ABSTRACT
Whereas structuralism and import substitution industrialization (ISI) shaped development strategies during the first 35 years of the post-war period, the last 30 years have been dominated by neoliberalism and export-oriented industrialization. In contrast to structuralism, with its skepticism about the market and faith in the state, neoliberalism is highly skeptical of the state’s ability to allocate resources efficiently and places great faith in the market’s ability to do so. And in contrast to structuralism’s advocacy of protectionism and state intervention, neoliberalism advocates the state’s withdrawal from the economy, the reduction (ideally, elimination) of trade barriers, and reliance on the market to generate industries that produce for the world market.
