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Development Strategies and the Global Factory

It has become commonplace to contrast the newly industrializing countries (NICs) in Latin America and East Asia as having followed inward-oriented and outward-oriented development strategies, respectively. These are not mutually exclusive alternatives, however. They are more appropriately seen as historically interacting approaches, with the NICs in both regions moving toward mixed strategies in the 1970s and 1980s. In particular, the development of second-stage import-substitution industries has allowed the Latin American and East Asian NICs to meet a variety of domestic development objectives and ultimately to enhance the flexibility of their export structures. The NICs today are pivotal actors in a global manufacturing system with increasingly complex product networks and an unprecedented degree of geographical specialization. This has led to greater heterogeneity in the export profiles of the NICs within each region. The new patterns of export specialization are based on distinctive industrial structures at the national level and pose special issues for industrial policy and the future internationalization of each NIC.

The ANNALS of the American Academy of Political and Social Science, Vol. 505, No. 1, 92-104 (1989)
DOI: 10.1177/0002716289505001008


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