ABSTRACT
Import substitution has been and continues to be a major development strategy in the poor countries. This is in part a reaction to export pessimism which has been widespread among the developing countries in the last two decades. The slow growth of agricultural exports from the poor, developing countries, some of which are dependent on one or two major agricultural crops, and the limited progress in the diversification of the agricultural sector in these countries, have strengthened this trend. The growth of demand for major agricultural products has been slowed down by technological changes involving synthetic substitutes and increasing economy in the case of raw materials. The protectionist policies in the developed countries, combined sometimes with inappropriate export policies, including exchange rate, internal pricing and production policies, have no doubt contributed their share.
