and José Carlos Chiamonte, Argentina: de la conquista
a la independencia (Buenos Aires, 1972); Assadourian,
Heraclio Bonilla, Antonio Mitre and Tristan Platt, Minería v
espacio económico en los Andes, siglos XVI-XX (Lima, 1980);
and Assadourian et al., Modos de producción en América
Latina (Buenos Aires, 1973) .

10
featured a considerable degree of self-sufficience built on
a high level of regional integration wherein a number of
specialized zones each contributed to a complete economy.
Assadourian presents a scheme in which the Potosí mining
complex in Alto Perú functioned as the axis or focus of this
system, or as the primary "pole of growth." This mining
complex dominated the entire economy; its sheer size made it
a major market for many commodities and its production of
silver provided a source of circulating capital.2
Assadourian emphasizes several fundamental activities
within this scheme. As noted, he attributes special
importance to mining, calling it the dominant production of
the Peruvian economy. He rejects interpretations that view
the colonial mining sector as little more than an enclave of
the European economy, somehow detached from the colony's
economic life. Instead, he defines mining as the "motor" of
the Peruvian economy, or the driving force behind the
2. For a discussion of the basic characteristics of
Assadourian's scheme, including explanations of the concepts
of self sufficience, regional specialization and regional
integration, see his essay "Integración y disintegración
regional en el espacio colonial. Un enfoque histórico," in
El sistema de la economía colonial. 109-134. Gwendolyn Cobb
recognized the far-reaching impact of the Potosí mining
complex in her article "Supply and Transportation for the
Potosí Mines, 1545-1640," Hispanic American Historical
Review 29:1 (February, 1949).

11
colonial system, intricately linked to other activities.3
The agricultural and ranching sector constituted the second
component of the Peruvian economy, providing large
quantities of foodstuffs and livestock to the barren
environs of the Andean mining centers. These mining
communities, in turn, emerged as the foremost consumers of
regional production. The commercial sector linked the
mining and agricultural sectors; exchange between the two
spheres, determined the vitality of the entire system.
These three sectors operated in an interdependent fashion,
each supporting and nurturing the others.4 Silver exports
and the European trade held a role of secondary importance
to this internal economy.
Assadourian bases much of this scheme on a nineteenth-
century study of New Spain's mining economy by the engineer-
3. Assadourian, "La organización económica espacial
del sistema colonial," in El sistema de la economía
colonial. 277-331. The presentation of colonial Spanish
American mining sectors as enclaves of a dominant European
economy, Assadourian notes, was popularized by Enrique
Cardoso and Enzo Faletto, Dependencia y desarrollo en
América Latina (Mexico City, 1969), in which the authors
distinguish between agricultural colonies and mining
colonies. Assadourian calls this an "incorrect
distinction."
4. See Assadourian, "Sobre un elemento de la economía
colonial: producción y circulación de mercancías en el
interior de un conjunto regional," in El sistema de la
economía colonial. 135-217. This essay provides a detailed
discussion of the interdependent nature of the mining,
agricultural and and commercial sectors within a "regional
conjunction," or the Peruvian regional economy.

12
economist Fausto de Elhuyar. Elhuyar's monograph addressed
his contemporaries' ignorance of the "true influence" of
mining, too often seen, he argued, as a "simple, isolated
resource" with little influence on the "general well-being."
Noting the lack of external demand for most of New Spain's
agricultural products, Elhuyar argued that the colony's
mining industry stimulated agricultural production,
increased the common wealth, created and sustained industry
and supported population growth. "In all civilized
countries," he explained, "is seen a certain or certain
sectors that are distinguished as much by their presence as
by the impulse they give and the extensions they provide, so
that without their help others would be of little
consequence."5
Elhuyar drew on the history of New Spain. From the
first Spanish expeditions, he explained, mines and precious
metals held the colonists' attention. Mining became the
first industry in the colony. The mine markets stimulated
agriculture, stock-raising and new settlements. Mining made
unproductive land productive and encouraged commerce between
5. Fausto de Elhuyar, Memoria sobre el influjo de la
minería en Nueva España (Mexico City, 1984), 7-11, 25-26.
Assadourian also cites Robert West, The Mining Community of
Northern New Spain: The Parral Mining District (Berkeley,
1949) and David A. Brading, Miners and Merchants in Bourbon
Mexico 1763-1810 (Cambridge, 1971) for their astute
evaluations of New Spain's mining economy, regional
production and the internal market.

13
provinces with different climates and resources. Gold and
silver filled the need for money, "giving life" to internal
commerce. Precious metals also drove the external economy.
New Spain's mines filled the limited domestic demand for
precious metals, and a large part of the "superabundance" of
these metals supported the colony's external trade. Silver,
accounting for two-thirds of the total value of exports,
paid for almost all imports. "When mining wealth is of some
duration," Elhuyar concluded, "it enlivens and gives greater
energy and extension to the other sectors it cultivates."6
Elhuyar's study is valuable, argues Assadourian, for
two basic reasons. First, he successfully explains the
subtle relationship between the internal and external
sectors of the colonial economy. Second, he clearly
outlines a model of this economy. While demonstrating the
existence of a dominant product that drove this economy,
Elhuyar concentrates on the relationship between mining and
other sectors--a relationship Assadourian calls "the sphere
of general circulation" or "the mercantilization of agrarian
production." In Assadourian's opinion, Elhuyar's
contemporary understanding and sophisticated perspective
must be re-employed.7 Assadourian uses this perspective to
6. Ibid., 22-23.
7. Assadourian, "La organización económica espacial,"
279-280, 282-284.

14
develop a synthesis of a prosperous Peruvian economy--a
unified or integrated economic system--in which mining
constituted the dominant sector, agricultural products and
livestock were turned into merchandise by the commercial
sector, and new activities repeatedly emerged.
If at the height of Potosí's silver production early in
the seventeenth century the Peruvian economy reached a high
degree of prosperity, declining silver production from the
mid-seventeenth century to the mid-eighteenth century led to
widespread impoverishment. Typically, regional responses to
this process of impoverishment consisted of "adjustments,"
usually the elimination of interregional imports, the
expansion of the subsistence sector and the ruralization of
provinces.8 The commercial sector suffered waning
intensity and experienced various redirections of trade.
Assadourian emphasizes that the long crisis did not trigger
a breakdown of the Peruvian economy nor affect self-
sufficience, but encouraged a series of adjustments,
described as a slow process of reorientation away from
Potosí.
The economic recovery marking the second half of the
eighteenth century, Assadourian argues, had two sources.
First, the intensifying rhythms of the Atlantic economy and
8. Assadourian, "Integración y disintegración
regional," 127.

15
the consequent growth of Buenos Aires fostered both legal
and illegal trade throughout southern South America. The
creation of the Río de la Plata viceroyalty in 1776 and the
declaration of free trade in 1778 further stimulated the
process of reorientation, moving parts of the old Peruvian
economy toward external markets. But the resurgence of
Peruvian mining, still the dominant sector in this late
period, proved more important to this recovery. Peter
Bakewell identifies and discusses this "remarkable boom" in
Potosí's silver output that tripled during the course of the
eighteenth century.9 To Assadourian, Andean mining still
determined the dynamics of the vast South American economy,
and agricultural, manufacturing and commercial activities
remained dependent on Peru's silver production.10
Assadourian does not deny that metropolitan relations
wielded strong influences in the evolution of the Peruvian
economy. Drawing on Hamilton's pioneering study and those
of Alvaro Jara and the Chaunus, he compares the tremendous
silver exports between 1520 and 1650 with the meager
9. Peter Bakewell, "Mining," in Leslie Bethell,
editor, The Cambridge History of Latin America. 8 volumes
(Cambridge, 1984-91), volume 2, 138-149.
10. Ibid., 278-289.

16
contributions of other sectors.11 Nevertheless, the
importance of silver exports during this era or later never
signified dependence on the metropolitan market.12
Assadourian underscores this argument: just as silver
exports proved the dominant sector that shaped external
relations, silver production remained equally important to
the internal sphere, determining the direction and dynamics
of the colonial economic system. This economy, once
established, displayed a complete, integrated and
independent nature. External relations held a secondary
position, largely limited to the import of luxury goods.13
The prosperous 1780s and 1790s, despite growth of Atlantic
trade, brought South America's most self-sufficient years,
featuring considerable regional diversification and a high
degree of internal control.14 By 1800, the Peruvian
11. Assadourian, "Sobre un elemento de la economía
colonial," 211. Assadourian cites Earl Hamilton, American
Treasure and the Price Revolution in Spain, 1501-1650
(Cambridge, 1934); Pierre and Huguette Chaunu, Seville et
1'Atlantiaue. 11 volumes (Paris, 1955-60); Alvaro Jara, Tres
ensayos sobre economía minera hispanoamericana (Santiago,
1966). See also Peter Bakewell, "Registered Silver
Production in the Potosí District, 1550-1735," Jahrbuch für
Geschichte von Staat, Wirtschaft und Gesellschaft
Lateinamerikas 12 (1975).
12. Assadourian, "Integración y disintegración
regional," 128-133.
13. Ibid. 112-113; Assadourian, "Sobre un elemento de
la economía colonial," 142-144.
14
Ibid., 144.

17
economy reached a level of self-sufficiency unequaled before
or since.
Tulio Halperin-Donghi presents a more focused analysis
of the Rio de la Plata's eighteenth-century regional
economic history. Squarely placing seventeenth-century Rio
de la Plata within the Peruvian sphere, he defines the
immense territory as consisting of two ill-defined zones.
The Interior extended from Upper Peru south to a vague
frontier in the pampas, and east from the Andes to the
territories along the Paraná River. The Litoral, comprised
of the Guarani lands of Paraguay and Uruguay and the lands
banking the lower Paraná and River Plate, included the
cities of Buenos Aires, Montevideo, Corrientes and Santa Fé.
Between these two settled zones stretched the Chaco and
Pampa plains, both populated by tribes of Amerindian
hunters. Spaniards controlled relatively small portions of
these expanses; the most important area was the Interior
province of Tucumán, actually a corridor of settlements
(Jujuy, Salta, San Miguel de Tucumán, Santiago del Estero
and Córdoba) that connected Peru with Buenos Aires and the
Atlantic. To the east of the Upper Paraná, in Paraguay and

p.u»
P € P V
Figure 1.1.
Río de la Plata, Tucuraán and Cuyo Regions, c. 1776

19
Uruguay, Jesuit missions established a fragile Spanish
presence in a region bordering Brazil.15
Halperin-Donghi's scholarship chiefly addresses Rio de
la Plata's revolutionary period, featuring a discussion of
the viceregal period that began in 1776 and a description of
the region's economic reorientation in the late eighteenth
century. In contrast to Assadourian, Halperin-Donghi
describes a profound shift away from the Potosí pole for the
Rio de la Plata region, a process nurtured by the rise of
the Atlantic economy. Increased contact with European
commercial powers dislocated the traditional structure of
the Peruvian economy. Buenos Aires and the River Plate
settlements grew in size and commercial importance,
eclipsing Potosí as a pole of growth for this part of the
colony. To Halperin-Donghi, the pastoral provinces along
the Paraná and the Rio de la Plata led this reorientation;
the growth of this Atlantic-oriented region dominated by the
port of Buenos Aires occurred at the expense of the Interior
provinces' commerce, manufacturing and agriculture.
15. Tulio Halperin-Donghi, Politics, Economics and
Society in Argentina in the Revolutionary Period (Cambridge,
1975). This volume, basically a translation of his
Revolución y guerra: Formación de un élite dirigente en la
Argentina criolla (Buenos Aires, 1972), presents an
excellent discussion of the economic complexion of the Rio
de la Plata regions at the end of the eighteenth century.

20
Halperín-Donghi' s description of South America's early-
colonial economy corresponds with that of Assadourian.
Halperin-Donghi acknowledges the Interior's unified
structure and stability founded on Peruvian mining and
achieved at the cost of "maintaining a slow rhythm of
production and trade."16 But more than revived conditions
in Potosí, Halperin-Donghi argues, the changing nature and
quickening pace of the Atlantic economy after 1750 triggered
the Río de la Plata's reorientation. For Halperin-Donghi,
growing regional imbalances that caused growth for some
regions and decline for others unable to adapt to new
conditions stand out as the basic features of this process.
The ascent of the Litoral provinces proved the most
important consequence of this process. And Halperin-Donghi
sees this process as one of the keys to Argentinian history:
an explanation for the rise of the Litoral and the decline
of the long-dominant Interior.17
The growing imbalance sketched by Halperin-Donghi
intensified after the 1778 commercial reforms of Charles
III, when the Interior provinces encountered stiff
competition from Spanish agricultural imports and northern
Europe's manufactured goods. The last decades of the
Ibid., 5.
17
Ibid., 6, 16-29.

21
eighteenth century brought "painful readjustment" to the
Interior's craft industry and "disaster" to its agriculture.
European war and the disruption of Atlantic trade at the
very end of the century prompted a temporary restoration of
old patterns, but the "slowly increasing imbalance" between
the Interior and the Litoral proved irreversible.18
The rise of the Litoral and the commercial adjustments
of the late eighteenth century not only hastened
administrative reorganization, but also supported the
commercial growth of Buenos Aires. This growth proved vital
to the process that nudged the focus of commercial
circulation from the Peruvian mining industry to the Buenos
Aires mercantile community. Before 1776, Halperin-Donghi
argues, Buenos Aires served primarily as an administrative
center with only complimentary economic activities. Through
participation in the growing export of the Litoral's hides
to Europe, and helped by the reforms that brought Potosí
into Buenos Aires' administrative orbit, the port's merchant
community gradually gained control of the viceroyalty's
commercial activity and established a dominant role in the
viceregal economic system. The major business for this new
elite became the distribution of European goods throughout
the Interior and Peru in exchange for silver and gold. The
5 .
18
Ibid.,

22
consequent commercial and financial hegemony built by this
merchant community became a central feature of the late
colonial order, and Buenos Aires' prosperity grew from the
merchants' exploitation of the advantages that the system
gave to merchants over producers.19
Halperin-Donghi and Assadourian essentially agree on
the self-sufficient character of the early South American
economy and on the basic characteristics of the eighteenth-
century reorientation, but their discussions of the
consequences of this process differ. First, Assadourian
argues that the Peruvian mining sector maintained its
dominant position within the South American economy, while
Halperin-Donghi, recognizing the continued importance of
Peruvian silver, describes a decisive shift in the Río de la
Plata toward the growing hegemony of Buenos Aires. Both
also see disruptive consequences arising from the growing
influence of the Atlantic economy, but they see these
effects in different sectors. Assadourian argues that
industry, mainly textile production, suffered as agriculture
19. For Halperin-Donghi's discussion of Buenos Aires'
mercantile expansion, see pages 29-40. See also Susan
Migden Socolow, "Economic Activities of the Porteño
Merchants: The Viceregal Period," Hispanic American
Historical Review 35:1 (February, 1975) and Kinship and
Commerce: The Merchants of Viceregal Buenos Aires
(Cambridge, 1975), which both examine the port's mercantile
growth and the development of its merchant class.

23
prospered, while Halperin-Donghi sees little change in
manufacturing but a decline in colonial agriculture.
Halperin-Donghi addresses the "detrimental
consequences" of free trade that enabled Iberian
agricultural products, especially wine, oil and frutos
secos, to compete successfully with the traditional
production of the Interior provinces in the Buenos Aires
market. While craft manufacture apparently remained
unharmed, the sudden appearance of Spanish produce triggered
sharp price drops and "ruthless competition among the
different regions that were slow to adapt to the changing
market."20 Assadourian, however, argues that the growing
demand for, and import of, manufactured goods in the
Peruvian market had several consequences, including
disrupting the Interior's craft industry and import-
substitution manufacturing.
These differences can be partially reconciled by
recognizing that the focus and objectives of these two
studies differ. Assadourian presents a temporally and
geographically broader study, discussing the three hundred-
year evolution of a vast economy. Component eras and
regions are secondary to the whole; and his analysis is
painted in broad strokes. A deliberate rejection of the
12 .
20
Ibid.,

24
dependency paradigm, Assadourian's studies are internally
oriented and concentrate on describing the self-sufficient
nature of the colonial economy. Halperin-Donghi, however,
undertakes a much more specific study of the eighteenth-
century Río de la Plata and its rise based on the growing
hegemony of Buenos Aires. This concentration naturally
enables the identification of distinct trends and processes
that Assadourian's broader studies overlooks
These two of scholars also differ in the types of
sources they draw upon to make their arguments. By
evaluating provincial tax records, Assadourian measures the
trade in, and prices of, provincial exports over time and
creates a rough guide to commercial circulation. These
records, coupled with an extensive use of notarial and
judicial documentation and mercantile correspondence, help
Assadourian illustrate both regional relationships with the
Peruvian mining sector and the basic economic structure of
the entire South American economy. Again, Assadourian
emphasizes provincial records over viceregal; his aim is to
write a provincially-oriented history of South America.
This methodology might be dangerous, but has led to
stimulating arguments. Halperin-Donghi's analysis, in
contrast, is based on research conducted primarily in the
Archivo General de la Nación in Buenos Aires and in the
Public Records Office in London. He employs fewer

25
statistics but draws on a complete mastery of secondary
literature. While his work is lightly footnoted, it draws
on a greater variety of administrative sources than does
Assadourian's and employs a more global perspective.
Although both scholars draw heavily on secondary sources and
a variety of administrative reports and relations, they use
these materials to different ends. Assadourian demonstrates
how effectively the South American colony insulated
itself from European intrusion; Halperin-Donghi demonstrates
the pervasiveness of European interests in one corner of the
colony.
Juan Carlos Garavaglia builds on Assadourian's regional
model and uses Halperin-Donghi's conclusions to develop a
study of regional differentiation within the Rio de la Plata
during the last years of the colonial period.21 Garavaglia
uses tithe records from 1786 to 1802 as "indirect
indicators" to measure growth in economic production in
three regions comprising the Rio de la Plata viceroyalty.
His study examines production trends in Tucumán, in the
Litoral/Banda Oriental and in the eastern Andean province of
Cuyo, regions he defines based on particular economic
specializations. His findings underscore the importance of
21. Juan Carlos Garavaglia, "Economic Growth and
Regional Differentiations: The River Plate Regions of the
End of the Eighteenth Century," Hispanic American Historical
Review 65:1 (February, 1985), 51-89.

26
specific regional studies and the value of comparative
analysis.22
Garavaglia begins with a description of the changes
effecting southern South America after 1776. The creation
of the Río de la Plata viceroyalty and the proclamation of
free trade helped Buenos Aires consolidate its role as a
commercial center for the surrounding hinterland. The
triumph of a new economic system, largely based on livestock
production in the Litoral and the export of hides from
Buenos Aires and Montevideo to Europe, triggered a series of
economic ups and downs, or differentiations, from region to
region.23 The Bourbon reforms, he argues, had a tremendous
impact in this part of the colonial world, either promoting
economic growth in some areas or aggravating decline in
others.
Between 1786 and 1802, the years for which Garavaglia
has full tithe data for all regions, the annual total tithe
22. Ibid., 55-56. A curve constructed from tithe
records, Garavaglia explains, provide an "indirect indicator
of the movement of production and of agricultural and
livestock prices." Tithe records can be problematic, he
explains, but for Rio de la Plata they express "the
particular behavior of a grain market that is tied to an
open agricultural economy." They do not seem to suggest, as
Brooke Larson found in eighteenth-century Cochabamba, "an
inverse correlation between years of the highest tithe and
the good harvests." See Larson, "Rural Rhythms of Class
Conflict in Eighteenth-Century Cochabamba, HAHR 60:3
(August, 1980), 407-430.
52 .
23
Ibid.,

27
collected in the viceroyalty grew by 59 percent. Growth was
not the same in all regions, however; some areas contributed
a reduced share of the total after 16 years and some areas
provided an increased share. The Litoral, led by Buenos
Aires, dominated the regional whole for the entire 16 years,
but to a lesser degree in the last five years studied. In
1786, the different areas of the Litoral contributed 57
percent of the total tithe, in 1802 only 51 percent. The
Tucumán region, led by the city of Córdoba, became an
important contributor whose relative share of the tithe
total increased from 25 percent to 38 percent. Cuyo,
comprised of the cities of Mendoza and San Juan, contributed
the least and even experienced a relative decline over time,
falling from 18 percent to 12 percent.24
Closer analysis of each of these regions, encompassing
a longer time span, reveals more subtle trends within this
framework. To obtain a clearer understanding of the Litoral
region, Garavaglia divides it into three smaller sub-
regions. Buenos Aires included the six country districts
surrounding the city. The Banda Oriental included
Montevideo, the districts on the eastern strip of the River
Plate and the districts around Maldonado. The Nuevo Litoral
included the three districts of Santa Fé, the districts that
24
Ibid., 58.

28
would become Entre Ríos and the zone that stretches to the
south of the Río Corrientes.25 Above all, Garavaglia
asserts, growth in the Litoral did not affect all areas
equally.
Garavaglia's tithe analysis indicates a clear
diffentiation between cattle and hide production in the
Nuevo Litoral and grain production in Buenos Aires and the
Banda Oriental. For all the region, grain accounted for 67
percent of tithe income and cattle only 26 percent. The raw
numbers measuring hide exports from the River Plate are
noteworthy, however, and merit some discussion before
turning to the grain production that Garavaglia finds more
important. Using the daily sales tax accounts from Buenos
Aires and Montevideo, Garavaglia calculates an average
annual export of approximately 447,000 hides from the River
Plate (Buenos Aires and Montevideo) between 1779 and 1784.
Of these, 47 percent left from Buenos Aires. The remainder
left from Montevideo. The following years witnessed roughly
similar percentages.26
25. Ibid., 59.
26. Ibid., 53. For a more detailed calculation of the
River Plate's hide exports in the eighteenth century, see
Garavaglia, "El Río de la Plata en sus relaciones
atlánticas: Una balanza comercial (1779-1784)," Economía,
sociedad y regiones (Buenos Aires, 1987)65-117.

Determining the origin of all these hides is more
difficult. Of the roughly 210,000 hides exported annually
from Buenos Aires between 1779 and 1884, Garavaglia
estimates that approximately 40,000 to 50,00 hides entered
the city from its countryside each year. Perhaps 70,000 more
came from cattle slaughtered for the provision of the city
and its surroundings. More important, some 100,000 hides
entered Buenos Aires from other provinces. Of these
100,000, almost half came from the Banda Oriental, 22
percent from Paraguay, 12 percent from Santa Fé and ten
percent from Córdoba.27 In summarizing, Garavaglia notes
first that the countryside around Buenos Aires contributed
only about 30 percent of the hides exported from the River
Plate during its time of maximum expansion. Further, he
advises that Platense historians abandon the notion of an
area surrounding Buenos Aires settled exclusively by
ranchers and teeming with large herds of cattle and
recognize the clear distinction between between the wheat-
prodicung areas of the River Plate and the cattle-dependent
Nuevo Litoral.28 The River Plate's hides came from a
27. Ibid., 53-54. Garavaglia develops this discussion
from his calculations of the Buenos Aires alcabala
registers. See footnotes, pages 53-54.
28
Ibid., 55 .

widespread and diverse area; Buenos Aires' tithe income
depended on wheat production (see Table 1.1).
30
Table 1.1 Cattle and Grain Percentage of Litoral Tithe,
1782-1804*
Cattle Grain
1782-86
1798-1802
1782-86
1792-1804
Buenos Aires 14
25
79
70
Montevideo
12
24
78
72
Santa Fé
66
83
23
11
Corrientes
89
49
11
51
* Figures
represent
the percentage
of total
tithe income
Source: Garavaglia, "Economic Growth and Regional
Differentiations," 53.
The Cuyo region, comprised of the cities and
jurisdictions of Mendoza, San Juan and San Luis, relied on
grape cultivation and the production and export of wine and
brandy (aguardiente) to Buenos Aires and the River Plate.
Mendoza specialized in the production of wine, while San
Juan concentrated almost exclusively on aguardiente.
Garavaglia finds that the region flourished in the middle of
the eighteenth century (1755-1756), but by 1790 the tithe
incomes from this region diminished to about half what they
had been earlier (to about 45 percent for Mendoza and 50

31
percent for San Juan).29 Closer analysis of the figures
reveals important trends developing within Cuyo, however.
In the 1750s, Mendoza contributed more to Cuyo's total tithe
income than did San Juan; by 1790, the two cities were
almost even (despite the reduced total), and by 1800 San
Juan had surpassed Mendoza as dominant contributor to Cuyo's
tithe.30
As does Halperin-Donghi, Garavaglia attributes these
trends in Cuyo to the "disastrous effects" of the Bourbon
reforms and free trade. After 1778, wine and aguardiente
from the Spanish Mediterranean enjoyed free access to the
River Plate markets where their presence diminished the
demand for Cuyo's goods. Both the quantity and value of
Cuyo's products dropped in Buenos Aires during the 1780s and
1790s. But the wine trade seemed to suffer more than the
aguardiente trade; alcabala. or sales tax, receipts from
Buenos Aires indicate that aguardiente from San Juan figured
among the most important efectos de la tierra, or farm and
ranching products, received in the port.31
Tithe collection in the Tucumán region, comprised of
the cities of Córdoba, Catamarca, San Miguel de Tucumán,
Ibid., 64-68.
Ibid., 65.
31
Ibid., 66.

32
Salta, Jujuy, La Rioja and Santiago de Estero, experienced
the most growth in the Río de la Plata, increasing by 246
percent between 1786 and 18 0 2.32 Córdoba led this trend,
supported by increased ranching (cattle, mules and sheep),
growing wool exports and a well-established farming
community in the city's countryside, to become the second
most important tithe center among the regions studied,
behind Buenos Aires. But again, if the areas within Tucumán
are more closely examined, differing trends emerge. While
Córdoba prospered tremendously, tithe production in San
Miguel de Tucumán remained steady, and declined in the
cotton and aguardiente-producing areas of Catamarca and La
Rioja. But Cordoba's growth alone boosted Tucumán's
relative position within the regional whole, from 25 percent
of the total tithe collection in 1786 to 38 percent in 1802.
Cordoba's growth proved so decisive, in fact, that the
Tucumán region's relative share of the total tithe for the
Rio de la Plata region grew at the expense of most other
regions. Between 1786 and 1802, for example, Buenos Aires'
share of the total shrank from 34 percent to 29 percent,
Montevideo's share shrank from 13 percent to ten percent,
and Cuyo's share from 18 percent to 12 percent. Santa Fé,
the only other area showing relative growth during this
32
Ibid., 61.

33
period, increased from four percent of the total to ten
percent.33
Garavaglia again attributes most of these trends to the
effects of the Bourbon reforms that "accentuated changes
that, for some time, had been emerging in the space occupied
by the future territory of Argentina and Uruguay. 1,34 As
Halperin-Donghi argues, the Atlantic economy shaped this
process. Garavaglia further notes that the growth of the
Litoral preceded free trade, which served to accelerate the
process. After the initiation of reforms, however, growth
in most areas remained fragile, as Corrientes and Santa Fé
show. The strengthening of the cattle industry in the River
Plate area during the very last years of the colonial era,
he contends, did not lift ranching to a position of
predominance; rather, grain cultivation retained its primary
position.
But unlike Halperin-Donghi, Garavaglia argues that the
commercial role of Buenos Aires in relation to the Interior
pre-dated administrative reorganization, a policy that
solidified the city's dominant position. His analysis of
both the origins of the River Plate's hides and the markets
for Cuyo's wine and aguardiente lend weight to this
34
Ibid., 58.
Ibid., 87.

34
argument; it would seem that Buenos Aires' position as a
pole for the Interior's commerce dated from at least the
mid-eighteenth century. The growth of Cordoba's economy and
its increasing Atlantic orientation further bolster this
argument. Garavaglia's calculations also confirm, in a
modified way, Halperin-Donghi's assessment of the Bourbon
reforms' impact on Interior agriculture. The decline of
Cuyo in the face of Iberian competition demonstrates the
unfortunate consequences of free trade in areas unable to
adjust to changing circumstances. The Tucumán region
illustrates a more complex scenario. If Córdoba prospered
because its large landowners managed to increase exports of
hides and wool, the more isolated areas of La Rioja and
Catamarca suffered because of their inabilty to augment or
supplement their weakened specialties of aguardiente and
cotton.
Garavaglia's study underscores the importance and value
of regionalizing economic studies of the complex late
colonial period. His analysis of regional differentiation,
however, does not fully explain economic trends such as the
dominant position of grain production throughout the River
Plate area, nor does it explain the relationship between
this grain production and hide exports. These questions,
however, are addressed by Jonathon Brown's socioeconomic
history of the Río de la Plata region during the viceregal

35
and early national periods.35 Brown's study concentrates
on both production and markets during the final years of the
pre-industrial age; like Halperin-Donghi and Garavaglia,
Brown finds external markets especially important to
regional hide production after 1776. The beginning of
Europe's Industrial Revolution and the emergence of the hide
export economy in the Río de la Plata stimulated regional
growth and contributed to the reasons behind the opening of
Buenos Aires to legal overseas trade, but these processes
did not initiate a state of dependence on the Atlantic
economy.
Brown's study bluntly rejects standard dependency
theory and applies instead the staple theory of economic
growth to Argentinian history.36 Originally conceived to
35. Jonathon C. Brown, A Socioeconomic History of
Argentina, 1776-1860 (Cambridge, 1979) and his 1976
University of Texas Phd. dissertation, The Commercialization
of Buenos Aires: Argentina's Economic Expansion in the Era
of Traditional Technology, 1776-1860 (Ann Arbor, 1976).
36. Ibid., 5-6. Brown presents an excellent summary
of the basic arguments of the dependency school. The
dependency literature that Brown cites includes Enrique
Cardoso and Enzo Faletto, Dependencia v desarrollo en
América Latina; André Gunder Frank, Capitalism and
Underdevelopment in Latin America (New York, 1967); Stanley
J. and Barbara H. Stein, The Colonial Heritage of Latin
America (New York, 1970); Osvaldo Sunkel and Pedro Paz, El
subdesarrollo latinoamericano y la teoría del desarrollo
(Mexico City, 1970); and James D. Cockcroft, André Gunder
Frank and Dale L. Johnson, Dependence and Underdevelopment
(Garden City, 1972). For the more specific application of
dependency theory to Argentina, Brown cites Liborio Justo,
Nuestra patria vasalla: De los Borbones á Baring Brothers

36
explain the economic and social development of Canada, Brown
applies the staple theory to Argentina with considerable
success. Providing a useful structure for analyzing
regional economies, staple theory applies best when the
production of raw materials or commodities, such as hides,
becomes the dynamic sector of a regional economy and sets
the pace for regional economic development.37 Brown's
application of staple theory not only explains the
predominance of wheat production in the River Plate
described by Garavaglia, but also qualifies Assadourian's
rejection of South American dependency on the Atlantic
economy.
In Brown's presentation, three situations determine
staple economies. First is the existence of both
international markets for, and trade in, certain staple
products such as silver or hides. The second is that a
definable region enjoys a comparative advantage in the
(Buenos Aires, 1967); José María Rosa, Analasís histórico de
la dependencia argentina (Buenos Aires, 1974); Andrés M.
Carretero, Orígenes de la dependencia económica argentina
(Buenos Aires, 1974); and Juan Antonio Corradi, "Argentina,"
in Ronald H. Chilcote and Joel C. Edelstein, editors, Latin
America: The Struggle with Dependency and Beyond
(Cambridge, 1974).
37. Ibid., 6-7. Brown notes that Harald A. Innis, The
Fur Trade of Canada (Toronto, 1930) was the first
application of staple theory to Canadian history, and that
Melville H. Watkins, "A Staple Theory of Economic Growth,"
in Canadian Journal of Economic and Political Science 29:2
(May 1963) has best formulated staple theory.

37
production of these staples. The third situation is for
this production to generate regional development and
stimulate growth within the regional infrastructure. This
diffusion of the effects of staple production is expressed
in terms of "linkages" that are classified into three
types.38
"Backward linkages" result from increases in staple
production that promote increased investment and growth in
the goods and services used by the export sector--services
such as transportation. "Forward linkages" result from
investment in the processing and marketing of staple goods.
Buenos Aires' stockyards, slaughterhouses and warehouses
provide examples of forward linkages. "Final demand
linkages" result from the development of secondary areas of
production associated with local consumer demands. Prior to
I860, Brown argues, the export sector of the Río de la Plata
economy did not subvert or restrict the development of an
economic infrestructure--an argument central to dependency
theory. Instead, diversification and diffusion of economic
activity characterized the staple economy of the pre¬
industrial age. Without the dynamic hide export economy in
the Rio de la Plata, Brown concludes, the economic and
38
Ibid., 6 - 8.

38
social expansion of this entire South American region would
have been retarded.39
Brown's application of staple theory clearly
demonstrates the prosperity of the Río de la Plata's
viceregal economy. Noting that the evolution of Buenos
Aires as the center of the staple economy accelerated with
its establishment as the viceregal capital in 1776 and its
recognition as the official Spanish port for the entire
region in 1778, Brown argues that the single most important
change shaping the Rio de la Plata economy was the
administrative reform that brought Potosí into this new
viceregal sphere and diverted its official silver
production, some 370,000 pesos a year, through the city's
port. Buenos Aires, in response, developed an internal
market of its own that gradually stimulated production in
the hinterlands. Cattle industries in particular, he
argues, "responded with growth and sophistication."40
Markets in both Buenos Aires and Potosí stimulated growth in
all the settled areas of the Rio de la Plata. The
viceroyalty experienced not only expanding internal
commerce, but also increasing overseas commerce and a
39. Ibid., 8.
40. Ibid., 28. Brown refers to the viceregal period
as the "golden age" of the colonial era.

39
favorable balance of trade that lasted until the end of the
colonial era.41
Potosí's silver dominated this commerce, comprising
between 50 and 80 percent of the total value of River Plate
exports.42 Efectos de la tierra followed, becoming more
and more important. Hides led this growth, increasing from
150,000 exported to almost 875,000 in 1796. Salted meat
exports to Havana followed, also rising, from 158 metric
tons in 1787 to 1,785 tons ten years later. Imports, led by
textiles from Spain, Britain and France, iron
from Vizcaya and luxury items from around Europe, also
reveal ascending trends.43
This commercial growth, Brown continues, reflects
demographic trends for almost all parts of the viceroyalty.
Drawing on the demographic studies of Jorge Comadrán Ruiz,
Brown argues that most of the Interior, as well as the River
Plate, experienced "anything but economic depression as a
41. Ibid., 30. Brown cites contemporary observers who
estimated the value of exports during the 1790s at
approximately five million pesos and imports at nearly three
million. These figures, he adds, may be low.
42. See also Garavaglia, "El ritmo de la extracción de
metálico desde el Río de la Plata á la Península," Revista
de Indias 36:143/144 (January-June 1976), 253-254.
Garavaglia proposes that silver exports neared six million
pesos in some years during the 1780s and 1790s.
43
Ibid., 30.

40
result of freer trade."44 Comadrán Ruiz' calculations for
the River Plate region show the population climbing from
37,130 in 1777-78 to 92,000 in 1809. The Tucumán region
grew from 123,985 to 211,867 during the same years, and Cuyo
from 23,411 to 59,954. Within these regions, only the Jujuy
jurisdiction declined, from 13,619 people to 12,278.45 The
most surprising growth was in Cuyo, where the population
more than doubled despite the difficulties endured by the
wine and aguardiente-producing industries (see Table 1.2).
This economic and demographic growth reflected what
Brown calls the "progressive expansion of the pastoral orbit
of Buenos Aires."46 This expansion involved not only the
area devoted to cattle production, but also the evolution of
cattle-breeding techniques--a process referred to as a shift
from hunting to husbandry. From the seventeenth century,
the principal pastoral products in demand in overseas
markets included hides, tallow and cured meats; until late
in the colonial period, hunting expeditions called vaquerías
slaughtered isolated herds of wild cattle that ranged the
44. Ibid., 35.
45. Data taken from Jorge Comadrán Ruiz, Evolución
demográfica argentina durante el periodo hispánico (1535-
1810) (Buenos Aires, 1969), 80-115.
46. Brown, A Socioeconomic History of Argentina. 35-
41. See also Horacio C. E. Giberti, Historia económica de
la ganadería argentina (Buenos Aires, 1960) .

40
Table 1.2. Population
1777 - 1809
Growth in the
Río de la Plata,
Recrion
1777-1778
1809
River Plate
37,130
92,000
Tucumán
Córdoba
40,203
60,000
La Rioja
7,690
12,619
Jujuy
13,619
12,278
Salta
11,565
26,270
Tucumán
20,104
35,900
Santiago del Estero
15,465
40,500
Catamarca
13,315
24,300
Cuyo
Mendoza
8,765
21,492
San Juan
7,690
22,220
San Luis
6.956
16.242
Totals
184,526
363,821
Source: Comadrán Ruíz, Evolución
argentina, 80-115.
demoaráfica
grasslands of the River Plate.47 Despite considerable
waste, vaquerías nevertheless met the demands of the
Atlantic market. Vaquerías, in a sense, also wasted
rangeland, given the tendency of hunters simply to extend
47. For a more complete discussion of the history of
vaquería cattle exploitation, see Emilio Coni, Historia de
las vaquerías del Río de la Plata. 1555-1750 (Buenos Aires,
1956) and Hernán Asdrúbal Silva, "La grasa y el sebo: dos
elementos vitales para la colonia: Buenos Aires en la
primera mitad del siglo dieziocho," Revista de Historia
Americana v Argentina 8:15-16 (1970-1971).

41
their hunts farther into frontier regions rather than try to
establish managed herds in already-hunted areas. By the
mid-eighteenth century, however, a number of different
pressures brought about a more efficient, better-managed
system of estancias. or formal cattle-breeding ranches, that
introduced better methods of pastoral production.48
Early estancias relied on unsophisticated roundups and
the branding of wild cattle that still grazed the unfenced
ranges. This "rudimentary husbandry," as Brown
characterizes it, assured the reproduction of herds and was
largely responsible for the success of cattle-breeding in
the Banda Oriental. Well watered, easily accessible and
free of Indian tribes that harassed ranching on the pampa,
the Banda Oriental quickly became the primary region of the
new techniques of cattle ranching. By the viceregal period
cattle grazing was well established here, generally oriented
toward the port of Montevideo. By the 1790s, saladeros. or
48. Brown, A Socioeconomic History of Argentina. 35-
41. See also Halperin-Donghi, "Una estancia en la campaña
de Buenos Aires, Fontezuela, 1753-1809," and Garavaglia,
"Las actividades agropecuarias en el marco de la vida
económica del pueblo de Indios de Nuestra Señora de los
Santos Reyes Magos de Yapeyú: 1768-1806," both in Enrique
Florescano, editor, Haciendas, latifundios v plantaciones en
América Latina (Mexico City, 1979); and Carlos A. Moncaut,
Estancias bonaerenses: Con la menuda historia de algunos
establecimientos, entre todos, de los partidos de Chascomus,
Randios, Magdalena, General la Valle v Luián. Historia y
tradición (City Bell, 1977).

42
simple meat-salting plants, prepared Banda Oriental beef for
export to Cuba and Brazil.49
This evolutionary process saw pastoral commodities rise
to become a "junior partner" in the River Plate's commerce,
second only to the export of Peruvian silver.50 The
process would continue through the viceregal period and into
the nineteenth century, helping fuel the increase in
international shipping, the consolidation of the merchant
class and the growing hegemony of Buenos Aires within the
Río de la Plata economy. When Peru's silver production
finally collapsed during the independence wars, the pastoral
economy stood poised to assume the role of dominant sector.
The early national period, in Brown's presentation, saw the
export of pastoral commodities from Buenos Aires begin to
carry the entire Rio de la Plata regional economy.
Industrial demands in Europe and North America, Brown
concludes, supported the increasing prosperity of this new
South American economy.51
49. For further discussion see Anibal Barrios Pintos,
Historia de la ganadería en Uruguay, 1574-1971 (Montevideo,
nd.); and by Alfredo J. Montoya, Historia de los saladeros
argentinos (Buenos Aires, 1956) and La ganadería v la
industria de salazón de carnes en el periodo 1810-1862
(Buenos Aires, 1971).
50. Ibid., 48-49.
51. Ibid., 49. Much of Brown's study is devoted to
explaining the relationship between the North Atlantic
industrial revolution and the sustained prosperity of Rio de

43
Brown's discussion of staple theory, demographic data
and expansion of the pastoral economy to Río de la Plata
helps explain the expansion of grain cultivation for the
domestic market in the River Plate revealed by Garavaglia.
Concentrated around the area's cities, the growth in farming
reflects both the increased economic activity and the
population growth that marked the viceregal era. Staple
theory also explains the prosperity of Córdoba, a city tied
to this expansion through its own hide and wool exports.
Similarly, the city's farming sector thrived as a
consequence of a "final demand" link to this prosperity.
The reorientation of Santa Fé, however, best illustrates the
association between increased commodity exports and economic
diversification. As Santa Fé's hide exports grew between
1786 and 1802, wheat cultivation became an increasingly
important element of the local economy. Population growth
in the jurisdiction, as well as increased commercial
activity, stimulated the production of foodstuffs important
to the local market.
Brown's study also further qualifies the
interpretations of Assadourian and Halperin-Donghi. His
application of staple theory and his subsequent arguments
maintain the self-sufficient nature of the South American
la Plata's pastoral economy. See chapters three and four.

44
economy despite the increasing importance of the pastoral
sector in the Río de la Plata. Brown clearly presents the
reorientation of the Rio de la Plata economy that saw the
rise of a pastoral economy oriented toward the Atlantic, but
he also recognizes the continued dominance of Peruvian
silver within the commercial sphere of the regional economy.
The Rio de la Plata's eighteenth-century diversification and
rise to prominence in South America drew on its ties to
North Atlantic markets, but did not signify a condition of
dependence. Growing international trade certainly stirred
the traditionally slow rhythms of the Rio de la Plata
economy, which increasingly relied upon industrial markets
in the North Atlantic, and the local pastoral boom certainly
stimulated a variety of economic activities throughout the
Litoral--grain cultivation provides a strong example. Other
areas suffered. Cuyo, unable to compete with cheap imports,
declined. Catamarca and La Rioja in the Tucumán region also
suffered in the face of competition triggered by the
viceregal era's adjustments. But full regional dependence,
rather than reliance, awaited the post-independence years
when the Peruvian silver sector had collapsed, overseas
trade climbed higher and higher and industrial technology
began to play a more and more important role in both
productive and extractive techniques.

45
The works of Assadourian, Halperin-Donghi, Garavaglia
and Brown represent the best synthesis of the Río de la
Plata's economic history. Together they present a clear
discussion of a complex era; they offer accurate context and
effective examples for further regional studies of the South
American colonial economy. Assadourian skillfully places
Rio de la Plata within a broader colonial system, and then
introduces the critical process of adjustment or
reorientation that defined the viceregal era. His elaborate
exploration of the Andean mining economy conveys a
sophisticated understanding of the interdependent nature of
the mining, agricultural and commercial components of the
colonial economic system, yet provides for the distinct
processes of specific regional histories.
Halperin-Donghi builds on Assadourian's foundation in
his regional study of Rio de la Plata. He concentrates on
the critical adjustments that diminished the role of the
mining sector within this region, a process that also
altered commercial relationships and promoted a new city to
positions of administrative and economic dominance. His
conclusions modify those of Assadourian: One South American
region, at least, began to withdraw from the greater
conjunction and lean more and more in the direction of the
Atlantic economy.

46
Garavaglia underscores the complexity of this process.
His tithe data confirms the reorientation of the Río de la
Plata's hide-producing economy and introduces another
important activity. Grain cultivation, he shows, emerged as
a key component of the Litoral economy and contributed to
regional development. Garavaglia's study emphasizes the
importance of careful regional analysis by demonstrating the
subtle differences from area to area that marked the dynamic
viceregal period. And by identifying three fundamental
component regions of the Rio de la Plata, Garavaglia
facilitates further examination of the colony's economic
history.
Brown, finally, introduces a new paradigm to the
synthesis of Platense history. His application of staple
theory provides a framework that weaves together these other
studies and explains the connections between the traditional
silver economy, the eighteenth-century processes of
adjustment and reorientation, and the Atlantic-oriented
growth of the Litoral based on hide production and the
diversification of component regional economies. Combined
with the works of Assadourian, Halperin-Donghi and
Garavaglia, Brown's staple theory lays the groundwork for a
closer look at Tucumán's regional economy.

CHAPTER TWO
THE TUCUMAN REGION
In 1773 when Don Alonso Carrió de la Vandera, perhaps
better known by his pen name Concolorcorvo, left Buenos
Aires on an extended overland trip to Lima, he entered the
Tucumán region at a place called Esquina de la Guardia, an
isolated post approximately 85 leagues northwest of Buenos
Aires. The spot marked the boundary between Buenos Aires
and Córdoba provinces.1 Following the Río Tercero north
and west into the Córdoba jurisdiction, Concolorcorvo
encountered a prosperous pastoral and agricultural economy
Five rivers flowing from the elevations and forests of
western Córdoba nurtured this economy in good years. The
Ríos Primero, Segundo, Tercero, Cuarto and Quinto watered
1. "Concolorcorvo" (Alonso Carrió de la Vandera), El
Lazarillo. A Guide for Inexperienced Travellers between
Buenos Aires and Lima. Translated by Walter D. Kline
(Bloomington, 1965), 140. A widely cited Spanish edition of
this work is El lazarillo de ciegos caminantes desde Buenos
Aires hasta Lima (Buenos Aires, 1942). The entire trip,
from Buenos Aires to Lima, Concolorcorvo calculated,
approached 950 leagues; the Tucumán portion, from the
frontier with Buenos Aires province to the border between
Jujuy and La Quiaca in the north, spanned approximately 380
leagues.
47

48
good pasturelands that supported herds of mules, cattle,
oxen, horses and sheep; irrigated farms in the populated
valleys of the jurisdiction grew crops of maize, wheat and
barley. Annual income from the mule and cattle trades alone
exceeded 600,000 pesos, Concolorcorvo claimed, adding that
the city of Córdoba, capital of one of the most prosperous
areas he would see in his subsequent travels, ranked among
the wealthiest cities of its size in Spanish America.2
The city's population numbered just over 7,000 when
Concolorcorvo saw it; the jurisdiction's population counted
almost 40,000. The city's many wealthy "principal
citizens," mostly pasture owners and merchants, lived in
fine houses and kept many black and mulatto slaves. Seat of
the bishopric of Tucumán and home to a cathedral, Cordoba
also boasted Dominican and Franciscan monasteries, two
convents, a crown-supported colegio and a Franciscan
university.3 "In few places of equal size in America,"
Concolorcorvo claimed, "does one find so much wealth."4
2. Ibid., 78.
3. Concolorcorvo provides this description; population
figures for Córdoba and the other Tucumán districts come
from Jorge Comadrán Ruiz, Evolución demográfica argentina.
47-54, 77-114.
4
Concolorcorvo, El lazarillo. 78-79.

49
Ten years later, in 1783, the city would be named seat of
the new Intendency of Córdoba de Tucumán, with its
jurisdiction spreading throughout the southern jurisdictions
of the Interior.
Concolorcorvo saw Córdoba just as it was emerging from
a long depression. The previous century had seen the steady
contraction of the provincial economy, and as late as 1740
the cabildo of Cordoba had complained of widespread poverty
in the jurisdiction complicated by a long drought that
inflated the prices of basic foodstuffs in the city's
marketplace.5 Since the beginning of the eighteenth
century, the cabildo explained, drought had diminished the
jurisdiction's production, hurting the livestock sector as
well as agriculture, and had triggered the ruralization of
the entire province.6 Many of the most respectable
5. "Carta de Cabildo de Córdoba al Rey, 1739," in
Carlos A. Segreti, ed., Córdoba, ciudad y provincia. Secrún
relatos de viajeros v otros testimonios (Córdoba, 1973) ,
124-125.
6. For a more complete discussion of this process of
the ruralization of Cordoba's society, see Assadourian,
"Integración y desintegración regional," 121-127. Ceferino
Garzón Maceda, Tucumán: Economía natural v economía
monetaria (Córdoba, 1968), 11-15, also discusses the
provincial depression and its consequences, including the
shortage of circulating currency and increasing ruralization
of Tucumán.

50
citizens had left the city for their ranches, citing the
greater comforts and savings of the countryside.7
By 1760, however, Cordoba's economy began its recovery.
The cabildo now wrote of abundant provisions and great
numbers of local livestock--cattle, sheep, goats, oxen,
horses and mules--once again entering the Peruvian trade.8
The mostly creole and casta population was widely dispersed,
living in nine partidos. or jurisdictions, that were
sufficiently watered by year-round rivers and streams.9
Cordoba historian Efrain Bischoff found that these residents
created more than 170 new estancias in the jurisdiction
7. "Carta del Obispo de Tucumán, don Juan de
Sarricola, al Rey, 1729," in Segreti, Córdoba, ciudad y
provincia. 114-116.
8. "Informe del Cabildo de Córdoba al Rey, 1760," in
Segreti, Córdoba, ciudad v provincia. 155-164.
9. See the "Oficio del gobernador-intendente de
Córdoba Marqués de Sobremonte al virrey Marqués de Loreto,"
dated November 6, 1785, in Archivo General de Indias
(A.G.I.), Buenos Aires 50, "Correspondencia con los
Gobernadores de Tucumán, 1783-1806" (folios not numbered).
This document is also transcribed in Jose Torre Revelo, El
Marqués de Sobremonte. Gobernador Intendente de Córdoba y
Virrey del Río de la Plata. Ensayo histórico (Buenos Aires,
1946), xci-ciii. Sobremonte included the populations of the
9 additional settlements in the Córdoba district: Rio
Segundo, 3,568; Río Tercero, 3,580; Río Quarto, 3,736;
Calamuchita, 2,548; Tras la Sierra, 2,967; Tulumba, 2,507;
Punilla, 3,867; Yschilin, 1,105; and Río Seco, the largest,
with 5,038 inhabitants.

51
during the 1760s and 1770s.10 By the 1770s, at any rate,
Córdoba had re-established its position as the staging
ground for the Peruvian mule trade. Local landowners once
again purchased large numbers of young mules from breeders
in Buenos Aires, Santa Fé and Corrientes. These animals
wintered in the fertile pastures of Córdoba for later sale
to Salta dealers, and ultimately, to Peruvian buyers. This
mule trade, Concolorcorvo noted, dominated Cordoba's economy
as well as that of the entire Tucumán region.11
Cordoba's pastures also supported herds of cattle that
provided hides and other by-products that figured among the
most important regional exports. Local merchants exported
many unprocessed hides, many that were tanned into leathers,
and many more that were made into cases and containers. The
cattle herds also provided the grease and tallow necessary
to make the soap that Córdoba sold in the Buenos Aires
markets. Herds of sheep provided great quantities of wool
that rural inhabitants wove into ponchos, blankets and
saddle-blankets that sold throughout the region and in
Buenos Aires and Chile. The city's abundance, Cordoba's
10. Efraín Bischoff, Historia de Córdoba. Cuatro
siglos (Córdoba, 1977), 61.
11
Concolorcorvo, El lazarillo. 111.

52
Aw
*
P € P V
Figure 2.1.
Tucumán and Cuyo Regions, c. 1776

53
bishop recognized in 1773, arose from the fertile pastures
that supported these pastoral industries and nurtured the
growth that saw the population increase from a low of
perhaps 2,000 inhabitants in 1750.12
Five military posts to the south guarded the frontier
and defended Cordoba's pastoral economy from the "enemy
Indians" of the pampas who had long maintained an active
hostility to the Spanish settlements.13 The enemy tribes
raided frequently and left their mark; over the past several
years, Sobremonte explained, the Río Cuarto partido had seen
its mule exports diminish from 6,000 annually to only 1,400
in 1785. With four new posts planned, he hoped, such areas
might be repopulated and earlier prosperity recaptured. The
Cordoba jurisdiction also counted eleven small pueblos de
12. See the "Informe del Obispo Moscoso al Rey sobre
su Obispado (Salta de Tucumán)" in Revista de Buenos Aires.
27 volumes. (Buenos Aires, 1865-1871), volume 25 (1865), 19-
67. Although this informe is not dated, others argue that
it was written in 1773--see Edberto Oscar Acevedo, La
intendencia de Salta de Tucumán en el virreinato del Río de
la Plata (Mendoza, 1965), 12, footnote 6. Moscoso's 1750
population estimate came from a relación submitted by the
Bishop Pedro Miguel de Argandoña in 1750.
13. Sobremonte, "Oficio (1785)." Sobremonte described
the frontier as running from the Fuerte de las Tunas in
Buenos Aires' jurisdiction to San Luis in Cordoba's; the
forts that Córdoba supported include the two fuertes of
Saladillo and Sauce and the fortines of San Bernardo, Santa
Cathalina and Concepción del Río Cuarto.

54
indios. which together comprised only 195 tributaries who
generally paid their tributes with lengths of cotton
cloth.14 A number of Cordoba's landowners even claimed
encomienda rights on very small numbers of Indians; during
the viceregal era the numbers probably never surpassed many
more than several dozen encomenderos with one, two, three or
four assigned Indians apiece.15
One hundred and fifteen leagues north of Córdoba,
Concolorcorvo reached the much smaller city of Santiago del
Estero. Situated on the banks of the Río Dulce, the city
counted fewer than 1,750 residents while the jurisdiction
numbered over 15,000. The area's poverty struck its
visitors. Concolorcorvo described the jurisdiction as
"saltpetrous" and "exposed to floods," and said that most of
the jurisdiction's residents, "scattered about in huts, are
miserable souls."16 Bishop Moscoso added that the entire
jurisdiction lacked any "moral culture" and was "falling
from civilization"--conditions due, he suggested, to the
14. Ibid. Sobremonte listed these pueblos: San
Antonio Nonsacate, Quilino, San Jacinto, Soto, Pichana,
Salsacate, Nono, Cozquín, La Toma and Los Ranchos.
15. See Adolfo Luís González Rodríguez, La encomienda
en Tucumán (Seville, 1983).
16
Ibid., 85.

55
prevalence of the Quechua language among the rural
inhabitants. Sandy soils limited the agricultural potential
of the jurisdiction, and the local economy depended upon the
Buenos Aires-Lima trade.17 With little livestock
production and even less commercial farming, the
jurisdiction was better known for the handwoven ponchos,
blankets and saddle-blankets that provided income for the
rural population.18
Concolorcorvo also noted that the men of Santiago del
Estero enjoyed reputations as the best soldiers in the
province, long familiar with Chaco Indian raids. With its
largely Indian population, prevailing poverty and the long
history of frontier hostilities, the jurisdiction became an
important source of agricultural labor for the Litoral
region during the viceregal period.19
Forty leagues north, the traveller entered the city of
San Miguel de Tucumán, higher in elevation than the southern
17. Moscoso, "Informe," as follows: "No es menos
tardia su cultura en el moral, pero mas de notarse estilos
que desdicen de la civilización, conservan la lengua
quichua-cari, por idioma dominante de todos sus vecinos."
18. Halperín-Donghi, Politics, Economics and Society.
9, characterizes this domestic weaving as a "flourishing"
activity. Concolorcorvo said it was meager.
19
Ibid., 9.

56
jurisdictions and more prosperous than Santiago del Estero.
Concolorcorvo admired the jurisdiction's good pastures,
extensive forests and abundance of fine woods, all important
to the local economy; Bishop Moscoso described "all the
natural advantages that come together to benefit this
place." The jurisdiction's population exceeded 20,000 with
about 4,000 in the city itself; the approximately 24
principal residents prospered mainly from the carrying trade
that was so important to the jurisdiction's economy.
Ranching, especially the breeding and training of oxen for
the carting trade, also contributed to the local economy.20
The jurisdiction also figured as an important craft center,
where hide tanning and the export of leathers employed many
and carpentry many more. Cut wood and trimmed lumber and
hand-crafted furniture from San Miguel de Tucumán sold
throughout the Interior as well as in the Litoral
settlements. The construction of large carts, as many as
200 each year, reflected the city's role in the Buenos
Aires-Potosí trade.21
20. Concolorcorvo, El lazarillo. 87; Moscoso,
"Oficio."
21. Carlos Páez de la Torre, Historia de Tucumán
(Buenos Aires, 1987), 134-135; Osvaldo Raúl Bazán, Historia
del noroeste argentino (Buenos Aires, 1986), 38-43.

57
Agriculture was sparse in this jurisdiction, but rice
grown here merited special note in a consulado report to the
viceroy in 1797, and citrus, especially oranges, warranted
specific mention in El Correo Mercantil de España v sus
Indias in the same year.22 The jurisdiction also produced
a fine tobacco, called Andullo, that sold throughout the
province and in Alto Perú but competed with tobacco grown in
Paraguay and Nueva Granada. In 1779 the contador Juan
Francisco Navarro, travelling to a new position in Buenos
Aires, recommended that the crown stop buying these other
types of tobacco for sale in Peru and limit commerce to the
San Miguel de Tucumán variety. Citing its equal or even
superior quality, Navarro noted the cheaper transportation
costs, and hence the greater profitability, of Tucumán
tobacco.23 In 1785, however, officials at the Real Renta
de Tobaco prohibited further cultivation of tobacco in San
Miguel de Tucumán as punishment for fraud and bad faith in
22. See Acevedo, La Intendencia de Salta. 224, for a
discussion of rice cultivation in the district, and Páez de
la Torre, Historia de Tucumán. 134, for the text of El
Correo Mercantil.
23. Edberto Oscar Acevedo, "El viaje del contador
Navarro entre Lima y Buenos Aires en 1779," in Revista de
Historia Americana v Argentina. 2: 5/6 (1960-1961), 305-306,
312-316.

58
its commerce with Cuyo.24 Consequently, this potential
asset to the provincial economy never fully developed.
Similarly, Navarro commented on the jurisdiction's limited
sugar cultivation, in which he again saw considerable
potential. He recommended encouraging its expansion into
the Peruvian market, again citing low transportation costs.
Sugar production expanded slowly in San Miguel de Tucumán,
however, and did not become a significant item in provincial
exports until after the colonial regime.25
Salta appeared next on the Buenos Aires-Potosí road,
approximately 75 leagues beyond San Miguel de Tucumán. In
Concolorcorvo's day, Peruvian merchants had already made
Salta famous for the great livestock fair held on the city's
outskirts.26 Salta had once rivalled Córdoba for the
dominant position in the Río de la Plata interior; in 1782
it became seat of the Intendency of Salta de Tucumán with
jurisdiction over the other cities of Santiago del Estero,
San Miguel de Tucumán, Catamarca and San Salvador de Jujuy.
24. Acevedo, La intendencia de Salta. 315-319.
25. Acevedo, "El viaje de Contador Navarro," 317-318
26. Concolorcorvo, El lazarillo. 108. Concolorcorvo
estimated that Salta annually sent some 60,000 mules and
4,000 horses to Peru, a figure that seems high in light of
existing records of the trade.

59
Salta's population was quite small--perhaps 4,300 in the
city and some 11,500 in the jurisdiction, but the landowning
class constituted a powerful force and the city's key role
in the Peruvian trade gave it an influential position in
viceregal affairs.27
The Peruvian trade dominated the jurisdiction's
economic life, which centered around the mule trade and
commerce. The jurisdiction's fine pastures strengthened the
young mules brought from the south--as Concolorcorvo
explained, the owners of Salta's pastures knew well that
their lands were best used for maturing the young animals
rather than for breeding them.28 Salta, like Córdoba,
served as an important commercial center, each year seeing
the arrival of many cartloads of merchandise from Buenos
Aires and from throughout the province, destined for markets
in Potosí and throughout Alto Perú. The jurisdiction knew
limited industry, however; the insignificant textile
producers here could not compete with those in Córdoba or
with the very cheap cloths produced throughout Alto Perú.29
27. Halperin-Donghi, Politics, Economics and Society.
7-8 .
28. Concolorcorvo, El lazarillo. 108.
29. Pedro Santos Martínez, Las industrias durante el
virreinato (1776-1810) (Buenos Aires, 1969), 38-50.

60
Eighteen leagues past Salta, the traveller arrived in
San Salvador de Jujuy, the northernmost city in the Tucumán
region. A city of only 1,700 residents in a jurisdiction
with around 13,500, San Salvador de Jujuy had once known
better times. By the onset of the viceregal era, however,
Jujuy had declined to a position of secondary importance,
described by Bishop Moscoso as a place of "little society."
While Salta controlled Tucumán's mule trade, Jujuy claimed
the much less lucrative cattle trade with Alto Perú, selling
several thousand animals annually to buyers from the
provinces of Chichas and Porco.30 Jujuy's large Indian
population also contributed significant amounts to the royal
treasury; concentrated in an area north and west of the city
known as La Puna, the pueblos de indios that included
Rinconada, Cochinoca, Purmamarca, Tumbaia, Tilcara and
Humahuaca together paid several thousand pesos in yearly
tribute obligations.31 But Jujuy's location as the
northernmost jurisdiction in Tucumán provided its most
important advantage, giving it control of the terminus of
the cart route through the province and a monopoly on the
30. Concolorcorvo, El lazarillo. 137.
31. A.G.I., Buenos Aires 458, "Cuentas de Real
Hacienda de Salta y Jujui (1782-1786)."

61
transshipment of merchandise into Alto Perú on the backs of
tamed mules.32 Only mules broken and trained for the task
in the pastures of the jurisdiction could manage the
difficult 100-league carriage from San Salvador de Jujuy to
Potosí .33
The Salta and Jujuy jurisdictions also supported a line
of frontier fortifications intended to keep hostile Chaco
Indian bands from raiding vulnerable haciendas. Supported
by the Jujuy treasury, the presidios of Los Dolores,
Ledesma, San Bernardo and Santa Bárbara garrisoned perhaps
100 soldiers. The Salta-supported posts, including the
presidios of San Luis and San Carlos, occupied 88 more.
Together the two jurisdictions spent over 30,000 pesos each
year paying salaries and supplying provisions for these
defenses.34
Two other Tucumán jurisdictions off the main road
claimed some importance. Although they generated less
32. Acevedo, Intendencia de Salta. 285.
33. Acárete du Biscay, An Account of a Voyage up the
River de la Plata, and thence Overland to Peru (Northhaven,
1968; London, 1698), 38.
34. A.G.I., Buenos Aires 4 68, "Expedientes sobre la
Sisa de Tucumán, y reducción de indios (1784)," a document
titled "Plano de la tropa de las fronteras de esta ciudad to
Salta, y la de Jujuy" (folios not numbered).

62
vibrant economies, the Catamarca and La Rioja jurisdictions
contributed in specialized ways to the Tucumán regional
economy and often appear in treasury records and in official
informes and relations. The Catamarca jurisdiction,
northwest of Córdoba in the arid foothills of the Andes,
counted a poor population of some 15,000 inhabitants, with
about 6,500 of these in the city of Catamarca. The city sat
in a valley shadowed by the Cerro de Aconquija to the north;
year-round streams provided water for the city and irrigated
crops in the valley. Bishop Moscoso wrote that hills and
higher valleys sheltered haciendas of "sown fields and large
and small livestock," but that the principal crops were
cotton and peppers, both grown in noteworthy quantities and
carried to market in Córdoba. Catamarca's rural population
and small pueblos de indios produced quantities of coarse
cotton linens that were consumed locally or sold in
neighboring jurisdictions. Farmers in Catamarca also
practiced some irrigated market gardening, viticulture and
tobacco cultivation, and in the higher areas some wheat
cultivation, but Catamarca's inhabitants consumed most of
this production locally.35
35. Halperin-Donghi, Politics. Economics and Society.
13. For more discussion of Catamarca, see Acevedo, La
Intendencia de Salta.- Bazán, Historia del noroeste

63
South of Catamarca stretched the La Rioja jurisdiction.
The city of La Rioja, described as a "small and backward"
collection of "miserable huts" by the Marqués de Sobremonte,
counted about 2,100 residents. Bishop Moscoso claimed that
this jurisdiction barely supported the city; its commerce,
he wrote, was "of little consequence." The jurisdiction,
with about 9,700 people, mainly produced small quantities of
wine and aguardiente for sale in neighboring cities. It
also grew small amounts of cotton used by local weavers in
their "obras caseras."36 Livestock, including mules,
cattle, sheep and goats, generated some income for
landowners, but even most of the mules used to carry La
Rioja's products came from Córdoba. La Rioja's jurisdiction
included the mines of Famatina, where 7,500 people populated
a fairly fertile area that nevertheless saw little
argentiñol Carlos villafuerte and Rogelio Machado,
Catamarca, camino y tiempo (Buenos Aires, n.d.). For more
on Catamarca's textiles, see Carlos A. Dellespiane y
Calcena, "La artesanía del tejido en Catamarca," in Primer
Congreso de Historia de Catamarca. 3 volumes (Catamarca,
1966), volume III, 91-106.
36. Sobremonte, "Oficio (1785)" and Moscoso, "Informe"
both note La Rioja's small economy. Sobremonte's report
includes a list of the eleven pueblos de indios--Sanagasta,
Machinagasta, Aimogasta, Sauces, Pituil, Famatina,
Malligasta, Anguinam, Sanogasta, Uichigasta and Oita--that
together comprised only 118 tributaries who generally paid
their tributes with lengths of cotton lienzos.

64
cultivation. The mines barely produced; when Sobremonte
visited in 1785 they had long since played out and the many
poor souls still mining the area barely scratched out a
living.
Falling outside the Tucumán region proper (as defined
by Garavaglia) and constituting the regional economy of
Cuyo, the jurisdictions of Mendoza, San Juan and San Luis
merit attention here because they comprise a vital component
of the Interior economy, and, as Assadourian, Halperin-
Donghi and Garavaglia argue, they also felt the impact of
eighteenth-century adjustments. The jurisdiction and city
of Mendoza, in the eastern foothills of the Andes bordering
Chile, dominated the Cuyo region. Famous as an agricultural
center, the jurisdiction population of about 9,000 people,
with about 7,500 of these residing in the city, relied on
the good climate, fertile soil and abundant water in the
jurisdiction. Sobremonte admired the extensive irrigation
system that brought water from the Rio Mendoza to most
houses in the city and nourished the fine fields, gardens,
vineyards and orchards. Irrigation supported an abundance
of almost all crops and products that included dried fruits,
flour, and oil. But the wine production that dominated this
agricultural center formed the great bulk of exports to

65
Buenos Aires. The jurisdiction also engaged in some
ranching, albeit on a smaller scale and directed mainly
toward the local market or for export to Chile. Ranching
concentrated in the Valle de Uco, where fine alfalfa
pastures supported healthy herds and exports of animal by¬
products that included hides, soap, tallow and grease.37
Transportation and commercial activities and mining
also figured among Mendoza's important economic sectors.
Carrying both European imports to markets in Chile and the
jurisdiction's own products to market in Buenos Aires,
between 1,000 and 1,500 carts travelled between Mendoza and
the River Plate each year, and thousands more mules
continued the short but arduous journey over the Andes. In
the Valle de Uspallata, in the sierra north and west of the
city, traces of gold, silver and copper supported small
mining efforts and generated Sobremonte's considerable
enthusiasm in 1785. As in Famatina, however, the Uspallata
mines never became an important source of income.38
37. Pedro Santos Martínez, Historia económica de
Mendoza durante el virreinato (1776-1810) (Madrid, 1961),
102-106; Pedro Santos Martínez, et al., Historia de Mendoza
(Buenos Aires, 1979), 34-36; and Jorge M. Scalavini,
Historia de Mendoza (Mendoza, 1965), 86-92.
38. Despite the predictions of Francisco Serra Canals,
who served as the Superintendent of Royal and Public Works
for the Province of Cuyo, the mines never became important.

66
Just north of Mendoza, also in the Andes foothills, the
jurisdiction of San Juan counted some 7,700 mostly mestizo
inhabitants, with around 6,150 of these in the city of San
Juan. This jurisdiction specialized in the production of
aguardiente, especially double-distilled, or resacado. of
the best quality and so strong, according to Concolorcorvo,
"that mixing it with common stock gives it as much fire as
that of Andalucia or Cataluña."39 Prior to the creation of
the viceroyalty, Sobremonte noted, San Juan's aguardiente
sold widely throughout the River Plate and in Peru, but it
suffered declining distribution in the face of competing
quantities imported from Spain.40 San Juan's estates also
produced maize and other crops including hemp, mainly for
In 1785 Serra Canals claimed that "experience has shown the
mines to be most useful, capable of supporting considerable
population and the continuous removal of silver." In his
"Testimonio de Autos sobre las Minas de Huspallata" he
requested 20,000 pesos to study the possibility of
rehabilitating the Huspallata mines. The documents do not
reveal whether his request was ever granted. See his
"Testimonio" in A.G.I., Buenos Aires 50, "Correspondencia
con los gobernadores de Tucumán, 1783-1806," dated 1785
(folios not numbered).
39. Concolorcorvo, El lazarillo. 81. Concolorcorvo
noted that this strong brandy was also called acruardiente de
cabeza, perhaps in reference to its strength.
40. "Oficio del Marqués de Sobremonte, Nov. 11, 1785,"
See also Carmen P. de Varese and Héctor D. Arias, Historia
de San Juan (Mendoza, 1966), 54-58.

67
the local market. Carting never developed in San Juan
because mules proved better-suited to carrying the area's
aguardiente to markets in Buenos Aires, Chile and the north.
The last jurisdiction of significance was isolated,
poor San Luis, little more than a stopping point on the
Buenos Aires-Mendoza road. About 185 leagues west of Buenos
Aires, 70 leagues east of Mendoza and about 85 leagues south
of Córdoba, this isolated frontier jurisdiction numbered
about 7,500 residents, with about 3,700 in the city of San
Luis. Most of this population lived in poverty,
occasionally working as peon laborers with the passing cart
or mule trains or driving livestock to either Chile or
Córdoba.41 Sobremonte noted that because the jurisdiction
lacked even a single mill, the residents grew little more
than maize and imported what little wheat flour they could
afford from Mendoza. He also described a limited craft
industry, similar to that of Santiago del Estero, with women
producing small numbers of ponchos and blankets for trade
with more prosperous communities. Large herds of sheep,
which counted as many as 70,000 to 80,000, supported this
weaving.
41. Urbano J. Núñez, Historia de San Luis (Buenos
Aires, 1979), 92. Sobremonte's "Oficio" also includes a
good description of economic conditions in this district.

68
San Luis did become an important vaquería staging
ground. In the spring of each year wealthy outsiders from
Buenos Aires, Chile or Córdoba arrived to hire a foreman and
crew of ten or twelve peons to enter the pampas south of the
jurisdiction to round up or slaughter wild cattle, and
sometimes horses and mules.42 Each year five or ten or
fifteen such expeditions entered the unsettled lands, each
"harvesting" around 5,000 animals. Organizers of these
vaquerías from Buenos Aires generally came for hides that
were carted back to the port; those from Chile and more
often Córdoba drove these wild herds back to their own
pastures. During the last decades of the eighteenth
century, San Luis managed to maintain a steady commerce with
neighboring jurisdictions based on these roundups. Córdoba
became an important market for San Luis mules; Mendoza
purchased more and more of the wild cattle. Finally, San
Luis also maintained a small, if regular, export of animal
by-products--wool, hides, tallow, grease, soap, even dried
meat (charque). and, occasionally, cheese.
By the late eighteenth century, the Tucumán
jurisdictions comprised an economically diversified region
with a variety of productive activities and a strong
42
Núñez, Historia de San Luis, 86-92.

69
commercial sector. The pastoral sector predominated,
providing income to each of the jurisdictions and
constituting the infrastructure that supported the
development of secondary activities such as tanning, weaving
and market agriculture. The vitality of this regional
economy depended on both access to, and relations with, the
markets in both Buenos Aires and Peru. Furthermore, the
Tucumán region imported few goods aside from luxury goods
and hardware. Almost all the staple foods, textiles and raw
materials consumed in the region came from local producers.
Carrying this production to market and handling the Buenos
Aires-Peruvian trade added another important element to the
regional economy. The following chapters examine the
productive, the commercial and the transport activities of
Tucumán more closely.
The demographic characteristics of the Tucumán region
during the viceregal era, however, reflected geographic and
economic differences that also characterized the region.
The numbers of people populating each jurisdiction, and the
numbers living in each city, varied widely within the
region. The region proved rather racially balanced overall,
but exhibited significant local contrasts. Clustered
populations of Indians, castas (mixed-race) and Spanish and

70
creole blancos tended to give specific appearances to
different jurisdictions and suggest that local economic
conditions within the region were associated with the racial
composition of the local population.
The combined population of the Tucumán jurisdictions
totalled almost 126,000 in 1779.43 Córdoba, with just over
40,000, or 32 per cent of the regional population,
constituted the largest. San Miguel de Tucumán, with just
over 20,000 residents, or about 16 per cent of the total
regional population, was the second largest. La Rioja, with
only 9,700 (about 8 per cent), and Salta, with 11,500 (about
9 per cent), were the smallest jurisdictions. Jujuy,
Catamarca and Santiago del Estero each claimed roughly 12
per cent of the total regional population.
The northern and western reaches of the region recorded
generally smaller populations than the southern parts.
Salta and Jujuy combined, for instance, still had 10,000
fewer inhabitants than Córdoba. Catamarca and La Rioja
together were smaller still. Well over half the regional
43. The following figures are adapted from Comadrán
Ruiz, Evolución demográfica argentina. 80-81. Comadrán Ruiz
bases his discussion on a number of sources, and for the
Interior relies most heavily upon the censuses and summaries
produced by the bishoprics of Santiago de Chile and Tucumán
(see page 79, footnote 3).

71
population lived in the three jurisdictions of Córdoba,
Santiago del Estero and San Miguel de Tucumán. Table 2.1
presents jurisdiction and city populations for the Tucumán
and the Cuyo regions. Table 2.2 reveals several important
demographic characteristics of the Tucumán region by
providing a more specific portrait of the regional
population classified according to race. First, the casta
grouping, made up of mestizo, mulatto, and free and enslaved
blacks comprised the largest part of the population,
approximately 45 per cent of the total. The Indian and
bianco, those of Spanish birth or considered of Spanish
descent, populations were about equal, each comprising
approximately 27 to 28 per cent of total. Jujuy was by far
the most Indian jurisdiction, with 82 per cent of its
inhabitants classified as Indian. La Rioja followed, with
approximately 53 per cent of its inhabitants classified as
Indian. Córdoba, with roughly 45 per cent of its
inhabitants classified as bianco, and Catamarca, with
roughly 30 percent, proved the most Spanish jurisdictions.
Santiago del Estero (54 per cent) and San Miguel de Tucumán
(64 per cent) both counted populations that were more than
half casta, while Córdoba counted just under half its
population (45 per cent) as casta. Salta's population

72
Table 2.1. Populations
, Tucumán and
Cuyo, 1779
Tucumán
Jurisdiction
City
Córdoba
39,673
7,283
Santiago del Estero
15,465
1,776
San Miguel de Tucumán
20,104
4,087
Salta
11,565
4,305
San Salvador de Jujuy
13,519
1,707
Catamarca
15,315
6,441
La Rioja
9.723
2.172
total
125,355
27,771
Cuyo
Mendoza
8,765
7,478
San Juan
7,690
6,141
San Luis
6.956
3.684
total
23,411
17,303
Source: Jorge Comadrán Ruiz, Evolución demográfica
argentina, 80-81.

73
Table 2.2.
Populations
by Race and Caste, Tucumán,
1779
Jurisdiction
blancos
castas
naturales
totals
Córdoba
17,863(45%)
17,626(45%)
4,184(10%)
39,673
Santiago 2,247(14%)
del Estero
8,312(54%)
4,897 (32%)
15,456
San Miguel 3,166(16%)
de Tucumán
12,869(64%)
4,069 (20%)
20,104
Salta
3,190(27%)
5,305(46%)
3,070(27%)
11,565
San Salvador
de Jujuy
653(5%)
1,785 (13%)
11,181(82%)
13,519
Catamarca
4,590(30%)
7,908(52%)
2,817 (18%)
15,315
La Rioja
2.617(27%)
1.906(20%)
5.200 (53%)
9.723
totals
34,326(27%)
55,711(45%)
35,418(28%)
125,355
Source: Comadran Ruiz,
Evolución democrráfica arcrentina.
80
-81.
proved the most balanced, with roughly 50 per cent casta, 25
per cent Indian and 25 percent bianco.
With Jujuy's large Indian population, the north counted
over half its inhabitants (57 per cent) as Indian, far more
than the southern (17 per cent Indian) or the western (32
per cent Indian) jurisdictions. The southern jurisdictions

74
of Córdoba, Santiago del Estero and San Miguel de Tucumán,
in contrast, together counted a population that was about 51
per cent casta and less than 20 per cent Indian. Only in
Córdoba and La Rioja did blancos outnumber castas and only
in Córdoba and Catamarca did blancos outnumber Indians. In
most places Indians proved the minority. The western
jurisdictions of Catamarca and La Rioja counted a fairly
balanced population--roughly 7,600 blancos (29 per cent),
10,000 castas (39 per cent) and 8,000 Indians (32 per cent).
Table II also reveals a decidedly rural population in
the Tucumán region, with just under 22 per cent of the total
population residing in the cities. The rest of the region's
population lived widely dispersed throughout a vast
territory, very seldom coming into contact with the cities,
church or royal government--what Sobremonte called "civil
life."44 Sobremonte wrote at the end of his long report to
the crown in 1785 that the most serious difficulties in his
Córdoba de Tucumán intendency were the lack of formal towns,
the shortage of priests and the persistence of rustic
customs. "The perseverance of rustic customs and the
ignorance of religion or a true understanding of what a
vassal owes his sovereign makes the collection of taxes and
44
Sobremonte, "Oficio (1785)."

75
tithes very difficult," Sobremonte complained. If
Sobremonte attributed much of the widespread theft of
livestock in the countryside to the isolation and poverty of
so many rural inhabitants, he also recognized the deficient
administration of the countryside. Ignorance, corruption
and "a lack of zeal" too often characterized the alcaldes of
the rural jurisdictions of Tucumán.
What the intendency most needed, Sobremonte suggested,
was new towns along the royal roads to both Buenos Aires and
Mendoza. Cordoba's southern jurisdictions of Ríos Tercero
and Cuarto particularly needed new towns to give their
inhabitants better opportunities to sell their cattle.
Villas of 30 to 40 people, with a house for each family and
a church, would begin to address the shortcomings of the
countryside. Sobremonte's plan called for the construction
of two such villas at a cost of 6,705 pesos for materials
and the salaries and rations of workers. He even suggested
that the project be funded with revenues from the sales of
playing cards and tobacco, but like many plans for the
development of his jurisdiction, Sobremonte's call went
unheeded in Buenos Aires and in Spain.45
45. Sobremonte's proposal is found in an untitled
report addressing the lack of "pueblos formales" in Cordoba
de Tucumán--see A.G.I., Buenos Aires 50 (folios not

76
This brief economic and demographic survey suggests
three vaguely distinct zones within the Tucumán region. In
the north, the jurisdictions of Salta and San Salvador de
Jujuy comprised one fairly cohesive zone. Here economic
activity displayed a greater reliance upon the livestock
trade with Alto Perú. Salta specialized in the sale of
mules and Jujuy in the sale of cattle; other than these
sectors, however, the north generated little production.
The overwhelmingly rural and largely Indian population in
the north further distinguished the north from the more
mestizo and bianco populations in the southern and western
zones.
In the southern zone, comprised of the jurisdictions of
Córdoba, Santiago del Estero and San Miguel de Tucumán, the
economy proved more diversified. Livestock and ranching
still dominated, but this activity here stimulated
processing of pastoral by-products. Hides figured as the
most important, but wool and woolen goods also became major
exports from the southern zone. This southern zone also
benefitted from its better access to Buenos Aires, a
critical market for all the southern products except mules.
numbered) dated Córdoba, November 6, 1785.

77
As in the north, commerce and the carrying trade, tied to
the Buenos Aires-Peru trade, also became important. The
larger populations in the southern jurisdictions also
differentiated the south from the north. Both San Miguel
and Santiago del Estero counted decisively casta
populations, while Córdoba counted a bianco population equal
in size to the casta group. The southern zone emerged
during the viceregal era as a solidly creole part of the
colonial system.
The western zone, made up of the Catamarca and La Rioja
jurisdictions, comprised the poorest component of the
Tucumán regional economy. Each jurisdiction specialized in
one primary export without even the carrying or commercial
sectors to exploit. Córdoba effectively dominated the
regional marketing of the western jurisdictions' products:
much of Catamarca's cotton and linens and La Rioja's wine
sold through the larger city's plaza. Interestingly, the
western zone exhibited the most racially-balanced population
in Tucumán, with roughly equal numbers of white, casta and
Indian populations.
The Tucumán region, then, featured considerable local
differentiation. Prosperous and diversified areas such as
Córdoba and San Miguel de Tucumán contrasted with poorer,

78
more specialized jurisdictions such as Jujuy and La Rioja.
The region also boasted important cities just as it lamented
its vast stretches of desolate countryside. Indian zones
such as La Puna and western Catamarca remained isolated from
mestizo and Spanish areas, and "rustic" rural society
clashed sharply with the urban ambience of Córdoba and
Salta. But the local differences were outweighed by the
regional unity lent by the principal economic sector--the
export of pastoral products. The component Tucumán
jurisdictions functioned as a cohesive regional economy
through their unchallenged "production" of livestock that
provided the means to exploit Peru's need for livestock and
Buenos Aires' clamor for hides. Tucumán's commercial role
as intermediary in the Buenos Aires-Peru trade lent further
cohesion to the region. Local merchants passed large
quantities of valuable European imports through the Tucumán
jurisdictions each year. Finally, these commercial pursuits
complimented and stimulated the carrying trade in Tucumán,
another regional specialty that lent unity and even a sense
of identity to the region.

CHAPTER THREE
PRODUCTION
Ranching, livestock exports and the processing of
pastoral by-products dominated the Tucumán regional economy.
The export of mules to Peru figured as the region's most
prominent activity, but cattle exports and the production of
hides, leathers and soap and their export to Buenos Aires,
Chile and Peru also contributed. Local consumption of meat
in the region's cities and countryside further added to
statistics. Livestock production included sheep raising,-
wool from Cordoba's large numbers of sheep proved another
important resource. The region exported some raw wool, but
processed much more into textiles and finished goods such as
ponchos and blankets. Livestock and pastoral by-products,
plus a number of other agricultural and manufactured goods,
provided the Tucumán region with the material base for both
moderate prosperity and measurable growth. Provincial tax
registers that afford a close examination of the productive
side of Tucumán's economy recorded much of this activity.
This chapter presents a survey of economic production in
79

80
Tucumán, first examining the livestock and pastoral by¬
product sectors of the economy and then turning to the range
of secondary activities that included cotton cultivation and
the manufacture of inexpensive cotton and woolen textiles,
viticulture and the production of wine and aguardiente,
lumber processing from regional forests and mineral
extraction from the high, isolated mountains of western
Tucumán.
As Concolorcorvo noted in 1773, the mule trade
constituted the principal business for the wealthiest
Tucumán landowners. This mule trade then served the
seemingly limitless Peruvian market, where the animals not
only filled the demands of Potosí's mining sector and
colonial transportation activities, but also constituted a
major item in the repartimiento de mercancías that widely
featured the forced sale of a variety of goods, including
mules, to Andean Indian communities. Responding to these
markets from the earliest years of the colonial period, and
especially after the economic recovery that followed the
mid-eighteenth century, mule raising had a long history in
the Tucumán region. A number of studies examine this trade,
especially for the most prosperous years. These studies
mostly count the numbers of animals exported from the region

81
using treasury records from Salta, the city that marketed
the animals into Alto Perú.1
Assadourian's various studies of the Río de la Plata
economy include one examination of Cordoba's mule trade
throughout its colonial history.2 He distinguishes three
phases characterizing this trade, extending them to the
entire Tucumán region and arguing that they reflect the
broader economic history of his Peruvian economy. His
analysis identifies an initial phase of general prosperity--
a period of expansion and then stability, marking roughly
the entire seventeenth century. A steady decline spanned
the first half of the eighteenth century, followed by a long
period of recovery and growth from 1750 until the end of the
colonial era. Short-term trends emerge within these longer
phases, but Assadourian's outline provides a reasonable
picture of the Tucumán experience. Early in the seventeenth
1. See Estela B. Toledo, "El comercio de muías en
Salta: 1657-1698," in Anuario del Instituto de
Investaaciones Históricas 6 (1962-1963), 165-190; Nicolás
Sánchez-Albornoz et al., "La saca de muías de Salta al Perú,
1778-1808," in Anuario del Instituto de Investigaciones
Históricas 8 (1965), 261-312; and Sánchez-Albornoz, "La
extracción de muías de Jujuy al Perú. Fuentes, volúmen y
negociantes," in Estudios de Historia Social. 1 (1965), 107-
120 .
2. Assadourian, "Economía regional y mercado interno.
El caso de Córdoba en los siglos XVI y XVII," in El sistema
de la economía colonial. 42-49.

82
century, Assadourian explains, relatively small numbers of
mules exported at high prices corresponded with a decline of
textile production as the region struggled against Peruvian
competition. By 1630, as textile production declined
sharply, mule exports began to rise steadily, but with a
corresponding drop in prices from a high of about 65 reales
per head in the 1620s to less than 25 reales in the 1640s.
From the 1650s until around 1700 exports remained steady at
around 20,000 animals each year but with further decline in
price, from 22 reales in 1660 to 16 reales in 1670 to the
lowest price of 10 reales by 1700. From 1700 until the mid¬
eighteenth century, both prices and exports remained low.
The economic recovery after 1750, however, included both
increased exports and higher prices, so that by 1770
unbroken, untrained mules from the Córdoba jurisdiction sold
to northern buyers for approximately 36 reales each, and by
1800 for between 44 and 100 reales each.3
3. See Concolorcorvo, El lazarillo. 112-113; A.G.I.,
also the "Relación que demuestra el Estado de Escasez o
Abundancia" in A.G.I., Buenos Aires 383, "Estado de las
Aduanas y Comercio del Virreinato, 1789-1793," July 1800,
folio 354. This report includes a list of mule prices in
Córdoba: for one-year-old mules, 6 to 6 1/2 pesos; for two-
year-olds, 7 1/2 to 8 pesos; for three-year-olds, 10 1/2 to
11 pesos; and for mansas. or tamed animals, 12 to 14 pesos.

83
Concolorcorvo's relation includes a valuable discussion
of the economics of this mule trade. Tucumán's native-born
mules, he explains, remained few in number compared to those
purchased from the Buenos Aires and Litoral jurisdictions.
Pampas landowners realized greater profit from selling young
animals to pasture owners farther north rather than by
raising them any longer than necessary. The young mules
purchased from the southern landowners cost 12 to 16 reales
each; the herds driven from the Buenos Aires countryside
numbered between 600 and 700. The drives required perhaps
12 peones using about 40 horses; salaries for these workers,
plus other expenses, added an average of 4 reales to the
cost of each animal by the time they reached Cordoba's
winter pastures. The young mules remained at pasture about
14 months, at a cost of 5 or 6 reales each (plus a bonus of
6 animals per 100 given to the pasture owner). Expenses,
then, would have added another 8 reales to the cost of each
animal. Concolorcorvo computed that each mule brought to
Córdoba from the south cost around 26 reales, "more or
less," by the time it sold to northern buyers for around 36
reales. A little more than one year after its purchase,
then, a herd of 600 animals brought from Buenos Aires and

84
sold a year later could bring a profit of approximately 750
pesos.4
After a year or so in Cordoba's pastures, herds
generally numbering between 1,300 to 1,400 animals were
driven north to Salta during the fall months (April through
June). This drive required about 20 men with 70 horses,
adding about 5 reales in costs to each animal. These larger
herds wintered again in Salta's pastures at 8 reales per
head; by spring, when they were sold to buyers from
throughout Peru, their cost had risen to approximately 50
reales. The selling price at the fair, however, averaged
around 8 or 9 pesos (64 to 72 reales) per head, bringing a
fair profit for a second time to Tucumán landowners. Herds
leaving Salta numbered around 1,700 to 1,800 head, driven by
16, 18 or 20 men with 150 horses and 70 or 80 pack mules for
carrying provisions. The herds went as far as Potosí, Oruro
and Cuzco, where they sold for 13 to 17 pesos (104 to 136
reales) per head or more.5
An excise tax called the sisa collected against each
mule exported from Salta provides the best means of
4. Concolorcorvo, El lazarillo. 112-116. One peso
equalled 8 reales.
5. Sánchez Albornoz, "La saca de muías," 262, footnote
3 .

85
measuring Tucumán's mule trade. The Spanish crown imposed
the sisa tax throughout the empire on any goods of
particular local commercial value. In the Río de la Plata
provinces, mules, brandy, yerba mate, tobacco and several
other items appeared on the sisa list. In Tucumán, the
first sisa tax on mules, amounting to two reales per animal,
appeared in the early eighteenth century when the crown
assigned its income to defense of the frontier and to
offensive campaigns against Chaco Indians. With the support
of provincial landowners, those most interested in
territorial defense, the sisa became an important source of
revenue for support of the region's forts and presidios. By
1760 the tax had been raised to six reales per animal, where
it remained until the end of the colonial period.6
In various archives in Seville, Buenos Aires and
Córdoba there exists an almost uninterrupted sequence of
sisa records from Salta that span the years from 1761 to
1809. When compiled and analyzed as one, these various
sources provide both the total annual sisa income from mules
and the total number of mules annually exported to the
Peruvian provinces. Many years are documented by the libros
manuales. or daily entry books that include the date of
Ibid., 271-276.

86
transactions in addition to the amount of each individual
payment and the number of mules being paid for. These
libros constitute an especially rich source of information;
royal treasury officials in Buenos Aires carefully confirmed
their accuracy and veracity. Other periods can be measured
by reviewing annual summaries and resúmenes. documents that
provided the same information but often for different
purposes. In either case, the sisa records permit a
revealing quantitative analysis of the regional mule trade.
The procedure developed for collecting the sisa
depended upon a system of guías, or licenses, and
resguardos. or guard posts, located at strategic points
along the various routes north from Salta. The guías
constituted a written proof that a merchant or exporter
(internador) had properly paid all taxes on his herd at the
Salta fair and was legally entitled to drive a determined
number of animals from the intendency. Royal law obliged
the foremen of these herds, or tropas. to present their
guías to the post guards, who were responsible for verifying
the herd size and collecting the sisa payment and seeing

87
that all documents, including the libro and the guías, were
signed. The herds then passed.7
The efficiency of this system depended upon the honesty
of the guards who patrolled the various routes north.
Geography also controlled traffic and limited options so
that the herds could not easily avoid the guards. The main
route, taken by most herds, ran northwest from Salta
(skirting west of San Salvador de Jujuy) through the
Quebrada del Toro, a canyon passage patrolled by the guards.
Ten days to two weeks later the herds reached another post,
the last before their ascent to Alto Perú. A second less-
travelled route passed through the Jujuy district and then
north through the Quebrada de Humahuaca to Tarija. Posts
located between Salta and Jujuy and again at La Quiaca well
to the north watched this route. The two routes, determined
by the relative ease of travel in the quebradas. or canyons,
effectively channeled almost all traffic north.8
7. This careful system was not enough to prevent all
fraud, however. The Catamarca and La Rioja districts were
suspected of supporting an illicit commerce in livestock.
See the "Informe de Juan Victorino Martínez de Tineo, a El
Marqués de Sobremonte," dated June 24, 1779 (Salta) in
A.G.I., Buenos Aires 50 (folios not numbered).
8. Ibid., 283-288. Sánchez-Albornoz estimates that
between 80 and 90 per cent of all traffic passed through the
Quebrada del Toro route. The posts, he adds, were
administered only from February through August because harsh

The sisa records from Salta represent the great
majority of the mules raised in and exported from the
88
Tucumán region. Two separate sets of records cover the span
from 1761 to 1809. Nicolás Sánchez-Albornoz presents one
set in a study of mule exports from Salta between 1778 and
1809. Gathered from the Contaduría section of the Archivo
General de la Nación in Buenos Aires, he published this data
in two columns. The first column records the annual sisa
revenue from mule exports from the Salta jurisdiction while
the second presents the total number of animals that
annually passed from the district.9 The second set of
data, covering the years 1761-1776, is found in the Archivo
General de Indias in Seville. These sisa accounts include
the annual total sisa revenue for both the Salta and Jujuy
jurisdictions and the annual subtotals collected on a number
of specific goods, including mules, cows and soap. These
accounts record the years 1764 to 1770 in detail, with
complete lists of each tropa leaving the Salta district.
winters and high Spring runoffs made off-season travel
impossible.
9. See the author's discussion of the Buenos Aires
accounts, mostly in his footnotes, in Ibid., 289-296.

89
Summaries record the subsequent years.10 Several years
record only the amount in pesos collected by the tax; these
figures, however, permit a fairly accurate estimation of the
number of animals exported.11 In this half-century span,
in which at least 1,500,000 mules left the Tucumán region,
only the figures for the years 1776 and 1777 are missing.12
In some years the guards did not collect for all the
animals that passed their posts. Most annual figures
correspond, however, with the sisa collected roughly
representing the reported number of mules passing from the
district. When debts did incur, they generally were paid
within a year or two--often, when the sisa falls short one
year, it was made up the next. In order to alleviate any
distortion caused by sisa debts, the data is best presented
in five-year blocks that provide more reliable figures.
Analyzing the figures for such periods alleviates the small
problems with the data and presents a better picture of
10. A.G.I., Buenos Aires 463, "Cuentas de Sisa de
Salta y Jujui, 1764-1776."
11. Estimations, based on sisa income in pesos,
derived from a simple calculation:
Sisa amount (in pesos) X 8 reales 6 reales (tax
on each mule).
12. See Appendix I for a complete year-by-year listing
of mule exports and sisa income from mules in Salta for the
years 1761-1809.

90
long-term trends. Table 3.1 presents five-year totals and
annual averages for the Salta jurisdiction for the years
from 1761 to 1809.
Table 3.1.
Official Mule exports and Sisa
Salta District, 1761-1809. In
Intervals.
Revenue from
Five-Year
Year
Mules#
Ann. Avq.
Sisa
Ann. Avq.
1761-65
154,127
30,825
115,596Desos 23,119Desos
1766-70
151,839
30,367
111,631
22,326
1771-75
167,060
33,412
125,295
25,059
1776-80*
100,031
33,344
73,607
24,536
1781-85
95,285
19,057
71,175
14,235
1786-90
109,316
21,863
80,670
16,134
1791-95
74,814
14,964
57,545
11,509
1796-1800
125,168
25,034
93,875
18,775
1801-05
182,943
36,589
108,827
21,765
1806-1809
155,252
38,813
129,892
25,978
* 1776 and 1777 figures are missing.
# 1764-75 figures estimates (see fn. 48).
Sources: Years 1761-1775 from A.G.I., Buenos Aires
463, "Cuentas de Sisa de Salta y Jujui, 1764-76,"
years 1778-1809 from Nicolas Sánchez-Albornoz, "La
saca de muías de Salta."
The sisa records reveal several general trends marking
the Tucumán mule trade. The years from 1761 to 1780 show
relatively high exports and sisa revenue, with an annual
average of 31,836 mules sent north and 23,692 pesos

91
collected in sisa revenue. The 15 years following the Tupac
Amaru rebellion in Peru show a significant decline in this
commerce. Annual exports fell to an average of 18,628
animals between 1781 and 1795. The period from 1796 to 1809
marks the recovery of the trade; annual averages rose to
25,033 animals from 1796 to 1800, then to 36,588 animals
between 1801 and 1805, and to 38,813 animals from 1806 to
1809. Figure 3.1, presenting Salta's mule exports from 1761
to 1809, illustrates these trends.
Comparative figures from the San Salvador de Jujuy sisa
records spanning the years from 1764 to 1789 demonstrate
Salta's dominant position in the regional mule trade.
Jujuy's exports and revenues from 1764 to 1775 represent a
small fraction of Salta's trade. Although Jujuy's annual
exports occasionally reached 10,000 head, annual totals
generally averaged about 20 per cent of Salta's exports and
constituted about 16 per cent of the Tucumán total for the
26 years examined. The Jujuy sisa summaries also provide
both the number of mules annually exported as well as the
total sisa revenues collected each year. A comparison of
the Salta and Jujuy figures illustrates the imbalance
between the two cities. Table 3.2 includes three columns of
data presenting each city's annual mule exports and sisa

Thousands
50
40
30
20
10
0
g
ailllllllllli
g
g
S
1761 1765 1770 1775
1780 1785 1790
g
1795 1800
Figure 3.1.
Recorded Mule Exports from Salta Jurisdiction,
1761-1810
1805
KJ

93
revenue, plus the total for the two cities combined, a
figure representing regional mule exports to Peru.
Various sources in the Archivo Histórico la Provincia
de Córdoba record the Córdoba jurisdiction's mule sales to
dealers in the north. The hacienda. or treasury, records
from the years from 1780 to 1789, plus some later years,
include sisa and Nuevo Impuesto accounts and libros that
together present a clear picture of provincial production
and commerce. Documenting the taxation of all commercial
traffic through the city, the Nuevo Impuesto sources permit
close study of Tucumán's provincial economy. In Córdoba,
the Nuevo Impuesto taxed the cart caravans and the mule
trains that channeled considerable quantities of provincial
products in all directions. These valuable sources
generally itemize the merchandise passing through the city
as well as the quantities of these goods. Sometimes the
entries are specific; sometimes they are rather vague,
listing many cargoes simply as efectos de la tierra or as
efectos del pais. Overall, however, these sources prove
extremely helpful to determining the nature of regional
production.

94
Table 3.2. Offical Mule Exports and Sisa Revenues,
Salta and Jujuy Districts, 1764-1789.
Year Salta
Jujuy
Total
1764
1765
1766
1767
1768
1769
1770
1771
1772
1773
1774
1775
1776
1777
1778
1779
1780
1781
1782
1783
1784
1785
1786
1787
1788
1789
totals
mules
23,684
45,935
30,960
26,444
35,313
31,373
27,749
39,828
29,708
28,255
28,453
30,816
39,114
37,946
22.971
200
15,981
28,760
27,372
22.972
29,028
15,571
21,866
23.407
668,706
sisa
17,763p
34,451
23,220
19,833
26,485
23,530
18,561
29,872
22,281
28,691
21,340
23,112
28,094
17,222
28,291
150
11,968
21,547
20,382
17,081
17,628
14,127
17,652
17.407
500,688
mules
3,016
5,636
1,409
1,370
5,669
4,056
11,713
3,425
3,109
6,588
7,623
6,417
4,088
2,695
7,920
10,849
7,525
530
5,071
9,345
7,529
5,516
4,898
4,006
4,857
4,450
139,310
sisa
2,262p
4,227
1,057
1,028
3,882
3,424
8,784
2,524
2,376
4,491
5,717
4,813
3,066
2,021
5,994
8.136
5,643
497
3,953
7,015
5,646
4.137
3,673
3,004
3,642
3.337
104,709
mules
26,700
51,571
32,369
27,814
41,012
35,429
39,462
43,253
32,817
44,843
36,076
37,233
47,034
48,795
30,496
730
27,949
38,105
34,901
28,488
33,926
19,577
26,723
27,857
808,684
sisa
20,025p
38,678
24,277
20,861
30,367
26,954
27,345
32,396
24,657
33,182
27,057
27,925
34,088
25,358
33,934
647
15,921
28,562
26,028
21,218
21,301
17,131
21,294
20.744
605,397
Sources: A.G.I., Buenos Aires 50, "Cuentas de Sisa
de Salta y Jujui, 1764-1776;" Sánchez Albornoz,
"La saca de muías de Salta" and "La extracción
de muías desde Jujuy."

95
The Nuevo Impuesto books include records of Cordoba's
mule exports to the northern districts. They reveal a
considerable livestock traffic, usually more than 12,000
animals sent north annually between 1780 and 1789. Viewed
alongside the Salta exports for the same years, reduced
during this decade by the rebellion in Peru, Cordoba's
records show that this jurisdiction's exports usually
accounted for between one-third and one-half of the northern
city's annual exports.13 Cordoba's exports averaged over
this period fell just short of 11,000 head each year,
compared to Salta's annual average of 20,812 over the same
period (or, 23,103 animals annually if the year 1781 is
excluded). In its best years, Córdoba sent over 15,000
animals north; because of the commercial interruption in
Peru, in 1781 Córdoba sent more mules north than Salta and
Jujuy were able to sell to Peruvian buyers. Over the ten-
year span measured, Córdoba supplied just over half the
mules sold at the Salta fair (113,338 of 208,128). During
the same years, Córdoba supplied 42 percent of the animals
13. Cordoba's Nuevo Impuesto records for period from
1780 to 1791 are to be found in the Archivo Histórico de la
Provincia de Córdoba (A.H.P.C.), Serie Hacienda, following
legaios: No. 14, "Libro de Sisa y Nuevo Impuesto" (1779-80);
No. 17,"Libro de Cargas y Entradas Generales del Nuevo
Impuesto" (1781-86); No.43, "Libro General Administrativo
del Ramo de Nuevo Impuesto" (1787-91); No. 109, "Libro
Manual de Nuevo Impuesto" (1806); No. 117, "Libro de Nuevo
Impuesto" (1808); No. 122, "Libro de Nuevo Impuesto" (1809);
No. 130, "Libro de Nuevo Impuesto" (1810).

96
exported from Salta and Jujuy combined (113,338 of 268,752),
as expressed in Table 3.3.
Table 3.3
Mule Exports
from Córdoba as a Percentage
of
: Total from
Tucumán,
1780-1789
Year
Tucumán
Córdoba
Percentaae
1780
30,496
12,443
41
1781
731
2,900
1782
27,949
13,536
48
1783
38,105
11,112
29
1784
34,901
6,074
17
1785
28,488
9,040
32
1786
33,926
12,460
37
1787
19,577
15,920
81
1788
26,723
15,437
58
1789
27.857
14.416
52
total
268,752
113,338
42
Sources:
A. H.
P.C., Serie
Hacienda
14, 17, 43; Sánchez
Albornoz, "La saca de muías de Salta," and
"La
extracción
de muías desde Jujuy."
Cordoba's Nuevo Impuesto books for the very last years
of the colonial period, from 1806, 1808, 1809 and 1810,
suggest changing circumstances within this trade. Although
the records allow only four years of comparison, the figures
indicate that Cordoba's exports dropped off considerably,
especially when compared to Salta's growing exports for
these years. In 1806, Córdoba exported 12,295 mules--still
a considerable figure, but less than one-third of Salta's
exports of 40,355. 1808 and 1809 saw still worse years.
Córdoba sent only 6,890 and 7,616 mules north, compared to

97
Salta's 35,000 each year. In 1810 Córdoba still hovered at
the 7,000 mark--one-fifth of Salta's exports. For some
reason, the Cordoba jurisdiction's production dropped
sharply, and within the entire Tucumán region, the Córdoba
jurisdiction became a less significant supplier of mules to
the Peruvian trade.
Cordoba's diminished mule exports may have been the
result of some local, short-term cause. All the Tucumán
region remained susceptible to drought that damaged pastures
and cut into landowners' ability to winter the annual herds.
Disease also presented a serious and potentially devastating
threat to the livestock sector of the provincial economy.
Edberto Acevedo cites a number of consulado reports
lamenting the impact of either drought or disease on
Tucumán's livestock; in 1788 they reported a "peste de
grano" (aftosa. or hoof-and-mouth disease) that especially
struck horses and cattle, diminishing the herds and
allegedly killing many residents who ate infected meat.14
In 1802 the disease returned, this time afflicting the mule
herds, causing great losses and hurting provincial
exports.15
14. E. 0. Acevedo, La intendencia de Salta. 230-233.
15. Again Acevedo cites consulado reports from the
A.G.N. in Buenos Aires. Obviously, the impact of drought
and especially disease on Tucumán's livestock sector is of
great importance and merits closer study.

98
In any case, the figures comparing Córdoba and Salta
suggest that mule-raising figured prominently throughout the
region. Córdoba apparently supplied roughly half the mules
exported annually from Salta, leaving the other half of the
market to other jurisdictions generally overlooked in
discussions of the mule trade. San Miguel de Tucumán, with
a good climate and fertile pastures, probably provided many;
Santiago del Estero may have exported 2,000 mules or more
each year.16 It seems that all the jurisdictions within
the Tucumán region contributed to regional mule production.
Córdoba and Salta may have dominated this sector, but the
Peruvian market remained open for other districts as well.
Livestock exports from Tucumán included cattle, also
taxed by the sisa and included in the 1755-1775 records for
both Salta and Jujuy.17 A comparison of these figures
reveals that Jujuy dominated this commerce with Alto Perú,
surpassing Salta's meager exports in all but the last year
recorded. Surviving records, which include the total number
of cattle (vacas) annually exported as well as the annual
sisa revenue from this trade, indicate that cattle exports
played a much more important role in Jujuy's economy than
16. Acevedo, La intendencia de Salta. 231.
17. A.G.I., Buenos Aires 463, "Expedientes sobre Sisa
de Tucumán, y reducción de Indios, 1784" (folios not
numbered). See also the untitled expediente with the
heading "Extracto hecho de un quinquenio sacado del libro de
thesorería de la R1. Caxa de esta ciudad de Salta... desde 2
Marzo de 1761 hasta 2 del dicho mes de 1776..." in A.G.I.,
Buenos Aires 468.

99
they did in Salta's. Table 3.4 presents and compares cattle
exports and sisa revenue for the two cities.
Table 3.4.
Cattle Exports and Sisa Revenue
in Salta
and
Jujuy, 1755
-1775 .
Year
Salta
Juiuy
cattle
income
cattle
income
1755
—
—
3,392
1,272
1756
—
—
4,217
1,587
1757
—
—
5,794
2,172
1758
—
—
3,812
1,429
1759
—
—
3,947
1,480
1760
—
—
—
—
1761
1,142
428
—
—
1762
877
329
—
—
1763
1,470
521
—
—
1764
376
141
6,664
2,449
1765
102
38
5,883
2,206
1766
739
277
4,325
1,622
1767
160
60
6,285
2,357
1768
389
146
1769
1770
7,280
2,730
1771
581
218
6,056
2,271
1772
347
130
6,000
2,250
1773
—
—
9,624
3,609
1774
—
—
6,589
2,471
1775
9,845
3,692
912
342
Source:
A.G.I., Buenos Aires 463.
The sisa records show that Jujuy enjoyed a growing
commerce in cattle over the period examined. Between 1755
and 1759, the district exported an average of 4,230 cows
annually, a figure that grew to 6,079 a year between 1764
and 1769 and to 7,100 between 1770 and 1774. The Salta

100
figures prove much lower: exports averaged less than ten
per cent of Jujuy'S--793 annually between 1761 and 1765, 554
a year between 1766 and 1770, and even fewer in subsequent
years (1775 marks an aberration; for some reason Salta
replaced Jujuy that year, with export and income figures
reversed). Over the period from 1764 to 1772, Jujuy
accounted for more than 85 per cent of the Tucumán region's
cattle exports to Peru.
The contributions of cattle sales to sisa revenues also
differ markedly from one city to the other, proving much
more important to Jujuy's treasury. Between 1764 and 1774,
the years that afford the best comparison, Jujuy's sisa
income from cattle sales amounted to 27,010 pesos, compared
to 39,272 pesos from mule sales over the same period.
Salta's sisa revenue from cattle sales reached only 1,565
pesos, compared to almost 265,000 pesos from mule sales over
the same period. Although these figures represent
relatively early years in relation to this study, and the
trends they reveal may not apply to later years, growing
cattle exports from 1755 to 1775, like the growing mule
exports from the region in the same years, demonstrate the
increasing prosperity commented upon by the Córdoba cabildo
in 1760 and by Sobremonte 25 years later.

101
The increasing importance of the cattle economy in the
River Plate region, outlined in the first chapter, and the
predominance of the ranching economy in the Interior
together fostered the emergence of a related sector in the
Tucumán region. The processing of animal by-products,
especially raw hides, or cueros. and tanned leathers called
suelas. figured among Tucumán's principal economic
activities. The manufacture and export of grease (grasa).
tallow (sebo) and soap (jabón) also contributed to the
regional economy. The Nuevo Impuesto records from Córdoba
and the sisa records from Salta and Jujuy reveal a busy
export of these goods; all the jurisdictions of Tucumán, it
seems, participated to some degree in their production and
commerce.
John Lynch, in his study of the Intendent system in the
Buenos Aires viceroyalty, suggested that the hide industry
may have been the only economic sector that benefitted from
the opening of the port to free trade.18 As Garavaglia
demonstrated, the Tucumán region, especially the Córdoba
jurisdiction, soon became closely tied to the growing export
18. John Lynch, Spanish Colonial Administration, 1782-
1810: The Intendent System in the Vicerovaltv of the Río de
la Plata (New York, 1969), 162-171.

102
of hides from Buenos Aires.19 Within Tucumán, however, the
tanning (curtideria) industry shared this prosperity.20 In
1788 Sobremonte praised the fine leathers and cordovans made
from provincial herds of sheep and goats, and remarked on
the noted quality of Tucumán's suelas.21 By 1786 the
traffic in suelas from the interior proved brisk enough to
prompt the Buenos Aires cabildo to propose a tariff of two
reales on every 25 imported.22 But while both processed
and unprocessed hides from Cordoba's cattle were carried to
Buenos Aires for sale to European buyers, many more were
19. Sobremonte's "Oficio" (1785) estimates the total
number of cattle, or ganado vacuno, in Cordoba's pastures at
around 200,000 head.
20. See Santos Martínez, Las industrias en el
virreinato. 67-68; Brown, A Socio-economic History of
Argentina. 52-55; José M. Mariluz Urquijo, "Noticias sobre
las industrias del virreinato del Río de la Plata en la
época del Marqués de Aviles (1799-1801)," in Revista de
Historia Americana y Argentina 1:1/2 (1956-1957), 85-117;
Ricardo R. Caillot-Bois, "Apuntes para la historia económica
del virreinato. Gobierno Intendencia de Salta de Tucumán,"
in Anuario de Historia Argentina 1941 (1942), 101-124; and
Ricardo Levene, "Riqueza, industrias y comercio durante el
virreinato," in Ricardo Levene, ed., Historia de la Nación
Argentina (desde los orígenes hasta la organización
definitiva en 1862 10 volumes (Buenos Aires, 1938), volume
IV, section I, 373-430.
21. Marqués de Sobremonte, "Noticias sobre la
Intendencia de Córdoba de Tucumán (1788)," reprinted in
Revista de Buenos Aires, tomo vi (1865) .
22. Santos Martínez, Las industrias durante el
virreinato. 67.

103
tanned in provincial workshops and made into the trunks
(petacas) and baskets (tipas) that were used to store and
carry quantities of other regional products.
San Miguel de Tucumán also became known as an important
hide-producing district recognized for its tanneries and the
quality of its suelas. By the middle of the 1790s the
consulado in Buenos Aires estimated the city's production at
13,000 to 14,000 suelas annually.23 For the northern
districts of the Tucumán region, tanning was a simple
necessity--untanned cueros could not travel as far south as
Buenos Aires without rotting and suffering significant
loss.24 When they were not exported, San Miguel's hides,
tanned and untanned, served as a basic resource in the
workshops that produced leather goods and furniture.
Catamarca also produced and exported excellent cordovans in
addition to suelas that rivalled those of San Miguel for
their quality. Catamarca's industry, one author suggests,
may have benefitted from the local abundance of cebil trees,
23. Germán 0. E. Tjarks, "Panoráma del comercio
interno del virreinato del Río de la Plata en sus
postrimerías," in Humanidades 36 (1960), 69.
24. Santos Martínez, Las industrias durante el
virreinato. 69, 72. The author also discusses the
"enormous" damages to hides caused by moths, or "la
polilla."

104
a rich source of tannin that gave local tanners a slight
competitive edge.25 Suelas, in fact, were produced
throughout the Tucumán region as well as in Cuyo, where
artisans in Mendoza, San Juan and San Luis made them into
the odres. or bags, that carried much of the local wine and
brandy. The poor everywhere used both raw hides and suelas
in the construction of their homes; in the fairly dry
climate of the Interior hides conveniently functioned as
doors, walls and roofs.26
Cordoba's Nuevo Impuesto books from 1779 to 1791
include records of cuero and suela shipments to Buenos
Aires. The books generally measured these shipments in
units called carretadas. roughly equal to one cart-load, of
approximately 150 to 160 arrobas each (or 3,750 to 4,000
pounds).27 A carretada equated roughly to 130 or 135
cueros or suelas. The 1806 libro, for examaple, notes Don
Francisco Bedoya's large shipment of 1,620 cueros to Buenos
Aires in 12 carts, or the active merchant Don Ylario Antonio
25. Mariluz Urquijo, "Noticias sobre las industrias,"
? ? .
26. Santos Martínez, Las industrias durante el
virreinato. 70.
43 .
27
Santos Martínez, Historia económica de Mendoza.

105
Ybarra's three December shipments of 540 cueros in four
carts, 135 in one cart and another 540 in four more
carts.28 Precise accounting of the number of hides sent
south from Córdoba is difficult, however. Occasionally, one
carretada proved more than one cart-load. The same 1806
libro, for example, notes Don Juan Manuel Gigena's shipment
of 13 carretadas of suelas in 18 carts. Sometimes shipments
are measured in cargas, the sizes of which are impossible to
estimate from the record. A carga may refer to a carretada
(or, a carga de carreta), but it is difficult to explain the
occasional use of a different term for the same unit. A
precise estimate is further complicated by combined
shipments of suelas or cueros with other goods, such as Don
Andres Diaz' 1779 caravan of ten carretas, seven loaded with
planks (tablas) and suelas and three carrying luggage
(equipaje) from San Miguel to Buenos Aires.29 Many entries
note such combined cargos of lumber and hides, these usually
originating in San Miguel de Tucumán.
Table 3.5 presents the number of carretadas loaded only
with cueros and suelas leaving Córdoba between 1779 and
29
A.H.P.C., Serie Hacienda, 109.
A.H.P.C., Serie Hacienda, 14.

106
1791.30 The figures do not include combined shipments or
shipments measured in cargas rather than carretadas.
Consequently, the figures represent a minimum number of
hides, tanned and untanned, exported from Córdoba, and
provide a minimal estimation of regional hide production.
Including the combined shipments, cargas and other less
specific entries would probably double the figures
presented for most years. Multiplying the numbers of
carretadas by 130 (the estimated number of cueros or suelas
in a carretada) provides a minimum estimate of the number of
units exported. These figures, finally, do not include the
numbers of hides and leathers consumed within the Tucumán
region in the manufacture of thousands of containers and
other goods. Judging from the entries recorded in the
libros de Nuevo Impuesto, these numbers could possibly again
double the estimates. Although most of its record is lost
to history, suffice it to say that processed and unprocessed
hide production constituted a large and important element of
the Tucumán regional economy.
30
A.H.P.C., Serie Hacienda, 14, 17, 43, 109.

107
Table 3.5.
Córdoba Hide
1779-1791.
Exports,
in Carretadas,
Year
Carretadas
X 130
No. Units
1779
41
5,330
1780
113
14,690
1781
84
10,920
1782
96.5
12,545
1783
110.5
13,365
1784
115
14,950
1785
★
1786
★
1787
124
16,120
1788
80
10,400
1789
52.5
6,825
1790
113
14,690
1791
82
10,660
* No
shipments recorded.
Source: A
.H.P.C., Serie
Hacienda,
14, 17, 43, 109
Grease, tallow and soap constituted additional by¬
products of the ranching sector. Both grease and tallow
were used in the manufacture of soap, which figured as an
another important export in regional sisa and Nuevo Impuesto
records. The sisa records from Jujuy show that soap exports
figured among the items taxed as they passed from the
district, suggesting that the trade was important enough to
tap. Income from this soap trade never approached that from

108
livestock, but it indicates that Jujuy appreciated and
exploited its position as a source of livestock and ranching
by-products for Upper Peru. The Nuevo Impuesto records from
Córdoba, especially for the last years of the viceregal
period, indicate that soap had become a growing export from
the southern districts of Tucumán. The 1808 libro records
at least 34 petacas (crates), ten cargas and eleven
"piezas. 11 or pieces, of soap carried from Córdoba. In 1809
a total of least 246 petacas de jabón and 26 cargas left
Cordoba's plaza, including some for the cities of Buenos
Aires, Catamarca, La Rioja, and San Juan. In 1810 exports
increased again, with at least 511 petacas shipped to Buenos
Aires, with another eleven to Santa Fé and six to Catamarca.
The 1810 Buenos Aires shipments included one cargo of 50
petacas and two of 40 petacas each.31 It seems apparent
that Córdoba ranchers had recognized the profitablity of
soap in the Buenos Aires market.
Textile manufacture held a position of secondary
importance in Tucumán during the viceregal period. Although
secondary to ranching and the processing of pastoral by¬
products, the weaving of both woolen and cotton goods,
especially linens, ponchos and blankets, provided much of
31. A.H.P.C., Serie Hacienda 117, 122, 130.

109
the rural population a source of income and a position in
the region's economic structure. Córdoba and San Miguel de
Tucumán, with larger populations and better access to the
Buenos Aires market, dominated this activity, followed by
cotton-producing Catamarca. Weaving remained primarily a
rural domestic activity, practiced either by campesina women
or in the small scattered Indian communities. Their
inexpensive, coarse textiles sold mostly within the Tucumán
and Cuyo regions, with some quantities exported to Buenos
Aires, the Litoral and Chile. Supplying a large internal
market of over 100,000 consumers, and a surprisingly strong
demand in Buenos Aires, textile production and exports
reached impressive levels and constituted an important
element of the regional economy.
Textile manufacture emerged early as Tucumán's primary
link to the Peruvian mining economy. Before the beginning
of the seventeenth century, the Tucumán region was already
recognized as an important cotton-growing zone, exporting
considerable quantities of cotton linens, carpets, bed¬
covers and coarse "Indian clothes" to Potosí.32 The city
and district of Córdoba emerged as the center of this
32. Luís Capoche, Relación general de la Villa
Imperial de Potosí (Madrid, 1959), 179.

110
production, relying on both domestic activity and rural
obrajes.. Provincial landowner/encomenderos cooperating with
Peruvian merchants developed the industry by financing the
workshops, organizing the technology and providing the
Indian or slave laborers that made cheap, profitable exports
possible ,33
Despite cheap labor, Cordoba's textile trade proved
short-lived. Assadourian contends that by 1610 or 1615 the
sector began to fade. He attributes this to several
factors, including the rapid decline of the Indian
population and the consequent deterioration of the
encomienda system. Increasing textile production in parts
of Alto Perú cut into Tucumán's market, and the textile
sector further suffered as regional landowners turned toward
ranching and livestock to offset their losses. Although
textile production never completely disappeared from the
Tucumán economy in the seventeenth century, it relocated and
eventually became concentrated in Catamarca and La Rioja.
Production in the new centers, however, never reached old
33. See Sempat Assadourian, "Economias regionales y
mercado interno colonial: El caso de Córdoba en los siglos
XVI y XVII," in El sistema de la economía colonial. 22-28;
and Garzón Maceda, Economía de Tucumán. 50.

Ill
levels and for most of the century imported textiles from
Paraguay and Peru also sold in Tucumán markets.34
In the seventeenth century, textile production
underwent further changes. In Catamarca, La Rioja and
Santiago del Estero, districts with larger surviving Indian
populations, production remained concentrated in encomienda
villages. Here Indian women and boys specialized in
spinning cotton thread before the men wove it into the
coarse linens. Both the Indian workers and Spanish
observers considered the obligations exceptionally difficult
--quotas for thread sometimes reached a pound or more a week
--and encomenderos often enclosed workers in corrals and ket
a close watch on their activities.35 In Córdoba and San
Miguel de Tucumán, domestic weaving, transferred to the
34. Sempat Assadourian, "Economias regionales y
mercado interno," 27-28.
35. For discussion of Tucumán's colonial textile
sector, see Garavaglia, "Los textiles de la tierra en el
contexto colonial rioplatense: ¿Una revolución industrial
fallecida?," in Anuario del Instituto de Estudios Histórico-
Sociales 1 (1986), 45-87, which constitutes the only
noteworthy study of colonial Tucumán's textile sector.
Further information regarding the encomienda in seventeenth-
century Tucumán is sparse; Adolfo Luis González Rodríguez
provides a book-length study of encomienda populations in
Tucumán, but as Garavaglia says (page 76, footnote 25), he
dedicates not a single line to the encomienda as a mechanism
of appropriation exploited by Spanish impresarios.

112
rural areas and reliant upon the labor of women, provided a
second source of textiles.36
By the middle of the eighteenth century this basic
structure characterized Tucumán's textile sector. Catamarca
communities especially dominated the production of cotton
linens, whereas wool became the fiber of choice in the
south, reflecting the increasing presence of sheep in
southern pastures.37 Here woolen baizes and coarser cloths
plus blankets (frezadas), saddle blankets (pellones),
carpets (alfombras), friezes (jergas) and ponchos replaced
the traditional cotton linens. Produced mostly for the
regional market, Sobremonte claimed that some of these items
also reached markets in Buenos Aires, Mendoza, Chile and
even Peru.38
While encomienda Indians worked the looms in the
northern districts, women constituted the weaving workforce
3S. Garavaglia, "Los textiles de la tierra," 49-56.
Garavaglia argues that the increasing miscegenation
prompted the urban-to-rural shift of the textile sectors in
Córdoba and Tucumán--an explanation that fits neatly with
Assadourian's reasons for the decline of textile production
in these districts.
37. Sobremonte's "Oficio (1785)" claims over 1,000,000
sheep for Cordoba's pastures.
38. Ibid. Garavaglia, however, doubts that many of
Tucumán's woolen goods ever passed the Quebrada de
Humahuaca--see "Los textiles de la tierra," 56.

113
in the south. Sobremonte commented on this in 1788,
remarking that "almost all the women of the countryside are
dedicated to these tasks, which they exchange with merchants
for goods from Castille such as linens, paños. fringes and
ribbons."39 Domingo Sarmiento, writing later and
purposefully deriding the "barbaric" lifestyle of their
husbands, further explained that "upon the women [of the
Interior] devolve all the domestic duties and manufactures,"
including shearing sheep and weaving the "coarse cloth used
for garments."40 Sarmiento's observations were probably
accurate, but unfair to the husbands of Tucumán's women.
Many men in the region probably worked in other sectors,
such as in herding or processing, or found employment in
trades that kept them away from home for long stretches of
time. Rounding up wild cattle in vaquerías, driving herds
of mules north and employment on the mule trains and cart
caravans that hauled Tucumán's regional commerce would all
have kept men away from their homes and families for
extended periods.
39. Sobremonte, "Noticias" (1788).
40. Domingo F. Sarmiento, Life in the Argentine
Republic in the Days of the Tyrants, or. Civilization and
Barbarism (New York, 1868) 20, 47.

114
Garavaglia's valuable study refers to the second half
of the eighteenth century as the "etapa de ponchos."
referring to the predominance of poncho production in both
Córdoba and San Miguel de Tucumán.41 He traces the origins
of this garment and attributes its growing popularity to the
spread of Araucanian cultural influences in the rural parts
of the Tucumán and Cuyo regions. By the middle of the
century, three basic styles had evolved, including one for
the Pampa Indian trade, another popular with the Córdoba
weavers and a third common to Santiago del Estero. The main
difference among these three types was the way the weavers
processed the wool they used--the Córdoba poncho, more
widely worn in the Tucumán region, used cruder materials and
was cheaper to make. The Santiago and trade poncho utilized
better wool, or often a mix of cotton and wool, and sold for
higher prices in regional markets.42
Unfortunately, the lack of quantifiable data precludes
any precise measurement of Tucumán's textile production. A
number of primary and secondary sources afford estimates for
the viceregal years, but conclusions can only be
approximations. Garavaglia, for example, using the Buenos
41
42
Garavaglia, "Los textiles de la tierra,
Ibid., 57-58.
65-70 .

115
Aires customs guías, estimates that roughly one-half (54%)
of the Interior's textile exports to Buenos Aires consisted
of blankets and ponchos, one-fourth (25%) consisted of
cotton linens, and roughly one-fifth (21%) consisted of
inexpensive ropa de Perú. Together, these textiles
comprised about ten per cent of the total value of the
Interior's exports.43 Cordoba's production dominated both
the volume and value of the Tucumán region's exports--
perhaps as much as 85 per cent of the total. But according
to contemporary observers such as Sobremonte, most of
Tucumán's textiles found markets within the region, or in
regions other than Buenos Aires.44
The Nuevo Impuesto books from Córdoba provide an
additional estimate of Tucumán's textile exports. Treasury
officials left a rough record of textile trade, especially
in ponchos. Usually measured in units called fardos. or
tightly-packed bundles, a considerable number of ponchos
annually passed through Córdoba on their way to Buenos
Aires. In 1781, for example, at least 580 fardos left
43. Ibid., 65-70.
44. Sobremonte's 1785 "Oficio" commented, for example,
that most of Cordoba's textiles found markets within the
Tucumán region, and the Nuevo Impuesto records from Córdoba
indicate that some of Tucumán's ponchos found buyers in
Paraguay and Chile.

116
Cordoba's plaza for Buenos Aires. Several notes in the
libros equate a fardo with 50 ponchos; it would seem, then,
that at least 29,000 Tucumán ponchos went to Buenos Aires in
1781. Subsequent years indicate a drop in exports during
the 1780s: the records show only 200 fardos exported in
1782, 124 in 1783 and 173 in 1784. Part of this apparent
decline might be attributable to inconsistent record¬
keeping, since in some years some shipments are recorded in
units called tercios. cargas or carretadas.45 Other
entries record mixed freights that include unspecified
numbers of ponchos ("seis carretas de ponchos y madera").
Finally, some shipments might also be included under the
catch-all category of efectos de la tierra. But the records
from the last years of the viceregal period suggest a
revived trade: in 1808, at least 539 fardos left Córdoba
for Buenos Aires, in 1809 at least 968 left, and in 1810 at
least 491 fardos left.46
45. For a brief discussion of weights and measures in
viceregal Río de la Plata, see Santos Martínez, Historia
económica de Mendoza. 42-43. A carga referred to one mule
load, approximately 175-200 pounds; a tercio equaled seven
or eight arrobas at 25 pounds each - a load roughly
equivalent to a carga. A carretada, or cart-load, equaled
150 to 160 arrobas, or 3,750 to 4,000 pounds.
46. A.H.P.C., Serie Hacienda, 14, 17, 43, 109, 117,
122, 130.

117
Similar difficulties apply to measuring regional
exports of cotton fabrics. In most years the Impuesto
records make no reference to lienzos (linens) or any other
coarse fabrics. It seems likely that these goods are
included simply as efectos de la tierra, so are impossible
to measure accurately. Many shipments of "fardos de efectos
de la tierra" passed through Córdoba each year, but the
libros provide no way to know how many of these entries
refer to the lienzos that were exported.472
Cordoba's Impuesto registers did, however, keep a
fairly consistent record of the shipment of Catamarca's
unprocessed cotton that entered the Córdoba market. Most of
this cotton stayed in Córdoba, at least for a while, but
some did move through to Buenos Aires. Almost all
47. Other sources provide estimates that supplement
the Nuevo Impuesto records. In 1802, for example, Ambrosio
Funes, vecino of Córdoba and local deputy of the Buenos
Aires consulado, estimated Cordoba's textile production at
roughly 72,000 ponchos annually, plus 42,000 varas of baize,
11,465 varas of frieze and 877 varas of sackcloth--see the
Telégrafo Mercantil: Reimpresión Facsimilar. 2 volumes
(Buenos Aires, 1914), volume II, 20 June 1802, 141. A
Santiago del Estero consulado report from 1805 claims that
the women of that district produced between 16,000 and
18,000 ponchos annually, and another consulado report from
San Miguel de Tucumán, dated 1798, estimates that district's
annual production at 2,000 saddle blankets (pellones), 500
ponchillos. 1,500 varas of picotes. and 4,000 varas of
cotton linen (see Acevedo, La intendencia de Salta. 241).

118
Catamarca's cotton came to market in cargas de muías,
measurements of approximately 175 to 200 pounds; some,
however, did come in tercios or other units that make
precise measurements impossible. But rough estimates, again
minimums, suggest a considerable production in some years
and increasing shipments in the final years of the colonial
period. 1780 and 1781 registered at least 214 cargas, or
approximately 37,450 pounds (18.7 tons) of cotton entering
Córdoba. 1785 registered at least 197 cargas; 1786
registered at least another 169 cargas. 1787 registered the
greatest amount in this decade, at least 290 cargas, after
which the figures dropped off to 50 cargas in 1788, 80
cargas in 1789, and 39 1/2 cargas in 1790. By 1806,
however, shipments had surpassed the earlier levels, with
1806 registering at least 281 cargas, 1809 registering at
least 449 cargas (78,575 pounds, or 39.2 tons), and 1810
registering at least another 340 cargas.48
Wine-making and aguardiente-distilling also emerged as
secondary or supplementary activities within the Tucumán
regional economy. Despite the considerable quantities made
48. A.H.P.C., Serie Hacienda, 14, 17, 43, 109, 117,
122, 130. Again, these figures are minimum estimates; they
do not include recorded shipments that were measure in
tercios.

119
in and exported from Mendoza and San Juan, La Rioja and
parts of the western districts of Tucumán also became
producers of "caldos." or wine and spirits (and sometimes
vinegar and raisins) marketed in Cordoba and perhaps in the
northern cities. In 1785 Sobremonte estimated La Rioja's
annual production at 1500 arrobas.49 The partidos of
Famatina and Arauco and several of the encomienda pueblos de
indios, notably Anguinam, contributed to these quantities.
Cordoba's records show that several other districts in
western Tucumán produced some wine or aguardiente, at least
after 1805. Catamarca's caldos appear in Cordoba's market
in 1808, 1809 and 1810, when officials kept more detailed
records; the smaller settlements Santa Lucia de La Rioja and
Simbolar, and the encomiendas of Angullón and Ancallo, also
recorded shipments.50
The Nuevo Impuesto books from the 1780s record La
Rioja's caldo trade in cargas, approximately equivalent to
three arrobas (or nine gallons). Vintners packaged their
caldos in odres, or pitch-lined goatskins, two of which
49. Sobremonte, "Oficio 1785."
so. See the Nuevo Impuesto books, A.H.P.C., Serie
Hacienda, especially 109, 117, 122 and 130.

120
constituted a carga.51 Many entries recorded combined
shipments of wine and aguardiente, or wine and something
else, and they do not specify their origins as do the books
from 1806, 1808, 1809 and 1810. The following data presents
a summary of impuesto payments by Tucumán vintners for their
wine, aguardiente, vinegar and raisins (pasas) for the years
from 1781 to 1810. The 1781 to 1791 records do not
specifically note the origins of the shipments as do those
from 1806 and after.
1781 - 170 cargas wine
15 cargas aguardiente
66 cargas wine and aguardiente
17.5 cargas wine and vinegar
1782 - 217.5 cargas wine
8 cargas wine and aguardiente
80 cargas of wine, cotton and peppers (ají.)
1783 - 214 cargas wine
101 cargas aguardiente
continued
51. These measurements are based on information
gleaned from incidental comments that appear in a variety of
commercial records. For reference to the weight of a carga
of vino, see A.G.I., Buenos Aires 383, f. 368, "Relación que
demuestra el Estado de Escasez o abudancia... Mes de Mayo,
1801" (Buenos Aires Consulado), a report on prices of both
efectos de Castilla and efectos de la tierra in Catamarca:
"vino, a 4 pesos cada arroba de 3 en carga." An entry in
Cordoba's Libro de Cargas v Entradas Generales de Nuevo
Impuesto (1781-1786) (A.H.P.C., Serie Hacienda 17), 1785,
includes an entry for "19 1/2 cargas de aguardiente, en 39
odres."

121
1784 -
155
cargas
wine
160 .
5 cargas aguardiente
5
cargas
of
wine and vinegar
12
cargas
of
wine and raisins
19
cargas
of
raisins
1785 -
204
cargas
of
wine
174
cargas
of
aguardiente
217
cargas
of
wine and aguardiente
24
cargas
of
caldos
1786 -
307
cargas
of
wine
71
cargas
of
aguardiente
30
cargas
of
wine and aguardiente
114
barrels of wine and aguardiente
1787 -
260
cargas
of
wine
28
cargas
and 35 barrels of aguardiente
140
cargas
of
wine and aguardiente
12
cargas
of
wine and vinegar
60
cargas
of
wine and raisins
15
cargas
of
wine and other fruits
1788 -
293
cargas
of
wine
81
cargas
of
aguardiente
61
cargas
of
wine and raisins
23
cargas
of
wine, aguardiente and raisins
61
cargas
of
raisins
1789 -
164
cargas
of
wine
18
cargas
of
wine and raisins
1790 -
101. í
5 cargas
; of wine
31
cargas
of
wine and raisins
11
cargas
of
wine and anís
9
cargas
of
wine and oranges
3
cargas
of
raisins
1791 -
68
cargas
of
wine
continued

1806
1808 -
1809 -
from La Rioja, 382 cargas of wine
4 cargas of aguardiente
25 cargas of caldos
25 cargas of wine and raisins
5 cargas of vinegar
1 carga of raisins
21 cargas of oranges
from Anguinam, 53 cargas of wine
19 cargas of aguardiente
21 cargas of wine and raisins
from La Rioja, 339.5 cargas of wine
49 cargas of wine and oranges
23 cargas of wine and vinegar
8 cargas of oranges
from Anguinam, 52 cargas of wine
from Arauco, 54 cargas of wine
from Chuqin, 15 cargas of wine
from Catamarca, 8 cargas of wine
from La Rioja, 274 cargas of wine
86 cargas of wine and oranges
32 cargas of wine and vinegar
14 cargas or oranges
from Anguinam, 48 cargas of wine
2 cargas of aguardiente
4 cargas of raisins
from Chuguisaca, 105 cargas of wine
from Famatina, 47 cargas of wine
from Angullón, 34 cargas of wine
from Santa Lucia, 1.5 cargas of wine
13 cargas of oranges
continued

123
1810 - from La Rioja, 294 cargas of wine
45 cargas of wine and oranges
12 cargas of oranges
4 cargas of vinegar
from Famatina, 166 cargas of wine
from Angallo, 30 cargas of wine
from Simbolar, 30 cargas of wine
from Angullón, 28 cargas of wine
from Santa Lucia, 20 cargas of wine
from Chuguisaca, 18 cargas of wine
These data indicate La Rioja's fairly steady sale of
its caldos in Córdoba between 1781 and 1788 with relatively
good years in 1785 and 1786, then a decline in sales from
1789 through 1791. The figures from 1806 to 1810 relate an
impressive recovery to earlier levels. If Sobremonte's 1785
estimations were accurate, that La Rioja's wine production
reached 1,500 arrobas (500 cargas) a year, then it seems
that Córdoba purchased it all, plus quantities from other
districts. The 1789 libro, for example, records the sale of
13 cargas of wine and 24 cargas of wine and raisins from San
Juan; the 1790 libro shows another sale of 19 cargas of wine
and vinegar from San Juan. But the quantities recorded in
the Nuevo Impuesto books probably do not account for all
wine produced in the Tucumán region; 1,500 arrobas of wine
equals approximately 12,000 to 14,400 gallons of wine per
year, or about two gallons per person just in the city of

124
7,000. Certainly not all the residents of either the city,
or the district, could afford to drink wine year-round, but
La Rioja's production, seen in this light, does not seem
like much and certainly left room in the market for more.
Several entries of Castillian wine appear in the libros, but
they are infrequent and represent fairly small
quantities.52 Landowners within the Córdoba jurisdiction
might have been producing significant quantities of wine
that do not appear in the libros.
By the 1780s, probably earlier, Tucumán had also become
an exporter of cut and trimmed construction lumber as well
as untrimmed madera (wood). Cordoba's Nuevo Impuesto books
record a steady commerce in madera, tablas and costañeras
(rafters or beams), and less frequent shipments of ejes, or
axles used in the construction of carts, and bateas. or
large wooden tubs or troughs presumably used for any number
of purposes such as watering livestock of soaking hides for
tanning. Buenos Aires further required a steady supply of
building materials. The San Miguel de Tucumán district
benefitted from its position that enabled it to exploit the
52. Castillian wine usually arrived in Cordoba with
other shipments entered into the Nuevo Impuesto books as
Efectos de Castilla. See the small shipments recorded in
A.H.P.C., Serie Hacienda 17, for 30 Diciembre, 1786 or 10
Maio, 1787.

125
rich forests admired by Concolorcorvo. An interesting
document from the Archivo General de Indias map collection
lists a number of trees found in the Tucumán region and
describes their uses. The most important follow: the
Quebracho, a hardwood, used for beams (vigas) in
construction and in cart-making; the Algorrobo. used to to
make beams for construction and carts; the Mistol. used to
make axels and arrope; the Chañar, the Molle. and the
Piscruillin used to make arrope. a resin; the two species of
Coronilla. the first used to make dye and the second used to
make posts; and the Fala. used to make cart-wheels ("camas
de ruedas de coche para correosa") ,53
Wood and lumber in transit was measured in carretadas,-
some years between 1781 and 1791 saw considerable quantities
carted south. In 1781, for example, the Nuevo Impuesto
books recorded numerous shipments of wood products that
included almost 27 carretadas of tablas, 12 1/2 carretadas
of costañeras, 25 1/2 carretadas of maderas, 19 carretadas
of tablas and suelas, 13 carretadas of maderas and suelas,
16 carretadas of efectos de la tierra and madera, and a
53. A.G.I., Sección de Mapas y Planos, Audiencia de
Buenos Aires, Number 177, "Figura de algunos Arboles que hay
en esta jurisdicción de Córdoba de Tucumán, altura, Fruto,
calidades y serbicio" (no date).

126
single entry for 40 carretadas of "efectos de jabón y
madera". 1781 proved a fairly typical year--1785 saw a
similar number of entries registering Impuesto payments for
17 different shipments that included 31 carretadas of
madera, 19 carretadas of tablas, one carretada of costañeras
and 71 carretadas of mixed shipments of lumbers, woods,
hides and suelas. Subsequent years drop off some, but the
less frequent entries still include shipments such as fray
Jose Caresco's March 1787 cargo of six carretadas of bateas
and ejes, don Miguel de Villafañe's June 1790 shipment of
eight carretadas of suelas and six of bateas and tablas, or
Miguel Santucho's May 1791 freight of three carretadas of
ejes.54 Surprisingly, the libros from 1806 through 1810 do
not specify lumber or wood in their entries; presumably,
such products are included as efectos de la tierra. It
seems rather doubtful that Buenos Aires ceased importing
Tucumán's timbers, given its continued growth and the
increasing rhythms of the Litoral economy that would have
increased demand for fuel and other raw materials.
Mining and the extraction of mineral resources
constituted yet another sector within the Tucumán regional
economy. Mostly concentrated in the northern and western
54
A.H.P.C., Serie Hacienda, 17, 43.

127
districts of the region, these remained minor activities
that never really assumed positions of importance. The
cerros of Tucumán produced small amounts of gold and silver,
modest quantities of copper and occassional shipments of
salt, lime (cad), sulpher (azufre) and sulphite (caparrosa),
but by the 1780s most mining in the region had been
abandoned. The Famatina mines, as Sobremonte noted in 1785,
barely supported a small mining community. In the northern
districts, Intendent Andres de Mestre stated flatly in 1788,
"there are no minerals that might offer any rewards." Many
had tried to mine in the mountains in his jurisdiction, he
continued, "but all have abandoned their attempts without
finding that for which they searched."55
Only the Santa Cathalina and Rinconada gold mines
recorded any small production, registering approximately
3000 and 2000 onzas of gold annually in the late 1790s. The
San Francisco Asis mines occasionally produced small amounts
of silver, and the copper mine of Aconquija in Santa Maria
produced about 500 quintales of copper each year. But most
of the old silver mines, in Humahuaca, Rinconada, Los
55. Acevedo, La intendencia de Salta. 233. Acevedo
quotes Don Andres de Mestre, Intendent of Salta de Tucumán,
"Oficio de Mestre á Gálvez. Salta, 26 de Julio de 1788," in
A.G.I., Buenos Aires 40.

128
Molinos and Santa Maria, had been abandoned, as had the
copper mines in Los Molinos and Santa Maria.56 Mining, in
effect, faced numerous difficulties. One official explained
that the difficulty in obtaining mercury hindered silver
production and made provincianos reluctant to invest in any
type of mining operation.57 The biggest problem, however,
was labor, or accumulating a workforce for the mines. Salta
de Tucumán Intendent Rafael de la Luz explained in 1799 that
"the Indians and lower castes are not accustomed to work in
mines, and show great hatred even when paid generously." In
1800 he suggested using healthy and "little occupied"
Indians as well as vagrant whites, mestizos and castas, but
again these groups simply refused to perform such labor and
forced officials to drop their plans for developing the
region's mining potential.58
56.Ibid., 233. See also Santos Martinez, Las
industrias durante el virreinato. 98-100. Each cites an
Informe by Salta de Tucumán Intendent Rafael de la Luz to
Viceroy del Pino from dated May 5, 1799 (A.G.I., Buenos
Aires 40).
57. Ibid., 201. Acevedo cites "Oficio de la Luz a del
Pino. Salta, May 5, 1799," (A.G.I., Buenos Aires 40).
58. Ibid., 201. Acevedo cites "Oficio de del Pino al
Rey. Buenos Aires, 11 June 1803," (A.G.I., Buenos Aires
40) .

129
Although the mining of precious metals never became an
important element of the regional economy in the viceregal
era, some merchants in the Tucumán region did engage in the
extraction and sale of more common minerals. Occasional
entries in the Nuevo Impuesto books record trade in salt,
lime and alum to the Buenos Aires market. Salt was critical
to the local hide-curing industry and was important for the
growing export of beef from Buenos Aires. Although it could
be obtained by carters from Buenos Aires willing to enter
the undefended pampas south of the frontier, shipments from
the salinas. or salt flats, from throughout the region were
deemed safer and were probably of about equal cost. Salt
from the Tucumán salinas, Sobremonte explained, was abundant
and cheap, and provided a convenient source of income for
those who lived near them.59 Several Tucumán merchants
made sizeable shipments of all these minerals between 1781
and 1791. In June 1782, for example, don Casimiro Olivera
sent 14 carretadas of salt to Buenos Aires in 17 carts,
paying a tax of over 16 pesos. In July, don Francisco
Santiago Lorenzo shipped 198 "sacruitos" of sulphur to
Buenos Aires. In October of the same year don Phelipe
Gonzalez sent 13 carretas of lime to Buenos Aires in a large
59
Sobremonte, "Oficio (1785)."

130
tropa, paying an impuesto of 21 pesos. In August, 1784, don
Agustin Ybarra sent to Buenos Aires six carretas loaded with
salt and eight more loaded with wheat; in March of 1785 don
Jose Antonio Theran sent three carretadas of salt and added
a tercio of ponchos. Two small shipments of alum appear in
the libros, the first in February 1789 when don Augustin
Ribas shipped nine cargas of alum, raisins and sugar, and in
April 1807 when don Francisco Maceda sent 16 tercios, or
about 3,000 pounds to Buenos Aires.60
Roughly half the daily entries in Cordoba's Nuevo
Impuesto books record shipments simply as efectos de la
tierra. The term might refer to any of the products
manufactured, processed or extracted in the the region.
Usually, however, the term referred to the wide variety of
staple foods raised in all the jurisdictions of the Tucumán
region. Scattered individual entries suggest that
quantities of wheat, maize, beans (porotos) and garbanzos
and especially peppers, or ají, from Catamarca, regularly
circulated through the Cordoba marketplace. Less frequent
but still noteworthy, honey from Santiago del Estero, sugar
from Jujuy, and rice from San Miguel de Tucumán all made
appearances in the Córdoba registers. The chacras. or small
60
A.H.P.C., Serie Hacienda, 117.

131
farms, that often lined the regional waterways near the
cities and so impressed Concolorcorvo in 1773 apparently
managed to find sufficient buyers in regional cities and
local markets for their crops. Less frequently, the sisa
and Nuevo Impuesto books show, their markets included the
River Plate, the provinces of Peru and sometimes even the
settlements of Cuyo and the Litoral.
The pastoral sector provided the foundation of the
Tucumán regional economy that looked to two distinct
markets for its export production. While the northern zone
specialized in livestock rearing and mule and cattle exports
to the provinces of Alto Perú, the southern zone, especially
the Córdoba district, supported a more diversified
productive sector. Livestock exports to the northern
districts outweighed other activities in the south, but the
production and export of cueros and suelas forged an
important link to the Buenos Aires market and the
increasingly influential Atlantic economy. Textile
production in the southern jurisdictions constituted a
significant secondary activity sustained by the large
numbers of wool-producing sheep, by the large rural
populations given to domestic weaving and by the steady

132
supply of good Catamarca cotton. The western districts of
Catamarca and La Rioja developed more specialized economies
dependent on regional cities, especially Córdoba, to market
their cotton, lienzos and caldos. Other regional products
of local significance included packaging manufactured from
animal hides, lumber processed from regional forests,
minerals extracted from isolated sierras, carts crafted for
regional carrying trade, and garden, field and orchard crops
cultivated for local consumption.
With livestock exports so important, the well-being of
this sector proved critical to the prosperity of the
regional economy. The sisa and Nuevo Impuesto records from
1760 to 1810 indicate that trends marking the history of
mule exports influenced the region's secondary activities.
As noted, three phases marked this export activity: first an
initial period of steadily-increasing exports--a trend also
noticed in the export of vacas from San Salvador de Jujuy.
Dating from 1781, a fifteen-year decline triggered by
widespread social disturbances in Peru reduced exports to
half their previous levels. Finally, a gradual recovery
lasted until the end of the colonial period, with mule
exports surpassing pre-crisis levels. The limited records
available for other regional products suggest similar trends

133
for hides, textiles, caldos and lumber. Although they are
incomplete, these records indicate a region-wide depression,
worse in some places than in others. The northern zone,
almost completely reliant upon the Peruvian market for
livestock sales, was much more deeply affected than the
southern districts that still had alternative products,
especially hides, and the Buenos Aires market to look to.
By the last years of the colonial period, it seems, the
region had recovered. Pastoral by-products, textiles, raw
cotton and caldos seem to have recovered, or at least have
increased relative to earlier production. A close
examination of commerce within the Tucumán region, and of
regional commerce with neighboring economies, can shed more
light on all three phases and local manifestations of
prosperity and crisis and local attempts to manage them
both.

CHAPTER FOUR
COMMERCE
This chapter presents a study of viceregal Tucumán's
commercial activity--what Assadourian and several more
recent students of the Río de la Plata's economic history
refer to as "mercantile circulation."1 In presenting a
reconstruction of various patterns of regional commerce, it
addresses a series of objectives that include examining
available data in an attempt to trace the historical trends
marking Tucumán's commercial history between 1775 and 1810
with the goal of identifying years of growth and prosperity
and years of contraction and decline. A survey of these
same records also reveals the centers of regional commercial
activity and prepares a discussion of the relative
1. See Assadourian, "Sobre un elemento de la economía
colonial;" Silvia Palomeque, "La circulación mercantil en
las provincias del interior, 1800-1810," in Anuario del
Instituto de Estudios Histéricos-Sociales (Anuario IEHS) 4
(1989), 131-220; Klaus Müller, "Comercio interno y economía
regional en Hispanoamérica colonial. Aproximación
cuantitativa a la historia de San Miguel de Tucumán," in
Jahrbuch 24 (1987), 265-334; and Miguel Angel Rosal,
"Transportes terrestes y circulación de mercancías en el
espacio Ríoplatense, 1781-1811," in Anuario IEHS 3 (1988),
123-159.
134

135
mercantile importance of Tucumán's seven cities. The
discussion then turns to identifying the types of commercial
activity characteristic of Tucumán's regional economy. Two
basic spheres of activity, intra-regional and inter-regional
commerce, are analyzed in an effort to illuminate the
comparative volume, value and significance of each. The
discussion of inter-regional trade, in turn, focuses on the
distinction between import and export trade with neighboring
regions that included Buenos Aires and the Río de la Plata,
Alto Perú and Potosí, Cuyo, Chile and the Litoral.
This chapter relies on a variety of treasury records
that help recreate the characteristics and trends marking
regional commerce. Sisa and Nuevo Impuesto records are used
to help delineate the patterns of intra-provincial commerce
and reconstruct the basic characteristics of export
commerce. Both these sources also help illustrate the
export commerce of certain commodities such as mules,
cattle, cotton and textiles. They further reveal the
general outline of the import trade in certain efectos de la
tierra not produced in the Tucumán region--specifically,
yerba mate from Paraguay, aguardiente from Cuyo and tobacco
from the Litoral.

136
Alcabala records provide an equally valuable source for
the study of regional commerce. The alcabala was a sales
tax imposed on commercial transactions throughout the Span¬
ish empire. In the Tucumán region, prior to revisions in
1780, the alcabala generally consisted of a two per cent ad
valorem charge on the sale price or estimated value of
efectos de Castilla and four percent on sales of efectos de
la tierra.2 After 1780, administrative reforms changed
this structure and imposed a four percent charge on all
transactions with the exception of mules and building sites,
which remained at the two per cent level.3 Theoretically,
the alcabala applied only to the sale of imported goods;
goods produced within the jurisdiction of consumption were
exempted. The purchaser in these transactions usually paid
2. See the brief explanation of the alcabala in Lynch,
Spanish Colonial Administration. 128. The San Salvador de
Jujuy alcabala registers from 1766 to 1780 indicate a more
complicated system. Normally, a two per cent ad valorem tax
applied to the sale of most efectos de Castilla and a
variety of other merchandise that included slaves, mules,
paper, yerba mate and certain textiles. A four percent tax
applied to common efectos de la tierra such as foodstuffs,
wine, aguardiente and most other livestock. See the Jujuy
alcabala registers, A.G.I., Buenos Aires 457, "Carta Cuenta
de Caxas Reales de San Salvador de Jujui," 1766-1779.
3. See A.G.I., Buenos Aires 465, "Cuentas de Real
Hacienda de Córdoba de Tucumán, 1784-1788," specifically the
1785 accounts entitled "Relación jurada de la cuenta en fin
de diciembre, 1785," which include a description of each of
the ramos. or headings, included in the treasury accounts.

137
the tax, and the revenue entered the treasury of the
jurisdiction of the sale. In any case, modern students of
Tucumán's colonial commerce agree that regional alcabala
records provide accurate indicators of legal commercial
activity.4
Local treasury officials kept alcabala records in three
different registry books. The libro mayor de alcabala, a
detailed account register of daily entries recording
individual commercial transactions throughout a fiscal year,
was probably the most important of these books. Although
the precise details kept in these registers often depended
on the vigilence, initiative or honesty of the officer
keeping the book, information usually included the date of
the entry, the name of the merchant making the entry, a
precise description of the goods being exchanged, perhaps
the total value of the exchange and the amount of the tax
assessed.5 The libro mayor kept an account of revenues and
4. For further discussion of the alcabala tax in the
Tucumán region, see Assadourian, "Sobre un elemento de la
economía colonial," 225-226; Palomeque, "La circulación
mercantil," 138; and Müller, "Comercio interno," 282.
5. When the libro's description of the exchange is not
detailed or complete, noting precise items and quantities,
it at least distinguishes between between efectos de
Castilla and efectos de la tierra--a distinction important
to the study of commercial exchange.

138
expenditures through a fiscal year for each or several
ramos. or treasury subsections, included in the treasury
inventory; each ramo had a seperate folio recording monthly
entries. The libro de caia. a month-by-month record of the
accounts of each ramo, corresponded to the libro mayor.
This book devoted a full folio to each month of the fiscal
year; each folio recorded the revenues and expenditures of
each of the different ramos. In addition, local officers
sent yearly summaries, or carta cuentas. to Buenos Aires for
audit by viceregal officials. This study of the Tucumán
region's alcabala accounts draws on a combination of these
documents, all located in the Archivo General de Indias in
Seville.6
For Klaus Müller, an analysis of San Miguel de
Tucumán's alcabala revenues enables the pursuit of several
objectives. The first aim of Müller's study is to obtain a
quantitative understanding of one jurisdiction's complete
commercial activity. He couples his review of alcabala
records with a close examination of the commercial guías
that also recorded viceregal commercial traffic. His second
6. The Tucumán alcabala accounts used in this study
are found in the A.G.I. Under the Buenos Aires ramo, legajos
457 through 463 pertain to the treasury accounts of Salta
and San Salvador de Jujuy from 1769 to 1806, and legajos 464
through 467 contain the accounts of the treasury of Córdoba.

139
goal is to reveal the jurisdiction's productive trends as
well as its commerce with other jurisdictions and regions
within the Río de la Plata viceroyalty. In essence, Müller
uses the alcabala records "to situate and understand the
economy of the district within the wider viceregal economy"-
-"to evaluate the degree to which one district depended on
external influences and internal conditions for economic
prosperity."7
Illicit trade presents a problem that must be addressed
in any discussion of commercial activity. Müller again
provides the most complete discussion of illegal commerce in
the Tucumán region. First, Müller contends, the system of
administrative controls involving guías, resguardos and
fines against violators worked better within some spheres of
activity than within others. The resguardos, placed at
strategic points along primary trade routes, proved
effective at controlling illegal traffic in efectos de
Castilla, almost all of which entered the Tucumán region
through Buenos Aires. Despite occasional "insignificant"
incidents of illicit import of efectos de Castilla, Tucumán
merchants were not able to trade illegally on a large scale.
The annual volume of traffic never exceeded officials'
Müller,
Comercio interno," 267-268.

140
capacity to account for it all, and competition among
merchants generally assured that smuggled shipments came to
the attention of officials. Müller notes that for the
jurisdiction of San Miguel de Tucumán, evidence from
surviving guías corresponds with contemporary estimates of
the value of legal traffic. Overall, he concludes,
commercial controls proved effective, and widescale
smuggling of valuable efectos de Castilla was minimal.8
Intra-regional trade, however, afforded plentiful
opportunities for illicit trafficking. Müller finds in the
recorded differences between guia-registered legal trade and
consulado-estimated total trade strong indications of
frequent smuggling, especially of aguardiente brought to San
Miguel de Tucumán from San Juan.9 Aguardiente, of greater
value and bearing a high Nuevo Impuesto tax (12.5 per cent)
than most other efectos de la tierra, was frequently the
object of smuggling activities along routes that exploited
the little-populated areas found throughout the Tucumán
region. Traffickers' familiarity with both the isolated
trails and the location of the resguardos served them in
8. Ibid., 298-300. Müller cites a consulado report
presented by the merchant Salvador Alberdi in 1805. See
footnote 57, p. 294.
9
Ibid., 295-296.

141
their smuggling activities. Smugglers knowledge of these
routes permitted "a flourishing illegal trade in certain
efectos de la tierra" that may have equalled the legal trade
in the same goods.10 Müller argues that the shorter
distances travelled and the smaller freights carried by most
smugglers of efectos de la tierra made it easier to follow
the roundabout clandestine routes. The longer distances
travelled by carriers of efectos de Castilla, Peruvian
textiles or Paraguayan yerba mate, however, limited these
cargoes to the legal, most direct, and controlled, routes.
The additional costs of illegal trafficking, occasioned by
the longer distances, the extra days en route or the bribing
of officials, Müller argues, would have surpassed the costs
of legal commerce in European imports.
Despite the problems posed by contraband commerce,
Müller asserts that alcabala data still provide an accurate
indicator of commercial activity. He estimates that the
alcabala accounts record perhaps one-half the total volume
of the trade in efectos de la tierra, but almost all the
trade in efectos de Castilla, which constituted two-thirds
10. Ibid., 295-296. Müller argues that for the
jurisdiction of San Miguel de Tucumán, official guias
authorizing intraprovincial commerce registered perhaps on
one-half the total commerce in efectos de la tierra.

142
of all imports.11 Assuming that illicit trade in efectos
de la tierra was roughly equal throughout the region,
alcabala data can be used to judge the relative commercial
importance of Tucumán's seven cities. Discussion of the
relative value of trade in efectos de Castilla compared to
the trade in efectos de la tierra must be adjusted.
Müller's factor, and a number of additional sources that
discuss illicit commerce, however, make this adjustment
easier.
Table 4.1 presents the annual alcabala revenues of the
seven Tucumán jurisdictions for most of the years between
1775 and 1810. Culled from a number or sources that include
the libros manuales, libros mayores and libros de cajas of
several Tucumán cities, these figures reveal a distinct
cycle of commercial growth, decline and recovery during the
viceregal era. The largest gap in the data spans the years
1780 to 1784. Noting these gaps, and because some years
include payments on past debts, normally from the previous
year, distortion is best alleviated by presenting average
annual revenues calculated over five-year periods. The
11. Ibid., 284, 296. Müller estimates the ratio of
efectos de Castilla to efectos de la tierra at two to one,
noting that commerce in overseas goods "clearly dominated
the Tucumán market." See pages 303-304.

143
figures presented in table 4.2, annual alcabala revenue
averages, record estimates to the nearest peso. Although
the table is not complete for all years, the figures do
represent a close approximation of the relative levels of
commercial activity of the seven Tucumán cities.
Córdoba and Salta, clearly the commercial centers of
the Tucumán region, best illustrate the trends that
characterized the region's commercial activity. From 1775-
1779, a period that saw the creation of the viceroyalty in
1776 and the promulgation of free trade in 1778, alcabala
revenue reached a relative low point compared to the years
that followed. Salta collected the highest annual average
revenue of over 5,500 pesos; Córdoba followed with just
under 3,500. Although the figures from 1780 to 1784 are
missing, the period from 1785 to 1789 experienced a very
large increase. Cordoba's annual average revenue rose to
over 13,000 pesos a year, almost a four-fold increase.
Salta's annual average revenue more than doubled, to over
12,000 pesos a year. The figures indicate that Tucumán's
regional commercial activity underwent a sharp increase in

144
Table 4.1. Annual Alcabala Revenues, in pesos, Tucumán Region,
1775-1810
Year
Córdoba
Salta
Jujuy
San Miguel
de Tucumán
Santiago
del Estero
Catamarca
La Rioja
1775
1,197
5,626
3,325
888
523
149
38
1776
2,084
6,456
3,235
699
616
216
124
1777
3,827
5,426
1,655
985
739
274
92
1778
5,139
6,379
2,231
688
692
330
68
1779
4,952
4,272
1,710
1,574
1,384
297
66
1785
12,526
10,708
5,801
2,804
1,400
477
—
1786
17,290
10,973
6,152
5,941
2,162
736
647
1787
14,463
12,861
3,814
2,574
1,827
1,034
475
1788
9,899
11,774
3,981
3,395
3,498
1,603
353
1789
12,456
15,880
2,343
3,498
697
416
210
1790
8,176
14,019
2,741
2,577
1,929
381
222
1791
6,456
7,840
—
—
—
—
216
1792
7,637
10,771
3,120
2,480
403
—
174
1793
8,128
9,115
2,634
2,026
524
87
149
1794
7,352
6,683
—
—
—
—
400
1795
10,318
2,576
1,716
1,240
—
60
1796
9,575
9,430
1,109
2,231
827
—
183
1797
8,603
8,402
1,296
1,996
1,590
176
172
1798
8,108
12,869
—
—
—
—
202
1799
8,460
—
—
—
—
—
86
1803
11,866
—
2,617
2,261
3,606
984
—
1804
10,678
11,350
5,711
3,067
2,232
—
—
1805
16,319
9,290
4,430
4,806
1,651
719
—
1806
9,612
9,486
—
—
—
—
1807
15,833
—
—
—
—
—
—
1808
11,947
—
—
—
—
—
1809
15,528
—
—
—
—
—
—
1810
15,573
—
—
—
—
—
—
Sources: A.G.I., Buenos Aires 457, 458, 459, 460, 461, 462,
463 (all "Cuentas de Real Hacienda de Salta y Jujui,"
1769-1806), 464 (entitled "Estados, Cortes y Tanteos de
las Cajas Reales de Córdoba y Tucumán," 1786-1789),465,
466 and 467 (all entitled "Cuentas de Real Hacienda de
Córdoba de Tucumán," 1784-1806). See also Felix E.
Converso, "El comercio de Córdoba y las invasiones
inglesas, " in Cuarto congreso nacional y regional de la
historia argentina. 3 volumes (Buenos Aires, 1979),
volume I, 355-363, which includes an account of Cordoba's
annual alcabala revenues from 1796 to 1810.

Thousands
16
1775-1779 1785-1789 1790-1794 1795-1799 1803-1807 1809-1810
Figure 4.1.
Annual Average Alcabala Revenues, in pesos,
Cordoba and Salta, 1775-1810

5000
4000
3000
2000
1000
0
1775-1779 1785-1789 1790-1794 1795-1799 1803-1807
Figure 4.2. Annual Average Alcabala Revenues, in pesos,
San Salvador de Jujuy and San Miguel de Tucumán,
1775-1807
146

147
Table
4.2.
Annual Alcabala Income
over Five Year Periods
, in Pesos, Averaged
Citv 1775-79
1785-89
1790-94
1795-99
1803-07
1809-10
Córdoba
3,440
13,327
7,568
9,013
12,862
14,403
Salta
5,596
12,440
9,686
10,234
10,042
—
Jujuy
2,305
4,418
2,832
1,660
4,253
—
San Miguel
de Tucumán
967
3,606
2,361
2,011
3,501
—
Santiago
del Estero
791
1,539
952
1,219
2,496
—
Catamarca
253
655
—
—
—
—
La Rioja
78
421
232
141
—
—
Sources: A.G.I., Buenos Aires 457, 458, 459, 460, 461, 462,
463 (all "Cuentas de Real Hacienda de Salta y Jujui,"
1769-1806), 464 (entitled "Estados, Cortes y Tanteos de
las Cajas Reales de Córdoba y Tucumán," 1786-1789),465,
466 and 467 (all entitled "Cuentas de Real Hacienda de
Córdoba de Tucumán," 1784-1806). See also Felix E.
Converso, "El comercio de Córdoba y las invasiones
inglesas," in Cuarto congreso nacional y regional de la
historia argentina, 3 volumes (Buenos Aires, 1979),
volume I, 355-363, which includes an account of Cordoba's
annual alcabala revenues from 1796 to 1810.

148
the years immediately following the first commercial reforms
that accompanied the new viceregal system.12
The period from 1790 to 1794 brought a sharp drop in
these revenues. Cordoba's annual average fell to about 55
per cent of previous levels; Salta's fell to about 80 per
cent of its previous levels. This decline clearly
corresponds with the years of reduced mule exports that
followed the Peruvian uprisings. Subsequent years,
beginning in 1795, show increasing differentiation.
Cordoba's annual average revenues increased steadily, to
just over 9,000 pesos from 1795 to 1799, to almost 13,000
pesos from 1803 to 1807, to almost 14,500 pesos from 1808 to
1810. Salta did not recover as dramatically after 1795.
While Salta's decline after 1790 was not as drastic as that
of Córdoba, subsequent years indicate a stagnation of
commercial activity. Annual alcabala revenues levelled off
at around 10,000 pesos a year from 1790 to 1807, never as
high as the best years from 1785 to 1789.
San Salvador de Jujuy and San Miguel de Tucumán
constituted the secondary cities within the regional
12. For a general discussion of Bourbon Reforms see D.
A. Brading, "Bourbon Spain and its American Empire," in
Cambridge History of Latin America . volume I, 389-468; for
a more specific discussion of the reforms in the Rio de la
Plata, see Rock, Argentina 1516-1987. 59-66.

149
commercial hierarchy. Tables 4.1 and 4.2 both display sharp
differences in the annual average alcabala revenues between
these two cities and Córdoba and Salta. Alcabala revenues
in Jujuy and San Miguel de Tucumán totalled approximately 20
to 40 per cent of those in Córdoba and Salta in the same
years. Despite these differences, however, Jujuy and San
Miguel de Tucumán experienced similar commercial trends.
Figure 4.2 illustrates that both cities saw alcabala
revenues increase sharply from 1775-1779 to 1785-1789.
Jujuy's alcabala income doubled; San Miguel de Tucumán's
almost quadrupled. The next period, from 1790 to 1794,
shows the same marked decline felt by the larger cities, to
about 65 percent of previous levels for Jujuy and to about
60 percent for San Miguel de Tucumán.
The subsequent half-decade, from 1795 to 1799, however,
did not bring recovery to these smaller cities as in the
larger. In both Jujuy and San Miguel de Tucumán, the period
from 1795 to 1799 saw further decline, to about 40 percent
of 1785-1789 levels in Jujuy and to about 55 percent of
1785-1789 levels in San Miguel de Tucumán. (It should be
noted that even these levels still surpassed the 1775-1779
levels, just as in Córdoba and Salta.) The last years of
the viceregal period brought about recovery in both these

150
jurisdictions, to approximately the same levels as the best
years (1785-1789). So although the recovery of these
smaller cities seems delayed when compared to that of
Córdoba, the recovery was of almost the same scale and
suggests that much of the Tucumán region experienced
widespread commercial prosperity after 1795.
Catamarca and La Rioja rank as the smallest commercial
centers within the Tucumán region. Santiago del Estero was
somewhat busier than these two cities, but still never
reached the levels of Jujuy of San Miguel de Tucumán.
Annual average alcabala revenues in these smaller cities
were always a fraction, generally less than 10 per cent, of
those of Córdoba and Salta. There is less alcabala data for
these smaller cities, but as figure 4.2 shows, the available
figures suggest that they also experienced the regional
trend of growth-decline-recovery. The Santiago del Estero
records reveal a strong recovery after 1790-1794. Revenues
here increased from less than 1,000 pesos from 1790-1794 to
about 1,200 pesos from 1795-1799 to 2,500 pesos annually in
the last decade of the viceregal regime.
Overall for the Tucumán region, the trend in commercial
activity followed that experienced by the primary cities of
Córdoba and Salta. Increased commercial activity

151
characterized the years from 1775 to 1789; a sharp decline
marked the next decade, (until about 1800 in some places),
with full recovery everywhere but Salta after 1803. This
trend, it is important to note, reflects a similar pattern
in livestock exports from Salta and Jujuy, and reduced hide,
cotton, wine and aguardiente production in the southern
jurisdictions. The diminished mule exports to Peru after
1781 seem to have triggered a somewhat delayed commercial
decline felt throughout the the entire Tucumán region.
Alcabala evidence, at least, indicates that commercial
activity fell to its lowest levels during the same years--
1790 to 1795--that mule exports fell to record-low figures.
The Peruvian disturbances and the subsequent reform of
repartimiento practices ultimately proved major influences
on Tucumán's economic history.
The alcabala records further suggest that the smaller
jurisdictions probably experienced a more severe crisis than
the Córdoba jurisdiction; Córdoba, at any rate, began to
increase its alcabala revenues several years sooner than
Santiago del Estero, San Miguel de Tucumán or San Salvador
de Jujuy. Salta, again, does not seem to have been able to
significantly increase its commercial activity after the
decline marking the period 1790-1794.

152
Recovery lasting until the onset of the independence
years followed the crisis years. The southern jurisdictions
led this recovery; despite the recovery of Jujuy, the
northern jurisdictions never again reached the levels of
1785-1789. Córdoba, San Miguel de Tucumán and Santiago del
Estero, however, all reached and surpassed the old levels
that marked the region's most prosperous years. By the last
few years of the viceregal era, Córdoba had become the
undisputed commercial center of the region, largely at the
expense of Salta's commerce. Figures published by Sylvia
Palomeque show that the annual value of Cordoba's imports
from 1801 to 1805 averaged more than 270,000 pesos, or 41
per cent of the regional total, and more than 300,000 pesos,
or 44 per cent of the regional total, from 1806 to 1810.
Salta, however, averaged only about 115,000 pesos a year, or
21 per cent of the regional total, from 1801 to 1805 and
100,000 pesos each year, or about 16 per cent of the
regional total, thereafter.13
13. Palomeque, "La circulación mercantil," 138-140.
Palomeque's calculations indicate that from 1800 to 1805,
Cordoba's alcabala revenue accounted for 41 per cent of the
regional total, Salta's 21 per cent, San Miguel de Tucumán's
16 per cent, Santiago del Estero's 10 per cent, Jujuy's 8
per cent, Catamarca's 3 per cent and La Rioja's 1 per cent.
From 1806 to 1810, Cordoba's revenues totalled 44 per cent
of the regional total, Salta's 16 per cent, San Miguel de
Tucumán's still 16 per cent, Santiago del Estero's still 10

153
A number of other factors in addition to the diminished
Peruvian market for mules might also account for particular
trends and changes within Tucumán's economy. Again, the
implementation of concerted colonial reforms by Charles
Ill's administrators certainly had an impact on the entire
Río de la Plata economy.14 Tucumán's increased commercial
activity between 1775 and 1789 mirrors similar trends in the
River Plate. The decrees of the 1770s clearly boosted
commercial activity in Buenos Aires. Before the 1770s,
David Rock notes, customs revenues from imports rarely
exceeded 20,000 pesos; between 1779 and 1783 revenues
climbed to an average of 150,000 pesos each year. By the
1790s this figure had climbed to almost 400,000 pesos a
per cent, Jujuy's up to 10 per cent, Catamarca's still 3 per
cent and La Rioja still 1 per cent.
14. Discussions of the economic impact of the Bourbon
Reforms in the Rio de la Plata include Guillermo Céspedes
del Castillo, Lima v Buenos Aires. Reourcusiones económicas
y políticas de la creación del virrevnato del Plata
(Sevilla, 1947), 97-129; Alberto Assef, "La creación del
virreinato del Río de la Plata y la disgregación nacional,"
in Estrategia 42 (September-October, 1976); John Fisher,
"Imperial 'Free Trade' and the Hispanic Economy, 1778-1796,"
in the Journal of Latin American Studies 13:1 (21-56);
Héctor Tanzi, "El Rio de la Plata en la época de los
virreyes Loreto y Arredondo," in Revista de Historia de
America 83 (January-June, 1977), 153-192; Halperin-Donghi,
Politics. Economics and Society, 29-40, may provide the best
concise discussion of the mercantile expansion of Buenos
Aires.

154
year; in 1795, customs revenues from foreign imports reached
732,000 pesos, with those from Spanish goods adding another
118,000 pesos. Between the 1770s and the 1790s, he adds,
the volume of shipping in Buenos Aires more than doubled.15
The reorientation of the Tucumán regional economy from north
to south, and the replacement of Salta by Córdoba as the
region's principal commercial city, seems as much a response
to the commercial growth of Buenos Aires as a reaction to
the decline of Peruvian markets.16
Viceregal reforms included measures designed to
maximize the exploitation of the colonial commercial system.
Partly in an attempt to control illicit commerce throughout
the empire, the crown gave colonial intendents broad powers
to increase revenue collection. Lynch notes that the Real
Ordenanzas para el establecimiento e instrucción de
intendentes included 149 articles that addressed the
departments of finance and the collection of taxes, tithes,
customs and tributes.17 Evidence suggests that these
15. Rock, Argentina 1516-1987, 64-67. Rock's
discussion of the impact of the Bourbon Reforms on the
commercial activity in the River Plate, including the ports
of Montevideo and Colonia do Sacramento, is very useful.
16. This is the essence of Garavaglia's argument in
his paper "Economic Growth and Regional Differentiation."
17. Lynch, Spanish Colonial Administration. 59.

155
measures succeeded in the Tucumán region; Sobremonte, named
Intendent of the new Córdoba de Tucumán jurisdiction in
1783, claimed to have "improved the royal treasury over
previous years by 30,000 pesos annually," in part by naming
new collectors of the alcabala tax.18 Increased efforts
and improved means of collection surely accounted for a
portion of the higher alcabala revenue seen throughout the
Tucumán region.
Tucumán's regional alcabala records further suggest
that European warfare and its disruption of Atlantic
shipping exerted limited impact on regional commerce.
Growth characterized the three periods that warfare
interrupted, or at least re-organized, Spain's colonial
trade. From 1776 to 1783, when Spain allied itself with
France and the English North American colonies against
Britain, regional commerce experienced its first sharp
upswing. During the Napoleonic wars lasting from 1794 until
the end of the century, the Tucumán region, while still
18. See the "Ynforme de los Méritos, y Servicios del
Marqués de Sobremonte, Gobernador Yntendente de Cordova de
Tucumán" dated 1791 in A. G. I., Buenos Aires 50 (folios not
numbered). Sobremonte's "Ynforme" continued: "aunque por
haber sido mayor las entradas del comercio... debe rebajarse
algo se considera más de la mitad de esta cantidad en el
incremento de los ramos fixos" that included Indian
tributes, pulpería fees and the alcabala tax.

156
sluggish in some places, experienced overall growth led by-
slight increases in the Córdoba, Salta and Santiago del
Estero jurisdictions--from an annual average of 23,399 pesos
from 1790 to 1794 to 24,137 pesos from 1795 to 1799. During
the same years, Buenos Aires' exports were almost completely
cut off; during episodes of warfare with Britain, naval
blockades of Spanish ports in 1790s brought recurrent
depression.19
Nor did the British invasion of Buenos Aires during
1806 and 1807 have a negative impact on regional trade.
Felix A. Converso's study of Cordoba's alcabala revenues
from 1796 to 1810 shows that Córdoba continued as the
Tucumán region's commercial center, supplying other
19. Rock, Argentina 1516-1987. 68. The best
selections from a large bibliography addressing Buenos
Aires' commercial history during the Napoleonic wars include
Ricardo H. Levene, Investigaciones acerca de la historia
económica del Río de la Plata, (second edition) 2 volumes
(Buenos Aires, 1952), volume 2, 7-32; Manuel José de
Lavardén, Nuevos aspectos del comercio en el Río de la Plata
(Buenos Aires, 1955); Enrique de Gandia, Buenos Aires
colonial (Buenos Aires, 1957), 35-80; Manfred Kossok, El
virrevnato del Río de la Plata. Su estructura económica-
social (Buenos Aires, 1959) 65-104; Enrique Wedovoy, La
evolución económica rioplatense a finés del siglo XVIII v
principios del siglo XIX a la luz de la historia del seguro
(La Plata, 1967); Sergio Villalobos R., El comercio v la
crisis colonial: un mito de la independencia (Santiago,
1968), 99-128; Garavaglia, "Comercio colonial: expansión y
crisis," in Polémica 1 (1977); and Socolow, "Economic
Activities of the Porteño Merchants."

157
jurisdictions with efectos de Castilla and redistributing
locally-produced and imported efectos de la tierra.20
Commercial activity also increased in Buenos Aires; the
British relaxation of trade restrictions proved a great
boost to both the overseas trade and trade with the
interior.21 As Converso explains, the Tucumán region
continued receiving merchandise from Buenos Aires in an
unchanged manner, except that porteño merchants began
offering more credit at lower interest to Tucumán merchants,
with easier financing terms than before 1806. These
measures, Converso concludes, explain the increased
commercial activity in the Interior during the very last
years of the colonial regime.22
Alcabala, sisa, guía and Nuevo Impuesto records also
provide an outline of the structure of Tucumán trade. The
Tucumán region supported several spheres of commercial
20. Converso, "El comercio de Córdoba," 361.
21. See H. S. Ferns, Britain and Argentina in the
Nineteenth Century (Oxford, 1960), ??-??; and German O. E.
Tjarks and Alicia Vidaurreta de Tjarks, El comercio ingles v
el contrabando. Nuevos aspectos en el estudio de la
política económica en el Río de la Plata (1807-1810) (Buenos
Aires, 1962) .
22. Converso, "El comercio de Córdoba y las invasiones
inglesas," 361.

158
activity that both enhanced its coherence and shaped its
relations with neighboring regions. First, intraregional
trade distributed the basic commodities that afforded the
region's characteristic self-sufficience. The Córdoba Nuevo
Impuesto books reveal the local distribution of merchandise
such as cotton and cotton lienzos from Catamarca, wine,
aguardiente and citrus from La Rioja, rice from San Miguel
de Tucumán and sugar from Jujuy. Partially outlined in the
previous chapter, the livestock sector dominated this sphere
of commercial activity. Each of the Tucumán jurisdictions
participated in the conveyance of mules and cattle to Salta
and Jujuy for sale to the provinces of Alto Perú; the
thousands of pesos earned from these annual sales not only
stimulated local exchange throughout Tucumán, but also
furnished the means of importing luxury items from outside
the region.
Interregional commerce can be conveniently examined in
terms of export activities and import activities. Tucumán's
regional exports, examined in the analysis of regional
production, basically went in two directions--livestock
north to the Andean mining districts and pastoral products
and inexpensive textiles south to Buenos Aires and the
Litoral. Some jurisdictions also exported less-important

159
commodities to Cuyo, Chile and parts of the Litoral. Import
relations can be examined, in turn, in terms of commerce in
efectos de la tierra and commerce in efectos de Castilla.
Efectos de la tierra came into the Tucumán region from all
the neighboring areas, including Cuyo and Chile, Alto Perú,
Buenos Aires and the River Plate and other areas of the
Litoral. The category efectos de la tierra included a wide
variety of goods, of which textiles, yerba mate and
aguardiente proved most common. Efectos de Castilla
included the wide variety of textiles and hardware from
throughout Europe that virtually all entered the Tucumán
region through Buenos Aires.
While commerce in most locally-produced goods was
conducted on a small scale, the mule trade involved the
region's wealthiest landowners and merchants, large sums of
money and often-complicated partnerships.23 Concolorcorvo
described the outline of this commerce, and while perhaps
overestimating its magnitude, he fully recognized its
importance. The mule trade constituted an importance force
within the regional economy, giving rise to "numerous and
diverse commercial transactions between breeders, raisers,
23. Florencio Cornejo, "El comercio de muías de Salta
con el Litoral, Córdoba, Alto y Bajo Perú (1800-1810)," in
Cuarto Congreso Nacional. 366-367.

160
winterers, traffickers, merchants, capitalists, foremen and
peones, each representing specialties and all closely bound
together in an intricate network of economic relations."24
Cordoba's sisa and Nuevo Impuesto records afford a glimpse
into some of the characteristics of one component of the
intraregional mule trade.
From 1780 to 1791, Cordoba's registers recorded 148
sisa payments for herds of mules driven north. The average
year recorded 13 or 14 payments; the 1781 book, however,
recorded only two payments, and the 1787 book recorded 19.
During this 12-year period, 79 different individuals
registered at least one payment. At least 48 of these 78
men and one woman (doña Clara Echenrique) registered only
one payment during this period. Only four individuals
(Gregorio de la Heras, Juan Lopez de Cobo, Xavier
Ussandivaras and Pedro Lucas de Allende) registered payments
in six or more of these years. Of the remainder, twelve
individuals recorded payments in two years, nine recorded
payments in three different years, and six recorded payments
in four different years.25
24. Ibid., 366.
25. See the Nuevo Impuesto books, A.H.P.C., Serie
Hacienda, 14, 17, 43.

161
Of the four individuals making payments in six or more
years, Juan Lopez de Cobo recorded the greatest sisa
payments. His payments in 1780, 1782, 1784, 1787, 1788 and
1789 covered the passage of 15,155 mules. His smallest
payment was for 500 animals in 1782, his largest for 3,700
in 1789. Pedro Lucas de Allende followed, sending a total
of almost 14,000 mules north in six years. Typical sisa
payments in Córdoba during these years covered anywhere from
400 to 1,200 animals, sometimes fewer and sometimes more--
patterns similar to those recorded when the sisa records
pick up again in 1806.26
Concolorcorvo's discussion of this commerce indicates
that numerous people from different levels of society
consistently earned profits, commissions or wages from the
annual drives. Herds of 1,200 to 1,400 animals required one
or two foremen and about 20 laborers for the drive north; 13
or 14 such herds, then, employed 300 or 400 men who earned
modest wages. Busier years with greater exports undoubtebly
employed more. Landowners along the primary routes also
demanded pasture fees from passing herds. Even after these
and other expenses, Cordoba's mule exporters saw profits of
one-and-a-half to three pesos per animal, or 1,800 to 4,200
26
A.H.P.C., Serie Hacienda, 109, 117, 122, 130.

162
pesos per herd. The wealth generated by mule exports spread
throughout the Tucumán economy and facilitated other
commercial activity.
Sylvia Palomeque's study of Tucumán commerce furnishes
an excellent overview of regional commercial relations.
Palomeque, using mostly alcabala and sisa records from the
treasury section of the national archive in Buenos Aires,
presents a quantitative study of the merchandise that
circulated within the Tucumán region and of the merchandise
that circulated between Tucumán and its neighboring
regions.27 This study, like Müller's, finds the total
value of Tucumán's intraregional commerce (measured in pesos
and excluding livestock) less than the total value of
interregional commerce, at least between 1800 and 1810. The
Córdoba jurisdiction, for example, received only about 33
per cent of its imported efectos de la tierra from other
Tucumán jurisdictions. Catamarca's cotton and cotton
lienzos constituted about 24 per cent of this import trade;
La Rioja's wine and aguardiente accounted for approximately
eight per cent more. The other Tucumán jurisdictions
27. See Palomeque, "La circulación mercantil," 131-133
for an introduction to this long article. Palomeque's
appendix consisting of eight detailed tables of commercial
data is especially helpful to this study (pages 202-210) .

163
together contributed less than one per cent of Cordoba's
imports. On the other hand, two-thirds of Cordoba's imports
originated outside the Tucumán region--in San Juan, in Chile
and in Buenos Aires and the Litoral.
Salta received imports of efectos de la tierra that
ultimately totalled 354,205 pesos between 1800 and 1808. La
Rioja ranked as the region's heaviest exporter to Salta,
accounting for almost ten per cent of the total value of the
city's imports. While La Rioja steadily provided between
two and ten percent of Salta's imports, both Catamarca and
Córdoba contributed only between one and two per cent during
these years. Santiago del Estero's and San Miguel de
Tucumán's trade with Salta proved negligible. Aside from
one year (1801) when Jujuy's exports to Salta were very high
(13,152 pesos, about one-fourth the Salta total that year),
Jujuy otherwise registered almost no trade with Salta. The
bulk of Salta's imports of efectos de la tierra, almost 60
per cent, originated in Alto Perú, and smaller amounts came
from Cuyo and Chile.
The remaining Tucumán jurisdictions followed similar
patterns. Catamarca's cotton and lienzos and La Rioja's
wine and aguardiente proved the most consistently-traded
merchandise within the region. In San Miguel de Tucumán,

164
Catamarca's products made up 13.5 per cent of imports of
efectos de la tierra while La Rioja's contributed another
11.5 per cent. Salta and Jujuy combined contributed about
seven percent; Córdoba and Santiago del Estero recorded no
trade with San Miguel de Tucumán. As with Córdoba, two-
thirds of San Miguel de Tucumán's imports originated outside
the region: Cuyo contributed 19 per cent of these imports,
Alto Perú accounted for 17 per cent, Chile added another
16.5 per cent and Buenos Aires and the Litoral recorded 14.5
per cent. In Santiago del Estero, Catamarca's products made
up just over 18 per cent of imported efectos de la tierra
while La Riojas' claimed five per cent. Jujuy's exports,
probably sugar, added another 3.6 per cent; Córdoba, Salta
and San Miguel de Tucumán tqgether contributed less than one
per cent. Most of Santiago del Estero's efectos de la
tierra came from Buenos Aires and the Litoral (27.7 per
cent), from San Juan (16.7 per cent) and from Chile (15.7
per cent).
Jujuy's import patterns mirrored Salta's. La Rioja
proved the largest regional exporter to Jujuy, providing
almost twelve per cent of the jurisdiction's imports. While
Salta added another four per cent, the other Tucumán
jurisdictions contributed about one per cent or less. As in

165
Salta, Alto Perú figured as Jujuy's main importer of efectos
de la tierra, filling almost 60 per cent of the local
market. San Juan in Cuyo (11.3 per cent) and Buenos Aires
and the Litoral (11.9 per cent) split the rest.
Of the two western jurisdictions, Catamarca conducted
wider trade with the other Tucumán jurisdictions. A full 19
per cent of Catamarca's imports of efectos de la tierra
originated in the Córdoba jurisdiction, 16.5 per cent came
from Jujuy and almost five per cent came from La Rioja.
Chile and Cuyo together accounted for half of Catamarca's
imports. La Rioja, despite its widespread exports, may have
had the least trade with other regional jurisdictions.
Córdoba ranked as La Rioja's largest trading partner within
the Tucumán region, accounting for five per cent of the
smaller jurisdiction's imports. About two-thirds of La
Rioja's imports, however, came from Chile; the remainder
came from Buenos Aires and the Litoral.
The trade patterns in Salta and Jujuy vary sharply from
those of the southern jurisdictions. Palomeque's data show
first that the northern jurisdictions maintained much closer
commercial relations with the provinces of Alto Perú than
did the southern jurisdictions. Both Salta and Jujuy each
received as much as two-thirds of their imports of efectos

166
de la tierra from Alto Perú, while no southern jurisdiction
received as much as one-fifth. Córdoba received only about
7.5 per cent of its imports from "northern provinces."
Palomeque also shows that the southern jurisdictions
received about one-third of their imports from other Tucumán
jurisdictions, mainly Catamarca and La Rioja, thereby
manifesting more widespread commercial networks than seen in
the north. The northern jurisdictions, in contrast,
received only about ten to fifteen per cent of their
imports, or less, from intraregional trade. Most striking,
perhaps, is the virtual absence of commerce (excepting
livestock) between Tucumán's most prosperous jurisdictions.
Palomeque finds very little trade between Córdoba and Salta,
an average of less than 1,200 pesos a year from 1800 to
1810. Salta and Jujuy, in fact, hardly looked south at all
except for La Rioja's wine and aguardiente, and the south
hardly imported from the north. Even given the probability
of widespread smuggling activities throughout the region, it
seems that little more than the mule trade linked the
northern and southern parts of Tucumán or added any
extradegree of regional cohesion.
A relatively small number of Tucumán internadores
controlled the regional mule trade with Alto Perú. Salta

167
sisa records from 1778 to 1808, interpreted by Nicolás
Sánchez Albornoz, reveal several important characteristics
of this commerce. First, Sánchez Albornoz notes, the mule
trade involved many "strata" of activity, from many peones
annually employed, to the large Córdoba merchant houses that
regularly entered the trade.28 In the years analyzed, he
identifies 361 different individuals who paid sisa taxes for
herds driven north from Salta. Of these, 219 individuals
paid for the passage of between one and 500 animals; another
90 individuals paid for between 500 and 2,000 animals. Most
of these individuals probably participated in the mule trade
only once or twice, after amassing a small herd for sale.
Another 54 individuals made repeated sisa payments, mostly
for numerous herds that eventually totalled between 2,000
and 10,000 animals. Another 18 individuals, finally,
recorded various payments for herds that eventually totalled
over 10,000 animals. These large-volume internadores,
28. Sánchez-Albornoz, "La saca de muías de Salta,
points to the participation of peones, "a fundamental,
active element" of this trade, to the capataces (foremen)
and to the merchants and pastureowners "that were not always
individuals but sometimes included apoderados (agents) of
Córdoba and Santa Fé merchant houses" as several of these
different strata.

168
Sánchez Albornoz suggests, constituted Tucumán's social and
economic elite.29
This variety of dealers, large and small, figured as
important participants in the regional economy partly
because of the great quantities of capital they mobilized
each year.30 After 1795, the Salta fair sent between
35,000 and 50,000 mules north each year. At prices ranging
from nine to 13 pesos a head, Palomeque calculates that
mules brought an average return of over 390,000 pesos a year
into circulation in the Tucumán region between 1800 and
1809. If cattle are added, the average increases to 430,000
pesos each year.31 Palomeque further contends that profits
from this trade ultimately permitted both internal
commercial exchange as well as import activity with Buenos
29. Ibid., 303. Family names repeated on the list of
largest internadores include Funes and Allende, each with
several male members also appearing in the Córdoba sisa
books. Domingo Funes, appearing in both the Córdoba and
Salta records, also served as the Córdoba agent to the
Buenos Aires consulado. Gaspar Saenz Bravo, the largest
single exporter of mules from Salta (almost 47,000 mules
between 1778 and 1808), also appears in the Córdoba
registers in 1808, 1809, 1810. Others appearing in both
cities' registers include Juan Gonzalez Roldan, Mariano
Ussandivaras, Pedro Lucas de Allende, Antonio Arredondo and
Tomas Allende.
30. Ibid., 299.
31. Palomeque, "La circulación mercantil," 166.

169
Aires, Paraguay, Chile and Cuyo. "The principal source of
monetary income," she explains, "consisted of mules exported
north, which proviced for a favorable balance of trade...
[Tucumán's] commercial relationship with Buenos Aires was
unfavorable, in that exports of textiles, suelas and hides
did not cover the cost of imports of efectos de la tierra
and efectos de Castilla... The silver obtained through the
mule trade permitted Córdoba to liquidate the unfavorable
balance and pay for cotton from Catamarca, aguardiente from
San Juan and wine from La Rioja."32
Palomeque's study also compares the value, origins and
types of registered imports of efectos de la tierra with
registered imports of efectos de Castilla for each of the
Tucumán jurisdictions.33 In both Córdoba and Salta, the
total value of imported efectos de Castilla exceeded that of
efectos de la tierra during the decade from 1800 to 1810.
The annual average value of Cordoba's imports of efectos de
Castilla in this decade reached 133,396 pesos, and for
efectos de la tierra 127,413 pesos--a difference of only
6,000 pesos. In Salta, the annual average value of efectos
Ibid., 148, 186.
Ibid., see Chart 1 of the appendix, page 202.

170
Table 4.3. Annual Average Imports of Efectos de
Castilla and Efectos de la Tierra, in
Pesos (without livestock), 1800-1810.
Efectos/Castilla
Efectos/tierra
Córdoba
133,396
127,413
Salta
67,248
49,629
San Miguel
de Tucumán
53,030
30,457
Santiago del
Estero
37,370
14,457
San Salvador
de Jujuy
15,862
20,109
Catamarca
13,129
7,299
La Rioja
3,880
1,720
Source: Adapted from Palomeque,
mercantil," 202 (Cuadro
"La circulación
1) .
de Castilla reached 67,248 pesos, compared to 49,629 pesos a
year for efectos de la tierra--a difference of about 17,000
pesos each year. In either case, if Müller's estimates
regarding contraband traffic in efectos de la tierra stand,
it appears likely that commerce in efectos de la tierra
equalled or surpassed commerce in efectos de Castilla.
Table 4.3 compares the annual average values of imports of

171
efectos de Castilla and efectos de la tierra for each of the
Tucumán jurisdictions.
Buenos Aires provided the region's only source of
efectos de Castilla. A consulado summary from 1790 includes
a record of the total value of all the different goods sold
to the "provinces of the Interior."34 The report lists 126
different items; by value, several distinct textiles
dominate. Of the over 1,900,000 pesos worth of merchandise
shipped from the city in 1790, Brittany linens (bretañas)
topped the list at over 280,000 pesos, followed by Silesian
linens (platillas) at over 197,000 pesos and paños.
especially cheap cloths, at almost 137,000 pesos. The list
further includes Bramant linens (bramantes), cambrics
(estopillas), ruanes. taffetas, lace, satin, shags (tripes),
velvet (terciopelos), silk, silk thread and ribbons and
other sewing notions (mercería). The second category of
goods most commonly trade through Buenos Aires consisted of
hardware and tools. Over 7,000 quintales of iron, worked
and in bars, accounted for almost 35,000 pesos of the total;
10,500 dozen knives added another 20,000 pesos.
34. A.G.I., Buenos Aires 383, "Estados de las Aduanas
y Comercio del Virreynato" (1789-1803), folios 154-158, 269-
274 .

172
The Tucumán region's interregional imports of efectos
de la tierra chiefly involved only a few commodities that
could not be provided locally. Yerba mate from Paraguay,
often sold through Buenos Aires, became perhaps the most
important, followed by sugar imported through Chile, tobacco
from Santa Fé and inexpensive cotton lienzos called tucuyos
manufactured in Alto Perú and traded into Salta and Jujuy.
The different Tucumán zones each exhibted distinct import
patterns. The north, led by Salta, looked north; its
commerce in efectos de la tierra, tied tightly to the mule
trade, revolved around Potosí sphere.35 La Rioja and
Catamarca looked west to Chile, while the south, led by
Córdoba, developed a widespread commerce that reached in all
directions.
Cordoba's imports of efectos de la tierra from 1800 to
1810, measured in pesos, consisted mainly of yerba mate and
sugar. Cordoba's merchants exchanged shipments of ponchos
and woolen textiles for cartloads of yerba, which accounted
for 23 per cent of imported efectos de la tierra. Sugar,
mostly purchased with silver, accounted for another 21 per
cent. Aguardiente, much of it purchased directly from San
35. Palomeque, "La circulación mercantil,"
160, 174, 176, 180, 185.
146, 152,

173
Juan, claimed another ten per cent. San Miguel de Tucumán's
merchants imported yerba from Paraguay and aguardiente from
San Juan, each of which comprised about 18 per cent of
imported efectos de la tierra. Sugar brought from Chile
made up another 16.5 per cent. Remaining imports included a
fair percentage of tucuyos from Alto Perú.
Santiago del Estero, reliant upon livestock and poncho
exports, mirrored both Córdoba and San Miguel de Tucumán, if
on a smaller scale. Yerba mate constituted 26 per cent of
imports; textiles--lienzos from Catamarca and tucuyos from
Alto Perú--made up 16 per cent. Aguardiente from San Juan
accounted for another 14.5 per cent, and sugar from Chile
still another five per cent. In general, Tucumán's south
traded mainly with Buenos Aires for Paraguay's yerba mate,
with San Juan for its acclaimed aguardiente and with Chile
for Peruvian sugar. San Miguel de Tucumán and Santiago del
Estero both received quantities of Alto Perú's textiles,
which undoubtedly reached these jurisdictions as partial
payment for livestock exports. Córdoba, a large producer of
textiles, had no need for imported tucuyos and received few
items from Alto Perú.
In Salta and Jujuy, Peruvian tucuyos comprised about 50
per cent of imports of efectos de la tierra. Aguardiente

174
carried north from San Juan and yerba mate and sugar brought
from Chile each contributed around ten to twelve per cent of
the total. The large Indian population centered in the
district of La Puna made coca an important trade item in
Jujuy, where imports of large sacos of the leaf from Potosí
accounted for over eleven per cent of all imports of efectos
de la tierra. In the west, Catamarca traded its cotton and
lienzos mostly with Chile for sugar and other efectos (43
per cent of the total value of efectos de la tierra) and
with Córdoba, the re-exporter of Paraguayan yerba mate and
hats made in Jujuy. Aguardiente from San Juan also claimed
a modest piece of the Catamarca market. La Rioja turned
even more squarely towards Chile, which claimed a full two-
thirds of the La Rioja market. Sugar accounted for 33 per
cent of the Chilean imports; yerba mate imported directly
from Buenos Aires comprised most of the remaining imports.
The separate Tucumán jurisdictions, despite the degree of
cohesion lent by common participation in the Peruvian mule
trade, clearly turned in different directions in pursuit of
secondary commercial relations.

CHAPTER FIVE
TRANSPORTATION
Transportation services constituted the third important
sector of the Tucumán regional economy. Great caravans of
ox-drawn carts and long trains of cargo-laden mules
crisscrossed the region in all directions, supporting
regional production, carrying away exports and nurturing
regional commerce in both efectos de la tierra and efectos
de Castilla. Constituting the primary overland trade route
between the Atlantic and Peru, the Tucumán region emerged as
one of the few parts of the colonial world that developed a
specialized transport infrastructure. Tucumán's carriers
not only linked the region with international markets, but
they also added a prosperous sector to the regional economy.
The carters of Cordoba and San Miguel de Tucumán and the
muleskinners of San Salvador de Jujuy and the Andean pass
between Chile and Mendoza enjoyed unrivaled positions within
the viceregal commercial system and developed impressive
enterprises to exploit them. Limits on the capacity of pre¬
industrial transportation, furthermore, shaped economic
175

176
patterns within the Tucumán region. Whereas transportation
resources permitted landowners and merchants in the southern
jurisdictions to benefit more directly from the opening of
the River Plate economy, the constrictions of distance and
high costs of reaching markets limited the options of their
counterparts in Salta and Jujuy.
This chapter, then, first examines the nature of
overland transportation in pre-industrial economies and the
specific conditions that determine its potential and its
efficiency. It then turns to a discussion of the origins of
Tucumán's transportation infrastructure, comparing and
contrasting parallels in Europe and in other parts of
Spanish America. The regional road network, examined next,
developed early as an important component of this
infrastructure and remained a critical concern of Tucumán's
transporters even late in the colonial period. New routes,
the organization of mail lines and postas. the maintenance
of defensive presidios and the emergence of roadside
settlements all emphasized the increasing importance of
transportation activities within the Tucumán economy.
Finally the discussion turns to specific characteristics and
patterns manifested by the Tucumán carrying trade, with
additional emphasis on Cuyo, where transport developed as a

177
part of the Tucumán infrastructure and filled the same
important roles.
The function of transportation, simply put, is to carry
commodities from places where their utility is relatively
low to places where it is relatively high. Such commodities
are more desirable in one place than in another and at one
time than another; from these conditions arise not only
transport and distribution mechanisms, but also entire
commercial systems. By breaking down and alleviating the
inconveniences imposed by distance, the transportation
process adds value to commodities by enabling given flows of
resources to produce greater results.1 This process takes
on a greater role than the simple movement of goods and
becomes a means to efficient spatial organization. In the
words of Emery Troxel, an economist of transportation, the
transport process not only brings materials together and
distributes production, but also differentiates some places
1. Michael R. Bonavia, The Economics of Transport
(Cambridge, 1947). See also Wayne Kenneth Talley,
Introduction to Transportation. 2 volumes (Cincinnati,
1983), volume I, 1-8; P. C. Stubbs, W. J. Tyson and M. Q.
Dalvi, Transportation Economics (London, 1980), 1; Lonnie E.
Haefner, Introduction to Transportation Systems (New York,
1986), 1; James E. Vance, Jr., Capturing the Horizon: The
Historical Geography of Transportation since the
Transportation Revolution of the Sixteenth Century (New
York, 1986), xi-xv.

178
and areas as politically or economically more significant
than other places. Transportation, he continues, is linked
to geography and has a setting in spatial relations, in that
transport resources integrate interdependent centers just as
they distribute commodities.2 Because of transport's
"immense financial and technical significance," the study of
transportation and of how and where transport organization
fits into the structures of production and commerce is of
great practical importance.3
The relationship between transportation and production
and commerce has been described in a number of ways.
Michael Bonavia, another economist of transportation,
characterizes transportation as "a blend of industry and
service," with no clear distinction between transport and
production.4 David Ringrose, a historical geographer who
has studied transport questions in pre-industrial settings,
calls transport service a factor of production, and its cost
a "cost of production." He notes, however, that transport
services are also a product, and therefore influenced by
2. Emery Troxel, The Economics of Transport. 2
volumes, (New York, 1975), volume I, 1-3.
3. Bonavia, The Economics of Transport. 2.
4. Ibid., 1, 5.

179
complex social and economic patterns that determine how
available resources and technology can be exploited.5
Fernand Braudel, who has given more attention to questions
of transportation in pre-industrial settings than many
historians, calls transport an industry itself, the
necessary finishing process of production--a type of
manufacture that adds value to goods.6 Braudel notes that
as goods travelled in pre-industrial Europe, they increased
in price the further they went. The margins of this
"trading profit" determined the most basic patterns of
transport infrastructures.7 In any transaction, he
explains, the merchant's problem was always the same.
Goods, after transport, had to bring a price that not only
covered his purchase price, incidental expenses and
transportation costs, but also had to bring the desired
profit. Heavy goods of low value, such as grain, wood, salt
or wine, did not, as a rule, travel overland long distances,
5. David R. Ringrose, Transportation and Economic
Stagnation in Spain, 1750-1850 (Durham, 1970), viii-ix.
6. Fernand Braudel, Civilization and Capitalism,
Fifteenth Eighteenth Centuries. 3 volumes (New York, 1979),
volume II, 168; and Capitalism and Material Life, 1400-1800
(New York, 1973), 309-321.
7. Braudel, Civilization and Capitalism, volume II,
168 .

180
their value not justifying the increasing costs of
transport. Higher-priced merchandise, of less bulk and
greater value, better absorbed the costs of transport and
justified the efforts and expenses of carriage to distant
markets.8
Pre-industrial transportation systems are often
represented as inefficient and static--slow, inadequate,
irregular and expensive, with little potential for
improvement or development.9 The efficiency of pre¬
industrial transport systems should not be measured by
modern standards, however. Analysis proves more fruitful
if eighteenth-century transport efficiency is measured by
eighteenth-century standards and by its impact, positive or
negative, on regional economies. As Braudel notes, "the
traffic of the past corresponded to the economy of the past
--vehicles, beasts of burden, couriers and messengers all
played their part in relation to specific demands."10
8. See Bonavia, The Economics of Transport. 5-6.
9. For a typical assessment of pre-industrial
transport efficiency, see Lyle N. McAlister, Spain and
Portugal in the New World. 1492-1700 (Minneapolis, 1984),
237-240, in which he characterizes "hazardous transportation
systems" that were a "much greater hindrance" to trade than
was corsair activity.
350 .
Braudel, Civilization and Capitalism, volume II,

181
Efficiency is best evaluated through the examination of a
set of variables that permits a thorough analysis of any
transport system. Such variables, proposed by the
geographer James E. Vance, include the size of transport
vehicles, the frequency of service, the speed of these
services, the constraints of distance, the development of
stages, or provisioned stops, along recognized routes, the
competence of vehicles to carry particular freights, the
specific orientation of different forms of transport, and
perhaps most important, the financial and energy costs--the
actual operating costs of the system.11
Ringrose argues that any economic growth or development
in a pre-industrial society is impossible without
specialized transporters that can address these variables.
Specialization implies transport that is divorced from the
seasonal labor requirements of agriculture, can ignore all
but the worst limitations of weather, climate and geography
and can handle a significant volume of goods.12 His study
11. For a more detailed discussion of these variables
of transport efficiency, see Vance, Capturing the Horizon.
24-32 .
12. Braudel argues that specialization within the
transport sector, or its degree of modernity or archaism,
might best be judged by estimating the total capital
investment in transport services in any economic system--see
Civilization and Capitalism, volume II, 349.

182
of transportation and the Spanish economy from 1750 to 1850
illustrates how transport limitations contributed to
economic stagnation during this period.13 The lack of
adequate transportation in the Spanish interior specifically
caused the political and economic crisis of the late
eighteenth century; by the 1790s, the supply of transport
services had fallen behind the demand, a situation that grew
critical in the years immediately preceding the French
invasion. Spain's traditional transport system remained
unable to provide inexpensive and flexible services needed
to reach the scattered markets of the interior. Despite the
relative prosperity marking most of the eighteenth century,
Spain's interior areas, isolated by this shortage, developed
little local industry and failed to provide a significant
market for coastal industries.14
Three types of demand shaped this system. The
seasonal need to distribute harvests cheaply, an exchange
bound to the subsistence economy and rhythms of the
countryside, constituted the largest. The far-reaching
trade in raw materials, manufactured goods and imports
13. Ringrose, Transportation and Economic Stagnation,
vii-ix.
14
Ibid., xix-xxi.

183
created a second, more limited demand for carriers who could
move smaller amounts of more valuable commodities over
longer distances. The needs of the Spanish state created
the third type of demand. These distinct and often
conflicting needs encouraged the emergence of an elaborate
but ultimately inadequate transport infrastructure.15
Ringrose contends that while transport remained
available for some purposes, it was not available for others
and that, consequently, certain sectors suffered. The
provisioning of Madrid and demands of the Spanish state
required most of the nation's specialized transporters.
Despite the presence of a large body of professional
carters, the traditional transport infrastructure could not
respond to economic change marking the century after 1750.
Without significant waterways to channel into canals, the
burdens of carriage in Spain ultimately fell upon the backs
of pack mules, which accounted for as much as 90 per cent of
the transport pool. The majority of this force relied on
farm animals and agricultural labor that could not shirk
15
Ibid., 19.

184
seasonal obligations and remained unavailable to support new
types of economic activity.16
Geography and technology shaped Spain's transport
infrastructure as much as agricultural cycles did.
Mountainous and broken country, weather patterns and Spain's
traditional transport technology had major implications for
the specialized sector; often, these variables dictated the
use of pack animals, simple carts or large wagons to move
cargo. Arrieros. or professional muleteers, guiding long
tropas de muías, or trains of laden pack animals provided
much of Spain's specialized transport. Although slight in
volume, the distribution of non-subsistence goods proved
widespread. Arrieros, through their wide-ranging travels,
lent a measure of cohesion to an otherwise fragmented
Spanish economy. Carros. the small, two-wheeled vehicles
drawn by one or two horses or mules, were generally used
locally throughout Spain to move smaller loads within given
16. Ibid., xxii. Braudel calls this seasonal carriage
"the second occupation of millions of peasants" throughout
western Europe after the harvests were brought in and
marketed. The largest volume of overland transport, he
adds, consisted of short-haul trips performed by a
"permanent and plentiful supply of peasant-provided
transport services acquired at less than its true cost.
Alongside professionals, the bulk of transporters were
peasants who carried from time to time." See Braudel,
Civilization and Capitalism, volume I, 425; volume II, 352.

185
regions. The carreta, a larger, more capacious wagon, was
more frequently used to haul valuable commercial cargoes in
regions where terrain permitted. A long narrow vehicle with
two large solid wheels, the carreta was usually pulled by
teams of oxen and could haul up to 40 arrobas (1,000
pounds). Galeras, less-common four-wheeled vehicles pulled
by teams of four to eight mules, had a capacity of over
3,000 pounds.17 This Iberian tradition, Ringrose shows,
came to Spain's American colonies almost intact and shaped
the Tucumán's transport sector.
Ringrose's article-length study of carting in the
Hispanic world traces the development of the transport
sector in the Río de la Plata from about 1770 to the middle
of the nineteenth century, a period during which the area's
transportation industry drew on Spain's medieval tradition
and supported significant economic growth.18 In the Rio de
la Plata as elsewhere, the bulk of transportation involved
the seasonal exchange of subsistence commodities directed by
17. Ibid., 47. Braudel notes that specialized
transporters, especially carters, were generally drawn to
the most profitable routes--see Civilization and Capitalism,
volume II, 353.
18. David Ringrose, "Carting in the Hispanic World:
An Example of Divergent Development," in HAHR 50:1
(February, 1970), 30-51.

186
unspecialized pack-animal carriers. Additional demands
fueled by the growing export economy, however, promoted the
emergence of increasing numbers of specialized carters with
the capacity to carry goods which could not be handled by
animals alone and could offer favorable freight costs
relative to the value of the cargoes hauled. Professional
carting in the Río de la Plata viceroyalty, Ringrose argues,
was clearly associated with economic development and
supported the growth of the Argentine economy before 1810.
Geographic conditions allowing for the use of wheeled
vehicles proved critical to this rise, as important to
success as the combination of capital, plentiful animal
power and abundant grazing resources that marked the
viceregal economy.19
Ringrose explains that the cart adopted in the Rio de
la Plata resembled the carreta of Spain. According to a
description left by Concolorcorvo, the Tucumán carreta
consisted of a bed that measured four feet wide by twelve
feet long, with soft walls and a cover made from a bowed
frame and cowhides, all supported by two large solid wooden
wheels and drawn by four (sometimes two) oxen.20 With a
19. Ibid., 33.
20. Concolorcorvo, El lazarillo. 90-92.

187
capacity of 150 arrobas, these carts were made entirely of
wood; when they carried a standard supply of water and wood
for fuel and repairs, their total weight surpassed 5,000
pounds.21 Carters, or carreteros. from Mendoza,
Concolorcorvo noted, built their carts somewhat larger
because of the more open tracts traversed on the Buenos
Aires-Mendoza route. Carters throughout the viceroyalty
travelled in tropas of ten or more carretas, moving together
as a defense against both criminal elements of Hispanic
society and hostile Chaco and Pampa Indians. The sheer
distances and dry climate of the Interior constituted the
most serious obstacles facing Tucumán and Cuyo carreteros.
The arid, unpopulated stretches called travesías often
proved fatal to the hard-worked beasts that drew these heavy-
vehicles .
Successful travel in the often inhospitable Interior
depended upon the fragile road network that had appeared
shortly after Spanish conquest in the sixteenth century. As
Braudel notes, most pre-industrial roads, even in flat open
country, were not clearly marked strips upon which traffic
21. See Ramón J. Cárcano, Historia de los medios de
comunicación y transporte en la república argentina 2
volumes (Buenos Aires, 1893), volume I, 84-86. See the
illustration of a typical Río de la Plata cart, volume I,
93 .

188
flowed regularly. They were, more often, commonly accepted
routes more clearly defined by the traffic that used them
than by any physical features. But any road, at any time
and in any area, follows a fixed and recognized course,
usually marked by the presence of cities, towns, villages,
homesteads, pastures and watering places. Any journey
required careful planning so that the caravan passed through
the worst spots at the proper time in order to find grass
and water at the proper intervals.22 In most of the Río de
la Plata, the basic requirements of water and pasture
defined most routes and limited the transporter's
alternatives.
The road network serving the Rio de la Plata Interior
was really quite simple. The primary route connecting
Buenos Aires with Alto Perú, linking the five major Tucumán
cities, constituted a relatively safe corridor through the
heart of the viceroyalty. The Buenos Aires-Mendoza road, a
second major route also heavily used by carretas, connected
Chile with the viceroyalty and offered an overland
alternative to the hazardous sea route that served the
Chilean coast via the Straits of Magellan. A number of
22. Braudel, Civilization and Capitalism, volume I,
415-416.

189
secondary routes served the Tucumán and Cuyo regions; the
most important of these was probably the western route that
linked Chile, Mendoza and San Juan with La Rioja, Catamarca,
San Miguel de Tucumán and the rest of the Tucumán region. A
lesser-known route connected Santiago del Estero with Santa
Fé and the northern part of the Litoral. Another route
linked San Juan with the Buenos Aires-Mendoza road. Leaving
San Juan in a southeast direction, this road joined with the
other just east of San Luis, providing the aguardiente
producers of San Juan with a short-cut route to markets in
Buenos Aires. Many now-forgotten tertiary routes also
crisscrossed the Tucumán and Cuyo regions, connecting small
villas, pueblos, settlements, posts, forts, haciendas and
chapels with the larger cities and with each other,
channelling commerce and providing short cuts and smuggling
trails, allowing for traces of commercial activity to reach
even the most isolated places.23
The Buenos Aires-Peru road constituted the Interior's
most important route. Crown officials designated it the
royal post road in 1768, placing it under administrative
23. The best discussion of the Tucumán region's minor
communication routes is provided in Efrain U. Bischoff,
Norte, norte, norte...Su leyenda y su historia (Córdoba,
1991), a regional history of rural northern Córdoba
province.

P c p u
190
P.u¿
Primary Trade Routes, Cuyo and Tucumán Regions,
c. 1776
Figure 5.1.

191
supervision and improving the organization of stage stops
that slowly guided travellers along.24 By the end of the
eighteenth century, a succession of settlements, river
crossings and landmarks supplemented the official stops.
Concolorcorvo's travelogue provides the best itinerary of
this entire route, from Buenos Aires to Potosí and beyond.
He kept a careful list of all the stages, listing 39
different posts between Esquina de la Guardia at the
southern border of the Córdoba jurisdiction to La Quiaca on
the northern border of the Jujuy jurisdiction, together
spanning a distance of 380 leagues.25 Concolorcorvo
presents the following distances between Tucumán cities:
The Buenos Aires to Córdoba trip covered 17 stages and 150
leagues; from Córdoba to Santiago del Estero covered eight
stages and 115 leagues; from Santiago del Estero to San
Miguel de Tucumán covered two stages and 48 leagues; from
San Miguel de Tucumán to Salta covered 75 leagues and seven
stages; from Salta to Jujuy covered only two stages in 18
leagues; to La Quiaca was another six stages over a distance
24. See Richard A. Mazzara, "Introduction," in
Concolorcorvo, El Lazarillo. 15-23.
25. See Concolorcorvo's tables listing the distances
between stages along the entire route from Buenos Aires and
Lima in El lazarillo. 306-309.

192
of 57 leagues. To Potosí from La Quiaca involved a final
trip covering about 50 leagues, making a total of over 500
leagues, or more than 1,500 miles, from Buenos Aires to
Potosí. All but the last 100 leagues or so of this distance
could be travelled by oxcart.
The road between Buenos Aires and Mendoza covered 264
leagues; Concolorcorvo's intinerary also includes a
description of this important route. The first 100 leagues
of this route followed the same course as the Buenos Aires-
Córdoba route, then split off westward at the post of
Saladillo de Ruy Diaz on the Río Saladillo. Altogether this
route included 22 posts, with 14 between the Saladillo post
and Mendoza.26 Concolorcorvo described the route as flat
and "generally firm," with the greater disparity in the
distances between posts attributable to "the colonists'
continual moving from one place to another."27 Overall,
this proved a mostly unpopulated, arid expanse with several
options for travellers. The postal road described by
Concolorcorvo ran northernmost; leaving the stage at
Saladillo de Ruy Diaz, this route covered 26 leagues before
reaching the fort of El Sauce, then 23 leagues more to the
2S. Ibid., 307.
27
Ibid., 153.

193
ford of the Río Cuarto, then 48 leagues to the city of San
Luis, and finally another 71 leagues, the last following the
Rio Tunuyan, to Mendoza.28 The route from Mendoza to
Santiago de Chile measured 100 leagues, crossing the Andes
through the canyon cut by the Rio Mendoza. This route
featured eight casuchas, or shelters, and numerous river and
stream crossings; winter snows kept it closed at least half
the year.29
Another important trade route linked the Tucumán region
with Chile and Cuyo. This road led north from Mendoza to
San Juan, a distance of approximately 40 leagues, and then
another 54 leagues to a settlement called Villa de Valle
Fértil, little more than a church surrounded by a few
28. See A.G.I., Sección de Mapas y Planos, Audiencia
de Buenos Aires, Número 164, "Mapa geográfico que comprende
todos los modernos descubrimientos de la Costa Patagonia,
desde el Río de la Plata hasta el Puerto de Río Gallegos, y
caminos por la Campaña de Buenos Aires," 1788. Perhaps the
best published map of this route is found in V. Martin de
Moussy, Descripción geográfico y estadística de la
confederación argentina (Buenos Aires, 1963), planche XII,
"Carte des provinces de Cordova de San Luis et des régiones
voisines," 1865.
29. See map number 250 in A.G.I., Sección de Mapas y
Planos, Audiencia de Buenos Aires, entitled "Plano de la
Gran cordillera de Chile por la parte de Camino principal
que la atravesía desde la Ciudad de Santiago hasta Mendoza,
1791."

194
hundred settlers and their livestock.30 La Rioja lay
another 40 leagues north over the Sierra de Valle Fértil and
across the Valle de Famatima.31 Catamarca was still about
another 40 leagues northeast, the route mostly skirting low
foothills just to the west. From Catamarca, this route
continued almost due north into the more rugged San Miguel
de Tucumán jurisdiction, following the base of the sierra
that lay to the west of Santiago del Estero.32 In San
Miguel de Tucumán this route joined with the main route that
led north to Salta, Jujuy and Alto Perú.
These three routes constituted the main lines of
communication serving the Interior. Several other routes,
actual and proposed, also appear on eighteenth and
nineteenth century maps. Perhaps the most important of
these, two running from east to west linked the the Tucumán
region with the Litoral, allowing merchants in both areas to
bypass Buenos Aires middlemen. The first connected Cordoba
with Santa Fé across the southern Chaco and the second, more
30. See Sobremonte's "Oficio," 1785. Sobremonte did
not consider this settlement even a pueblo.
31. See Moussy, Descripción geográfica, planche XIV,
"Carte des provinces de La Rioja de San Juan et des régiones
voisines," 1865.
32. Ibid., planche XX, "Carte des provinces de
Catamarca de Tucumán et des régiones voisines," 1866.

195
slowly developed, connected Santiago del Estero with Santa
Fé. A short article by Federico Guillermo Cervera notes
that plans for these roads first appeared with the
foundation of the Tucumán settlements and Santa Fé late in
the sixteenth century, but conflict with the Chaco Indians
delayed full utilization of these routes until the middle of
the eighteenth century.33
Residents of Córdoba opened the first of these roads in
their search for access to the Litoral via a route
traversible by carretas and livestock. Their considerations
included finding the shortest and most secure course with
regular watering holes or wells, with clear landmarks,
suitable pastures and safe places for longer stops and
repairs and with reliable river crossings and fording
places. In the second half of the eighteenth century, with
the further pacification of the northern reaches of the
Chaco, the Santiago del Estero-Santa Fé route became more
important. Generally a trip of about 100 leagues, this
route left Santa Fé in a northeastern direction, skirted the
large Laguna de los Porongos and followed the course of the
Río Dulce into the Santiago del Estero jurisdiction. With
33. Federico Guillermo Cervera, "El antiguo camino de
Santa Fé a Santiago del Estero y el Perú," in Cuarto
congreso nacional, volume I, 345-354.

196
the resurgent mule trade from Salta after 1795 that
increasingly drew on herds originating in Santa Fé's
pastures, this northern road became the main route into the
Interior, "assuring quick and secure communication with all
the Tucumán region, with Alto Perú and with Peru proper."34
Contemporary maps also indicate another route, even
farther north, connecting the Litoral city of Corrientes
with Salta. This course, probably little used before the
end of the viceregal era, followed the course of the Rio
Bermejo in a northwestern direction from Corrientes, then
crossed the large expanse of the Chaco between the Bermejo
and Salado Rivers in eastern Salta jurisdiction.35
Nineteenth century maps include a variant of this route,
showing an isolated road running east-northeast from Salta
34. Ibid., 352. The Santa Fé routes are also traced
on a number of helpful maps: See A.G.I., Sección de Mapas y
Planos, Audiencia de Buenos Aires, Number 107, "Mapa sacado
con ocasión de la entrada que hizo a su costa a los fértiles
y dilatados Paises del Gran Chaco Gualamba," 1774. See also
Moussy, Atlas geográfico v estadístico. Planche V, "Carte de
la Conféderation Argentine," 1867; Planche VIII "Carte des
provinces d'Entre-Rios de Santa-Fé et de la Bande Oriental,"
1865; Planche XVII, "Carte de la province de Santiago del
Estero et du Territoire Indien du Nord ou Gran Chaco," 1866;
and Planche XVIII, "Carte du Gran Chaco (Territoire Indien
du Nord) et des Contrées voisines pour servir a l'Histoire
du Bassin de la Plata de 1520 a 1865," 1865.
35. See A.G.I., Sección de Mapas y Planos, Audiencia
de Buenos Aires, Number 107, "Mapa...del Gran Chaco
Gualamba," 1759.

197
until reaching the Bermejo, then following the river
easterward to the small Chaco settlement of Villa de
Concepción. From this isolated settlement the road then
turned sharply south, crossing a "dry, elevated terrain of
good pasturage" before arriving at Corrientes.36 This
road, most likely a military route used in Indian campaigns,
probably saw little commercial use.
The overwhelming majority of Interior commerce moved
over the Buenos Aires-Alto Perú and Buenos Aires-Mendoza
roads. Most of this traffic moved in the large carts
described by Concolorcorvo; carting activity, in fact,
played a major role in the economies of several Interior
cities, particularly Córdoba, San Miguel de Tucumán and
Mendoza. By the late eighteenth century, after the recovery
of the Tucumán regional economy in the 1790s, hundreds of
carts from the Interior descended on Buenos Aires each year,
loaded with hides, woolens and wine from the primary
producing centers. A smaller number returned to these
cities loaded with cargoes of efectos de Castilla and other
imports.
36
II
1865 .
Moussy, Planche XVIII, "Carte du Gran Chaco..
• /

Records indicate that the Cuyo roads linking Mendoza
and San Juan with Buenos Aires received the most traffic.
198
The caldo industry in these cities sent hundreds of carretas
and thousands of mules to the River Plate each year. Buenos
Aires' 1776 Libro de alcabala provides a record of the
tropas de carretas and tropas de muías that entered the city
from the provinces of the Interior through the customs post
located in the city of Lujan just outside the capital. The
Libro registers the passing of 214 different "viajes.
comerciales." or commercial trips, from Mendoza, San Juan,
Córdoba, Santa Fé and San Miguel de Tucumán. The majority
of these entries note the arrival of tropas de carretas, but
San Juan is noteworthy as the origin of many tropas de
muías. Individually, Mendoza sent at least 608 carretas,
noted in 60 separate entries. Córdoba sent at least 237
carretas, recorded in 38 entries, and San Miguel de Tucumán
accounted for at least 231 carretas recorded in 17 entries.
Santa Fé sent at least 211 carretas, noted in 23 entries,
while another 159 carretas originated in San Juan. San Juan
also accounted for at least 2,030 cargas de muías.
Altogether, the Lujan post recorded the entry of at least

199
1,446 carts and over 2,300 pack mules from the various
settlements of the Interior in 1776.37
A detailed study of this transport activity by Miguel
Angel Rosal presents a valuable discussion of carrying
activities and their economic importance to Interior
settlements.38 His "Transportes terrestres y circulación
de mercancías en el espacio rioplatense (1781-1811)"
develops a statistical analysis of the transport sector
based on three sets of commercial data from the Archivo
General del Nación in Buenos Aires. Using the city's
commercial guías, its alcabala records and its aduana books
from the years 1781, 1786, 1790, 1796, 1802, 1806 and 1811,
Rosal counts a total of 2,413 viajes comerciales in these
years. Cuyo and Chile accounted for a full 60 per cent of
these trips, while Córdoba, Santiago del Estero and San
Miguel de Tucumán added another 26 per cent. Jujuy and
Salta accounted for only four per cent of the total; the
remaining trips originated in smaller cities--San Luis, Rio
37. Documentos para la Historia Argentina. 40 volumes
(Buenos Aires, 1913-1965), volume II, 53-103.
38
Rosal, "Transportes terrestres.

200
Cuarto, Catamarca and La Rioja. Alto Perú added almost five
per cent and Santa Fé just over three per cent.39
Rosal's calculations further indicate that in addition
to the greater frequency of traffic from Cuyo, the region
also recorded a greater volume of traffic. The Cuyo/Chile
viajes comerciales counted a total of 4,430 carretas,
averaging over 600 carretas each year. The northern regions
(Tucumán, Alto Perú and Santa Fé) accounted for a total of
2,810 carretas, and average of about 400 each year.40
Rosal also counted the arrival of 615 tropas de muías from
Cuyo with a total of 12,900 animals, an average of 88 tropas
each year, each with approximately 20 animals. The northern
cities, on the other hand, accounted for a total of only 29
tropas de muías in the years measured.41
Mendoza's sisa records indicate a heavier traffic than
Rosal acknowledges. The Libros manuales de sisa v arvitrios
register separately the entries (entradas) and departures
(salidas) of both cargas de carretas and cargas de muías.
Carretas each paid four reales, entering or departing, while
each carga de muía paid one-half a real. In 1799, the
39. Ibid., see Chart I, page 127.
40. Ibid., 146.
41. Ibid., 151.

201
libros record, 1,047 carretas entered Mendoza and 1,258
departed. In 1800, 840 carretas entered and 1,076 departed;
in 1801, 1,076 entered and 993 departed. In 1802, 1,083
entered and 1,064 departed, and in 1803 996 entered and
1,005 left. The very last years of the eighteenth century,
then, saw an average of perhaps 2,000 carretas moving into
and out of the city. The overwhelming majority of this
traffic moved between Buenos Aires and Mendoza.42
The same records reveal an impressive traffic over the
Andes to Chile; most of the thousands of mules departing
Mendoza each year carried freight, mostly efectos de
Castilla and other European imports, to market in Santiago
and from there to other Pacific cities. Trade in efectos de
Chile, however, also created a significant traffic. The
Libros manuales record the entry of 3,978 cargas de muías in
1799 and the departure of 9,729 cargas. The 1800 books
record the entry of 2,784 cargas and the departure of 12,320
more. The 1801 records show that 3,370 cargas entered and
10,576 departed; records from 1802 give larger numbers--
4,736 cargas entered and 12,224 departed. Perhaps 80 per
cent of this traffic moved over the Andes, mostly in the
42. A.H.P.C., Sección de Hacienda, Libros manuales de
sisa y arvitrio de Mendoza. Numbers 67 (1799), 70 (1800), 77
(1801), 78 (1802) and 88 (1803).

202
months of December, January, February, March and April. The
remainder of Mendoza's tropas de muías communicated with
Interior cities that included San Luis, Córdoba, Santa Fé
and a number of smaller places.
Klaus Müller's study of commerce in San Miguel de
Tucumán argues that transport activities in the Rio de la
Plata interior contributed substantial profits to local
economies and helped provide for a favorable balance of
trade in at least the San Miguel de Tucumán jurisdiction.43
Tucumán's carreteros provided another means of financing
import activities that in some years surpassed the earnings
of export commerce; his research estimates the value of
these services at as much as 70,000 pesos each year.
Between 200 and 300 San Miguel de Tucumán carretas
circulated between Buenos Aires and Jujuy each year carrying
most of the Alto Perú commerce. Together with livestock
exports, carting earned approximately 40,000 to 60,000 pesos
each year for the jurisdiction and provided for a reliable
degree of security to local commercial circles.
The merchant or producer sending freight to Buenos
Aires had several options. Concolorcorvo related three
43. Müller,
Comercio interno," 329-330.

203
distinct categories of carreteros operating in the
Interior.44 The first category consisted of the "most
distinguished men from Mendoza, San Juan, Santiago del
Estero and San Miguel de Tucumán" who established their
transport enterprises in order to carry their own freights,
"products of their farms such as wines, liquors, flour,
dried peaches and other fruits, chartering the rest of their
wagons to passengers and private individuals at a very
reasonable rate." The second category, he continued,
consisted of "individuals with less means at their
disposal," usually poorly equipped and prone to delays in
their trips. Concolorcorvo warned against the last: "The
third group consists of men of question. They always ask
for the freight charges well in advance, and often when they
are ready to leave, a creditor appears to detain them and
the shippers are obliged not only to pay the driver's debts,
but also to supply the necessities of the trip.45 His
guidebook advises the traveller to pay the ten pesos more
per cart to the men of the first category.
44. Concolorcorvo, El lazarillo. 97-99.
Concolorcorvo's description is echoed in Cárcano, Historia
de los Medios de Comunicación, volume I, 88; in Rosal,
"Transportes terrestres," 153; and in Santos Martínez,
Historia económica de Mendoza. 97.
45. Concolorcorvo, El lazarillo. 97-98.

204
Freight rates (fletes), then, were more than a function
of distance. Rosal argues that variations in the fletes
demonstrate that a fluid "freight market" allowed for
fluctuation and competition within the transport sector; the
costs of moving goods through the Interior depended on a
number of factors. Concolorcorvo quoted a flete of eight
reales, or one peso, per arroba for the carriage from Buenos
Aires to Jujuy, making the freight for a fully loaded cart
approximately 150 pesos for the entire journey. In 1800 the
Buenos Aires consulado recorded fletes de carretas of 30 to
35 pesos from Córdoba to Buenos Aires, 20 to 22 pesos from
Córdoba to Santa Fe, 70 to 75 pesos from Córdoba to Salta
and 60 to 65 pesos from Córdoba to Mendoza. The fletes of
cargas de muías from Córdoba to La Rioja fell at five or six '
pesos, and from Córdoba to San Juan and Mendoza at six to
eight pesos, making the costs of shipping by mule slightly
higher.46 One year later these rates had increased: the
flete de carretas from Córdoba to Buenos Aires was 40 to 45
pesos, from Córdoba to Salta 85 to 100 pesos, from Córdoba
to Mendoza 70 to 80 pesos and from Mendoza to Buenos Aires
around 100 pesos. The 2,000 or so carretas travelling the
46
1800 .
A.G.I., Buenos Aires 383, Consulado Report, July,

205
Mendoza-Buenos Aires, then, generated approximately 200,000
pesos worth of business for viceregal carriers. Fletes de
muías also increased; carriage from Córdoba to Catamarca or
La Rioja cost seven to eight pesos, from Córdoba to San Juan
cost eight to ten pesos, from Córdoba to Mendoza nine or ten
pesos and from Mendoza to Chile, the busiest route, anywhere
from six to ten pesos per carga.47 This traffic, seeing
12,000 to 15,000 cargas pass each year, generated business
worth between 72,000 and 150,000 pesos each year for Mendoza
and Chile arrieros.
The Tucumán-Cuyo road saw much less traffic than either
of the two main routes from Buenos Aires. Most of the
traffic between the Interior regions passed through San Juan
where it paid sisa charge of two reales per carga de muía--
very little freight moved through the Interior in carretas.
The 1796 Libro particular de los ramos de arvitrios y sisa
records the number of cargas de muías entering the city with
various imports and leaving with cargoes of wine and
aguardiente.48 Of a total of 5,108 cargas de muías that
left the city in 1796, 3,244 (about 65 per cent) went to
47. A.G.I., Buenos Aires 383, Consulado Report,
November, 1802.
4B. A.H.P.C., Sección de Hacienda, Number 58, Manual
de Sisa v Arvitrios de San Juan, 1796.

206
Buenos Aires. Most of the remainder (1,001 cargas, or about
20 per cent) went to markets in the Tucumán region: 427
cargas went to Córdoba, 195 went to Salta, 163 went to
Jujuy, 138 went to San Miguel de Tucumán, 42 went to
Santiago del Estero, 27 went to Catamarca and 11 went to La
Rioja. A surprising volume of traffic, 461 cargas, went to
Santa Fé, while another 92 cargas left the city for Lima, 28
for Chile and 11 for nearby San Luis. The last 269 cargas
went to a number of smaller places.49
Fewer tropas de muías entered San Juan with imports.
365 cargas from Chile topped this traffic; 120 cargas from
Córdoba and 90 cargas from Buenos Aires constituted most of
the remainder. Smaller amounts arrived in tropas from
Catamarca, San Luis, La Rioja, Mendoza and several smaller
places. In any case, sisa revenues in San Juan remained
fairly steady or grew slightly in the years following 1796,
indicating that the city managed to support a steady traffic
and sizeable carrying sector during the last years of the
49. Smaller destinations included San Pedro and Los
Arroyos in the Santa Fé jurisdiction, Parage Corral del
Negro in the La Rioja jurisdiction, Valle de Palmas, La
Candelaria, Parage de Higuera and La Carlota in the Córdoba
jurisdiction, La Carolina in the San Luis jurisdiction, La
Sierra de Anancaste in the Catamarca jurisdiction and La
Villa de Jachal just to the north.

207
colonial era.50 Total sisa revenues rose from 1,205 in
1796 to 1,328 in 1800 to 1,769 in 1806. Although not nearly
as busy as Mendoza's traffic with Buenos Aires and Chile,
San Juan's traffic with both Buenos Aires and the Tucumán
region played a significant role in the local economy.
50. A.H.P.C., Sección de Hacienda, Libros de Sisa v
Arvitrios de San Juan. Numbers 58 (1796), 61 (1797), 64
(1798), 66 (1799), 68 (1800), 75 (1801), 82 (1802), 87
(1803), 91 (1804-1805) and 100 (1806).

CHAPTER SIX
SOCIETY
The final chapter of this study examines two important
social groups that contibuted in critical ways to the
regional economy. The tribute-paying Indian population,
distributed throughout the region but concentrated in the
San Salvador de Jujuy jurisdiction, maintained the moderate
levels of production that enabled them to meet annual
communal tribute obligations. For some communities, this
tribute-related activity constituted virtually the only
local participation in the regional economy. Tribute
revenues reached impressive levels in some areas, and in the
northern jurisdictions made up a large part of the annual
treasury receipts. The regional merchant community, from
the largest and wealthiest landowner/livestock exporter to
the most humble shopkeepers, all contributed to the
commercial infrastructure that droved the regional economy.
The trade they pursued, the markets they supported and the
revenues they generated both defined the Tucumán region and
gave it economic life.
208

This chapter, in a sense, presents a discussion of
several social aspects of Tucumán's economy. Regional
society displayed a thorough racial mix, with mestizo,
209
bianco (white), Indian and black populations. Such
categories not only defined the viceregal social order, but
also often determined the parameters of an individual's
economic activity.1 The first part, then, addresses a
segment of Tucumán's Indian population and the tribute
obligations that inccorporated otherwise marginalized
communities into the regional economic system. Although
geographically isolated, tributary communities continued to
produce marketable goods, enter regional commercial circuits
and meet their tribute obligations. Treasury data gathered
in the Archivo General de Indias permits a tentative
discussion of the tributary population and a comparison of
the tribute revenues of each of the Tucumán jurisdictions.
It also affords an analysis of the relative importance of
Indian production to local economies and royal treasury
accounts. Finally, these records add to the study of
regional adjustments during the viceregal era.
1. Contemporaries used the categories "blancos,"
"castas" and "naturales" in defining viceregal social order.
See Comadrán Ruiz, Evolución demográfica argentina. 80-81.

210
The remainder of this chapter examines patterns of
commercial behavior manifested by Tucumán's merchant
community. From the landowner/mule exporters at the top of
the region's social order through a hierarchy of wholesale
dealers in both efectos de Castilla and efectos de la tierra
to retail shopkeepers, this community displayed a number of
characteristics, tendencies and trends. Available
commercial records make it possible to identify important
patterns within a regional commercial culture founded on the
export of livestock and pastoral by-products. Such
patterns, in turn, further help explain Tucumán's regional
reorientations after 1776.
Several indigenous societies inhabited the Tucumán
region when Europeans first arrived in the middle of the
sixteenth century. The Puneño and Humahuaca societies
occupied the northernmost reaches of what became the Jujuy
jurisdiction. The Comenchigón society dominated the
mountainous parts of the Cordoba and northern San Luis
jurisdictions. The Diagüita society spread throughout the
largest expanse, from the Lerma Valley in Salta south into
the mountainous parts of San Juan, including parts of San
Miguel de Tucumán, the western part of Santiago del Estero,

211
and all of Catamarca and La Rioja (see map 6.1). Population
estimates for the entire region at the time of contact range
from 75,000 to 270,000; the Diagüita were probably the most
numerous.2 Each of these groups practiced agriculture,
growing crops of maize, potatoes, quinoa and beans, and they
each kept herds of domesticated llamas that provided both
wool and meat. None of them, however, developed a political
authority sufficiently centralized to enable any widespread
successful resistance to Spanish colonization.
In the north, the Puneño people occupied the high
plateau or altiplano of northwestern Jujuy that averages
11,000 to 13,000 feet in elevation. Surrounding mountains
form a closed basin fed by a number of small rivers and
streams that empty into seasonal marshes that flood only
during the short summer. The Puna environment is especially
dry; vegetation is poor and the only native fauna is the
llama, vicuña and guanaco. The Humahuaca people populated
2. Comadrán Ruiz, La evolución demográfica. 20-21,
summarizes pre-contact population estimates. Angel
Rosenblat, La población indígena de América desde 1492 hasta
la actualidad (Buenos Aires, 1945) places the Tucumán
population at 270,000--an "inflated" figure, in the words of
Comadrán Ruiz. Horacio Difrieri, "Población indígena y
colonial," in his La Argentina. Suma de geografía. 9
volumes (Buenos Aires, 1961), volume VII, 34-36, puts the
Tucumán population at around 75,000 at the time of first
contact.

212
the long Quebrada de Humahuaca where the climate varies with
elevation. At 13,000 feet in the north, the climate
resembles that of the Puna, but in the south, at around
4,000 feet, an almost subtropical climate marks a striking
contrast. The entire area, at any rate, seems to have been
widely settled and well populated by several different
groups, all of which practiced terraced and sometimes
irrigated agriculture that supported numerous small and
large villages.3
The Comenchigón, with many subdivisions, mainly
inhabited the Sierras de Córdoba, three parallel ranges
running north-south. Because the ranges lie transversely to
the prevailing humid easterly winds, the eastern side of
this area presents much more benign conditions than the arid
semi-deserts farther west. In the better areas, many small,
well-watered quebradas. or ravines, feed the lower valleys
and supported many villages and their basic agricultural
pursuits. Villagers kept their llama herds at higher
3. Eduardo Casanova, "The Cultures of the Puna and the
Quebrada de Humahuaca," in Julian Steward, editor, Handbook
of South American Indians (HSAI), 7 volumes (New York,
1963), volume II, 619-631. See also Manuel Lizondo Borda,
Historia del Tucumán. Siglo XVI (Tucumán, 1942), 33-80,
and Salvador Canals Frau, Poblaciones indígenas de la
Argentina (Buenos Aires, 1953) and Los civilizaciones
prehistóricas de América (Buenos Aires, 1973), 499-512.

213
elevations, and at the heights of these ranges hunted
guanaco.4 The Diagüita society included a number of
individual tribes spread throughout a large area; the
Calchaqui, perhaps the best known, occupied the western
Catamarca valleys named after them. Cultivating the
isolated, sufficiently-watered quebradas and riverbanks, the
Diagüita remained politically divided in the absence of any
central authority.5 Despite occasional, informal alliances
formed between local caciques, they also eventually fell to
the Spanish settlers' advance.6
On the Chaco plains to the east of the Tucumán region,
less sedentary tribes mixed limited agricultural activity
with more hunting and gathering of naturally-occurring
foods. Originally these groups tended to concentrate in the
marshy stretches of eastern Córdoba and Santiago del Estero
4. Francisco de Aparicio, "The Comenchingon and their
Neighbors in the Sierras de Córdoba," in HSAI 2, 673-685.
5. Fernando Márquez Miranda, "The Diagüita in
Argentina," in HSAI 2, 637-654; see also Manuel Lizondo
Borda, Tucumán indígena: Diagüitas. Lules y Tonocates,
pueblos v lenguas (Tucumán, 1938), 13-29.
6. For discussion of the conquest of Tucumán, see
Roberto Levillier, Nueva crónica de la conquista de Tucumán
(Buenos Aires, 1931); Manuel Lizondo Borda, Historia de la
gobernación del Tucumán (siglo XVII) (Buenos Aires, 1928)
101-135; and Vicente Sierra, Historia de la Argentina, 7
volumes (Buenos Aires, 1956), volume I, 1492-1600, 287-314.

214
jurisdictions, but with Spanish pressure most of these
groups turned to a more mobile lifestyle that gave them
greater security from Spanish raiding. The Mocovie people
became the Spaniards' primary enemy on the eastern frontier;
by the middle of the seventeenth century, colonists had
begun mounting occasional offensives in their efforts to
secure their isolated settlements from Indian raids.
Despite their inability to mount large, concerted campaigns
against the Spaniards, the Mocovies remained enemies of the
Tucumán colonists until the end of the colonial period.7
Pre-colonial population levels are difficult to
determine with any accuracy, and the earliest Spanish
records are vague and offer only indirect estimates of
sixteenth-century population levels. The first accurate
count of the Indian population comes from a letter to the
King of Spain from Tucumán governor Juan Ramirez de Velasco
dated 1596, which included a count of the Indian population
distributed in encomienda in his jurisdiction. Velasco
estimated the encomienda populations at 20,000 in La Rioja,
12,000 in Córdoba, 8,000 in Santiago del Estero, 7,000 in
San Miguel de Tucumán, 5,000 in Salta, and 2,000 in Jujuy.
7. Márquez Miranda, "The Chaco-Santiago Culture," in
HSAI 2, 655-672.

215
Estimates for the seventeenth century are based on similar
encomienda counts. The most striking feature of Tucumán's
demographic history, in any case, is the steady decline of
the Indian population through the seventeenth century and
into the early eighteenth.8 See table 6.1.
The population decline in the Tucumán region, as
indicated by limited records, appears as drastic as anywhere
else the Americas. As opposed to Governor Velasco's
relatively high 1596 estimates, González Rodriguez' research
places the 1673 encomienda population for all the Tucumán
region at around 16,000, including children, with about
3,700 counted as tributario.9 In the Córdoba jurisdiction,
this population had dropped to only 430, in La Rioja to
8. Comadrán Ruiz, La evolución demográfica, 31;
González Rodríguez, La encomienda en Tucumán 12; both works
cite the "Carta de Juan Ramirez de Velasco a Su Majestad
(January 5, 1596)" in Roberto Levillier, Gobernadores del
Tucumán. Papeles de los gobernadores en el sicrlo XVI.
Documentos del Archivo de Indias, 2 volumes (Madrid, 1920),
volume I, 93.
9. González Rodríguez, La encomienda en Tucumán. 43-
44, citing Emilio Ravignani, "La población indígena de los
regiones del Río de la Plata en la segunda mitad del siglo
XVII," in Actas y trabajos científicos del XXV congreso
internacional de americanistas (Buenos Aires, 1934). For a
discussion of the legal aspects of the encomienda in
Tucumán, see Ricardo Zorraquín Becú, "La regulación de las
encomiendas en territorio argentino," in Revista de la
Facultad de Derecho y Ciencias Sociales. 3a. época, 1:1
(Buenos Aires, 1946), 129-151.

216
1,381, in Jujuy to 1,555, in Salta to 2,000, in Santiago del
Estero to around 3,000 and in San Miguel de Tucumán to
2,285. These figures, however, do not count the Indian
population not in encomienda, and other accounts from the
Table 6.
. 1. Indian
1596-
Population
-1779.
Estimates,
Tucumán,
Encomienda Population
Total
Pooulation
1596
1702
1673
1778-79
Córdoba
12,000
94
430
4,084
Salta
5,000
319
1,996
3,070
Ju j uy
3,000
308
1,555
11,181
San Miguel
2,000
257
2,285
4,069
de Tucumán
Santiago
8,000
342
3,368
4,897
del Estero
La Rioja
20,000
104
1,381
5,200
Catamarca
—
126
—
2,817
Sources: González Rodriguez, La encomienda en Tucumán.
6-65; Comadrán Ruiz, La evolución demográfica. 20-
21.

2500
2000
1500
O
(/)
O
CL
1000-
500-
178517861787178817891790 17911792179317941795 17961797179817991800180118021803
year
Figure 6.1. Pulpería Revenues, in pesos, Córdoba and Salta,
1785-1803
217

pesos
1000-rr
900
800
700
600-
500
400-
300-'
200
100
17851786178717881789179017911792
17931794179517961797179817991800180118021803
year
Figure 6.2. Pulpería Revenues, in pesos, San Salvador de Jujuy
and San Miguel de Tucumán, 1785-1803
218

219
same period suggest that the total Indian population may
have been higher than 16,000 or 20,000.10 The difficulty
estimating population levels, and the differences between
estimates, is partly attributable to ongoing campaigns in
some areas that periodically relocated Indian communities
throughout the region. The Calchaqui valleys, in
particular, experienced prolonged conflict and a series of
uprisings in the seventeenth century.11 One consequence
was the forced removal of many participants to other areas
that included Chile, Peru and Charcas.12
González Rodríguez attributes this decline to several
causes. Warfare, the encomienda system and forced removal
only partially explain demographic collapse; epidemic
disease, often accompanied by famine, surely rates foremost
on the list of causes. This list further includes voluntary
flight from the villages, a fairly common response to the
10. See Gaston Doucet, "Introdución al estudio de la
visita del Oidor Don Antonio Martínez de Lujan de Vargas a
los encomiendas de Tucumán," in Boletín del Instituto de
Historia Argentina y Americana, año 26, 16:26 (1980), 2 05-
247 .
11. See Adela Fernández Alexander de Schorr, El
segundo levantimiento Calchaquí (Tucumán, 1968) ; Lizondo
Borda, "El Tucumán en los siglos XVII y XVIII," in Levene,
editor, Historia de la nación Argentina, volume III, 82.
González Rodríguez, La encomienda en Tucumán, 60.

220
demands imposed upon Indian communities by Spanish
overseers.13 A part of Tucumán's Indian population left
their villages for the Spanish settlements; Comadrán Ruiz
estimates that Indian residents, "integrated into the urban
population through encomienda obligations, the labor draft
or simply as free vassals of the Crown who chose to relocate
in the cities," made up 15 to 25 per cent of the early
population of the first settlements.14
Despite the seventeenth-century population decline, the
encomienda remained a common feature of the Tucumán economy
even into the eighteenth century. Each of the Tucumán
jurisdictions counted a number of encomenderos in its
population, and although only limited numbers of Indians
lived under encomienda obligations, their distribution
indicates that Tucumán's upper class still valued the
institution. In 1702 the Córdoba jurisdiction, for example,
counted 17 encomenderos among its population, with 94 indios
tributarios distributed among them. Salta, with 23
encomenderos, counted 319 tributarios; Jujuy, with only
eight encomenderos, counted 308 tributarios. San Miguel de
Tucumán counted 21 encomenderos with 257 tributarios;
13. Ibid., 54-59.
14. Comadrán Ruiz, La evolución demográfica. 22.

221
Santiago del Estero, with 26 encomenderos, counted 342
tributarios, the most in the Tucumán region. La Rioja, to
contrast, counted 30 encomenderos and only 104 tributarios.
Catamarca, finally, counted only 126 tributarios under 43
different encomenderos.15 Despite the small numbers
involved, encomienda privileges provided both monetary
income and labor for the encomendero class. They also
remained an important status-endowing feature of the
region's social hierarchy, bestowing a certain rank and
higher position upon the individuals who enjoyed these
privileges.
The 1778-1779 census of the Tucumán region suggests a
slight recovery among the Indian population. For the
viceregal period, however, treasury records indicate that a
large part of this population lived in Indian pueblos where
men of 19 years and older owed five pesos each year in royal
tributes.16 Treasury records from Córdoba, Salta and San
Salvador de Jujuy, which include several series of tribute
revenues for the different Tucumán jurisdictions, contain
enough information to permit a tentative discussion of the
15. González Rodríguez, La encomienda en Tucumán. 60.
16. See the Jujuy "Carta Cuenta" from 1766-1767,
A.G.I., Buenos Aires 457.

222
tribute obligations imposed upon the Tucumán Indian
population.
Sobremonte's Oficio of 1785 lists ten different pueblos
de indios in the Córdoba jurisdiction--San Antonio
Nonsacate, Quilino, San Jacinto, Soto, Pichana, Salsacate,
Nono, Cozquin, La Toma and Los Ranchos--which together
comprised 195 tributarios.17 From 1786 to 1805, these 195
tributarios, plus at least 200 more in La Rioja, San Luis,
Mendoza and San Juan pueblos, paid an annual average of
2,070 pesos in royal tributes.18 Treasury officials
expected tribute payments twice a year; collection was the
responsibility of each local cacique, who received one real
for each person who paid his tribute.19 Cordoba's average
tribute revenues indicate that at least 400 tributarios
usually met their annual obligations during the viceregal
period.
17. Sobremonte, "Oficio" (1785).
18. See the Córdoba hacienda records, A.G.I. Buenos
Aires 465, 466, 467.
19. See A.G.I., Buenos Aires 4 57, "Carta Cuenta" from
Jujuy, 1766-1767. Communities paid their tributes twice a
year; the first half-year obligation, or "tercio de San
Juan," at mid-year, and the second, or "tercio de Navidad,"
at the end of the year.

223
In the north, the Puna area in Jujuy produced the
largest tribute revenues. A number of Puna pueblos and
doctrinas. representing approximately 1,200 tributarios,
averaged around 7,000 pesos in tribute payments each year
between 1789 and 1799. The largest included the doctrinas
of Yave with around 227 tributarios, Rinconada with between
300 and 350, Santa Catalina with approximately 295 and
Cochinoca with 88. Altogether, the Jujuy jurisdiction
counted approximately 1500 tributarios in the late
eighteenth century, with several hundred living in Quebrada
de Humahuaca locations. The Jujuy tributario pueblos
outside the Puna area contributed around 1,600 to 1,700
pesos each year. These included the pueblos of Purmamarca
with seven tributarios, Tumbaia with 32, Uquia with 47,
Tilcara with 20 and Humahuaca with 45.20
The Salta treasury received approximately 3,000 pesos
each year in tribute payments from around 600 tributarios in
the "distinct doctrinas and avllus in this jurisdiction."21
20. Puna and Jujuy tribute records are found in the
A.G.I., Buenos Aires 457, 458, 459, 460, 461 and 462.
Actual tributario counts from individual pueblos and
jurisdictions differ from year to year so only afford
approximations.
21. A.G.I., Buenos Aires 460 (1796). The Salta
tributario population, according to the 1796 records, was
augmented by 68 additional tributarios brought to the

224
To compare, the San Miguel de Tucumán jurisdiction collected
an average of 1,000 pesos in tribute revenue each year.22
For the entire Salta intendency, which included the the
subordinate treasuries of Jujuy, Catamarca, San Miguel de
Tucumán and Santiago del Estero, tribute revenues recorded
in the Salta carta cuentas submitted each year totalled from
10,000 to 19,000 pesos a year between 1789 and 1803 (see
Table 6.2). The 1789 tribute total, for example, detailed
in the carta cuenta, amounted to 12,529 pesos "collected
district from the Atacama jurisdiction of Alto Perú.
22. A.G.I., Buenos Aires 460, 461. The San Miguel de
Tucumán treasury received 930 or 935 pesos in tribute
revenues in seven of the eight years recorded between 1794
and 1805; in 1796, the treasury collected 1,402 pesos.

225
Table 6.2. Tribute Revenues, Salta and Tucumán
Intendencies, 1786-1805.
Córdoba
Salta
1786
1,273
—
1787
3,281
—
1788
2,907
—
1789
2,259
12,529
1790
1,625
12,039
1791
2,234
11,389
1792
2,119
11,447
1793
1,725
13,607
1794
2,034
12,165
1795
1,956
16,395
1796
1,615
16,237
1797
2,328
15,285
1798
1,624
18,995
1799
2,113
13,798
1800
1,635
15,352
1801
2,321
—
1802
2,634
11,910
1803
1,770
10,155
1804
—
—
1805
1,855
—
Sources:
A.H.P.C., Serie
Hacienda, 457, 458,
459,
460, 461, 462; 465
, 466, 467.
from the vndios foráneos y originarios of the province, each
contributing 5 pesos each year, of which, by older
obligations, they contribute 12 reales to the doctrina

226
priests of each town...75 pesos from Calchaqui, 174 pesos
from Chicuana, 1,459 pesos from this jurisdiction, 1,052
pesos from Tucumán for 1788, 7,109 pesos from Jujuy, 841
pesos from Santiago del Estero for 1788, 360 pesos from
Catamarca and 1,459 pesos more from this jurisdiction."23
The 1792 Salta account recorded tribute revenues of
13,300 pesos, "of which only 11,232 were actually deposited,
after the 346 pesos deducted for the four per cent for the
collectors, the 1,172 pesos remaining owed; plus the 215
pesos collected for prior years." This year, the treasury
collected 2,789 pesos from the 581 tributarios of the Salta
jurisdiction (after the deduction of three per cent for the
pueblo alcaldes and one per cent for caciques); 548 pesos
for one-half the year from the 69 tributarios, originally
from Potosí, who lived in the doctrina de Calchaqui; 7,312
pesos from Jujuy for the second half of 1790 and the first
half of 1791; 402 pesos from 75 tributarios in Catamarca and
396 pesos from San Miguel de Tucumán.24 The 1795 tribute
revenues for the intendency reached 16,395 pesos; the 1799
A.G.I., Buenos Aires 460, "Carta Cuenta," 1789.
A.G.I., Buenos Aires 460, "Carta Cuenta," 1792.

227
revenue totalled 13,797 pesos.25 In both these years, as
in the previous, the Jujuy communities, led by the Puna
pueblos, and the Salta communities accounted for the great
bulk of the intendency's tribute revenue.
The figures in Table 6.2 also point to the impressive
differences between tribute revenues in the northern
jurisdictions and in the southern jurisdictions. Overall,
Cordoba's revenues amounted to anywhere from one-fourth to
one-tenth of Salta's; from 1786 to 1795, Cordoba's tribute
revenues averaged 2,141 pesos each year while Salta's
averaged 12,796 pesos--six times more. The next decade
brought an increase in this gap; Cordoba's average dropped
to 1,988 pesos each year as Salta's rose to 14,527 pesos--
more than seven times more. The Jujuy jurisdiction, led by
the Puna pueblos, regularly contributed one-half to three-
fourths of the Salta total--from 1795 to 1799, for example,
Jujuy tribute's revenues averaged 10,165 pesos each year.26
25. A.G.I., Buenos Aires 460, "Carta Cuenta," 1795,
1799 .
26. A.G.I., Buenos Aires 457, 458, 459, 460, 461 and
462. Tribute revenues in the Jujuy jurisdiction from 1795
to 1799 were recorded as follows: 10,453 pesos in 1795, 12,
160 pesos in 1796, 10, 473 pesos in 1797, 10, 280 pesos in
1798 and only 7,462 pesos in 1799. Of these totals, the
Puna pueblos contributed at least 2,863 pesos in 1795, 7,540
pesos in 1796, 8,782 pesos in 1797, 8,629 pesos in 1798 and
5,811 pesos in 1799.

228
These sizeable revenues made the tribute ramo the most
important in the Jujuy treasury. Unlike the Salta and
Córdoba jurisdictions, where alcabala, sisa and Nuevo
Impuesto revenues surpassed tribute revenues (see tables 3.2
and 4.1), Jujuy's tribute revenues far surpassed either
alcabala or sisa earnings.27 In neither Córdoba nor Salta
were tribute revenues as locally important as in Jujuy.
Available sources only hint at the ways various Indian
communities made their tribute payments. In Córdoba and La
Rioja, caciques paid their communities' obligations in cash
("dinero efectivo") or with lengths of lienzos or woolens
that were then sold on the local market.28 In the northern
and western Andean valleys, wool from the vicuña and guanaco
was important to meeting tribute obligations. These animals
were hunted in the sub-Andean highlands, especially in the
Calchaqui valleys and in the Puna area, and the wool was
sold to merchants from the cities for manufacture into fine
27. Unfortunately, the available records permit only a
tentative comparison of treasury ramos. they are not
complete enough to provide a systematic, jurisdiction-by¬
jurisdiction comparison of the relative importance of each
ramo.
28. See A.G.I., Buenos Aires 458, the "Carta Cuenta"
for Salta, 1784, which refers to the 1783 tribute from La
Rioja, of which 127 pesos were paid in cash and another 218
pesos were paid in 437 yards of cotton lienzos.

cloths, or, more commonly, shipment to Buenos Aires.29
This wool sold for prices ten times as high as lamb's wool
and raw cotton; in some years large quantities reached
Buenos Aires.30 Ultimately, however, records are too
sparse to afford any firm conclusions regarding the economic
activity of any specific Indian pueblo, other than to say
that in light of the limited resources left to the Tucumán
Indian population after the conquest and into the eighteenth
century, tribute obligations must have been burdensome for
most of the pueblo populations.
At the opposite end of the social spectrum from the
Indian communities, Tucumán's small social and economic
elite consisted of the handfuls of "principal families"
29. The Córdoba Nuevo Impuesto records include
scattered entries for shipments of "lana de vicuña" and
"lana de guanaco" passing through the city on its way to
Buenos Aires from the north. A.H.P.C., Serie Hacienda, 14,
17, 43, 109, 117, 122, 130.
30. See Müller, "Comercio interno y economía
regional," 319; the Buenos Aires Consulado reports from 1790
and 1791 indicate that several tons of this wool reached the
port these years. In 1790, for example, registered trade
included 152 arrobas of "lana de vicuña" and 69 arrobas of
"lana de guanaco." In 1791, these figures had increased to
498 arrobas of "lana de vicuña," 129 arrobas of "lana de
guanaco," and 215 arrobas of "lana de alpaca"--see A.G.I.,
Buenos Aires 383, "Estados de las Aduanas y Comercio de
Virreinato," 1789-1803, folios 158, 274.

230
noted by Concolorcorvo in each of the region's cities.31
In Tucumán, this group consisted of the ranchers and
merchants who dominated livestock production, the mule trade
and commerce. As in most of colonial Spanish America, the
greatest prestige and power went to Tucumán's largest
landowners, who also held key positions in the economic and
administrative structures of the different jurisdictions.
By definition, Susan Ramirez argues, colonial landowners,
propietors of either haciendas, ranches or plantations,
obtained a large part of their wealth and status from their
landholdings and associated activities--husbandry,
agriculture, processing and rural trade. The power and
influence of these individuals and families extended to the
cities and to the various arms of colonial administration,
including the church and the military. They often
cultivated their positions of power through commercial
activity, through seats on municipal councils and through
intermarriage and the creation of extended family
networks.32 With the ultimate goal of acquiring noble
31. Concolorcorvo, El lazarillo.
32. Susan E. Ramirez, "Large Landowners," in Louisa
Schell Hoberman and Susan Migden Socolow, editors, Cities
and Society in Colonial Latin America (Albuquerque, 1986),
19-46; see especially pages 19-20.

231
status by virtue of extensive holdings and a lifestyle
befitting a nobility, the Tucumán landowners, like those
everywhere in the Spanish colonies, not only produced the
herds and crops that supported their privileged positions,
but they also pursued important non-pastoral interests.33
Within the Tucumán region, but particularly in Salta
and Jujuy, the landowning class constituted what Halperin-
Donghi calls a virtual aristocracy, both "arrogant and
wealthy," which, through its control of mule exports,
"enjoyed a concentration of economic power unequalled in the
River Plate."34 The list of Salta's wealthiest families
presented by Acevedo includes many that rank among the
Tucumán region's largest mule exporters to Alto Perú: Jose
Vicente and Jose Joaquin Toledo; Antonio, Francisco and
Apolinario Figueroa; Felix Apolinar and Pedro Pablo Arias
Velasquez; Alejandro and Pedro Jose Saravia; Joseph
Alvarado; Lorenzo Martinez de Mollinedo and Gaspar
33. For a discussion of colonial Spanish Americans'
noble ideal, see James Lockhart, "Social Organization and
Social Change in Colonial Spanish America," in Bethell,
editor, CHLA. volume II, 265-320, especially pages 272-273.
Halperin-Donghi, 6-8.

232
Castellanos.35 This Salta elite counted some of the
wealthiest landowners found between Potosí and Buenos Aires,
including Antonio Figueroa, owner of eleven estancias and
almost all the pasture land in the fertile Valle de Lerma;
the rancher and encomendero the Marqués del Valle de Tojo,
the most important titled individual in the jurisdiction;
and the encomendero Nicolas Severo de Isasmendi, whose
estate included five seperate landholdings (two haciendas in
Calchaqui and three estancias of cattle and sheep), domain
over 70 encomienda Indians, vineyards, presses and stills
for processing grapes, a soap factory and several urban
properties.36 The son of a distinguished military family
and the last governor of the Salta intendency, Isasmendi
35. See Acevedo's list of Salta's prominent families
in La Intendencia de Salta de Tucumán, 331; Sánchez
Albornoz, "La saca de muías de Salta," 301, provides a list
of the Tucumán region's largest mule exporters.
36. For material on Figueroa, see Cornejo, "El
comercio de muías de Salta," 369. For material on the
Marqués del Valle de Tojo, see Acevedo, La Intendencia de
Salta de Tucumán, 330. the wealth of Isasmendi is discussed
in Halperin-Donghi, Politics. Economics and Society. 7; in
Atilio Cornejo, Contribución a la historia de la propiedad
inmobilaria de Salta en la época virreinal (Buenos Aires,
1945), 414-434, which includes a detailed inventory of
Isasmendi's property; and in the same author's Apuntes
históricos sobre Salta (Buenos Aires, 1937), 591-610, which
includes some material on the Isasmendi family.

233
provides a good example of the Tucumán elite and the
extensive nature of its various interests.
The Allende family of Córdoba presents perhaps the best
example of a large, commercially active family, with
different members appearing in the Nuevo Impuesto books from
1780 to 1810. Josef de Allende is the first to appear in
the ledgers, recording a 200 peso payment for the passage of
1,600 mules to Salta in 1780; Thomas de Allende paid just
over 100 pesos for 840 more the same year. Pedro Lucas de
Allende led the family in mule exports, however, paying
almost 1,500 pesos for the passage of almost 12,000 mules
north between 1785 and 1791.37 Other Allendes transferring
herds of mules north during the viceregal period included
Dalmacio Allende, who sent 705 mules north in 1791, 400 in
1806 and 1,005 in 1809. Maria Mercedes Allende and her
husband Santiago recorded the passage of 1,600 in 1783.
Jose Mariano Allende, finally, sent a small herd of 300 in
1806. Altogether, the Allende family proved responsible for
37. Pedro Lucas Allende's different exports included
the passage of 1,600 mules in 1785, 1,761 in 1787, 1,600
again in 1788, 2,628 in 1789, 3,125 in 1790 and 1,200 in
1791. It is possible that he sent additional herds north in
later years.

234
the export of at least 18,650 mules from Córdoba during the
viceregal period--and probably many more.38
Cordoba's landowning, mule-exporting families included
a number of civic and military officials. A list of
exporters recorded in the Nuevo Impuesto books includes the
alcalde in 1780, Bernardo Gregorio de las Heras, who sent
562 mules to Salta that year, over 1,300 in 1781, 1,500 in
1782, 900 in 1783, 735 in 1784 and 1,600 in 1788. Other
local landowning officials recording Nuevo Impuesto payments
for mule exports included the regidor (councilman) Josef de
Allende, who exported 1,600 mules in 1780, the Sr. General
Thomas de Allende, who sent 840 mules north the same year,
the sargento mayor Francisco del Signo, who sent 400 mules
north in 1780 and 480 in 1781, colonel Francisco Antonio
Diaz, who recorded a payment for 1,990 mules in 1780, and
the maestres de campo (brigade commanders) Francisco Desa
(160 in 1780), Jose de Ysassa (600 in 1780 and 450 in 1782)
and Juan Jacinto Figueroa (1,300 in 1782).39
38. Again, the Córdoba Nuevo Impuesto records examined
for this study cover only the years 1779-1791, 1806, 1808-
1810, or 17 of 35 years spanning the viceregal. It seems
likely that the Allende family total was much higher that
18,650 animals.
39. A.H.P.C., Serie Hacienda, 14, 17.

235
The Funes family constituted another of Cordoba's most
illustrious families, with various members recording mule
exports to Salta during the viceregal period. Domingo
Funes, the first to appear in the Nuevo Impuesto books,
recorded exports of 300 mules in 1783, 200 in 1786, 450 in
1787 and 1,500 in 1788. Ambrosio Funes appears to have then
directed the family interests, recording the export of an
additional 1,300 mules in 1788 and over 1,600 in 1790. In
1808, Sixto Funes recorded a final family transaction,
making a payment of 187 pesos for the passage of 1,500 mules
to Salta pastures.40 Members of the Funes family also
occasionally dabbled in commerce. Cordoba's Nuevo Impuesto
books show that Domingo Funes recorded the import of nine
cargas of wine in 1783, that Ambrosio imported 40 tercios of
cotton from San Miguel de Tucumán and Santiago del Estero in
1789, that Pedro Juan Funes brought 16 cargas of cotton and
three cargas of wine in 1790, and that Juan Luis Funes
exported ten crates of soap and two fardos of ponchos and
blankets to Buenos Aires in 1810.41
The Funes family demonstrates the ease with which
Tucumán's wealthy families combined landowning and commerce
40
41
A.H.P.C., Serie Hacienda, 43, 117.
A.H.P.C., Serie Hacienda, 17, 43, 130.

236
in ways that augmented their power and prestige. Tucumán's
merchant community also held a key place in the regional
economic structure; from the great import merchants who were
closely linked to the highest social levels to the scores of
shopkeepers, or pulperos, and intinerent traders and
peddlers called mercachifles who circulated through the
countryside, Tucumán's merchant community operated on many
levels. As Catherine Lugar notes, an "abyss" separated the
largest merchants who often aspired to a noble lifestyle
from most of the others. The largest merchants--those with
the experience, credit, knowledge and contacts to act as
financers and money lenders to lesser merchants, miners,
planters, ranchers and others--often pursued other economic
activities. This class of merchant, Lugar continues,
enjoyed abundant opportunities to emulate, socialize with
and often marry into the local aristocracy of landowners.42
The career of Benito Antonio Fragueiro, spanning the
years from 1780 to 1812, provides an excellent example of
the types of activity representative of Tucumán's wealthiest
merchants. A careful study of Fragueiro's career by Héctor
42. See Lugar's discussion of colonial merchants in
her essay "Merchants," in Hoberman and Socolow, editors,
Cities and Society. 47-76.

237
Ramón Lobos, as well as Fragueiro's record in the Córdoba
Nuevo Impuesto books, demonstrate the variety of this
merchant's interests.43 Fragueiro first appeared in the
Córdoba records in February 1782, when he paid a small Nuevo
Impuesto charge of one and one-half pesos for three petacas
of efectos de Castilla that he sent to La Rioja. In October
of the next year he made his first large shipment to Buenos
Aires, dispatching 26 carretadas of cueros and five fardos
of other efectos de la tierra. Cuero and suela exports were
to become the mainstay of his exports, financing much of his
economic activity for the rest of his life. Initially, most
of the hides Fragueiro exported probably came from animals
slaughtered for local consumption or from the smaller
merchants who gathered hides from throughout the countryside
and then traded them to Fragueiro in exchange for the goods
he imported from Europe and Buenos Aires. In the last
decade of the eighteenth century, however, Fragueiro began
his own tanning industry in Córdoba in an attempt to produce
good-enough quality hides at a low-enough cost and in
43. See Héctor Ramón Lobos, "Los Fragueiro. Una
familia de comerciantes cordobeses del fines del siglo XVIII
y principios del XIX. Primera parte: Don Antonio Benito
Fragueiro (1780-1812)," in Cuarto Congreso Nacional, tomo I,
429-448. See also the Córdoba Nuevo Impuesto records,
A.H.P.C., Serie Hacienda, 14, 17, 43, 109, 117, 122, 130.

238
sufficient quantity to allow him to compete in the Buenos
Aires market. By 1799 his holdings included a suburban lot
with his workshop, machinery, vats, waterworks and animals,
together valued at over 4,000 pesos. By 1809 he began to
make regular shipments of his hides (3,300 suelas in 19
carretas in 1809 and at least ten carretas more in 1810).
When he died in 1812, Fragueiro's tanning enterprise was
worth over 7,200 pesos--3,500 pesos in buildings, 1,500 in
hardware and machinery, 1,750 in hides and the rest in his
lot and animals.44
In addition to his tanning interests, Fragueiro also
managed a busy commercial enterprise. Lobos observes that
this mercantile activity operated on three planes: First
and foremost was commerce with Buenos Aires--the exchange of
cueros, suelas and other efectos de la tierra for efectos de
Castilla and other European goods. Trade within the Córdoba
jurisdiction, the redistribution of efectos de Castilla for
the various efectos de la tierra traded to Buenos Aires,
ranked second in importance. Trade with other
jurisdictions, especially La Rioja, Catamarca, Paraguay,
Salta, San Miguel de Tucumán, Corrientes and Chile, was
third and of the least importance. In examining Cordoba's
Lobos, "Los Fragueiro,
435-437.

239
alcabala books, Lobos counts 23 separate shipments of
efectos de Castilla received by Fragueiro between May 1783
and September 1812, with a total value of over 79,450 pesos.
The same span saw at least 23 shipments of efectos de la
tierra to Buenos Aires, including lumber, cueros, suelas,
ponchos, blankets and lengths of lienzos, ají, soap, guanaco
and vicuña wool, bateas, sulphur and alum. Despite his
largest shipment of efectos de Castilla in 1793, worth
13,400 pesos, the 1790s proved Fragueiro's slowest decade,
with only six transactions (one for eighteen crates of
liquors) totalling just over 15,000 pesos.45 By 1800,
however, Fragueiro's activity began to increase; between
1800 and 1812 the total value his imports of efectos de
Castilla surpassed 57,500 pesos. During these years,
significantly, Fragueiro's exports to Buenos Aires
increasingly consisted of cueros, suelas and woolens--a
trend more and more common among Cordoba's merchants.
The Signos--Francisco, Juan, Santiago and Carlos--
appear in the Córdoba Nuevo Impuesto records as another busy
merchant family. Sergeant Major Francisco del Signo pursued
a wide variety of commercial activity, including mule
exports to Salta in 1780 and 1782, suelas and lumber to
See Lobos' chart on page 439 of "Los Fragueiro."

240
Buenos Aires in 1781, 1786, 1789 and 1790, ponchos to Buenos
Aires in 1781 and 1785, imports of efectos de Castilla in
1786 and 1789 and services as agent for other merchants in
1786 and 1790. This pattern seems typical of Corboba's
larger merchants during the 1770s and 1780s. Juan del
Signo, for instance, began exporting shipments of wood,
hides, salt and cotton to Buenos Aires in the 1780s while
receiving a shipment of 38 petacas of efectos de Castilla,
one and one-half carretadas of iron and nine barrels of
brandy in 1787. The Nuevo Impuesto books show that by 1806,
Juan had widened his commercial sphere and increasingly
specialized in the export of hides and woolens to Buenos
Aires. The 1806 book the indicates shipment of ten fardos
of textiles and at least 20 carretadas of hides to Buenos
Aires, and receipt of 30 cargas of aguardiente from Chile
and 25 cargas of cotton from Catamarca.46 In 1808 he
shipped eight carretadas of hides, nine fardos of ponchos
and 14 fardos of unspecified textiles to Buenos Aires and
received 63 fardos of "efectos de Chile" and 31 cargas of
wine from La Rioja.47 In 1809 and 1810, his exports
totaled at least 22 carretadas of hides, at least 44 fardos
46
47
A.H.P.C., Serie Hacienda, 109.
A.H.P.C., Serie Hacienda, 117.

241
of ponchos and 12 carretas of unspecified "commerce" while
his imports included 6 fardos of efectos de Chile and 55
cargas of cotton from Catamarca.48 Juan del Signo's
increasing commerce in hides and woolens, especially
ponchos, seems to reflect a more widespread pattern of local
concentration on these goods.
Several older exports, including wood and lumber, raw
cotton and wool, minerals and salt appear to have been
exported in smaller quantities by Cordoba's largest
merchants after the 1790s, replaced by a greater trade in
cueros, suelas and woolens. A growing commerce with other
cities in the Litoral further accompanied this shift.
Santiago del Signo, another active merchant registering most
of his activity in the first decade of the nineteenth
century, added to his trade of hides and ponchos to Buenos
Aires a considerable trade in woolen ponchos and other
textiles with Paraguay and Montevideo. Records from 1806
indicate the shipment of 17 carretadas of hides to Buenos
Aires and at least six fardos of ponchos to Paraguay; over
the next three years his exports included 63 fardos of
ponchos and other woolens and 7 carretadas of hides to
48
A.H.P.C., Serie Hacienda, 122, 130.

242
Buenos Aires, and 20 fardos of unspecified textiles to
Montevideo.49
These changing commercial patterns suggested by the
practices of the Signos point to the trends and commercial
adjustments that appear to have been emerging late in the
viceregal period. With the recovery from the crisis of the
1790s, and with the continued growth of the Buenos Aires
market, Cordoba's merchants seem to have concentrated their
export activity on hides and woolens. Hide exports
benefitted from a vast European market able to absorb all
the viceroyalty's production, while woolen goods as well as
cotton textiles sold in greater and greater quantities to
the rapidly growing population of the Litoral area.
Other families and individuals filled in Cordoba's
mercantile hierarchy, their practices reflecting the general
trends characterisitic of Tucumán's economic fortunes.
Francisco Recalde, for example, pursued limited commerce
from 1785 until the 1790s, exporting modest quantities of
different efectos de la tierra and acting as a local agent
for severalBuenos Aires merchants in the Córdoba market. By
1806, however, Recalde, as did the del Signos and Antonio
Fragueiro, had concentrated his activity on hides and
49
A.H.P.C., Serie Hacienda, 109, 117, 122, 130.

243
ponchos, with the Paraguay market increasingly important.
The long list of smaller Córdoba merchants pursuing similar
commercial enterprises reveals a steady, gradual scale of
mercantile activity from the large wholesale merchants to
the smallest one-time or infrequent merchants. Some
individuals, such as Apolinario Viana, began to concentrate
their commercial efforts on secondary markets. Between 1779
and 1782, Viana's exports included efectos de la tierra to
Buenos Aires and mules to Salta, but by 1784 the bulk of his
trade was with Chile. From 1784 to 1791, Viana imported
over 60 cargas, almost 280 fardos and over 600 tercios,
including 120 tercios of sugar, from Chile, paying Nuevo
Impuesto taxes of over 230 pesos into the municipal
treasury.50 Other smaller merchants such as Antonio Savid,
Sebastiano Rodriguez, Antonio de la Quintana, Domingo de la
Quadra and Josef Yofre appear with lesser frequency, perhaps
importing or exporting only one, two or three times a year
for three or four years during the 1780s. Others still,
such as Xavier de la Torre, Thomas Tejerina, Claudio Araujo,
Josef Castro, Ramon Olmedo, Juan Estanislau Lopez or Antonio
Gijeña, the clérigo presbitero of the Córdoba cathedral,
appear only once or twice in the Nuevo Impuesto registers.
50
A.H.P.C., Serie Hacienda, 14, 17, 43.

244
The commercial activity of these occasional merchants, by
far the majority of those named in the registers, was
apparently a matter of convenience or special opportunity;
such individuals may appear in the commercial records
throughout the Tucumán region, but they cannot be considered
merchants of the same importance as Benito Antonio
Fragueiro, Felipe Antonio Gonzalez or any of the Signos.
A more limited survey of commercial patterns in the
northern jurisdictions reveals similar characteristics. A
handful of large-scale merchants dominated trade between
Salta and Jujuy and Buenos Aires and Alto Perú, with a
larger number of smaller merchants making occasional forays
into the world of long-distance commerce. The Jujuy carta
cuentas, or treasury account summaries, from the years 1767
through 1780 record that 92 different individuals paid
alcabala taxes on the sales of efectos de Castilla in that
city. Of this total, 70 names appear only once in the
records, 13 individuals paid sales taxes in two different
years, three paid taxes in three different years, three more
in four different years, and only three merchants--Gregorio
Cegada, Josef de la Quadra and Francisco Xavier de Eguia--

245
made alcabala payments in five or more different years.51
Almost all the recorded payments were for sales of efectos
de Castilla.
Gregorio de la Cegada proved Jujuy's busiest merchant
in the 1770s, paying alcabala taxes of just over 1,700 pesos
on his trade in iron, steel, knives, paper, wine and other
"mercancías." In 1767-1768, for instance, Cegada paid
alcabala taxes totaling 862 pesos on the sale of three
separate shipments from Buenos Aires. The first payment,
330 pesos, covered the sale of 33 crates and boxes of
unspecified merchandise imported from Buenos Aires and 27
"pieces" more brought from Córdoba (including eight crates
of paper, six crates of glasses, two boxes of powder, four
large boxes of clavazón (nails) and three boxes of knives.
The second payment, 145 pesos, covered the sale of eight
more crates of "merchandise," three barrels of knives, 11
boxes of clavazón, 31 barrels of white wine and 144
quintales of iron. The third payment, 387 pesos, met the
tax on the sale of 43 crates and four boxes of unspecified
merchandise.52 Cegada also paid alcabala taxes in late
51. A.G.I., Buenos Aires, 457, Carta Cuentas de Jujuy,
1766-1780.
52. A.G.I., Buenos Aires 457, Carta Cuenta de Jujuy,
1767-1768.

246
1769, 1770, 1774, 1775, 1776, 1777 and 1779, almost always
on sales of goods that included quantities of iron and
steel.
In Salta, the aguardiente trade played an important
role in the mercantile community. Salta served as the
staging point for shipments to Alto Perú, and its trade in
spirits often reached considerable proportions. As has been
shown for other commercial sectors, a small handful of
merchants generally dominated this trade, which,
nevertheless, was frequently entered by occasional dealers.
Salta's Nuevo Impuesto summaries from 1789 until 1800 reveal
that 84 different individuals made at least 116 different
tax payments on aguardiente imports over the 11 year period.
Of these individuals, only one, Andres Atencio, completed
transactions in five or more years. At least 63
individuals, on the other hand, made only one transaction in
the same period. Three merchants made payments in four
different years, only two merchants made payments in three
different years, and 12 individuals imported aguardiente in
two different years.53 The largest of Salta's aguardiente
importers were Pedro Ygnacio Torres, who in three years paid
53. A.G. I. ,
1789-1800.
Buenos Aires, 460, Carta Cuenta de Salta,

247
Nuevo Impuesto charges totalling 570 pesos for 5,040 pesos
worth of brandy, and Manuel Astorga, who paid taxes
totalling 585 pesos on the import of 5,185 pesos worth.
Juan Fermin Echechipia, finally, made the largest single
entry of aguardiente, paying a tax of 507 pesos for the
import of 332 quintales--191 quintales of aguardiente
aforado, and the rest classified as ordinary.54 Despite
the large trade directed by these several individuals, the
important feature of Salta's aguardiente trade was the
common participation of occasional traffickers. The
regional mule trade, Cordoba's and Salta's commerce in
efectos de Castilla and Cordoba's exports of efectos de la
tierra all exhibit a similar pattern. Commerce throughout
the Tucumán region, despite being dominated by a core of
large-scale merchants who traded over long periods, still
presented abundant opportunities for occasional or
speculative traders who entered the marketplace only once or
twice in any span of years. A similar pattern of behavior
also seems to have characterized the retail-marketing sector
in the region.
The small retail grocers called pulperos. common
throughout colonial Spanish America, generally constituted
54
Ibid.

248
the largest group of small, independent entrepreneurs
operating within the regional commercial system. Jay
Kinsbruner's study of the pulperos and their shops, or
pulperías, in four different colonial cities argues that
these shopkeepers enjoyed little social status. Ranking
near the bottom of Hispanic society, many pulperos,
especially in rural areas, placed considerable emphasis on
the sale of wine and aguardiente in grocery stores that seem
more like drinking houses. The Río de la Plata's rural
pulperías, often free of any municipal supervision, merited
special notice as "dirty, miserable hovels."55 In any
case, most carried a broad inventory in addition to wine and
spirits. In Buenos Aires, urban pulperos generally stocked
yerba mate, sugar, beans, wheat, rice, corn, ají, vinegar,
salted and cured meat, fresh meat, soap and candles.
Although local custom and government interference produced
regional variation, Kinsbruner writes, small retail grocery
stores in the cities he investigated stocked basically the
same items.56
55. See Jay Kinsbruner, Petty Capitalism in Spanish
America: The Pulperos of Puebla. Mexico City, Caracas and
Buenos Aires (Boulder, 1987), 1, 29.
56
Ibid., 9.

249
Rural pulperías sold a larger variety of goods,
including hardware and sewing notions imported from Europe.
Kinsbruner, in fact, attributes a greater social and
economic significance to rural than to urban shops. Rural
pulperos, he explains, not only provided groceries and
merchandise unavailable from other sources, but also acted
as purchasers of rural products, accepting goods and produce
in lieu of cash payments. They also extended credit in
rural areas and otherwise acted as bankers through their
commercial and financial pursuits. In many ways, Kinsbruner
continues, rural pulperías supplemented and sometimes
replaced the church, school, social club and urban plaza,
providing the common locale for scattered country people to
meet, visit and discuss the issues of current importance.57
Treasury records pertaining to pulperías reflect the
differing sizes and commercial importance of Tucumán's
regional cities, and show that pulpería commerce followed
the same fortunes as other commercial sectors and exhibited
similar patterns of merchant participation. Just as mule
exports and local alcabala revenues experienced a sharp
downturn in the 1780s and early 1790s and then recovery
afterwards, recorded revenues from pulpería fees collected
57
Ibid., 2.

250
in the cities of Córdoba, Salta, Jujuy and San Miguel de
Tucumán exhibit similar curves. Table 6.3 presents the
pulpería revenues for each of these cities from 1787 to
1803 .
Table 6.
3. Pulpería Revenues (in pesos),
Córdoba, Salta,
Jujuy
and San
Miguel de
Tucumán, 1787-1803
Year
Córdoba
Salta
Juiuv
San
Micruel de Tucumán
1785
1,514
1786
1,412
—
—
—
1787
1,538
875
760
707
1788
1,343
—
714
773
1789
1,992
1,015
557
830
1790
2,109
815
395
556
1791
1,398
904
641
294
1792
898
871
426
351
1793
748
830
374
318
1794
666
594
327
315
1795
630
465
280
208
1796
800
488
207
200
1797
805
401
225
436
1798
855
410
215
390
1799
1,029
465
325
405
1800
1,265
621
167
465
1801
1,093
813
—
—
1802
1,025
—
240
912
1803
1,073
1,062
Sources:
A.G.I., Buenos Aires 459, 460,
461 (Salta, Jujuy
and
San Miguel
de Tucumán); 465,
466
(Córdoba).

251
These revenue figures exhibit several important
features. First, they underscore the fact that Córdoba and
Salta commercially dominated the region while the other five
cities played secondary roles. From 1785 through 1790,
Cordoba's pulpería revenues averaged over 1,650 pesos each
year, with Jujuy and San Miguel de Tucumán collecting less
than half that amount (the Salta figures are incomplete for
these years, but suggest an annual average pulpería revenue
of perhaps 1,000 pesos a year).58 Cordoba's larger
population clearly contributed to the presence of more shops
in the city.
The pulpería revenue records also cast additional light
on the regional economic crisis brought on by the Peruvian
insurrection of the early 1780s. Pulpería revenues
throughout the Tucumán region experienced a sharp decline
during the 1790's, the same years that both mule exports to
Peru and alcabala revenues reached their lowest totals.
Cordoba's pulpería revenues, for example, dropped from the
average of 1,650 pesos a year from 1785 to 1790 to about 755
pesos a year from 1791 until 1798. Salta, Jujuy and San
Miguel de Tucumán all manifested similar declines during the
same years, reaching low points during mid-decade--Córdoba
58
A.G.I., Buenos Aires 459, 460, 461; 465, 466.

252
from 1793 to 1795, Salta during 1797 and 1798, Jujuy from
1795 to 1798 and again in 1800, and San Miguel de Tucumán in
1795 and 1796. Figures 6.1 and 6.2 illustrate these trends.
Each of the cities except Jujuy began to recover by the end
of the decade, with Cordoba's revenues again surpassing
1,000 pesos in 1799 and Salta and San Miguel de Tucumán
showing steady annual increases after 1798. Jujuy appears
to have been still struggling into the 1800s. The pulpería
records, at any rate, not only show that Tucumán's
commercial malaise of the 1790's extended to the urban
retail sector, with fewer shopkeepers willing or able to pay
for their pulpería licenses, but also reveal that the crisis
ended with a widespread recovery that was stronger in the
southern jurisdictions than in the north.
Closer examination of some of the local characteristics
of the retail sector reveals widespread tendencies that help
illuminate the nature of commercial activity in the Tucumán
region during the viceregal era. Cordoba's sworn hacienda
summary of 1785, for example, lists the names of the 39
individuals who paid some amount to the treasury in order to

253
operate their shops for varying lengths of time in 1784.59
Of the 39 names listed, only 27 are noted as paying to open
their shops for "all the year." Twelve paid only enough to
open their shops for just several months--five paid to keep
open for six months, four paid to keep open for three
months, one paid for nine months, one paid for four months
and one paid for only two months. Only one of these
individuals, it should be noted, appears in Cordoba's Nuevo
Impuesto record as an importer of efectos de Castilla from
Buenos Aires.
Jujuy's records from 1769 through 1777 provide a more
encompassing list of the individuals who registered with the
municipal government to keep shops open. The Jujuy records
show that 12 to 14 individuals recorded pulpería payments
each year from 1769 to 1774, 17 recorded payments in 1775,
23 recorded payments in 1776 and 21 recorded payments in
17 7 7.60 Of the 60 people who paid pulpería fees at least
once during this span, 33 of these paid in only one year.
Only three individuals--Juan Bauptista Gongoritia, Joseph
Vieyra and Francisco Cuenca--operated pulperías all the nine
59. A.G.I., Buenos Aires 465, "Relación jurada de la
cuenta, Diciembre 1785."
60
A.G.I., Buenos Aires 457.

254
years examined. Joseph Palacios recorded payments
continuously from 1769 to 1764 with the a break in 1775, and
Juan Jose de Sandoval recorded payments from 1771 to 1777
and quite possibly beyond, but the repeated presence of the
same names on the register is rare. Only four more names
appear in four consecutive years and only seven appear in
three consecutive years. Most of the names appearing in any
one year probably appeared for the first and last time.
In any one year, more than half those individuals
registering for pulperías in Jujuy apparently had never
registered before and would not register again. Over any
span of years, the majority of people opening pulperías
could not really be considered pulperos. At least half
Jujuy's registered "pulperos," like the region's mule
exporters and large-scale importers and exporters, acted
only occasionally or perhaps speculatively, entering
regional commercial life infrequently or when promising
opportunities arose. Instead, the small number of pulperos
who regularly paid to register their enterprises and
maintained a years-long presence within the local commercial
community constituted the core of the urban retail
community.

CONCLUSION
By the last years of the eighteenth century, the
Tucumán region constituted a vast, economically diverse
region that exhibited a variety of productive activities and
a vibrant commercial network. A strong pastoral sector
based on mule, cattle and sheep ranching unified the seven
constituent jurisdictions and dominated this regional
economy. Ranching and livestock production distributed
income to all jurisdictions, fueled regional commercial
activity and created an infrastructure that supported a
number of secondary activities that included tanning,
weaving and market agriculture. Prosperity depended on
access to, and trade with, markets in both Alto Perú and
Buenos Aires. Self-sufficiency otherwise characterized this
healthy export economy--the Tucumán region imported few
items aside from luxury goods and hardware. Most staple
foods and commodities consumed in the region originated with
local producers.
But this broad reliance upon the pastoral sector belied
some important differences from jurisdiction to jurisdiction
255

256
within the region. Local economic orientations and
specializations contributed to the subtle differentiations
among jurisdictions. Local demographic characteristics
further underscored these distinctions between northern,
southern and western zones within the region. The numbers
of people and the racial composition of local populations,
defined by eighteenth-century observers, reflected
significant local contrasts. Clustered communities of
Indians, castas and blancos lent specific appearances to
different jurisdictions.
Demographically, Salta and San Salvador de Jujuy
jurisdictions in the north comprised relatively heavier
Indian populations. Economically, they relied more
completely upon livestock exports to Peru. An isolated and
impoverished western zone, consisting of the Catamarca and
La Rioja jurisdictions with their racially-balanced
populations and reliance upon the specialized production of
cotton, wine and brandy, remained subordinate to larger and
more prosperous neighboring jurisdictions. A southern zone,
made up of the Córdoba, San Miguel de Tucumán and Santiago
del Estero jurisdictions, exhibited larger and more racially
mixed populations and a more diversified economy. With
larger proportions of blancos and castas, and local

257
prosperity still dependent on ranching and livestock
exports, this southern zone also supported more commodity¬
processing activities. Here producers and merchants used
the production and export of cueros and suelas to forge
links with Buenos Aires and the increasingly important
Atlantic economy. Textile production, sustained by large
herds of sheep, steady supplies of Catamarca cotton, large
rural populations given to domestic weaving and a rapidly-
growing Litoral population, constituted an important
complementary activity.
With mule exports so important, the well-being of this
sector proved critical to the prosperity of the entire
regional economy. Sisa and Nuevo Impuesto records indicate
that the regional mule trade experienced three distinct
phases. The first phase, from mid-century until 1781, saw
slow, steady growth as Peruvian buyers continued to purchase
ever-larger herds. The second phase, clearly shaped by the
Peruvian Tupac Amaru rebellion and the loss of Andean
markets for over a decade, saw export levels decline
steadily until 1794. Gradual recovery dating from 1795 and
lasting until the very end of the viceregal era marked the
last phase; the records show that by 1810, exports regularly
surpassed old levels. The records also suggest that

258
secondary exports experienced a similar history, with hides,
textiles, caldos and lumber exports all diminished during
the 1780s and early 1790s. Although prosperity marked early
and late years of viceregal era in Tucumán region, the 15-
year period from 1781 until 1795 constituted a period of
significantly reduced exports.
Alcabala data reveal a somewhat more complicated
history. Córdoba and Salta best illustrate the trends that
marked the region's commercial activity. The years from
1775 to 1789 saw steady growth in alcabala revenues,
suggesting that the commercial reforms that accompanied the
establishment of the new viceregal system also contributed
to regional economic growth. The same figures then reveal a
sharp decline in commercial activity from 1790 to 1794, the
same years that saw mule exports reach their lowest levels.
It appears that diminished mule exports to Peru triggered a
delayed commercial decline felt throughout the region. The
Peruvian disturbances and subsequent reform of repartimiento
practices ultimately proved a major influence on Tucumán's
viceregal economic history by triggering a temporary
economic malaise and hastening the local adjustments and
reorientations occasioned by changing market conditions and
new commercial opportunities.

259
The years from 1795 to 1810 marked a general recovery
throughout the region, with the exception of the Salta
jurisdiction. The specific characteristics of this
recovery, furthermore, underscore the emerging
differentiation that developed after 1795. Annual alcabala
revenues increased more sharply in the southern
jurisdictions compared to the northern jurisdictions, where
commercial activity appears to have stagnated after 1795.
By 1800, Córdoba had clearly surpassed Salta as the region's
principal commercial center. The southern jurisdictions,
led by Córdoba, turned away from mule exports, developed a
commodity processing sector and pursued increasingly closer
trade relations with Buenos Aires and the Litoral based on
the growing demand for hides and textiles. The northern
zone, still dependent on the Peruvian livestock markets,
preserved its traditional commercial ties with Alto Perú and
missed the surge of growth that characterized the southern
zone. By the end of the colonial period, the northern zone
still looked north to Peru and conducted almost no trade
with the south--even the once-thriving mule trade between
Córdoba and Salta had diminished.
In the final analysis, the Tucumán regional economy
underwent subtle yet profound change during the last years

260
of the eighteenth century and the first years of the
nineteenth. The region began the viceregal era conjoined by
the extensive mule trade that supplied the Peruvian mining
economy and ended the era clearly disjointed. New and
powerful economic forces emanating from Buenos Aires
fractured the traditional internal cohesion marking the
Interior. The growth of the River Plate population and the
new opportunities provided by Europe's emerging industries
drew the southern jurisdictions of Córdoba, Santiago del
Estero and San Miguel de Tucumán into the quickening rhythms
of the Atlantic economy. The northern jurisdictions of
Salta and San Salvador de Jujuy, meanwhile, preserved old
ties with Peru, unwilling or unable to participate in the
export boom reshaping the south.
These fundamental adjustments to changing global
conditions had wide-reaching implications for the different
constituent areas of the Tucumán region after 1776.
Although landowners and merchants in the northern
jurisdictions managed to increase their livestock exports
during this period, this strategy excluded them from the
modest but critical process of reorientation pursued by
their counterparts in the south. The southerners adjusted
to changing conditions by turning their pastures from mule

261
raising to cattle and sheep herding oriented toward the
production of pastoral by-products--hides, suelas and
woolens--that enjoyed a seemingly unlimited demand in the
River Plate and Litoral markets.
The regional transportation infrastructure proved, in a
sense, largely responsible for this differentiation.
Northern landowners, producers and merchants simply lived
too far from the new markets to justify reorienting their
pursuits towards the hide export sector. The high costs of
transport from the northern reaches of the Tucumán region
inhibited profitable trade in pastoral by-products. Lower
transportation costs for southern producers, on the other
hand, provided affordable access to Buenos Aires and made
their adjustments feasible. The costs of carriage from
Buenos Aires increased four times between Córdoba and Jujuy,
increases profoundly prohibitive to the adjustment or
reorientation of the northern economy. Hides and woolens
lacked the value to cover the long and expensive freight to
Buenos Aires despite the existence of a specialized,
professional carrying sector. The expense of carriage
between north and south were so high, in fact, that they
precluded all but the most specialized commercial exchange.
Expensive European manufactures, primarily textiles and

262
hardware, and highly desired wines and brandies comprised
the only items carried with any regularity between north and
south. Inexpensive subsistence goods saw limited commercial
circulation. As the southern jurisdictions turned to Buenos
Aires and the Litoral as a new trading partner for
foodstuffs and inexpensive textiles, the north intensified
its ties with Peru and brought most of its imports down from
Andean suppliers.
Although the growth of the Buenos Aires economy shaped
the entire process of Tucumán's viceregal history, the
period of economic malaise brought about by popular
rebellion in Peru can be considered a precipitating factor
in the southern jurisdictions' reorientations. The loss of
these markets beginning in 1781 and lasting until the 1790s
accelerated the shift from livestock exports to pastoral by¬
product processing. Export records reveal the diminished
mule exports following the Tupac Amaru rebellion of 1781-
1782; sales-tax records convey the 15-year decline in
commercial activity in all Tucumán's cities. Cordoba's sisa
records in particular indicate that as the region recovered
from this crisis, it emerged as the newly-structured,
sharply differentiated economy. The southern reorientation
toward the Buenos Aires export economy may have inevitable,

263
but the temporary deterioration of the traditional Peruvian
market undoubtedly hastened the process.

BIBLIOGRAPHY
Acevedo, Edberto Oscar, "El viaje del contador Navarro entre
Lima y Buenos Aires en 1779," in Revista de Historia
Americana v Argentina 2:5-6 (1960-1961), 257-330.
Acevedo, Edberto Oscar, La Intendencia de Salta de Tucumán
en el virreinato del Río de la Plata (Mendoza, 1965) .
Aparicio, Francisco de, "The Comenchigón and their Neighbors
in the Sierras de Córdoba," in Julian H. Steward,
editor, Handbook of South American Indians. 7
volumes (New York, 1963), volume 2, 673-685.
Asdrúbal Silva, Hernán, "La grasa y el sebo: Dos elementos
vitales para la colonia: Buenos Aires en la primera
mitad del siglo dieziocho," in Revista de Historia
Americana y Argentina 8:15-16 (1970-1971), 39-56.
Assadourian, Carlos Sempat, El sistema de la economía
colonial: Mercado interno, regiones y espacio
económico (Lima, 1982).
Assadourian, Carlos Sempat, Guillermo Beáto and José Carlos
Chiamonte, Argentina: De la conquista a la
independencia (Buenos Aires, 1972).
Assadourian, Carlos Sempat, Heraclio Bonilla, Antonio Mitre
and Tristan Platt, Minería v espacio económico en los
Andes, siglos XVI-XX (Lima, 1980).
Assadourian, Carlos Sempat, Ciro Flamarión Santana Cardoso,
Horacio Ciafardini, Juan Carlos Garavaglia and Ernesto
Laclau, Modos de producción en América Latina (Buenos
Aires, 1973).
Assef, Alberto, "La creación del virreinato del Río de la
Plata y la disgregación nacional," in Estrategia 42
(September-October, 1976), 104-118.
Bakewell, Peter, "Registered Silver Production in the Potosí
District, 1550-1735," in Jahrbuch fur Geschichte von
Staat, Wirtschaft und Gessellschaft Lateinamerikas 12
(1975), 67-103.
264

265
Bakewell, Peter, "Mining," in Leslie Bethell, editor, The
Cambridge History of Latin America. 8 volumes
(Cambridge, 1984-1991), volume II, 105-151.
Barrios Pintos, Aníbal, Historia de la ganadería en el
Uruguay, 1574-1971 (Montevideo, n.d.).
Bazán, Osvaldo Raúl, Historia del noroeste argentino (Buenos
Aires, 1896).
Biscay, Acárete du, An Account of a Voyage up the River de
la Plata, and thence Overland to Peru (Northhaven,
1969).
Bischoff, Efraín U., Historia de Córdoba. Cuatro siglos
(Córdoba, 1977).
Bischoff, Efraín U., Norte, Norte, Norte... Su leyenda y sus
historia (Córdoba, 1991).
Bonavia, Michael R., The Economics of Transport (Cambridge,
1947).
Brading, David A., Miners and Merchants in Bourbon Mexico
1763-1810 (Cambridge, 1971).
Brading, David A., "Bourbon Spain and its American Empire,"
in Leslie Bethell, editor, The Cambridge History of
Latin America, 8 volumes (Cambridge, 1984-1991), volume
1, 389-468.
Braudel, Fernand, Capitalism and Material Life, 1400-1800
(New York, 1973).
Braudel, Fernand, Civilization and Capitalism, Fifteenth-
Eighteenth Centuries, 3 volumes (New York, 1979) .
Brown, Jonathon C., The Commercialization of Buenos Aires:
Argentina's Economic Expansion in the Era of
Traditional Technology, 1776-1860. PhD. Dissertation,
University of Texas, 1976 (Ann Arbor, 1976) .
Brown, Jonathon C., A Socioeconomic History of Argentina.
1776-1860 (Cambridge, 1979).

266
Caillot-Bois, Ricardo R., "Apuntes para la historia
económica del virreinato. Gobierno Intendencia de
Salta de Tucumán," in Anuario de Historia Argentina
1941 (1942), 101-123.
Canals Frau, Salvador, Poblaciones indígenas de la Argentina
(Buenos Aires, 1953).
Canals Frau, Salvador, Los civilizaciones prehistóricas de
América (Buenos Aires, 1973).
Capoche, Luis, Relación general de la Villa Imperial de
Potosí (Madrid, 1959).
Cárcano, Ramón J., Historia de los medios de comunicación v
transporte en la república argentina. 2 volumes (Buenos
Aires, 1893).
Cardoso, Enrique, and Enzo Faletto, Dependencia y desarrollo
en América Latina (Mexico City, 1969) .
Carretero, Andrés, Orígenes de la dependencia económica
argentina (Buenos Aires, 1974).
Casanova, Eduardo, "The Cultures of the Puna and the
Quebrada de Humahuaca," in Julian H. Steward, editor,
Handbook of South American Indians. 7 volumes (New
York, 1963), volume 2, 619-631.
Cervera, Federico Guillermo, "El antiguo camino de Santa Fé
a Santiago del Estero y el Perú," in Cuarto congreso
nacional y regional de historia argentina (1977), 3
volumes (Buenos Aires, 1979), volume 1, 354-354.
Céspedes del Castillo, Guillermo, Lima y Buenos Aires.
Repurcusiones económicas v políticas de la creación del
virrevnato del Plata (Seville, 1947) .
Chaunu, Pierre and Huguette, Séville et 1'Atlantigue. 11
volumes (Paris, 1955-1960).
Cobb, Gwendolyn, "Supply and Transportation for the Potosí
Mines, 1545-1640," in Hispanic American Historical
Review 29:1 (February, 1949), 25-45.

267
Cockcroft, James D., André Gunder Frank and Dale L. Johnson,
Dependence and Underdevelopment (Garden City, 1972).
Comadrán Ruiz, Jorge, Evolución demográfica argentina
durante el período hispánico (1535-1810) (Buenos Aires,
1969).
"Concolorcorvo" (Alonso Carrió de la Vandera), El lazarillo
de ciegos caminantes desde Buenos Aires hasta Lima
(Buenos Aires, 1942).
"Concolorcorvo" (Alonso Carrió de la Vandera), El Lazarillo.
A Guide for Inexperienced Travellers between Buenos
Aires and Lima, translated by Walter D. Kline
(Bloomington, 1965).
Coni, Emilio, Historia de las vaquerías del Río de la Plata
(Buenos Aires, 1956) .
Cornejo, Atilio, Apuntes históricos sobre Salta (Buenos
Aires, 1937).
Cornejo, Atilio, Contribución a la historia de la propiedad
inmobilaria de Salta en la época virreinal (Buenos
Aires, 1945) .
Cornejo, Florencia S., "El comercio de muías de Salta con el
Litoral, Córdoba, Alto y Bajo Perú (1800-1810)," in
Cuarto congreso nacional y regional de historia
argentina (1977). 3 volumes (Buenos Aires, 1979),
volume 1, 365-374.
Corradi, Juan Antonio, "Argentina," in Ronald H. Chilcote
and Joel C. Edelstein, editors, Latin America: The
Struggle with Dependency and Beyond (Cambridge, 1974),
309-407.
Dellespiane y Cálcena, Carlos A., "La artesanía del tejido
en Catamarca," in Primer congreso de la historia de
Catamarca. 3 volumes (Catamarca, 1966), volume 3, 91-
106 .
Difrieri, Horacio, La Argentina. Suma de geografía. 9
volumes (Buenos Aires, 1961).

268
Documentos para la Historia de Argentina. 40 volumes (Buenos
Aires, 1913-1965).
Doucet, Gaston, "Introducción al estudio de la visita del
Oidor Don Antonio Martínez de Luján de Vargas a las
encomiendas del Tucumán," in Boletín del Instituto de
Historia Argentina Doctor Emilio Raviqnani 26, 16:26
(1980), 205-246.
Elhuyar, Fausto de, Memoria sobre el influjo de la minería
en Nueva España (Mexico City, 1984) .
Fernández Alexander de Schorr, Adela, El segundo
levantimiento Calchaguí (San Miguel de Tucumán, 1968).
Ferns, H. S., Britain and Argentina in the Nineteenth
Century (Oxford, 1960).
Fisher, John, "Imperial 'Free Trade' and the Hispanic
Economy, 1778-1796," in Journal of Latin American
Studies 13:1 (May, 1981), 21-56.
Frank, André Gunder, Capitalism and Underdevelopment in
Latin America (New York, 1967).
Gandia, Enrique de, Buenos Aires colonial (Buenos Aires,
1957) .
Garavaglia, Juan Carlos, "El ritmo de la extracción de
metálico desde el Río de la Plata á la Península," in
Revista de Indias 36:143-144 (January-June, 1976), 247-
268 .
Garavaglia, Juan Carlos, "Comercio colonial. Expansión y
crisis," in Polémica 1 (1977).
Garavaglia, Juan Carlos, "Las actividades agropecuarias en
el marco de la vida económica del pueblo de indios de
Nuestra Señora de los Santos Reyes Magos de Yapeyú:
1768-1806," in Enrique Florescano, editor, Haciendas,
latifundios y plantaciones en América Latina (Mexico
City, 1979), 464-485.

269
Garavaglia, Juan Carlos, "Economic Growth and Regional
Differentiations: The River Plate Regions of the End
of the Eighteenth Century," in Hispanic American
Historical Review 65:1 (February, 1985), 51-89.
Garavaglia, Juan Carlos, "Los textiles de la tierra en el
contexto colonial rioplatense: ¿Una revolución
industrial fallecida?," in Anuario del Instituto de
Estudios Histórico-Sociales 1 (1986), 45-87.
Garavaglia, Juan Carlos, "El Río de la Plata en sus
relaciones atlánticas: Una balanza comercial (1779-
1784)," in Economía, sociedad v regiones (Buenos Aires,
1987), 65-117.
Garzón Maceda, Ceferino, Tucumán: Economía natural v
economía monetaria (Córdoba, 1968) .
Giberti, Horacio C. E., Historia económica de la ganadería
argentina (Buenos Aires, 1960).
González Rodríguez, Adolfo Luis, La encomienda en Tucumán
(Seville, 1983) .
Haefner, Lonnie E., Introduction to Transportation Systems
(New York, 1986) .
Halperín-Donghi, Tulio, Revolución y guerra: Formación de
un élite dirigente en la Argentina criolla (Buenos
Aires, 1972).
Halperín-Donghi, Tulio, Politics, Economics and Society in
Argentina in the Revolutionary Period (Cambridge,
1975) .
Halperín-Donghi, Tulio, "Una estancia en la campaña de
Buenos Aires, Fontezuela, 1753-1809," in Enrique
Florescano, editor, Haciendas, latifundios y
plantaciones en América Latina (Mexico City, 1979),
447-463.
Hamilton, Earl, American Treasure and the Price Revolution
in Spain, 1501-1650 (Cambridge, 1934).

270
Hoberman, Luisa Schell, and Susan Migden Socolow, editors,
Cities and Society in Colonial Latin America
(Albuquerque, 1986).
Innis, Harald A., The Fur Trade of Canada (Toronto, 1930).
Justo, Liborio, Nuestra patria vasalla: De los Borbones a
los Baring Brothers (Buenos Aires, 1967).
Kinsbruner, Jay, Petty Capitalism in Spanish America: The
Pulperos of Puebla. Mexico City, Caracas and Buenos
Aires (Boulder, 1987).
Kossok, Manfred, El virrevnato del Río de la Plata. Su
estructura económica-social (Buenos Aires, 1959) .
Larson, Brooke, "Rural Rhythms of Class Conflict in
Eighteenth-Century Cochabamba," in Hispanic American
Historical Review 60:3 (August, 1980), 407-430.
Lavardén, Manuel José de, Nuevos aspectos del comercio en el
Río de la Plata (Buenos Aires, 1955) .
Levene, Ricardo H., "Riqueza, industrias y comercio durante
el virreinato," in Ricardo H. Levene, editor, Historia
de la nación argentina (desde los orígenes hasta la
organización definitiva en 1862, 10 volumes (Buenos
Aires, 1938), volume 4, section 1, 373-430.
Levene, Ricardo H., Investigaciones acerca de la historia
económica del Río de la Plata (second edition), 2
volumes (Buenos Aires, 1952) .
Levillier, Roberto, Gobernadores del Tucumán. Papeles de
los gobernadores en el siglo XVI. Documentos del
Archivo de Indias. 2 volumes (Madrid, 1920).
Levillier, Roberto, Nueva crónica de la conquista del
Tucumán (Buenos Aires, 1931).
Lizondo Borda, Manuel, Historia de la gobernación del
Tucumán (siglo XVII) (Buenos Aires, 1928).

271
Lizondo Borda, Manuel, "El Tucumán en los siglos XVII y
XVIII," in Ricardo H. Levene, editor, Historia de la
nación argentina (desde los orígenes hasta la
organización definitiva en 1862), 10 volumes (Buenos
Aires, 1938), volume 3, 389-420.
Lizondo Borda, Manuel, Tucumán indígena: Diaguitas, Lules.
y Tonocote, pueblos y lenguas (San Miguel de Tucumán,
1938) .
Lizondo Borda, Manuel, Historia del Tucumán. Siglo XVI (San
Miguel de Tucumán, 1942).
Lobos, Héctor Ramón, "Los Fraguiero. Una familia de
comerciantes cordobeses del fines del siglo xviii y
principios del xix. Primera parte: don Antonio Benito
Fraguiero (1780-1812)," in Cuarto congreso nacional v
regional de historia argentina (1977). 3 volumes
(Buenos Aires, 1979), volume 1, 429-448.
Lockhart, James, "Social Organization and Social Change in
Colonial Spanish America," in Leslie Bethell, editor,
The Cambridge History of Latin America. 8 volumes
(Cambridge, 1984-), volume 2, 265-320.
Lugar, Catherine, "Merchants," in Louisa Schell Hoberman and
Susan Migden Socolow, editors, Cities and Society in
Colonial Latin America (Albuquerque, 1986), 47-76.
Lynch, John, Spanish Colonial Administration. 1782-1810: The
Intendent System in the Vicerovaltv of the Río de la
Plata (New York, 1969) .
Mariluz Urquijo, José M., "Noticias sobre las industrias del
virreinato del Río de la Plata en la época del Marqués
de Avilés (1799-1801)," in Revista de Historia
Americana v Argentina 1:1-2 (1956-1957), 85-118.
Márquez Miranda, Fernando, "The Diaguita in Argentina," in
Julian H. Steward, editor, Handbook of South American
Indians. 7 volumes (New York, 1963), volume 2, 637-654.
Márquez Miranda, Fernando, "The Chaco-Santiago Culture," in
Julian H. Steward, editor, Handbook of South American
Indians. 7 volumes (New York, 1963), volume 2, 655-672.

272
Mazzara, Richard A. "Introduction," in "Concolorcorvo"
(Alonso Carrió de la Vandera), El Lazarillo: A Guide
for Inexperienced Travellers between Buenos Aires and
Lima. translated by Walter D. Kline (Bloomington,
1965), 15-23.
McAlister, Lyle N., Spain and Portugal in the New World
(Minneapolis, 1984).
Moncaut, Carlos A., Estancias bonaerenses: Con la menuda
historia de algunos establecimientos, entre todos, de
los partidos de Chascomus, Randíos, Magdalena, General
la Valle y Luián. Historia v tradición (City Bell,
1977) .
Montoya, Alfredo J., Historia de los saladeros argentinos
(Buenos Aires, 1956) .
Montoya, Alfredo J., La ganadería y la industria de salazón
de carnes en el período 1810-1862 (Buenos Aires, 1971).
Muller, Klaus, "Comercio interno y economía regional en
Hispanoamérica colonial. Aproximación cuantitativa a
la historia de San Miguel de Tucumán," in Jahrbuch fur
Geschichte von Staat, Wirstschaft und Gessellschaft
Lateinamerikas 24 (1987), 265-334.
Moussy, V. Martin de, Descripción geográfica v estadística
de la confederación argentina (Buenos Aires, 1963).
Núñez, Urbano J., Historia de San Luis (Buenos Aires, 1979).
Páez de la Torre, Carlos, Historia de Tucumán (Buenos Aires,
1987) .
Palomeque, Silvia, "La circulación mercantil en las
provincias del interior, 1800-1810," in Anuario del
Instituto de Estudios Histórico-Sociales 4 (1989),
131-210.
Ramírez, Susan E., "Large Landowners," in Louisa Schell
Hoberman and Susan Migden Socolow, editors, Cities and
Society in Colonial Latin America (Albuquerque, 1986),
19-46.

273
Ravignani, Emilio, "La población indígena de los regiones
del Río de la Plata en la segunda mitad del siglo
XVII," in Actas v trabajos científicos del XXV congreso
internacional de americanistas (Buenos Aires, 1934) .
Revista de Buenos Aires, 27 volumes (Buenos Aires, 1865-
1871).
Ringrose, David H., "Carting in the Hispanic World: An
Example of Divergent Development," in Hispanic American
Historical Review 50:1 (February, 1970), 30-51.
Ringrose, David H., Transportation and Economic Stagnation
in Spain, 1750-1850 (Durham, 1970) .
Rock, David, Argentina, 1516-1987 (Berkeley, 1985).
Rosa, José María, Análisis histórico de la dependencia
argentina (Buenos Aires, 1974).
Rosal, Miguel Angel, "Transportes terrestres y circulación
de mercancías en el espacio rioplatense, 1781-1811," in
Anuario del Instituto de Estudios Histórico-Sociales 3
(1988) .
Rosenblat, Angel, La población indígena de América desde
1492 hasta la actualidad (Buenos Aires, 1945) .
Sánchez-Albornoz, Nicolás, "La extracción de muías de Jujuy
al Perú. Fuentes, volúmen y negociantes," in Estudios
de Historia Social 1 (1965) .
Sánchez-Albornoz, Nicolás, Patricia Ottolenghi de Frankmann,
Manuel Urbina and Dorothy R. Webb, "La saca de muías de
Salta al Perú, 1778-1808," in Anuario del Instituto de
Investigaciones Históricas 8 (1965), 261-323.
Santos Martínez, Pedro, Historia económica de Mendoza
durante el virreinato (Madrid, 1961).
Santos Martínez, Pedro, Las industrias durante el virreinato
(1776-1810) (Buenos Aires, 1969) .
Santos Martínez, Pedro, Ramona del Valle Herrera, Ana
Edelmira Castro and Aníbal Mario Romano, Historia de
Mendoza (Buenos Aires, 1979) .

274
Sarmiento, Domingo F., Life in the Argentine Republic in the
Days of the Tyrants, or. Civilization and Barbarism
(New York, 1868).
Scalavini, Jorge M., Historia de Mendoza (Mendoza, 1965).
Segreti, Carlos A., Córdoba, ciudad y provincia. Según
relatos de viajeros y otros testimonios (Córdoba,
1973) .
Sierra, Vicente, Historia de la Argentina. 7 volumes (Buenos
Aires, 1956).
Socolow, Susan Migden, "Economic Activities of the Porteño
Merchants: The Viceregal Period," in Hispanic American
Historical Review 55:1 (February, 1975), 1-24.
Socolow, Susan Migden, Kinship and Commerce: The Merchants
of Buenos Aires (Cambridge, 1975).
Steward, Julian, editor, Handbook of South American Indians,
7 volumes (New York, 1963).
Stein, Stanley J. and Barbara H., The Colonial Heritage of
Latin America (New York, 1970).
Stubbs, P. C., W. J. Tyson and M. Q. Dalvi, Transportation
Economies (London, 198 0) .
Sunkel, Osvaldo, and Pedro Paz, El subdesarrollo
latinoamericano v la teoría del desarrollo (Mexico
City, 1970).
Talley, Wayne Kenneth, Introduction to Transportation, 2
volumes (Cincinnati, 1983).
Tanzi, Héctor, "El Río de la Plata en la época de los
virreyes Loreto y Arredondo," in Revista de Historia de
América 83 (January-June, 1977), 153-192.
Telégrafo Mercantil. Reimpresión facsimilar, 2 volumes
(Buenos Aires, 1914).
Tjarks, Germán 0. E., "Panorama del comercio interno del
virreinato del Río de la Plata en sus postrimerías," in
Humandidades 36 (1960), 15-72.

275
Tjarks, Germán O. E., and Alicia Vidaurreta de Tjarks, El
comercio inglés v el contrabando. Nuevos aspectos en
el estudio de la política económica en el Río de la
Plata. 1807-1810 (Buenos Aires, 1962) .
Toledo, Estela B., "El comercio de muías en Salta: 1657-
1698," in Anuario del Instituto de Investigaciones
Históricas 6 (1962-1963), 165-190.
Torre Revelo, José, El Marqués de Sobremonte. Gobernador
Intendente de Córdoba v Virrey del Río de la Plata.
Ensayo histórico (Buenos Aires, 1946) .
Troxel, Emery, The Economics of Transport, 2 volumes (New
York, 1975).
Vance, James E., Jr., Capturing the Horizon. The Historical
Geography of Transportation since the Transportation
Revolution of the Sixteenth Century (New York, 1986) .
Varese, Carmen P. de, and Héctor D. Arias, Historia de
San Juan (Mendoza, 1966) .
Villafuerte, Carlos, and Rogelio Machado, Catamarca, camino
y tiempo (Buenos Aires, n.d.).
Villalobos R., Sergio, El comercio v la crisis colonial. Un
mito de la independencia (Santiago, 1968) .
Watkins, Melville H., "A Staple Theory of Economic Growth,"
in Canadian Journal of Economic and Political Science
29:2 (May, 1963), 144-158.
Wedevoy, Enrique, La evolución económica rioplatense a fines
del siglo XVIII v principios del siglo XIX a la luz de
la historia del seguro (La Plata, 1967).
West, Robert, The Mining Community of Northern New Spain:
The Parral Mining District (Berkeley, 1949) .
Zorraquín Becú, Ricardo, "La regulación de las encomiendas
en territorio argentino," in Revista de la Facultad de
Derechos v Ciencias Sociales, third epoch, 1:1 (Buenos
Aires, 1946).

BIOGRAPHICAL SKETCH
Jeremy Stahl was born in 1960 in New Jersey and
received most of his early education in Tulsa, Oklahoma,
where he graduated from high school in 1978. In 1982 he
received his B.A. degree with a major in anthropology from
the University of Oklahoma. In 1986 he received his M.A.
from the University of Florida, having concentrated on Latin
American history. Since 1987 he has pursued his study of
Latin American history, has travelled some in South America
and in Europe, and has played fairly consistently as an
infielder and lead-off hitter for the Ducks.
276

I certify that I have read this study and that in my
opinion it conforms to acceptable standards of scholarly
presentation and is fully adequate, in scope and quality, as
a dissertation for the degree/bf Doctor of^Philosophy.
n
Murdo J. MacLeod,Chqir
Graduate research Professor of
History
I certify that I have read this study and that in my
opinion it conforms to acceptable standards of scholarly
presentation and is fully adequate, in scope and quality, as
a dissertation for the degree of Doctor of^Philosophy.
^avid Bugmnel 1
Professor Emeritus of History
I certify that I have read this study and that in my
opinion it conforms to acceptable standards of scholarly
presentation and is fully adequate, in scope and quality, as
a dissertation for the degree of Debtor of Philosophy.
Jeffrey D. Neede.
Associate Professor of History
I certify that I have read this study and that in my
opinion it conforms to acceptable standards of scholarly
presentation and is fully adequate, in scope and quality,
a dissertation for the
dega^e
of yhilosophy.
Robert A. Hate
Associate Professor of History
as
I certify that I have read this study and that in my
opinion it conforms to acceptable standards of scholarly
presentation and is fully adequate, in scope and quality, as
a dissertation for the degree of Doctor of Philosophy.
Allan F. Burns
Professor of Anthropology

I certify that I have read this study and that in my
opinio it conforms to acceptable standards of scholarly
presentation and is fully adequate, in scope and quality, as
a dissertation for the degree of Doctor of Philosophy.
Lyle <3». McAlister
Distinguised Service Professor
Emeritus
This dissertation was submitted to the Graduate Faculty
of the Department of History in the College of Liberal Arts
and Sciences and to the Graduate School and was accepted as
partial fulfillment of the requirments for the degree of
Doctor of Philosophy.
April, 1994
Dean, Graduate School

LD
3 1262 07332 008 6

LD
3 1262 07332 008 6



xml version 1.0 encoding UTF-8
REPORT xmlns http:www.fcla.edudlsmddaitss xmlns:xsi http:www.w3.org2001XMLSchema-instance xsi:schemaLocation http:www.fcla.edudlsmddaitssdaitssReport.xsd
INGEST IEID E8RIMV8FZ_TCE4HL INGEST_TIME 2011-11-02T16:14:45Z PACKAGE AA00004728_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
FILES