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Unformatted text preview: onomic Development Theories
• ImportSubstitution Industrialization (ISI) – Limit imports – 1950s1980s Latin America, India, China • ExportLed Industrialization – Promotes industrialization through exports– Asian Economies led by Japan • Washington Consensus – Free Market Promoted by IMF, World Bank and the US “Washington Consensus”
• Free trade of goods and capital
• Flexible exchange rates
• Fiscal discipline
• Intellectual Property right protection
• “Shock therapy” for former nonmarket economies – especially Eastern Europe World Bank’s World Bank’s ‘Structural Adjustment’
– Intended to lower LDCs governments’ debts by cutting public spending
– Often failed to take into account domestic economic, social, and political concerns or environmental impact
– Comprehensive Development Framework in...
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- Fall '08