The subject ot this Master's Thesis is an analysis of the economic development of Argentina and Chile, neighboring countries that have neighboring countries that have emerged from completely different economic positions in the twentieth century. The main objective of the Master's Thesis is to evaluate the key reforms that have directed the economic indicators of both countries in a positive direction, as well as to analyze the economic policies that have contributed to the stagnation. The main sources of data that contributed to the achievement of the objective are books and articles that analyze economic history, with particular emphasis on key reforms that have resulted in significant economic shifts. Also, the World Bank and OECD statistics were used, based on which econometric analysis of the correlation of variables was performed. Through this thesis I prove the hypothesis that globalization, respectively the integration of the national economy into the international market, does not presuppose a sustainable model of economic growth. Based on the analysis of both countries, I point to the importance of the initial stabilization and privatization, while the implementation of liberalization presupposes the previous strengthening of the national economy, respectively the local market. I point to the importance of import substitution policies, export diversification and stable exchange rate policies that, in combination with other neoliberal reforms, have led to the Chilean miracle, whose absence in the Argentine economy re-actualizes the notion of the Argentine paradox.