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 direct institutions to aid the heightening countries. Ex: UNDP .There were also some regional organizations, unmixed 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 guide of ECLA. He and his team of economist suggested a resultant for the puzzle of development . And that solution was called ISI- effect replace industrialization. Development countries at that conviction were mainly dependent on agriculture or minelaying for their e conomy. Most people agreed that was not sound enough. To develop you mustiness industrialize the economy. solely 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 farseeing 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 pronounce to produce substitutes at home. So it is called import substituting industrialization.. ISI was running(a) well for a few year s. industries were growing and economy was d! oing good. But after some time the whole mold illogical 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 guide to this understand this failure two opposite executes emerged One reaction was given by modern classical/traditional(right wing neo classical) economist. They said this idea of producing...If you want to get a ample essay, order it on our website: OrderCustomPaper.com

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