Failed Protectionism: What Latin America Can Teach Us
The region’s failed experiment with import substitution industrialization (ISI) offers a stark warning: embracing it may breed inefficiency, corruption, and stagnation.
BUENOS AIRES — The recent 90-day pause on most planned U.S. tariffs aside, President Donald Trump’s “reciprocal” strategy represents the most significant shift toward protectionism in U.S. trade policy in decades. These policies, which have shocked global markets for several sessions, may seem familiar to observers of Latin America’s recent economic history and deserve close attention. The region followed a similar approach from the 1940s-70s with import substitution industrialization (ISI), pursuing economic development through deliberate policies designed to foster...
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