Dependency Theory

Background: After the 2nd world war when the African Asian (colonized countries) became independent they started thinking about how to improve their economy.. At the international level the United Nations club up ming conduct institutions to encourage the civiliseing countries. Ex: UNDP .There were also some regional organizations, sheer wise institutions. The hotshot for Latin America was called ECLA, this was set up by the UN. Ecla was set up to help the Latin American countries for policies in their economy. For Asia was ESCAF which was ground in Bangkok. The Latin American one was the most intellectually dynamic of the regional based institutions. It was led by a visionary economist Raul Pesnon. He was the address of ECLA. He and his team of economist suggested a resultant for the hassle of development . And that solution was called ISI- entailment replace industrialization. Development countries at that duration were mainly dependent on agriculture or dig for their economy. Most people agreed that was not sound enough. To develop you moldiness industrialize the economy. plainly how do u go about industrializing your economy. So ECLA suggested a solution. The developing countries utilize to import most of the industrialized products that they used from western countries.

As dour as u import, your domestic products will neer be able to compete with these imported products. Therefore u must stop or reduce importing goods. And kinda campaign to produce substitutes at home. So it is called import substituting industrialization.. ISI was operative well for a few years. i ndustries were growing and economy was doing! good. But after some time the whole mold scattered steam. It lost its dynamism. Somehow the strategy had failed to induce bear on development. Then people began to ask why did it fail. And in lead to this understand this failure two opposite executes emerged One dissolver was given by modern classical/traditional(right wing neo classical) economist. They said this idea of producing...If you want to get a undecomposed essay, order it on our website: OrderCustomPaper.com

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