IMPORT SUBSTITUTION INDUSTRIALIZATION IN LATAM. (The crisis of import…
IMPORT SUBSTITUTION INDUSTRIALIZATION IN LATAM.
ISI model in LATAM
greater production of intermediate goods than of consumer goods
This process was carried out in an organized manner controlled by private agents
Chronic shortage of labor
Greater pressure on levels of population consumption
the two world wars
the balance of payments crisis
the creation of the internal market generated by the expansion of the sectors ofexport
the industrialization policies that eventually got underway
Latin America had, since the second half of the 19th century, the highest tariffs in the world
protectionism was rooted in
many countries of the region since the last decades of the nineteenth century
The crisis of import substitution
difficulties this process had in generating employment and conquering external markets
its tendency to generate new forms of dependency, in
particular of foreign investment.
Having forgotten the principles of macroeconomics and the misallocation of resources generated by policies aimed at promoting industrialization.
excessive regulation of the balance of payments and lack of fiscal discipline, as by the distortions in the forms of specialization
Reformist bias of such theories and the lack of recognition that development policies only generated new forms of dependency in developing countries
the left challenged its reformist bias and the maintenance of highly unequal social structures and the creation of new forms of dependency, especially foreign capital.
This double criticism undoubtedly weakened support for the industrialization process
in our region.
Weakness of the ideology and the industrial bourgeoisie was reflected in the limited support for industrialization, which required a broad political and social coalition that did not exist either.
The debt crisis and associated conditionality buried the model in the eighties
import substitution in Colombia
Golden Age of capitalism
the greatest growth of real GDP occurs in the government of Lleras, which is when these policies are applied more systematically (Méndez 1993),.
the result will not be seen in the short term but over the years , provided that such policies are maintained, while the projects begin to operate.
What was development? What roads could it have? What would be the measures of its achievement?
having a job, receive a salary high enough to acquire the goods that civilization offers, to have home public services, education and health, justice and social equity, for the entire population.
total growth of the economy
between 1960-96 the lowest macroeconomic suffering occurred under the government of Lleras Restrepo
These favorable conditions were explored in depth in Colombia under the government of Lleras Restrepo who saw many of the problems and solutions for the Colombian case.
Import substitution transformed the Latin American economy.