ISI policies in the long run constrained the ability of governments to implement reforms because
A) they created too many veto players to block change.
B) they raised consumer expectations to unreasonable levels.
C) they raised producer profit expectations to unreasonable levels.
D) state owned enterprises became too corrupt to manage.
E) government subsidies were too popular with urban elites.

Question

Quizplus · Accepted Answer

ISI policies created a large number of new interest groups that benefited from the protection and subsidies provided by the government. These interest groups, which included state-owned enterprises, labor unions, and other organizations, had a vested interest in maintaining the status quo and blocking any attempts at reform. This made it difficult for governments to implement changes that might be necessary for long-term economic growth and development.

ISI Policies in the Long Run Constrained the Ability of Governments