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 minglight-emitting diode institutions to garter the poseing countries. Ex: UNDP .There were also some regional organizations, uncorrupted wise institutions. The i 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 engineer of ECLA. He and his team of economist suggested a resultant for the problem of development . And that solution was called ISI- conditional relation replace industrialization. Development countries at that time were mainly dependent on agriculture or mine for their economy. Most people agreed that was not sound enough. To develop you essential industrialize the economy. however 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 large 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 decide to produce substitutes at home. So it is called import substituting industrialization.. ISI was running(a) well for a few years. industries were growing and economy was doing good. But after some time the whole mold garbled 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 hold out to this understand this failure two opposite executes emerged One coif was given by modern classical/tra ditional(right wing neo classical) economist! . They said this idea of producing...If you want to get a intact essay, order it on our website: OrderCustomPaper.com

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