StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The Import-substitution Industrialisation (ISI) Failure in Argentina - Essay Example

Comments (0) Cite this document
Summary
The focus in this paper is on import-substitution Industrialization (ISI) as a strategy aimed at replacing imported goods in a country with goods produced locally. Argentina was the main leader in trying to implement ISI policies in Latin America. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.3% of users find it useful
The Import-substitution Industrialisation (ISI) Failure in Argentina
Read TextPreview

Extract of sample "The Import-substitution Industrialisation (ISI) Failure in Argentina"

Download file to see previous pages Center of discussion in this paper is import substitution industrialization in Argentina that depended on the exchange rate and trade restrictions. They included several exchange rates, import licenses, quotas, protective tariffs, and export taxes. The main aim was to limit external trade and prepared the domestic market for local manufactures. Further, another aim was to protect the domestic industries from stiff competition arising from external industries. The domestic industries were expected to compete internationally. However, these policies typically led to inefficient firms and high cost industrial substitutes. The consequences were diverse, for instance, the local industries could not pose any competitive challenge internationally. As a result, Latin Americans had to pay high prices for substandard goods that could not satisfy their need for quality. Further, Argentina was not able to have foreign exchange to pay for the much required imports; they had spent much time de-emphasizing exports. ISI had actually led to some economic gains, however, by 1980s, it had been exhausted. During 1980s and 1990s, Argentina was forced to injstitute a number of policies with the aim of opening its economy, decrease the size of the government as well as improving efficiency. Other countries in the Latin America such as Brazil and Paraguay experience government involvement in infrastructure development and in the production sectors. However, the major difference between these countries and Argentina was the issue of funding. This issue was not well addressed in Argentina. The country began to use inflation taxation as the best solution to their problems. Inflation taxation occurs when the government decides to print money to pay the state bills. From the mid 1940s, Argentina witnessed huge difference in its rising inflation figures from the low inflation figures in other countries of the world (Zanetta, 2004). High inflation rates, high fiscal deficits and huge government debts were the main challenges facing Argentina from 1940s to the end of the century. Several argentine citizens argued that the excessive government interference in the economy and the fiscal laxness were not the only problems that led to economic down turn in Argentina. Another challenge that faced Argentina was the relatively trained administrative personnel. The argentine government was not prepared to put in place policies that could lead to stable economic growth. Corruption also affected this problem as well (Birkbeck, 2011). President Peron’s earlier economic gains in Argentina quickly ran into a number of challenges. In 1949, Peron’s government witnessed inflation of about 31percent. This was due to Peron’s strategy of demand expansion through wage increases. At this time, employment was already high. Further, the controlling of imports and the stronger purchasing power siphoned off exports and led to inflation in Argentina (Birkbeck, 2011). In 1949, Argentina was affected by its first foreign trade deficit since the First World War. In addition, the drought that affected Argentine’s agricultural export further affected argentine’s economy. Further, the terms of trade had started to work against the country. The terms of trade included the rising prices of imports and the decreasing prices of exports. Peron’s approach to economic growth was making the problems worse. For instance, in giving artificially low prices to farmers, to ensure that urban food ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Import-substitution Industrialisation (ISI) Failure in Argentina Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1450153-critically-compare-and-contrast-the-import
(The Import-Substitution Industrialisation (ISI) Failure in Argentina Essay)
https://studentshare.org/macro-microeconomics/1450153-critically-compare-and-contrast-the-import.
“The Import-Substitution Industrialisation (ISI) Failure in Argentina Essay”, n.d. https://studentshare.org/macro-microeconomics/1450153-critically-compare-and-contrast-the-import.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Import-substitution Industrialisation (ISI) Failure in Argentina

Mechanism of Fretting Fatigue and Methods by Which This Mode of Mechanical Failure Might Be Avoided in Terms of Design and Installation Practice

...Discuss the mechanism of fretting fatigue and the methods by which this mode of mechanical failure might be avoided in terms of design and installation practice The importance of well-designed plan cannot be undermined in any kind of industry. For the smooth running of a business or industry, adequate flow of funds, resources and a better managerial policy are crucial components. Even though the existence of an industry requires appropriate margin of profit, the fact that the business or industry should carry out its operations for a long period of time is also important, and this is possible only through the application of plans and policies in a systematic manner. These days, mechanical industry has a wider scope. However, in case...
7 Pages(1750 words)Essay

Privatization and Stabilisation in Argentina

In the end, it was liberalisation, devaluation of the peso and attempts to enhance exports that brought about improvement and today the Argentina economy is presenting robust growth. This brief essay presents a discussion about the stabilization and privatization efforts in Argentina, a nation which, despite the huge economic challenges that it had faced, was able to sustain and to improve upon a social security program for its people.

Argentina is the world’s eighth-largest country which occupies an area that is greater than the combined area of Mexico and the state of Texas in the United States of America (Encyclopaedia Britannica, “Argentina”). In Spanish, Argentina means “The Land of Silver&r...
14 Pages(3500 words)Research Paper

Preventing Renal Failure in Patients with Rhabdomyolysis

...). Some patients may present with mild generalized symptoms such as weakness and localized muscle pain that occur in conjunction with an elevation of muscle enzymes in the circulation. More serious cases may present with severe symptoms such as renal failure. The most common signs of rhabdomyolysis are tea colored urine with co-occurring localized muscle pain. The diagnostic indication of rhabdomyolysis involves the detection of elevated muscle enzymes, especially phosphocreatine kinase, in the blood. Immediate diagnosis of this syndrome is crucial to prevent the development of life-threatening complications. Among the clinical assessments required to evaluate patients with suspected rhabdomyolysis are urinalysis, muscle enzyme assessment...
14 Pages(3500 words)Assignment

Failure of General Juan Velasco Alvarado's Peruvian Regime

...Failure of General Juan Velasco Alvarados Peruvian Regime Introduction Latin American nations have been known to have rulers with controversial background. Peru is no different from its peers in terms of having precarious political regimes which have hindered the countrys economic, social and national progress. During the 20th century Peru had undergone tremendous changes. Between the periods from 1930 to 1968 the country strived with constitutional changes, differential regimes, and political upheaval. The period from 1963 to 1975, under the military ruler General Juan Velasco Alvarado, Peru experienced one of the most controversial times in its history, with the governments role having a deep impact on the countrys future. Thesis...
6 Pages(1500 words)Term Paper

Brazil and Argentina: Coffee and Oil

... are more than ten times that of Argentina. Brazil produces 1.797 million bbl/day (Barrels per day) and exports 278,400 bbl/day. This may sound impressive but it must be taken into consideration that the country currently consumes far more than it is able to produce, with consumption at approximately 2.1 million barrels bbl/day and imports totaling 674,500 bbl/day. While it is clear that the country does have the capacity and possibility to meet its own oil needs it seems that importing oil has become a more favorable option perhaps owing to difficulties along the domestic supply chain. When examined as one market it becomes clear that Brazil’s oil supply is not able to meet its oil demand without looking abroad. It could be argued...
8 Pages(2000 words)Term Paper

Reasons for the Failure of Cash for Clunkers Program

... Reasons for the Failure of Cash for Clunkers Program Introduction The $3 billion “Cash for Clunkers” plan is being hailed in Washington as a great success because so many Americans sought to get a $3,500 to $4,500 check financed by other taxpayers in return for trading in their old car (The Wall Street Journal). But the latest reports show that the Obama program to boost the automotive industrial sector is going to be dead, not due to less popularity, but because of the huge popularity and lack of funds. In November, 2008, U.S. sales for the Toyota, Lexus and Scion brands combined fell 33.9 percent; year-to-date sales were down 13.4 percent in the United States, to about 2.1 million, according to Auto Data Corp. (Henry) Inside the 789...
7 Pages(1750 words)Term Paper

Factors Contributing to Implant Failure

... column, jawbone and the femur, in smokers (Lemons et al., S72-5). It has also been seen that if a patient stops smoking for a certain period before and after the implant surgery, percentage of implant failures drops significantly, almost compatible to the rates shown by non-smokers. Age- Age does not show much co relation with implant failure, though it is of general knowledge that health deteriorates with age. Though certain results from experiments by Salonen et al. propose that old age may be a contributing factor to implant failures (Salonen et al., p. 92- 7) but no conclusive co-relation between the two has been established until date. Local factors Quality of bones at the site of implant- This is a very important factor...
9 Pages(2250 words)Case Study

Pakistan ISI and the Taliban

... leadership in Pakistan decided to make use of ISI to back up Taliban against Indian influence in Afghanistan. From a different angle of view, Pakistan needs Taliban as a political body in Afghanistan, not as a terrorist organization. The transformation of Taliban from a terrorist organization to a political organization/ governing body is utmost important for ISI because Taliban is a double edged weapon. Fergusson (2011) states that, “US intelligence in Islamabad consistently underestimated the extent of ISI involvement with Taliban, and attributed the problem to a few ‘rogue’ agents” (p.167). The political leadership in Pakistan, especially the President and the Prime Minister, is facing a number of problems. This political turmoil...
7 Pages(1750 words)Term Paper

Pathophysiology of Hypoglycemia, Pneumonia and Congestive Heart Failure

Hypoglycemia is very common in patients suffering from type 1 diabetes as well as those suffering from advanced type 2 diabetes. Drugs used in the treatment of these types of diabetes are known to cause hypoglycemia (The McGraw-Hill Companies, 2012). The McGraw-Hill Companies (2012) further explains that individuals trying to attain better glycemic control experience a number of incidents of mild to moderate hypoglycemia. Although there are debates regarding plasma glucose level that indicates hypoglycemia, in a physiological context, it is best described as plasma glucose of less than 70 mg/dl (less than 60 mg/dl whole blood). This is owing to the fact that the glycemic threshold required for the initiation of the anti-insulin ne...
6 Pages(1500 words)Term Paper

Market Failure and Government Intervention

...Market Failure and Government Intervention Introduction Market failure occurs when there is inefficient allocation of goods and services in a free market. Market failures create unfair competition where some producers enjoy monopoly power while others suffer due to their market predominance. The market inefficiencies should be controlled to promote fairness and balanced economies. The government should intervene in controlling market failure so as to promote equal allocation of resources in the economy (Hetzel, 2012). Causes of Market Failures Market Inefficiency Market inefficiency exists where the companies produce inadequately. There are 6 types of market inefficiencies. Pareto inefficiency developed by Vilfredo Pareto: means...
8 Pages(2000 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Import-substitution Industrialisation (ISI) Failure in Argentina for FREE!

Contact Us