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POL305 Lecture4

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Political Science
Roberta Rice

POL305 1-Oct-12 Lecture4 1) ISI 2) Corporatism 3) Populism 4) Research Proposals 1930s-1960s ISI = import Substitution Industrialization (esp Mexico and Argentina) 1930s, Core countries went into the Great Depression, creating a space in the global South to create their destiny. They could no longer buy their imports, so had to create them themselves - Import Substitution Industrialization: a strategy of industrial development based on manufacturing goods domestically that were previously imported. Local Manufacturers were protected by numerous mechanisms o Eg Tariffs, or taxes, on imports o Eg Tax incentives and direct subsidies to local industries o Eg Quotas, or limits on imports - Merits of ISI… o A form of economic independence/ self-sufficiency o Politically popular o Improvements in social and economic indicators  1950-1960, per capita income in LA doubled, translating to higher standards of living  1950-1960 Life expectancy increased: 52-64  1950-1960, 6% GDP growth  Established a manufacturing base - Limits to ISI… [Initially, profitable, BUT over time, developed some drawbacks] o Sectorial disparities  Non-competitive companies o Inefficient production  Lack of innovation o Disappointing industrial employment results o Small domestic markets with limited growth o Heavily dependent on loans over time.  Those counties that tried ISI for the longest time, experienced negative growth - Critobal Kag (2002) “Why East Asia overtook Latin America” o Timing!  After ISI, many Asian Tigers countries took on EOI (Export Oriented Industrialization), an industrialization strategy that is heavily tied to exporting manufacturing goods. 1960s  Had Latin America not had those trade restrictions and went into EOI, the story would be very different - Question = Why did LA stick with ISI for so long? (Compared with East Asian Tigers) Social + Political Changes - Emergence of a middle class - Rise of an urban working class o Unionization and mobilization  Increasing demand for political participation and social inclusion  “Social Question”= Elites of the society gather to debate over the appropriate role of the urban working classes within the economic and political system in early twentieth century Latin America. o Answer = Corporatism Corporatism - In general, this is a system in which interest groups become an institutionalized part of the political structure - State Corporatism = A system of interest group representation in which the state uses interest group structures to control and dominate citizen groups and the interests they are allowed to voice o State is the dominant actor o Interest groups are consulted only to gain their compliance  Appears to legitimize the state o A form of social control o Peak federations…  Business Group  Labor Group  Peasant Group  Eg Indigenous groups were clumped into this category o Eg National Confederation of Peasants (CNC) monopolized power between 1928-2000  Peasants had very little voice or power over this group whatsoever; elites used this puppet structure to control indigenous populations, making them feel like they are participating. Any rebels will be viewed as outside this structure - Clientelism (patron-client networks)= The dispensing of public resources by political power holders or seekers who off
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