AN ASSESSMENT OF LATIN AMEBICA'S DEVELOPMENT MODEL OF IMPORT SUBSTITUTION INDUSTRIALIZATION
Abstract Latin America's development model of import substitution industrialization(ISI)came into being as a result of the Great Depression of the l930s.It was seen as a best solution for the region to reduce its dependence on the development model of exporting primary commodities that had lasted almost a century.The World War II gave impetus to bringing the ISI model into its full play. With rapid growth of the manufacturing sector created chiefly by the ISI model,Latin America witnessed unprecedented economic growth in the post-war period.Moreover,despite the poor record of income distribution,the region also made progress in the area of social development.Therefore,it would not be correct to say t hat the ISI model was a total failure.However, shortcomings and deficiency of the ISI model were not rare. The following three points are especially important:(1) There was a lack of productivity and efficiency,especially in the so-called easy stage of the model.This negative result was created mainly by such factors as excessive protection of the domestic market and lack of economies of scale. (2) Improvelnent of balance of payments situations,one of the major targets of the ISI model,was actually not met.(3)The relative advantage of utilizing the abundance of cheap labor was neglected, which partly explained why unemployment rate stood high and poor people failed to benefit from rapid economic growth.It would be inappropriate to imagine that,given the historical conditions faced by Latin America after the Great Depression,the region would pursue development models other than the ISI model.As many researchers have noted,it was almost inevitable for the region to make the choice.
【CateGory Index】： F151