| Summary: | The integration of Latin American countries into the global economy has historically proceeded through the export of primary commodities, a dependency that has long exposed them to developments in core industrial nations, changing terms of trade, and “resource curse” externalities. However, in the early 2000s, a new commodity boom coincided with the arrival of left-of-centre administrations across the region forwarding post-neoliberal visions of development where extraordinary export rents were destined to expand public spending and progressive welfare policies. While the relationship between Latin America’s left turn and this latest boom has been well-covered in the literature, much less has been said about developments in the 2010s, when the end of that boom sent many of these projects tumbling, fuelling political discontent and facilitating the arrival of conservative administrations in places like Argentina, Brazil, and Ecuador, among others. Thus, this article explores the relationship between global integration and political change by looking at the case of Argentina, and developments during the second presidency of Cristina Fernández de Kirchner (2011–2015), when falling agricultural commodity prices aggravated social tensions and political conflicts as the government sought to navigate a “governance puzzle” through which it attempted to square high public expectations for revenue redistribution with falling fiscal collection. In particular, we analyse the co-evolution of global economic conditions, macroeconomic disequilibria, and domestic political pressures, considering how this led the government to lock itself into a distributive conflict pattern that dissatisfied both opposition sectors and important segments of its support base. As such, this case study illuminates the structural challenges confronted by governments in developing economies pursuing ambitious developmental and socially-progressive agendas, while elaborating the political implications that current account and fiscal disequilibria may produce in these contexts.
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