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 aid the pullulateing countries. Ex: UNDP .There were also some regional organizations, unblemished wise institutions. The whizz 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 fountainhead of ECLA. He and his team of economist suggested a resultant for the task of development . And that solution was called ISI- importation replace industrialization. Development countries at that meter were mainly dependent on agriculture or m ine for their economy. Most people agreed that was not sound enough. To develop you moldiness industrialize the economy. exclusively 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 try to produce substitutes at home. So it is called import substituting industrialization.. ISI was on the job(p) well f or a few years. industries were growing and ! economy was doing good. But after some time the whole mold disjointed 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 gesture to this understand this failure two opposite executes emerged One execute was given by modern classical/traditional(right wing neo classical) economist. They said this idea of producing...If you want to get a large essay, order it on our website: OrderCustomPaper.com

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