Question

import substitution increases employment and self-dependent in the economy

Answer 1

Import substitution industrialization (ISI) is a trade and economic policy which advocates replacing foreign imports with domestic production.[1] ISI is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products. The term primarily refers to 20th-century development economics policies, although it has been advocated since the 18th century by economists such as Friedrich List[2] and Alexander Hamilton.[3]

ISI policies were enacted by countries in the Global South with the intention of producing development and self-sufficiency through the creation of an internal market. ISI works by having the state lead economic development through nationalization, subsidization of vital industries (agriculture, power generation, etc.), increased taxation, and highly protectionist trade policies.[4] Import substitution industrialization was gradually abandoned by developing countries in the 1980s and 1990s due to the insistence of the IMF and World Bank on their structural adjustment programs of global market-driven liberalization aimed at the Global South.[clarification needed][5][6]

In the context of Latin American development, the term "Latin American structuralism" refers to the era of import substitution industrialization in