ISI (Import Substitution Industrialization)

Import Substitution Industrialization (ISI) is an economic strategy where a country aims to boost its domestic industries by reducing reliance on imported goods. The government supports local manufacturing through policies like tariffs, subsidies, or quotas, encouraging consumers to buy domestically produced products instead of imports. The goal is to foster self-sufficiency, create jobs, and develop local businesses. ISI was popular in mid-20th century Latin America and other developing regions, as a way to promote economic growth and reduce vulnerability to global market fluctuations. However, it can sometimes lead to inefficiencies and higher costs if local industries aren't competitive.