284/YOUR MONEY OR YOUR LIFE!
IMF: distribution of administrators' votes (24)
US 17.82%
Germany 5.55%
Japan 5.55%
United Kingdom 5.00%
France 5.00%
Italy 4.00%
Canada 3.70%
Belgium 5.00%
Netherlands 4.64%
i.e. nine industrialised countries 56.26%
INDUSTRIALISATION BY IMPORT-SUBSTITUTION
This strategy mainly concerns a historic experiment in Latin America
in the 1930s and 1940s, and the school ofthought known as CEP AL
(the UN Economic Commission for Latin America), and especially
work published by the Argentinian Raul Prebisch. The starting point
is the observation that when faced with a drastic reduction in
currency exchange, the main countries of Latin America had
managed to respond to domestic demand by replacing imported
products by the development of local production. The CEP AL theory
holds that this process can be fruitfully extended to all sectors of
industry, one after the other, and thus enable the country to
'disconnect' from the centre. A good dose of protectionism and
coordinated state intervention are expected to promote the expansion
of budding industries. It is a sort of reformist version of the
dependence theory, which relies on dynamic local entrepreneurs
(Coutrot and Husson, 1993, p. 117; Prebisch, 1981; Clairmont,
1987;Ugarteche, 1996).
INTERNATIONAL MONETARY SYSTEM (IMS)
The IMS is a system of rules and mechanisms set up by states and
international organisations to promote international exchanges and
coordinate national monetary policies. The present system was set up
under the Jamaica Agreement (1976), which overhauled the
preceding one, dating from the Bretton Woods Agreement of 1944
(US).