Summary:
The global economic depression of the 1930s had a crushing and widespread impact on Latin America, forcing Latin American nations to change their economic policies away from export-oriented growth and more toward the long-neglected diversification of their economies. In particular, these nations toward an endogenous economic model based on industrialization. The economic crisis and the endogenous reforms that resulted from it led to significant social and political consequences and major transformations of social structures within Latin America.
For most of the first century after independence, all republics in Latin America followed an economic policy of export-led growth based on primary-product exports. The tremendous economic crisis of the 1930s that had a crushing and widespread impact on Latin America; precipitated by the global economic depression, forced Latin American nations to re-evaluate this exogenous economic growth model and to transform their economic policies in the direction of long-neglected diversification of the economy, particularly toward an endogenous model oriented to industrialization.
In order to understand the economic growth model shift from export-led to industrialization through the substitution of imports (or import-substituting industrialization) it is important to have some historical context in relation to Latin American dependence on the former export-led growth model and the degree to which the global economic crisis of the 1930s impacted Latin.....
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