Diversifying Economies in Belize - Essay Sample

Import substitution industrialization refers to an economic policy that advocates for the reduction of imports and advancement of local production. The policy aims to reduce the dependency that a country has on import goods and seeks to develop local industry and perhaps even export more than a country imports. Some of the advantages of import substitution industrialization gives to a country is job creation (Blouet, 2010, p. 115). When a countrys economic policy favors domestic production of goods and services. Industries grow exponentially. As industries develop, innovative products come into market, creating more jobs. The creation of employment is a short term benefits. Often times, it leads to neo-liberalistic trends developing within the country.

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Additionally, such a policy has been known to create wealth within the country. Corporations often make important steps in creation of jobs and implementation on important policy. The creation of jobs often means that the corporations in the country have the capacity to export goods (Blouet, 2010, p. 115). As the operations of these corporations continually improve, they often gain some political power. As the private sector, grows in their political power and reach, they often improve the banking industry locally. More money is in circulation locally. Still there are a lot more issues that continually affect the value of such a system. For instance, increased ascendant corporatocracy is a system that exponentially widens the wage and class gap in the country (Medina, 2015 p. 265).

Economic liberalism is a policy that promotes 19th Century ideas on economic development. Some of the ideas that are associated with neo liberalism include privatization, free trade and deregulation policies (McWilliams, 2015, Slide 55). These policies often endorse the advancement of the private sector with regard to its role in the economy. There are several benefits and disadvantages that a neo liberal economy presents to individual citizens and institutions. For one, the neoliberal theory asserts that the employment of an unregulated capitalistic system is beneficial to an economy (McWilliams, 2015, Slide 58). It offers citizens individual choice while maintaining and advancing economic performance. It is however important to note that with such benefits, so do disadvantages like exploitation, structural adjustment and wealth disparity manifest themselves.

Belize is a small country that has a population of just over one hundred and ninety thousand. Being a small country, there are different issues that challenge the countrys ability to make strides in domestic industry. Some of these challenges include, the supply of land, domestic capital, labor, limited bargaining power and domestic markets among other significant challenges (Harison, 2017 pg. 1). These challenges often inspire continued dependency in developed nations. Limited domestic markets often mean that there is less import substitution industrialization. Limited domestic markets undermine domestic industry and local companies. The small size of the country also undermines its ability to diversify its economy. It offers less resources in which the country can invest (Harison, 2017 pg. 1).

Belize is still very much underdeveloped. The levels of literacy and its geographical ergonomics continue to undermine any possible advancement that the country might make. Additionally, there are different political figures that have continually undermined the value of the of import substitution industrialization. The political powers in the country have been at the forefront in the mismanagement of state resources, often times, the leaders of the country have sought to destroy the potential for economic development through corrupt decisions. The countrys political stance has been instrumental in slowly undermining any progress that has been made in terms of internal economic stability (Harison, 2017 pg. 1).

References

Blouet, B. (2010). Latin America and the Caribbean (1st ed.). Hoboken, NJ: Wiley.

Harison, R. (2017). The Fallacy of Neo-Liberal Economic Philosophy in Belize. Belize News and Opinion on www.breakingbelizenews.com. Retrieved 5 February 2017, from https://www.breakingbelizenews.com/2014/08/28/fallacy-neo-liberal-economic-philosophy-belize/McWilliams, (2015). Evolving Economies and Globalization.pptx

Medina, L. (2015). Governing through the Market: Neoliberal Environmental Government in Belize. American Anthropologist, 117(2), 272-284. http://dx.doi.org/10.1111/aman.12228