adopted by most nations in Latin America from the 1930s until the late 1980s. It was then, in 1944, that international organizations such as the World Bank, the IMF, and the gatt (which is today the World Trade Organization formed. CBN should focus on economic policy and the management of money to achieve stable prices, interest and exchange rates compatible with growth. Technology the Promethean force unleashed by the Industrial Revolution is at the center of stage.
Import substitution industrialization - Wikipedia
From an orthodox communist viewpoint, the Latin American countries had to go through the stage of bourgeois industrial revolution before they could wage any proletarian socialist revolution. In particular, there is a recognition of the need to fight corruption, to enshrine a culture of transparency, good governance and fiscal responsibility, to protect indigenous manufacturers and consumers from fake and sub-standard products, to limit foreign exchange expenditure on unnecessary goods, to provide incentives. Indeed, even the executive arm of the federal government requires the endorsement of the legislature for its budget proposals and fiscal measures to take effect. Inflation is still out of control, interest rates are being artificially suppressed by fiat, exchange rates are under constant pressure, government deficits continue to widen, external and domestic debt burden has been on the rise, continuous narrative essay spm infrastructure continues to deteriorate, and macroeconomic stability seems elusive. No matter how good a model is, it cannot work in a nation where those responsible for its implementation are self-serving, corrupt persons and where the very representatives of the people undermine their interest and sell their conscience for a share of the loot. 10 The sine qua non of the dependency relationship is not the difference in technological sophistication, as traditional dependency theorists believe, but rather the difference in financial strength between core and peripheral countriesparticularly the inability of peripheral countries to borrow in their own currency. Positivist thinking, which sought a "strong government" to "modernize" society, played a major influence on Latin American military thinking in the 20th century. Available Online: Dos Santos,. However we need to see an actual reduction in the debt stock especially as revenues go up and this requires fiscal discipline on the part of all tiers of government.