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 athletic supporter the ariseing countries. Ex: UNDP .There were also some regional organizations, unmingled wise institutions. The integrity 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 foreman of ECLA. He and his team of economist suggested a resultant for the job of development . And that solution was called ISI- trade replace industrialization. Development countries at that judgment of conviction were mainly dependent on agriculture or mining for their economy. Most people agreed that was not sound enough. To develop you must industrialize the economy. still 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 languish 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 yield to produce substitutes at home. So it is called import substituting industrialization.. ISI was workings well for a few years. industries were growing and ec! onomy 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 do 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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