POL201Y1 Lecture Notes - Import Substitution Industrialization, Import License, Nepotism

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23 Apr 2013
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Implementing import substitution industrialization would help countries with their balance of payment deficits (which are caused when a country imports more than it exports) Lot of investment in capital to build up manufacturing industry (machinery in the factories) Import substitution industrialization causing countries to be more dependent on imports for basic food needs. Capital intensive industry relies more of capital than on labour. Often governments would import capital intensive machinery (machines in factories instead of actual human labour) people don"t get absorbed into the factory system and the agricultural system fails as well. Ideological critiques- come from both the left and right of the spectrum. Puts power in the hands of the bourgeoisie and disadvantages the peasants and even the workers (advantage to people who have the import licenses, the quotas, etc) (left) Import substitution industrialization is inefficiently and interfering with the natural way of the market, the market can fix itself this interference (right)

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