PSC 321 Lecture Notes - Lecture 6: Import Substitution Industrialization, Economic System, Crony Capitalism
18 May 2018
School
Department
Course
Professor
Classifying Political Systems
● Number of parties allowed to operate
● Republic v. monarchy
● Electoral competitiveness
Rich Resources Poor
Bahrain
Kuwait
Poor Oman
Qatar
UAE
Saudi Arabia
Labor
Algeria
Iraq
Syria
Abundant Yemen
Iran
Jordan
Morocco
Egypt
Lebanon
Palestine
Resource-Rich Labor Poor (RRLP)
● Bahrain, Kuwait, Libya, Oman, Qatar, Saudi Arabia, and the UAE
Resource-Rich Labor Abundant (RRLA)
● Algeria, Iran, Iraq, Syria, and Yemen
Organization for Economic Cooperation and Development (OECD) countries
● Israel and Turkey
Development Strategies
● Variation depending on:
○ Level of state intervention
○ Size of the private sector
RPLA
● Focus on single-party republics
○ Egypt, Tunisia, and to a lesser extent Jordan and Morocco
● Two main phases of development strategies
○ State-led development
○ Privatization
● State-led development
○ Import substitution industrialization
■ Economic development strategy that focuses on nurturing and growing a
domestic industrialization, and protect it from foreign competition
● Ex: putting high tariffs on imports
■ Reduce dependence on foreign imports
■ Foster local production
