Developing Consumers: A History of Wants and Needs in Postwar South America examines how state-led development projects designed to expand welfare through mass consumption reshaped understandings of well-being and material necessity. After World War II, Argentina, Brazil, and Chile—like many other Latin American nations—implemented developmentalist strategies seeking to ensure economic sovereignty, raise living standards, and broaden domestic markets. While these policies led to the greater availability of new durable goods, which in turn became symbols of modern comfort, access to them remained uneven among social groups, and the extent of class, gender, and racial inequality differed sharply across the three countries. By the late 1960s, it had become clear that the developmental state could provide neither genuine social mobility nor universal access to this new standard of living, leaving consumers’ expectations unmet. Confronted with these limitations, policy makers, marketing professionals, and intellectuals engaged in a debate over the rationalization of consumption: which needs should be universally satisfied, and which represented fabricated desires of privileged sectors?
Economist Albert Hirschman, one of the most influential thinkers in development economics, explored this dynamic in his 1973 article “The Changing Tolerance for Income Inequality in the Course of Economic Development.” Writing at a time when disillusionment with developmentalism was spreading, Hirschman proposed the now classic metaphor of the “tunnel effect.” He imagined a traffic jam inside a tunnel, a situation that naturally provoked irritation among the drivers. Suddenly, one lane began to move forward, which at first inspired hope among those waiting in the other lane—surely, their turn would come next. Yet after a few minutes of watching the “fortunate” line advance, the drivers left behind grew even more exasperated than before, when no one had been moving at all. Having glimpsed progress, their expectations rose, only to be replaced by frustration when their own cars remained still. They felt that some external force or unfairness was holding them back. For Hirschman, this allegory encapsulated what happened when economic growth under developmental policies produced widening inequalities. In the early stages, people tolerated these gaps, reading them as signs that prosperity might eventually reach everyone. But as time went on and the promise failed to materialize, hope gave way to resentment. The growing frustration of those excluded from the benefits of growth thus became a central political problem.Footnote 1
In developing his argument, Hirschman treated income as a stand-in for personal satisfaction. Developing Consumers, by contrast, shifts attention from income to consumption itself. It asks how perceptions of modern comfort and durable consumer goods evolved in Argentina, Brazil, and Chile during the 1950s and 1960s. Over these two decades, an expanding array of new products—refrigerators, washing machines, cars, radios, motorcycles, televisions, and vacuum cleaners—entered the domestic landscape, transforming the daily routines of those who could afford them. It was, in essence, a consumer revolution built around durable goods. These items became omnipresent: they filled advertisements and stood at the center of state developmental efforts aimed at fostering their local manufacture. Gradually, both public and private spaces were increasingly occupied by new appliances and vehicles, which redefined everyday life not only for their owners but also for those who longed to possess them.Footnote 2
From the wide range of durable goods that proliferated during these decades, Developing Consumers concentrates on three of particular social and economic relevance: refrigerators, cars, and televisions. Refrigerators redefined the organization of domestic life and the rhythms of household labor. They were also the first appliances to require a constant supply of electricity, linking consumption directly to energy infrastructure. The spread of refrigerators, moreover, signaled the postwar maturity of the electric appliance market. As they evolved from a luxury item into a staple of the modern kitchen, refrigerators illustrated how ideas about durable goods could shift dramatically within two decades. Automobiles, in turn, not only reshaped mobility and helped integrate national economies but also became powerful markers of social status. Car ownership brought the notion of the middle class to the forefront: after the 1960s, owning an automobile came to represent the passage from working-class origins to upward mobility. The car industry itself stood as a flagship of import-substitution industrialization in Latin America, allowing us to view the region’s industrial history through the lesser-studied lens of consumption. Finally, televisions transformed access to information and entertainment, gradually displacing radio as the emblem of mass media over the 1960s. By bringing moving images into the home, the new medium captivated marketers and advertisers alike. Yet for nationalist critics and cultural purists, commercial television epitomized a new instrument of ideological domination, igniting public debates about consumerism and the fabrication of false needs.
This consumer revolution also transformed the ways in which goods were advertised, distributed, and purchased. The industrial expansion of the postwar decades poured unprecedented amounts of money into the advertising sector, while the rapid growth of television broadcasting amplified the industry’s profitability. Commercial airtime on TV became the most expensive form of publicity, and agencies’ revenues soared accordingly. At the same time, new domestic firms emerged in Argentina, Brazil, and Chile, at times rivaling the earnings of global giants such as J. Walter Thompson, McCann Erickson, and Lintas. The influx of capital coincided with the adoption of modern marketing research tools designed to probe consumer preferences. From the popularization of survey studies to the spread of focus groups and in-depth interviews, advertising professionals and pollsters invested heavily in understanding their audiences. Although they often drew on official statistics, they also built their own databases on income levels, purchasing habits, television ratings, and print circulation. This growing body of data both captured and molded contemporary attitudes toward consumption. Admen used it to design persuasive campaigns and to promote new commodities. Newspapers, magazines, billboards, radio, and television—all became saturated with commercial messages. The consumer revolution, in short, deepened the market’s presence in everyday life.
As the study and targeting of consumers evolved, the systems of distribution and retailing underwent parallel transformations. Manufacturers and merchants invested heavily in strengthening and expanding their sales networks. In some cases—such as Frigidaire or Volkswagen—foreign companies transplanted dealership models they had refined abroad. The growing organization of resellers and the hosting of dealers’ conventions sought to standardize sales methods and customer service practices. As these firms extended their reach across national markets, they also faced the challenge of maintaining a consistent brand identity, particularly beyond the major cities. Retailers, especially in Brazil, mirrored these efforts. They built more sophisticated administrative structures, trained specialized sales staff, and redesigned their stores to make them more appealing to potential buyers.
Finally, the widening availability of consumer credit provided the financial backbone of this revolution. The incorporation of new social groups into the expanding markets for household appliances and automobiles depended in part on the development of novel mechanisms to finance purchases. Credit came from a wide range of sources—banks, nonbank financial companies, neighborhood credit societies, manufacturers, credit card firms, and retail stores. Although the scale and reach of these systems varied among the three countries, one common feature stood out: by the mid-1960s, roughly half of all appliance sales were made on installment plans.
By the late 1960s, both the kinds of durable goods being purchased and the patterns of consumption themselves had changed profoundly. These transformations elevated the political and economic significance of consumer demand: not only were larger segments of the population now affected by fluctuations in the consumer goods market, but private consumption also became a key driver of economic growth. As a result, consumer politics moved to the center of developmental debates. Attempts to satisfy popular expectations led policy makers to adopt measures that eventually produced severe macroeconomic imbalances. Meanwhile, new economic doctrines, championing free-market liberalization and austerity as remedies to those imbalances, began to gain influence. In this way, the very evolution of consumption practices ended up undermining the developmentalist project it had once sustained.
Scope and Historiographical Intervention
Developing Consumers spans three countries over nearly three decades, with a particular emphasis on the 1950s and 1960s—the core years of Latin America’s industrial transformation. The Great Depression marked a turning point in the region’s political economy, bringing to a close the export-led boom that had shaped growth since the 1870s.Footnote 3 It also accelerated trends that had already emerged during World War I: the deterioration of the terms of trade, a surge of import substitution driven by the collapse of U.S. and European imports, and a sharp decline in the inflow of foreign capital. The continuation of this substitutive industrialization after the Depression fostered large-scale rural-to-urban migration, stimulating the rise of an industrial working class and, in some contexts, the consolidation of an emerging middle class.Footnote 4
After World War II, industrialization ceased to be an experiment and became an explicit state-led development strategy. Economic protectionism took shape through trade restrictions, targeted fiscal incentives, and redistributive policies.Footnote 5 By stimulating domestic demand, this model of industrialization depended on the incorporation of new consumers into national markets. Yet by the late 1960s, the very dynamics that had sustained growth generated new tensions between income redistribution, popular expectations of maintaining or improving living standards, and the necessity of balancing external accounts through higher exports or import reductions. In some cases—most notably Argentina and Chile—these contradictions culminated in acute economic crises that paved the way for military regimes combining authoritarian rule, political repression, and the dismantling of key institutions that had supported the developmental state. In others, such as Brazil, military governments postponed economic liberalization by resorting to massive foreign borrowing, taking advantage of the global financial expansion that followed the oil shocks.Footnote 6
The narrative arc of this dissertation concludes between the late 1970s and the onset of the 1982 debt crisis, the moment when the era of developmentalism and industrial expansion came to an end. Transformations in the global economy, together with the economic policies imposed by domestic dictatorships, ushered in a new historical era. On the international front, this meant a wider liberalization of financial markets and global trade; on the domestic level, it entailed austerity measures, the dismantling of industrial protectionist frameworks, and a sharp rise in external indebtedness. These shifts profoundly reshaped income distribution and the forms of international integration adopted by these countries—changes that, in turn, redefined both patterns of consumption and the expectations attached to them.Footnote 7
While Developing Consumers adopts a regional perspective, its analytical units are national economies. This corresponds to what Charles Tilly described as an “encompassing comparison”—three national economies situated within, and shaped by, the broader dynamics of the world economy. Their similarities and differences, therefore, are partly the outcome of their distinct positions within that global structure.Footnote 8 The dissertation also engages with the methodological dilemmas raised by global history. Although the national economy serves here as the main unit of analysis, this choice is deliberate: both the international context—characterized by economic disintegration and protectionism—and the emergence of new developmental ideas in the so-called periphery made the nation-state a central site of economic planning and political imagination. At the same time, the research underscores the dense connections between business elites and state officials across Argentina, Brazil, and Chile, as well as the region’s integration into global markets for goods and capital. Through this combined comparative and connected approach, Developing Consumers offers a multiscalar narrative of the postwar economic boom that extends beyond the traditional Euro-American frame.Footnote 9
Indeed, Developing Consumers examines the crossroads between the histories of development and consumption. It contributes to the recent wave of scholarship within the “new histories of capitalism,” part of a broader historiographical renewal of economic history that gained momentum after the 2008 financial crisis. Expanding the scope of traditional economic history, this literature investigates the social and cultural dimensions of production, circulation, and consumption, while also foregrounding the histories of regional, social, gender, and racial inequalities that underpin economic processes.Footnote 10
Over the past decade, the history of development has undergone significant expansion.Footnote 11 Beyond intellectual histories of developmental thought, recent works have examined subjects as varied as foreign aid programs, the social impact of dam construction in Soviet Tajikistan, and the role of citizens in circulating development discourses in India.Footnote 12 In Latin America, the history of economic development has a deep and influential tradition, rooted in the structuralist framework of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) and in dependency theory.Footnote 13 Yet in recent years, historians have revisited the developmental decades of the mid-twentieth century with new questions and approaches. Renewed attention to the economic and policy debates that sustained the developmental project has produced a series of studies exploring the intellectual and expert networks, international relationships, and political engagements of development advocates.Footnote 14 Another line of research has reexamined this period by combining an analysis of the institutional foundations of the developmental state with a more conventional economic and social history of industrialization.Footnote 15 By approaching development from the vantage point of consumption, this dissertation brings a fresh perspective to the material and everyday dimensions of development, showing how the expansion of domestic markets both motivated and constrained developmental policy. Moreover, its comparative framework highlights not only the distinct trajectories of the three national economies studied but also the connections and circulations that linked them within a broader regional and global context.
The second major field in which Developing Consumers intervenes is the history of consumption. In 2004, Frank Trentmann published a landmark article that helped redefine the field.Footnote 16 He noted that, during the preceding two decades, theoretical debates had overshadowed empirical research on the social and historical dynamics of consumption. Two notions in particular—“consumerism” and the “modern consumer society”—had dominated scholarly discussions. Trentmann argued that it was time to write histories of consumption rather than histories of consumerism. Nearly twenty years after that call, the field has expanded in multiple directions, examining the intersections of politics, citizenship, and consumptionFootnote 17; the evolution of marketing and advertisingFootnote 18; everyday consumption and retail practices; the global circulation of commoditiesFootnote 19; and the many entanglements between gender and consumption.Footnote 20
Over the past two decades, the history of consumption in Latin America has also grown considerably. The study of commodities and commodity chains in the late nineteenth and early twentieth centuries already formed a well-established field with deep roots in the region. While much of that scholarship traditionally focused on the export boom, recent works have turned their attention to imports and to goods consumed domestically.Footnote 21 For the twentieth century, research on advertising, consumer politics, and retail practices has opened new areas of inquiry that had long remained unexplored. These studies have not only reframed the social history of twentieth-century Latin America but also offered new insights into how the rise of mass consumption reshaped cultural identities during the 1950s and 1960s.Footnote 22
Yet despite this steady expansion of the field, no study has systematically examined the links between developmentalism and consumption. Developing Consumers complements these narratives by incorporating consumers, businesses, and other private actors such as managers, retailers, marketers, and admen. By accessing corporate archives, mostly ignored by Latin American historians (General Electric, Philips, Peugeot-Citroën, Volkswagen, and others), this dissertation makes use of surveys on consumer preferences, sales information, and reports on national markets and investment opportunities. These sources reveal the hybrid nature of developmentalism, which involved both public and private efforts to mold consumer-citizens. In doing so, developmentalism mobilized citizens as economic agents; consumer satisfaction became the barometer of development success. By reconstructing statistical data on the spread of consumer access to durable goods, the growth of the advertising sector, and the inequalities that structured consumption, this dissertation sheds new light on how development was experienced and perceived from the standpoint of consumers themselves.