POLB90H3 Study Guide - Final Guide: Poverty Reduction Strategy Paper, Indira Gandhi, Structural Adjustment
Document Summary
A strategy of industrial development based on manufacturing goods domestically that were previously imported. Pros: increase in domestic employment (reduces dependence on non-intensive labour industries, restricts imports (so local companies are used more, economic resilience (like recessions, less long distance transportation of goods (cuts down on fuel emissions and greenhouse gas) Cons: the industries that are created become obsolete because they aren"t exposed to globally competitive industries (rivals, less growth. An industrialization strategy that is heavily tied to exporting manufactured goods. Aims to speed up the industrialization process of a country by exporting goods for which the nation has a comparative advantage. Pros: wider markets, able to focus on developing only a few products. Cons: increases market sensitivity, lack of product diversity (may make economies unstable) Countries such as china, south korea and taiwan have implemented successful export led growth. Tawian, south korea, singapore and hong kong achieved rapid growth in production of several decades.
