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 guide institutions to second the stupefying countries. Ex: UNDP .There were also some regional organizations, celibate wise institutions. The matchless 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 orchestrate of ECLA. He and his team of economist suggested a resultant for the trouble of development . And that solution was called ISI- implication replace industrialization. Development countries at that clip were mainly dependent on agriculture or mine for thei r economy. Most people agreed that was not sound enough. To develop you mustiness industrialize the economy. moreover 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 spacious 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 elbow grease to produce substitutes at home. So it is called import substituting industrialization.. ISI was operative well for a f ew years. industries were growing and econom! y was doing good. But after some time the whole mold missed 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 come across to this understand this failure two opposite executes emerged One settle was given by modern classical/traditional(right wing neo classical) economist. They said this idea of producing...If you want to get a broad essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper