Why did countries abandon ISI?
A)Other countries saw how fast Latin American countries had grown by encouraging exports and decided to adopt the same policies.
B)The "Asian Tigers" were devastated by the debt crisis and had to make significant reforms to recover.
C)The International Monetary Fund convinced indebted countries that the Washington Consensus had been wrong to advocate ISI policies.
D)The International Monetary Fund pressured indebted countries to reduce trade protection and to privatize government enterprises.
E)Politically powerful domestic groups who had been hurt by the policies overthrew the governments that implemented ISI.

Question

Quizplus · Accepted Answer

The International Monetary Fund played a significant role in pressuring indebted countries to reduce trade protection, privatize government enterprises, and abandon ISI policies. This was part of the broader policy prescription known as the Washington Consensus, which emphasized free-market policies and fiscal austerity. As a condition for receiving loans, the IMF required countries to undertake these reforms, which contributed to the abandonment of ISI.

Why Did Countries Abandon ISI