Import substitution industrialisation
Also called: ISI · Topic: Paths to Modernisation: Japan, China, Korea · NCERT: Class 11, Ch 7 "Paths to Modernisation"
Meaning
Import substitution industrialisation (ISI) is a strategy in which a country builds its own industries to make goods it used to import. The aim is to depend less on foreign products. South Korea followed this approach in its early years. In the early 1960s it moved away from ISI towards export-led growth.
Example
Under Park Chung-hee, from the early 1960s, South Korea's five-year plans turned from replacing imports to selling goods abroad. It began with exports of textiles and garments, and this switch brought very fast economic growth.
Don't confuse with
- Export-oriented industrialisation: This produces goods mainly to sell in foreign markets. ISI produces goods to replace imports at home.
Related concepts
- Taiwan
- Cross-Strait relations
- Joseon dynasty
- Japanese annexation of Korea
- 38th parallel
- Korean War
- Park Chung-hee
- Export-oriented industrialisation
- Saemaul Movement
- Gwangju Democratisation Movement