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Lecture

SOSC1430 lecture January 28, 2014.docx

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Department
Social Science
Course
SOSC 1430
Professor
Eduardo Canel
Semester
Winter

Description
SOSC1430: Lecture Notes January 21, 2014-04-01 Introduction Developmental State Inward- Oriented Industrialization (LA) Outward- Oriented Industrialization (ASIA) Conclusion Developmental State Origins: - rise of nationalism - Economic crisis in DCs: Great depression (1929-1932), world production + world trade down Impact on TW countries- collapse of exports Outcome: -search for new development strategy - Argument: need strong state that can make up domestic bourgeoisie to direct the economy - To compensate for relative weakness of local bourgeoisie 19 Century Europe: - powerful bourgeoisie with resources to invest th 20 Century TW: - weak bourgeoisie with fewer resources DCs emerge to let state led process: entrepreneurial activist state - A state actively involved in directing the economy to foster development through industrialization Goals: - reduce negative trade balance through industrialization Two Models: - Inward oriented industrialization - Outward oriented industrialization Inward OI (LA): - policy of import substitution industrialization (ISI) - replacing reliance on foreign imports - produce those things themselves - 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 - promotion of internal consumer market - create internal demand through: public spending, wage policy, social services, provide subsidies to the poor - Inward OI seeks to develop internal markets - set up state-owned industries - nati
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