A country’s economic trend, which is determined by country policies, impacts its population. These strategies can determine the likelihood of a country’s financial success. Economic systems determine citizens’ lifestyles in any given country; these patterns are critical in determining people’s earning trends over time, and this drift will affect their lifestyle and livelihood. As a result, such strategies should be approached to ensure that the long-term outcome of citizens’ lifestyles is enhanced or improved, rather than vice versa. Financial and economic growth will be compared to poorly formulated strategies under moral policies. Substantial replacement The term “industrialization” refers to a notion in economics commonly used by the United States. The employed theory aim for protection and incubation of emerging domestic industry, its purpose is to develop the sector entirely, for that reason it gives space for imported goods, this progression makes traditional market self-sufficient. The policy promotes the production of industrial goods locally instead of relying on the importation of same goods. The long term goal is to diminish dependence on foreign goods by an independent nation by developing an internal market (Silva). This can be achieved by daunting high taxes on imports while supporting the production of products financially by regional industries.
A Concise History of relevant Substitution Industrialization concept
The strategy was developed by countries in the global south. The purpose was to progress internal market within the system by introducing self-sufficient as an assumption. The achievement from the concept eased through funding nations, taxing countries and protecting markets strategies. In the 1980s and 1990s, the third world countries turned away from the important substitution industrialization concept after placed on liberalization intended for international markets, an idea established on the adjustment of structural agenda of the World Bank (IMF) International Monetary Fund. This concept structure in Latin America is a stage that refers to the regime of substitution industrialization concept in different Latin America nations from the 1950s to 1980s. The idea behind the Latin America structure was put into practice by economically minded activists Singer Hans and Raul Prebisch. The hypotheses gained popularity with the conceptualization of the UNELACAC, which means United Nations Economic Commission for Latin America and the Caribbean.
Neoliberalism is a guiding principle concept that involves both social and economic research studies, which convey economies factors to a private from the public sector. Principles of a neoclassical financial system take from both the sectors, insinuating that the government limits subsidies, tax base enlarged by making a transformation to tax laws. Spending reduced, protection and open market limited, put an end to exchange rates that are fixed and finally allow privatization of state businesses and private property. Liberalism in this economy mostly refers to economy freeing strategy which involves eradicating rules and barriers that prevent other factors, and the policies goal is to implement Laissez-Faire approach to the development of economies.
History of Neoliberalism
Different scholars and critics including analysts criticized the 19th-century concept of economic liberalism that started in the 1970s through 1980s, they advocate for a broad economic liberalization and regulations that broaden the abilities of sectors that are private and public that deals with bringing an end to government power and the economy. This particular concept maintains austerity in fiscal derogation, trades that are free and spending inside government sector reduced. Neoliberalism is divided into different economic structures mentioned in the 1970s through 1980s by prominent academics and analysts, due to this division it resulted in a financial crisis of 2008 and 2009. In the 1980s it became popular because of the Chilean transformation in economics concerned by Augusto Pinochet, during this period; the Chilean reform matter was used mainly by critics struggling with market change. It shifted to suggest a fundamental Laissez-faire pool of concept from industrialists; they connected the name with Friedrick Hayek and partner Friedman Milton, Neoliberalism as a tool for reform is famous among Spanish-speaking scholars subtle into English language research on a nation economy (Silva).
Consequences of both Neoliberalism and import substitution industrialization policies in urban areas
Import substitution industrialization had philosophical implications in the urban areas, and Latin America countries were known to be affected by such effect. Over-reliance on local production of goods was rampant in Latin America, most of the industries manufactured regionally for domestic consumption thus led to local labor dependency, this was brought about by the fact that work restrictions to geographical mobility occurred (Silva). Major towns industries were located in urban industries due to the presence of infrastructure that is developed that are necessary to expand supply chain process which involves transportation of raw materials to industries and refined products to consumers and facility. Since all the companies are in urban areas, a lot of people migrated to cities searching for employment in the emerging industries that are well known to offer better payments in contrast to agricultural sectors. Urban migration was caused by the perception that lifestyle in urban town was modern than the rural sectors. This occurrence encourages overpopulation in urban areas. Consequently, rapid growth in the urban city is visible due to overcrowding in the cities, thus led to a lack of jobs in the industries, and thus resulted in people searching for employment in informal sectors of the economy.
The import substitution industrialization phase, Infrastructures such as jobs, schools, and housing increased, caused by the enlargement of the rural-urban migration that leads to cities over urbanization, urban growth or progress resulted in the development of other cities. Conversely, due to poor infrastructure in the city resulted in the emergence of settlements known as Squatters, brought about by facts that a lot of people lacked appropriate housing facilities due to overpopulation in the city.
The urban primacy of urban developed due to enhanced infrastructure in the country. At the same time, not a lot of people can pay for decent housing due to lack of a white collar job that could provide rent money. A lot of challenges faced import substitution industrialization, the government of the country lacked production funding in the industries, thus led to government borrowing from the world banks and other foreign sources. In the long run debt disaster looming the country, brought about by the country not able to sustain itself economically, the regional market could not collect enough money to pay the loan, thus led to the emergence of liberalism which evolved to Neoliberalism strategy in the economy (Silva).
During the era of Neoliberalism, employment increased in the urban area, owing to Privatization of different economies, many economic industries wanted to reduce the cost of production associated with labor due to Laissez-faire of the market, foreign countries aid overwhelm the country. Outside labor meant that the citizens’ jobs were at risk, thus led to a jobless nation, in the regime of Neoliberalism and import substitution industrialization economic development was intense in major cities. A lot of corporation relied on advancing the infrastructure in these particular sectors for transportation, some of the developed nations made investment internationally that developed economic activities in the nation. The increase in the development in urban areas led to cities. It is apparent that import substitution industrialization and Neoliberalism had a lot of consequences to the people; urbanization process influenced the growth of cities and industries, industrialization, on the other hand, led to rural-urban migration to search for greener pasture.
Sustainable growth both culturally and environmentally
The most important argument in the area of sustainable development is considered as sustaining the environment and culture of people in the nation. Sustainable growth is described as a process of acquiring the development need of individuals at the same time maintaining the environment where the process is already taking place for the advantage of the future generation. The community relies on the natural resource in the environment, today offspring need to make sure that the assets are used; a lot of the projects conducted by people always lead to jeopardizing the cultural and environmental sustainability. Development of infrastructure, for example, can cause cultural resources losses; most of the projects are conflicting with the surrounding and community cultures where projects are taking place, some factors threatened goals of sustainable development. Such factors include;
Development of export economy
Since the start of Neoliberalism, there has been an increase in interdependence among different nations worldwide whereby many nations have intense production of goods and services for the export market. Owing to the interdependence, countries have subjugated the natural resources set aside over time with the plan of exporting produced finished goods for international markets. The industry growth led to the examination and mining of oil assets (Portes &Hoffman).
Urbanization has resulted in the emergence of industries, which led to the building of new infrastructures; due to industries has resulted in oil mining in the nation (Portes & Hoffman). Natural resources that are non-renewable carry a threat to sustainable growth, most of the natural resources, threatens sustainability. The threat to the environment are caused by the development of industries that are known to produce products for exportation, therefore produce a high level of carbon dioxide; as a result, These toxic wastes pollutes the environment by destroying natural vegetation. On the other hand, foreigners touring other countries cause a threat to the country culture; most of the visiting tourists come with their foreign culture. While in the country they work together with the locals, later the indigenous as a result imitates their culture (Portes, & Hoffman).If this happens, the native culture is at stake.
Tourism as a sector had a significant influence on a country development goal which is sustainability, and tourism industry comprises of tourists from overseas visiting another country and tourism amenities such as resorts and amusement parks. Tourists have a greater influence both to the local environment and culture. Locals have Tourism facilities that are built for recreation purpose, and it involves cutting down of trees for building a nesting place for animals and birds. Locals will interact with tourists in social occasions, while interacting they will exchange cultures by learning one or two things from each other, for example, the culture of America tourists is seen as superior compared to locals. Eventually, the locals end up imitating the foreign culture, thus led to the erosion of the indigenous culture. In the process of Interaction between locals and foreigners, the cultures are blended as a result threatens the locals’ culture. Conversely, the positive influence of tourists to the indigenous people culture encourages the emergence of new cultures intertwined with a foreign culture. For example, when a tourist visits an African country they are fascinated by traditional songs sung by the community (Portes, & Hoffman). Songs and dance are relevant to a community culture since tourists spend money to support local’s activities, the locals, on the other hand, try so hard to preserve their culture as to use it to earn a living by entertaining all the tourists.
Drug trafficking has had a profound influence on the society; money earned from illegal drugs can be used to fund other illegal activities in the country. Illicit drugs intake has a negative impact on the ethics of people, when a society lack morals, it affects how people relate to each other and eventually has an impact on a community culture. Drug addiction affects every single person in the community, the rich and poor, youths and adults. The drugs trafficked are unlawful drugs like the marijuana, heroin, and cocaine, to stop drug trafficking the government need to implement rules that will protect a country citizen and punish drug traffickers, drug traffickers if found guilty will be sentenced to 3-5 years.
How gradual transformation away from Neoliberalism enhances or daunt local sustainability endeavor? Why
Sustainability efforts are successful owing to gradual regional change, and this is because the following challenge such as the presence of tourists influences a society culture, the reason why tourists visit different countries is that these particular countries are in need of money and they have tourists’ attraction facilities that are attractive. If these countries were self-reliant, the tourist could not have been welcome; therefore this played a significant role in making sure that the culture of the community sustained. In contrast to this, Neoliberalism led to competition among countries, especially when enough assets are lacking (Portes & Hoffman). Therefore resulted in different countries utilizing all the resources in their surroundings, as a result, this has an adverse influence on the environment, which has been affected greatly in a negative manner.
The development of sustainability is influenced by different factors that are new to the country. These challenges should be addressed cordially if any nation wants to maintain and progress its sustainability agenda. Concerns that cause adverse influence to the surrounding should be tackled to guarantee sustained environment. The impacts of tourists on the culture need to be dealt with through methods that are demeaning, and community need to be taught that their culture is not inferior; thus, they should not imitate foreign culture.
Silva E. The Import-Substitution Model. Latin American Perspectives. 2007; 34(3):67-90. doi:10.1177/0094582×07300589.
Portes A, Hoffman K. Latin American Class Structures: Their Composition and Change during the Neoliberal Era. Latin American Research Review. 2003; 38(1):41-82. doi:10.1353/lar.2003.0011.