Which aspects of ISI tended to increase inequality?

Question

Quizplus · Accepted Answer

The encouragement of import substitution industrialization (ISI) tended to increase inequality because it involved protecting domestic industries from foreign competition, which often led to concentration of wealth and power in a few large firms that enjoyed tariff protection and other subsidies. This protectionism also tended to drive up the price of imported goods, which disproportionately affected low-income consumers. Additionally, trade policy was often used to support ISI, which could further deepen income inequality by favoring certain sectors and firms over others. Monetary policy, although not typically associated with ISI, can also contribute to inequality through its impact on inflation, interest rates, and exchange rates.

Which Aspects of ISI Tended to Increase Inequality