GS302 Lecture Notes - Lecture 11: Licence Raj, Import Substitution Industrialization, Linear Programming
Document Summary
The practices that transform social relations to produce goods and services to meet demand. Stages of economic growth (1960): traditional society, preconditions for take-off, take-off, drive to maturity, age of high mass consumption. Material balances to reach equilibrium between available inputs and targeted outputs; (to some extent) the use of linear optimization to optimize the plans. Trade and economic policy which advocates replacing foreign imports with domestic production. Based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized goods. Global south countries had the intention of producing development and self-sufficiency through the creation of an internal market. The developmental state needs to guide and control the growth of industry in order to compete with the incredibly potent economies of the already-developed world. Only really succeeds with a strong authoritarian leader or single-party state that can drag the nation forward regardless of popular will.
