Strategies of Industrialization

East-Asian versus Latin-American
experience
In Part I of your research paper, which is a theoretical part, you should
 identify main stages of industrial transformation;
 define easy import substitution industrialization
 further to your definition, explain what is it that typically causes the shortage of
foreign currency in developing countries during their easy ISI phase of
industrialization? Also explain when does a foreign exchange shortage become a
foreign exchange crisis?
 also explain – using the quantity theory of money – why increase in Latin
America’s wealth, measured in terms of gold and silver and gems, did not lead to
long-term economic growth and successful industrialization in the region
 define easy export substitution industrialization and explain what exactly is being
substituted for what;
 elucidate the importance of the easy export substitution industrialization as a means to
absorb labour from less productive sectors, particularly agriculture (you may employ the
Lewis model if needed)
 define difficult import substitution industrialization and clarify in what sense do we say
that Latin American countries entered this state “prematurely” while the East Asian
economies entered this stage “maturely”