SOSC 1430 Lecture Notes - Import Substitution Industrialization, Bourgeoisie, Great Depression
1 Apr 2014
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Document Summary
Economic crisis in dcs: great depression (1929-1932), world production + world trade down. Argument: need strong state that can make up domestic bourgeoisie to direct the economy. To compensate for relative weakness of local bourgeoisie. Dcs emerge to let state led process: entrepreneurial activist state. A state actively involved in directing the economy to foster development through industrialization. Policies put in place to protect: industrial development through protectionism. Protect national industries through: tax incentives, cheap credit, set up tariffs against foreign imports, create market for goods locally. Create internal demand through: public spending, wage policy, social services, provide subsidies to the poor. Inward oi seeks to develop internal markets. If run effectively, reinvest profit into services. Model: not foreign capital friendly mixed results. Develop industries whos consumers would be outside the country. Tax incentives for: export companies, foreign investors, selective incentives for manufacturing imports. Repress/ ban trade unions: weaken collective power of organized powers.
