|The Baring Crisis was an early example of globalisation of the economy. Barings Bank of London had been a big investor in South America and Argentina in particular. Unfortunately, many of these investment decisions were poor ones which led to a crisis in confidence in the bank which pushed Argentina deeper into recession. In fact, the Argentinian economy contracted by 11% and the World economy wobbled. Confidence was only restored with the injection of funds into Barings by rival banks such as Rothschilds and the Bank of England helped Barings avoid insolvency. Up until this point, Argentina had been regarded as a highly desirable investment and emigrant destination, but it began to increasingly lose out to Canada, Australia and South Africa after this crisis.
Timelines | 19th Century Timeline
Armed Forces | Art and Culture | Articles | Biographies | Colonies | Discussion | Glossary | Home | Library | Links | Map Room | Sources and Media | Science and Technology | Search | Student Zone | Timelines | TV & Film | Wargames