Revista de Estudios Sociales

rev. estud. soc. | eISSN 1900-5180 | ISSN 0123-885X

Bringing the Structure Back in: Limited Access Orders, “Extreme” ISI and Development

No. 68 (2019-04-01)
  • Mona Lyne
    University of Missouri-Kansas City (Estados Unidos)
https://doi.org/10.7440/res68.2019.03

Abstract

Structuralists highlighted politico-economic constraints on late development and advocated infant industry policies. In practice, highly distortionary implementation choices were near ubiquitous. Why did policymakers prefer this extreme policy? Employing North, Wallis & Weingast (2009), I argue politicians were constrained by a limited access order (LAO) to directly distribute production rights to powerful groups. “Extreme” ISI policies maximized politicians’ ability to directly distribute production rights; a milder policy meant replacing state-conferred rights with market mechanisms. I review representative “extreme” policies in Brazil, Chile and India, and then demonstrate their political efficacy in diversifying production rights that could be directly exchanged for elite support. Finally, I discuss the argument’s consistency with early structuralist emphasis on underlying politico-economic conditions as impediments to growth.

Keywords: Economic development, import substitution, infant industry, limited access order, patron-client networks, structuralism

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