With high-speed internet, videoconferencing, and collaboration tools, we live in a world where you can carry your office wherever you go. Nonetheless, office visits remain relevant to hybrid employees for reasons we will explore below.
Hybrid employees don’t hate the office—they hate commuting to it, surveys when Iconsult1 show, since for many, commuting takes over an hour per day and costs many thousands of dollars per year. And peer-reviewed studies find2 clear associations between longer commuting times and worse job satisfaction, increased stress, and poorer mental health.
Other research demonstrated that staff who worked remotely during the pandemic lockdowns built closer intra-team ties to members of their own team, but their inter-team ties to those on other teams deteriorated.
Given that data, when I consult3 for organisations on determining hybrid4 work arrangements for their employees, a primary consideration involves minimising staff commuting time. That means using data-driven methods to determine what endeavours offer the best return-on-investment for in-office work to make them worth the commute. Then, we develop a communication strategy to convey the value of these face-to-face tasks to hybrid employees so as to get their buy-in on coming to the office for such high-impact work pursuits. In turn, we convey a commitment to minimising their time spent in traffic by bunching as many activities requiring face-to-face presence together as possible. Doing so helps improve hybrid employee retention, engagement, and morale while reducing burnout.
What Kind of Work Should Hybrid Employees Do at the Office?
The majority5 of hybrid employee time is spent on individual tasks such as focused work, asynchronous communication and collaboration, and videoconference meetings, which are most productively done at home. There’s no need for employees to come to the office for such activities. Still, the office remains a key driver of value for high-impact, lower-duration activities that benefit from face-to-face interactions.
Intense Collaboration
Intense collaboration involves teams coming together in person to solve problems, make decisions, align on strategy, develop plans, and build consensus around implementing ideas they brainstormed remotely and asynchronously6. Face-to-face interactions allow team members to observe each other’s body language, picking up on subtle cues like facial expressions, gestures, and posture that they may miss when communicating remotely. These nuances carry much more weight during intense collaborations.
In addition, in-person interactions facilitate empathy, which helps teammates build and maintain a sense of mutual trust and connection. Such bonds can be strained during intense collaboration, making it valuable to have intense collaboration take place in the office.
Finally, the office creates a context that facilitates collaboration through meeting rooms with whiteboards, easel pads, and other relevant tools. This collaboration-conducive setting takes employees out of their regular state of mind7 and helps them inhabit a different mental context, enabling them to switch gears and be more cooperative and inventive.
Challenging Conversations
Any conversation that bears the potential for emotionality or conflict is best handled in the office. It’s much easier to read and address other people’s emotions and manage any conflicts face-to-face rather than by videoconference.
That means any conversations that have performance evaluation overtones should rightly occur in the office. The content might range from weekly 1-on-1 conversations8 between team members and team leads that assesses how the former performed for the last week and what they will do next week, to a quarterly or annual performance review. Similarly, it’s best to handle any human resource concerns in-person.
Another category of challenging conversations that belong in the office: conflicts that started remotely and couldn’t be settled there easily. My clients find that getting the antagonists to sit down and hash things out in person works wonders for the vast majority of disagreements.
Cultivating Team Belonging and Organisational Culture
Our brains are not wired to connect and build relationships9 with people located in small squares on a videoconference call, they’re wired to be tribal and connect with our fellow tribe members in face-to-face settings. In-person presence thus offers an opportunity to build a sense of mutual trust and group belonging that’s much deeper than videoconference calls.
And let’s face it: Zoom happy hours are no fun, at least for the large majority of participants. While it’s possible to organise fun virtual events,10 it’s much easier to do such activities in person.
As a result—whether at the level of small teams, mid-size business units, or the organisation as a whole—in-person activities offer the opportunity to create a sense of group cohesion and belonging. They can involve simply socialising, but also some combine with intense collaboration in the form of strategic planning. For example, one of my clients,11 the University of Southern California’s Information Sciences Institute, organised retreats at both group and division levels to facilitate a sense of belonging and a stronger strategic alignment.
In-Depth Training
A survey12 by The Conference Board reveals the key role of professional development for employee retention. While online asynchronous or synchronous education may suffice for most content, face-to-face interactions are best for in-depth training, by allowing trainees to engage with the trainer and their peers more effectively.
Physically present trainers can “read the room,” noticing and adjusting to body language and emotions expressed by trainees. In turn, peer-to-peer learning helps create a learning community13 that builds trust and facilitates mutual understanding and retention of information by adult learners. And the physical props and spaces available for in-person learning facilitate a deeper and more focused level of engagement with materials.
Mentoring, Leadership Development, and On-the-Job Training
Whether integrating junior staff and providing them with on-the-job training, mentoring and coaching current staff, or developing new leaders, the office provides a valuable venue for such informal professional development. If team members are in the office, mentors and supervisors can observe the performance of their mentees and supervisees, and provide immediate feedback and guidance. Doing so is much harder in remote settings and can result in biases.14
It’s best to handle any human resource concerns in-person.
Similarly, mentees and supervisees can ask questions and get answers in real time, which is at the heart of on-the-job training. It’s certainly possible15 to do so remotely, but it takes more organisation and effort.
Mentoring and leadership development often takes subtlety and nuance, navigating emotions and egos. Such navigation is much easier in person than remotely. Moreover, mentees need to develop a sense of real trust in the mentor to be vulnerable and reveal weakness. Being in person is best for cultivating such trust.
Spontaneity and Weak Connections
One of the key challenges of maintaining company culture for remote or hybrid workers is the decrease in cross-functional weak connections across staff. For example, research16 has shown that the number of connections made by new hires decreased by 17% during the pandemic, compared to pre-pandemic levels. Other research17 demonstrated that staff who worked remotely during the pandemic lockdowns built closer intra-team ties to members of their own team, but their inter-team ties to those on other teams deteriorated. This loss of connections can negatively impact long-term company success, since achieving organisational goals often requires cross-functional collaboration.
Such connections develop from spontaneous interactions in the cafeteria or during the chit-chat after a cross-functional in-person meeting. These kinds of spontaneous meetings can also help spur conversations that lead to innovations. And although organisations can replicate them18 to some extent in remote settings, the office provides a natural setting for such spontaneous interactions and their benefits.
Conclusion
The best practice for hybrid work19 involves helping employees reduce commuting by asking them to come in only for high-value face-to-face activities. These tasks include intense collaboration, challenging conversations, cultivating belonging, professional development, mentoring, and building weak connections.
For most staff, these activities should take no more than a day a week; junior staff getting on-the-job training and recently-promoted leaders receiving leadership development may require two or three days on a short-term basis of several months. Indeed, a survey20 of 1,500 Employees and 500 supervisors finds that a schedule of one day a week provides the optimal balance of connection to colleagues with job satisfaction.
Leaders also need to develop and implement a transparent communication policy to explain this approach to their employees, get their feedback, and make any tweaks to improve this policy. Doing so will help facilitate employee buy-in and engagement with this new approach, which will reduce burnout while improving retention, engagement, and morale.
Dr. Gleb Tsipursky helps leaders use hybrid work to improve retention and productivity while cutting costs. He serves as the CEO of the boutique future-of-work consultancy Disaster Avoidance Experts. He is the best-selling author of 7 books, including the global best-sellers Never Go With Your Gut: How Pioneering Leaders Make the Best Decisions and Avoid Business Disasters and The Blindspots Between Us: How to Overcome Unconscious Cognitive Bias and Build Better Relationships. His newest book is Leading Hybrid and Remote Teams: A Manual on Benchmarking to Best Practices for Competitive Advantage. His cutting-edge thought leadership was featured in over 650 articles and 550 interviews in Harvard Business Review, Forbes, Inc. Magazine, USA Today, CBS News, Fox News, Time, Business Insider, Fortune, and elsewhere. His writing was translated into Chinese, Korean, German, Russian, Polish, Spanish, French, and other languages. His expertise comes from over 20 years of consulting, coaching, and speaking and training for Fortune 500 companies from Aflac to Xerox, and over 15 years in academia as a behavioural scientist at UNC-Chapel Hill and Ohio State. A proud Ukrainian American, Dr Gleb lives in Columbus, Ohio.
Returning to the Office and Leading Hybrid and Remote Teams: A Manual on Benchmarking to Best Practices for Competitive Advantage, Disaster Avoidance Experts,https://disasteravoidanceexperts.com/hybrid/
Returning to the Office and Leading Hybrid and Remote Teams: A Manual on Benchmarking to Best Practices for Competitive Advantage, Disaster Avoidance Experts,https://disasteravoidanceexperts.com/hybrid/
Does a developing economy get to choose between Export-led or Import-Substitution industrialisation or are there factors that make one more successful than the other? Can a nation switch between these two without any negative consequences? These and more are what this essay seeks to answer.
During the first half of the twentieth century, after the two world wars and the long Great Depression, the European powers were economically weakened and were unable to keep tight control over their colonies. There was also a rise of anti-colonial movements against European rule in the colonies. By the end of the war, European powers moved from being top creditors to heavily indebted countries, while the US emerged as the world’s largest economy. The US also came out in support of ending colonies so that US capital would have a greater opportunity to exploit markets and resources in the newly independent countries.
After independence in the 1950s and 1960s, most of the developing countries opted for the ‘‘Import-Substitution Industrialisation’’ (ISI) policy as they realised that during the colonial period, ‘‘free trade’’ ruined their economies. Therefore, to achieve economic prosperity and improve living conditions, active state intervention was considered very crucial, and the ‘‘market’’ and promoting ‘‘exports’’ alone cannot solve the problems of mass poverty and unemployment. Hence, it was thought that ‘‘domestic industrialisation’’ is the necessary condition to modernise their economies and remove backwardness (Siddiqui, 2021a; Amsden, 1989).
However, the Protection of ‘‘infant industries’’ is nothing new and historically, the US had followed high protective policies in the 19th and early 20th century against European producers. Even during the post-war period, the US-funded research in pharmaceuticals and bioengineering, computers, semiconductors, the internet, the GPS and touch screen, were first developed through “defence research” programmes and without these important technologies, there would have been neither Silicon Valley nor giant companies like Intel, IBM, or Apple (Siddiqui, 2021b).
The idea of ‘‘Export-Oriented Industriali-sation’’ (EOI) growth had become discredited by the inter-war crisis of capitalism before it made a reappearance through neo-liberalism; with world capitalism confronting the crisis since the 1980s. In fact, the wisdom of pursuing a strategy of export-led growth has been discussed among mainstream economists for at least half a century, ever since the so-called East Asian “miracle” started being contrasted with the comparatively sluggish growth experience of countries like India and Brazil that were pursuing an “inward-looking” development strategy (World Bank, 1993). The EOI hypothesis postulates that export expansion is one of the main determinants of growth. It holds that the overall growth of countries can be generated not only by increasing the amounts of labour and capital within the economy but also by expanding exports.
The idea of ‘‘Export-Oriented Industrialisation’’ (EOI) growth had become discredited by the inter-war crisis of capitalism before it made a reappearance through neo-liberalism
The rise of East Asian economies, especially Korea, Taiwan, and Singapore is often seen as a development model for other developing countries. I will argue here that looking at such a model from a very narrow perspective as done by the mainstream economists and international financial agencies, is flawed. Their analysis does not consider the international factors and authoritarian role played by the state to discipline workers in keeping wages low and thus making it profitable for investors to invest. It has also wiped out the agricultural sector and undermined food security and rural ecology. The excessive reliance on exports also increased dependency on advanced countries. These countries initially had protected domestic markets, restrictive foreign investment codes and active state interventionist policy. The state directed the economy along with heavy doses of subsidies and deployed public funds to domestic firms that were struggling for shares in very competitive international financial markets (Siddiqui, 1995).
In Korea and Taiwan, since the mid-sixties, agriculture has been sacrificed in favour of industries and primarily focused on exports. Following such a policy not only deprived agriculture of investments but also of technology and people, who left in large numbers to work in the higher-productivity manufacturing sector. In both countries, grain prices were kept low and made agriculture the ‘‘sacrificial lamb’’ for the industry to extract surplus and facilitate the manufacturing sector. The lax environmental regulations along with low wages to reduce costs were seen as an incentive for foreign investors in Korea and Taiwan. The success of the industrialisation of these two economies is largely attributed to the rapid adoption of technologies, low direct taxation, investment in infrastructure and well-functioning markets (World Bank, 1993). It has been argued that without the direction and commitment provided by the state policies and planning conducive to industrialisation and economic development, industrialisation would not have taken place so smoothly.
In Korea and Taiwan, since the mid-sixties, agriculture has been sacrificed in favour of industries and primarily focused on exports.
In Brazil and Mexico, ISI strategy in the 1950s was launched under the direction of Raul Prebisch, who argued in favour of ‘‘import-substitution industrialisation’’ and reliance on domestic markets. This strategy sought to broaden the range of local production to include capital goods, intermediate goods and consumer durables. Brazil’s strategy of industrialisation relied more on building capital-intensive industries than Mexico in the 1950s. However, in both countries, the choice of industrial strategy involved the establishment of state enterprises in the capital and intermediate goods sectors (Saad-Filho, 2010).
Indeed, India soon after independence adopted the ISI policy and the state undertook a leading role in investing in heavy industries, infrastructure, power, and irrigation. It was hoped that there would be positive effects on productivity growth created by the domestic capital goods sector. India aimed to create economic independence which required the building of its own large-scale capital goods sector. In 1950, the Planning Commission was set up with Prime Minister Nehru as its chairperson. The planning commission spells out how the resources of the nation should be used; these were called five-year plans. The goals of the five-year plans are growth, modernisation, self-reliance, and equity. The Second Five-Year Plan (1956-61) was launched under the leadership of P.C. Mahalanobis. It was accepted that large-scale comprehensive state planning rather than the ‘‘free market’’ would be the government policy in terms of directing appropriate investment towards key industries. (Siddiqui, 2021b; also, 2021c)
There is clear evidence that the IS policy helped India build heavy industries including steel, electrical, machinery, tools and manufacturing goods.
India’s ISI policy experience was not very different from other Latin American countries. The adoption of an ISI policy dates to the early 1950s. In the period prior to independence in 1947, India’s economy was characterised as feudal and semi-industrialised, dominated by British-owned industries. There was persistent mass poverty and illiteracy, and exports consisted of primary commodities. During the post-colonial period, an industrialisation strategy was adopted to develop local capabilities in basic and heavy industries such as power generation, steel, and machinery. The scope of ISI policy covered almost all large and key industries and this was backed by high import tariffs and quantitative restrictions. There is clear evidence that the IS policy helped the country build heavy industries including steel, electrical, machinery, tools and manufacturing goods. But later, in the 1980s, this strategy experienced a crisis and the balance of payment (BoP) crisis deepened. India had to approach the IMF in 1991 for a bailout and in return India accepted dismantling ISI policy and adopting a neoliberal, i.e., pro-market, policy also known as the ‘‘Structural Adjustment Programme’’.
Export-led VS import-Substitution Industrialisation
The annual high growth rates of 7-10% during 1960-1990 in Korea, Singapore, Taiwan, and Hong Kong were seen to vindicate the mainstream prescription of export-led growth and close integration with the world economy (Balassa, 1988). While on the other hand, India, Brazil, and Mexico are seen as failures of ISI policies. Such arguments ignore the different political domestic appliances in the two different regions. I find that state autonomy played an important role in the transformation of the economy in East Asia. The pursuit of policies such as land reform, keeping wages low, raising interest rates, subsidies and protection to firms engaging in exports was key to achieving higher growth. The East Asian experience suggests that policy reform may demand autonomy from dominant as well as subordinate social groups (Jones and Sakong, 1980).
Park Chung Hee government introduced a series of economic reforms that eventually led to the swift expansion of manufacturing, now known as the East Asian miracle, giving Korea one of the fastest-growing national economies during 1960-1980.
The Korean War (1950-53) resulted in the death of more than three million people and afterwards, the country was divided into two – North and South Korea. War is the reflection of politics. Here I will focus on the economic policy of South Korea and hereafter I will call the country Korea. After the war, in the mid-1950s, Korea’s developmental strategy began through land reforms and land distribution. As a result, big landowners were eliminated. The Confucian philosophy produced a society where the state commanded the moral high ground and drew on the best talents. The Confucian belief that the state is a legitimate social institution seems to be an important factor in making state intervention a positive role in the country (Amsden, 1989).
Rapid socio-economic transformation took place under President Park Chung Hee who ruled Korea from 1961 to 1979, leading the country through a period of rapid economic development. His government introduced a series of economic reforms that eventually led to the swift expansion of manufacturing, now known as the East Asian miracle, giving the country one of the fastest-growing national economies during 1960-1980. Moreover, the Park regime’s nationalisation of all the banks in the country the harsh punishment against corruption, and the imprisonment of many prominent businessmen on the charge of accumulating illicit money from undeclared sources, helped in effecting this. Jones and Sakong (1980: 296) note that military coup in Korea rationalised economic policy independent of political elites: “Under Rhee [in the 1950s] Korea was the familiar “soft” LDC in which economic regulations were seldom enforced. Under Park, it became the prototype of the “hard” development model with the ability to impose obligations via compulsion and the ability to direct administrative discretion towards economically durable ends.”
Korea heavily relied on indirect taxes to discourage consumption and the government heavily controlled consumer prices. Strict control was placed on foreign exchange, and imports of ‘‘luxury goods’’ and imported cars and foreign holidays were banned until 1989. Korea’s Hyundai Motor Company is a major part of the country’s conglomerate ‘‘Chaebols’’ (industrial groups). The company’s growth is an interesting story. Hyundai’s main business was originally construction and began to move into the auto sector in the late 1960s. It started its first automobile with joint ventures with UK’s Ford to assemble the Cortina car, using mostly imported parts, in 1966. But by 1972 the company developed a conflict with Ford over its joint venture plans and the production of vehicles in Korea. The joint venture talks failed, and then it decided to develop its model, which was known as Pony. The government then fully supported Hyundai against Ford and extended financial and technical support to the company to become a major car manufacturer (Chang, 1983).
However, given the small size of domestic markets, it was difficult for Hyundai to increase car production and achieve economies of scale, and hence exports became its major long-term objective to become a successful vehicle producer. In 1973, Hyundai severed relations with Ford and started to produce local cars— the Pony. In 1976, Hyundai produced 10,000 cars, which was 0.5% of what Ford produced that year. Then Korea was known to produce wigs, garments, and toys, low-value manufactured goods that require little capital and cheap labour. However, in 2010, Hyundai produced more cars than Ford did. There were several reasons behind this success including visionary entrepreneurs like Chung Ju-Yung, the founder of this business, and workers who worked for long hours. Most importantly, the government banned imports of all automobiles until 1998 to create space for Hyundai and other car producers to establish, and subsidised and prioritised credits to auto-producers.
The phenomenal growth of the Korean economy began with the transition from an ISI to an EOI or export-led growth policy in the late 1980s. However, in 1965, the government adopted crucial economic policy changes including cuts in tariffs, substantial increases in real interest rates and the introduction of realistic exchange rates by making exports more profitable. The government emphasised using cheap labour by following comparative advantage in labour-intensive industries and reaping the benefits from trade. The increased interest rates helped to mobilise domestic savings then. As Chang (1993: 137) notes: “The Korean state prescription for private firms to invest in heavy and chemical industries in the 1970s was a proscription against investing in less risky and often more profitable consumer goods industries. The best example in this regard is the shipbuilding industry, which has grown literally from scratch to the world’s second biggest in less than a decade. The Korean shipbuilding industry was set up in direct response to a personal ‘‘command’’ from then-President Park Chung Hee, against the will of the Hyundai group, the boldest of the Korean business groups, … In a country like Korea where private firms depend heavily on the state-run banking sector for their investment funds, the states’ channelling of money into public enterprises can have a very visible impact on private initiative.”
Given the small size of domestic markets, it was difficult for Hyundai to increase car production and achieve economies of scale, and hence exports became its major long-term objective to become a successful vehicle producer.
In Korea, chaebol is a family-controlled handful of conglomerates that dominate the country’s economy. Among the largest chaebols are Samsung, LG, Hyundai, and SK Group. In 2020 the chaebols produced about two-thirds of Korea’s exports and attracted the greater part of the country’s foreign capital inflows. The relationship between the government and the chaebols is close cooperation. It helped the country achieve high growth and economic transformation from a primarily agrarian economy to industrial development within twenty-five years. However, this policy led to the development of monopolies and the concentration of capital in a few businesses (Amsden, 1989).
Taiwan was another successful example of economic transformation in the second half of the twentieth century. In the country, rapid growth was accompanied by the expansion of manufacturing in the late-1950s. Taiwan became known for its cheap manufactured exports produced by small enterprises bound together by flexible sub-contracting networks. The US was very keen to see the successful rapid economic growth in Taiwan due to the tension with China and its policy of containing communism. Taiwan has become an important US partner in trade and investment, education, health, semiconductor and other critical supply chains, investment screening, science and technology, education, and advancing democratic values (Siddiqui, 2016).
And in the 1980s Taiwan moved to capital-intensive and knowledge-based industries. A high rate of savings, rising labour productivity, privatisation, astute government planning, considerable foreign investment, and trade all propelled Taiwan’s rapid economic expansion. At present, Taiwan has a dynamic and export-oriented economy that ranks among the largest in Asia. Taiwan is also known for its high-tech industry, particularly in the fields of semiconductors, electronics, and information technology. Taiwan’s main exports consist of electronics, basic metals and metal products, machinery, chemicals, plastics, and rubber.
In Latin America, Brazil’s industrialisation followed the ISI strategy from 1940-1980. This process led to the establishment of many industries such as steel, automobile, and transportation. The first Vargas government (1930–1945) was significant for Brazilian industrialisation. It obtained technology from the US for the construction of the steel Industry. The ISI strategy was an attempt by less-developed countries to break out of the ‘‘international division of labour’’. It consists of establishing domestic production facilities to manufacture goods that were formerly imported. The Great Depression and World War II forced Brazil to work towards the expansion of domestic industries due to deteriorating terms of trade and declining exports, the country decided to adopt ISI policies. However, in the 1980s, the debt crisis and subsequent IMF ‘‘structural adjustment programs’’ ended the ISI policy (Siddiqui, 2022).
At present, Taiwan has a dynamic and export-oriented economy that ranks among the largest in Asia. Taiwan is also known for its high-tech industry, particularly in the fields of semiconductors, electronics, and information technology.
Brazil’s success is largely due to states’ active role in influencing and directing industrial, financial, trade policies and state provisions of finance and infrastructure including investments in power generation, roads, health, and education, and law enforcement, along with tight labour control, keeping lower wages for higher profits. As Saad-Filho (2010: 8) notes: “Economic intervention was legitimised by a nationalist ideology, according to which the ‘‘nation as a whole’’ would progress only through industrialisation. In this developmental discourse, insufficient industrialisation was associated with backwardness and the political and economic power of the traditional landed elites, which should be overcome through state action that fosters economic progress. The relationship between nationalism, statism, and developmentalism tended to become especially pronounced when private capital lacked the capacity or interest to invest in strategic areas such as oil, steel, electricity generation, or transport links. In these cases, a provision often depended on extensive state intervention, either through nationalisation of the industry or through the provision of subsidies for private capital.”
Industries grew rapidly in the 1960s-1970s in Brazil but began to face a crisis by the early 1980s due to a rise in external debts and inflation. Its manufacturing is still not fully developed and is ‘‘immature’’ in Kaldorian terms i.e., where a large supply of labour remains in low-productive sectors. Countries can only attain the “maturity phase” when productivity levels become aligned between all sectors of the economy. Brazilian firms have not been able to compete in international markets. They have not yet completed the industrialisation process, in the meantime, they adopted neoliberal policy, which has exposed them to external competition without internal defence mechanisms by following the economic opening according to recommendations of the Washington Consensus and as a result, its economy is deprived of defence mechanisms (such as tariff barriers, subsidies for exporting manufactured goods, capital controls, among others) (Siddiqui, 2015).
Brazil is one of the most unequal societies in the world in terms of access to wealth, and income. The ISI policy reinforced these inequalities because, despite the rise of manufacturing, it failed to create enough jobs, and unemployment remained high which resulted in compressing wages low due to abundant labour supply and the absence of land reforms and land ceiling, rural inequality continued unabated. Brazil’s state and bureaucrats were unable to coordinate industrial policy, essential for the success of the ISI model. Despite the success in a few crucial industries such as auto, steel, aircraft, and defence, it was less successful in other key industries such as textiles, processed food, beverages and so on. Thus, despite the initial success of the ISI model in Brazil’s state intervention policy, the institution was not ready to meet the challenges. With the structural constraints and adverse external shocks in the late 1970s and early 1980s, Brazil witnessed increasing fiscal deficits, oil shocks, and an external debt crisis worsening the balance of payment situation. The government decided in 1989 to accept the IMF’s loan in return for neoliberal economic reforms. The neoliberal reforms strategy included trade, financial and capital account liberalisation (Siddiqui, 2012b), which was justified to achieve efficiency and bring down inflation. And the public industries were privatised, and companies were persuaded to form alliances with foreign companies. The long-term goals of self-sufficiency were shunted to short-term goals of quick returns and integration with the global economy.
The difference between East Asia and Brazil as far as export promotion is concerned, is that in Brazil exports were promoted after the development of local markets, while in Korea exports were promoted from the beginning. Korea launched its auto manufacturing in the early 1970s when the government closed various small-unit industries and encouraged only four firms to produce vehicles. Effective intervention needs a higher degree of autonomy of the state from the dominant class, which allows the state to focus on key objectives rather than serving and protecting the narrow interests of small groups or short-term interests. In 1973, the government announced its prioritisation of the Heavy and Chemical Industry and its long-term industrialisation included promoting the auto vehicle sector. The aim was to achieve about 90% local materials and contents for domestic car production and move towards a major exporter by 1982 (Siddiqui, 2012a; also, 2010).
Brazil’s industrialisation followed the ISI strategy from 1940-1980. This process led to the establishment of many industries such as steel, automobile, and transportation.
The successful examples in East Asian countries show how governments established close cooperation with producers and with the economically vulnerable sections of rural society to manage crop distribution. The strategy proved to be feasible and ensured the transition from poor economies in the 1950s to middle-income status economies in the 1980s, for example, in Korea and Taiwan. In the East Asian economies, the government intervened because the Cold War created more favourable external linkages as they were seen to be more crucial allies. The Cold War offered these countries better access to Western markets and technologies than those available to any other developing country. Such experiences tell us that the right kind of government intervention could be crucial to foster industrialisation in developing countries (Siddiqui, 2021d; also, 2018a).
There were several benefits to adopting ISI as a developmental strategy for developing nations in their quest to industrialise. ISI policy aims to shield domestic industries from external competition to provide a nurturing environment for their growth and development. The primary objective of ISI, economic self-sufficiency, is of foremost importance in promoting economic stability and security. By reducing dependence on foreign goods, ISI policy reduces vulnerability to external economic shocks such as fluctuations in global prices and changes in trade restrictions. Additionally, other benefits included improving the balance of payments, enhancing economic resilience, and reducing the current account deficit. The resulting stability and security can stimulate investment, encourage economic growth, and benefit the wider society.
In India, the ISI strategy was launched soon after India gained independence. During the pre-independence, India relied on exporting primary commodities, and well-established industries such as textiles were dismantled and operated only to benefit British misrule. Through the ISI programme, the government aimed to industrialise and achieve self-sufficiency. To achieve self-sufficiency, the government invested heavily in infrastructure development such as power generation, irrigation, and industrial expansion while imposing high tariffs and quotas on foreign goods to encourage domestic production capacity. The adoption of modern technology and machinery through ISI facilitated an increase in productivity while enhancing Indian goods’ competitiveness (Siddiqui, 2018b).
The critiques argue that India’s industrialisation lacked emphasis on overseas markets which in turn meant that the goods produced would be uncompetitive in global markets. Consumers had to withstand rising prices, limited product variety, and substandard quality due to the emergence of virtual monopolies because of industrial licensing, high tariffs, and quantitative import restrictions. This was due to a lack of pressure on domestic producers to manufacture efficiently by the government and subsequent failure to increase competition within industries. This was evident in the automobile industry as there was a lack of innovation within the Indian auto industry with one or two producers monopolising the market (Siddiqui, 2019).
Moreover, by the mid-1980s, macroeconomic balances were threatened as public-sector deficits widened leading up to a balance-of-payments crisis in 1991 and foreign debt increased from US$ 20 billion in 1981 to US$ 82 billion in 1991 when the deficit reached 8.3 percent of GDP. Despite these challenges, the pro-business policies of the 1980s laid the groundwork for India’s economic growth. India fell to two drawbacks namely bureaucratic paralysis and capitalist rent-seeking. The Indian capitalist class did not support the idea of a ‘‘developmental state’’. Also, the capitalist class did not support disciplinary planning. The capitalist class reluctantly supported ISI as they had little capital to invest in various crucial areas. The Industrial Bill of 1949 allowed the state to regulate the flow of private investment in exchange for the protection of domestic industries and high returns. The Indian capitalist opposed the Bill, which was soon replaced by the industry’s self-regulation.
The successful examples in East Asian countries show how governments established close cooperation with producers and with the economically vulnerable sections of rural society to manage crop distribution.
The mainstream economists criticised ISI for the following reasons: it prevents comparative advantage and specialisation, and this leads to rent-seeking and misallocation of resources, creates inefficient industries, and undermines economies of scale. Over-expansion of public sector employment raises fiscal deficits and public spending, increases dependency on government funds and support, and transfers resources from agriculture to the industrial sector. Other critiques came from dependency theorists, who criticised ISI that it increases rather than decreases the degree of economic dependence because of greater financial, technological and market reliance on foreign companies. And it creates new patterns of inequality by promoting further concentration of incomes into skilled workers and bureaucrats.
The critiques argue that India’s industrialisation lacked emphasis on overseas markets which in turn meant that the goods produced would be uncompetitive in global markets.
Moreover, with the collapse of the Soviet Union in 1990 and the rise of a unipolar world led by the US, most countries joined globalisation and adopted trade liberalisation as recommended by the US and international financial institutions. As a result, global trade and service increased sharply as indicated in Figure 1 and Figure 2. In 2021, the global trade value of goods exported throughout the world amounted to approximately 22.3 trillion US dollars at current prices. This figure stood at around 6.45 trillion US dollars in 2000. The rise in the value of goods exported around the world reflects developments in international trade, globalisation, and advances in technology.
Conclusion
We must distinguish between two cases among countries such as China, Korea and Taiwan pursuing an EOI strategy, where it has earned large current account surpluses and thereby built up their foreign exchange reserves. Others, like India, Brazil, and Mexico, had run current account deficits to address their balance of payments crisis through private financial inflows, and even when they built up foreign exchange reserves these were financed through borrowings, including from private financiers. In such cases if there was a widening of the current account deficit because of some exogenous reason, whether a pandemic-induced reduction in tourist earnings (as in the case of Sri Lanka), a Ukraine War-induced increase in import prices, or a world recession-induced fall in export earnings, its impact on the economy could expand because of the behaviour of private capital and banks. With the widening of the current account, the deficit needs more private financial inflow, but the widening could cause a huge financial outflow.
The rise in the value of goods exported around the world reflects developments in international trade, globalisation, and advances in technology.
The ISI and EOI generate distinct capital accumulation strategies. Under the ISI model, the capitalists were under little competitive pressure to modernise and technologically upgrade their operations. While with the EOI policy, the firms must consistently adapt to vigorous competition. Korea made a successful transition from ISI to EOI because the unique international environment i.e., Cold War and global tension in the Korean peninsula favoured Korea and the country assumed the role of a front-line nation in the Cold War. Japanese firms also supported industries in Korea to access US markets. Japanese trading companies provided their marketing and sales contacts to promote Korean goods in the US markets (Siddiqui, 2009; Johnson, 1982). However, in return for US markets under US pressures Korean government allowed imports of agricultural commodities from the US as a condition for keeping US markets open for Korean manufactured goods.
The contrast between Korea’s success and India’s failure was striking. Both countries used the protection of domestic manufacturing, yet the orientation of India’s policies was inward-looking and anti-competitive, while that of Korea initially followed ISI policy, but local competition and government pressure to perform were much more visible, while in India, the government protected local car producer, Tata, but no pressure was put to them regarding their performance and innovation. Domestic market competition was encouraged in the Indian auto sector until 1991, therefore, rather than competition, monopoly emerged.
The study finds that successful industrialisation requires bureaucratic commitment and coordination, which involves building deep ties with the industrial sector. Mainstream economists and international financial institutions are mostly concerned with competition, efficiency, and free trade. However, they disregard other factors such as the international environment, institutions, history, culture, and the role of the state. The success in East Asian countries proves that these factors appear to have played a crucial role in the economic transition.
Dr. Kalim Siddiqui is an economist specialising in International Political Economy, Development Economics, International Trade, and International Economics. His work, which combines elements of international political economy and development economics, economic policy, economic history and international trade, often challenges prevailing orthodoxy about which policies promote overall development in less-developed countries. Kalim teaches international economics at the Department of Accounting, Finance and Economics, University of Huddersfield, UK. He has taught economics since 1989 at various universities in Norway and the UK.
References
Amsden, A. (1989). Asia’s Next Giant, New York: Oxford University Press.
Balassa, B. (1988). “The Lessons of East Asian Development: An overview”, Economic Development and Cultural Change 36 (3).
Chang, Ha-Joon (1993). “The Political Economy of Industrial Policy in Korea”, Cambridge Journal of Economics 17:131-157.
Jones, L. & Sakong, I. (1980). Government, Business, and Entrepreneurship in Economic Development: The Korean Case, Harvard University Press.
Johnson, C. (1982). MITI and the Japanese Miracle, Stanford University Press.
Saad-Filho, A. (2010). “Neoliberalism, Democracy, and the Development Policy in Brazil”, Development and Society 39 (1): 1-28.
Siddiqui, K. (2022). “Comparing the East Asian and Latin American Countries: The Role of Agricultural Reforms in the Economic Transformation” The World Financial Review, July-August, p.7-18.
Siddiqui, K. (2021a). “The Import Substitution Policy in the Post-Colonial Countries” The World Financial Review, Nov-Dec, p.76-84.
Siddiqui, K. (2021b). “The Political Economy of Industrial Policy” The World Financial Review, May-June, p.58-66.
Siddiqui, K. (2021c). “Can the 21st Century be an Asian Century?” Asian Profile, 49(1):1-19.
Siddiqui, K. (2021d). “The Importance of Industrialisation in Developing Countries”, The World Financial Review, Jan-Feb, 60-73.
Siddiqui, K. (2019). “Economic Transformation of China and India: A Comparative Political Economy Perspective” Asian Profile, 47(3): 243-259.
Siddiqui, K. (2018a). “David Ricardo’s Comparative Advantage and Developing Countries: Myth and Reality” International Critical Thought, 8(3): 1-28.
Siddiqui, K. (2018b). “The Political Economy of India’s Economic Changes since the Last Century” Argumenta Oeconomica Cracoviensia, 19: 103-132.
Siddiqui, K. (2016). “Will the Growth of the BRICs Cause a Shift in the Global Balance of Economic Power in the 21st Century?” International Journal of Political Economy 45(4): 315-338.
Siddiqui, K. (2015a). “Challenges for Industrialisation in India: State versus Market Policies” Research in World Economy 6(2): 85-98.
Siddiqui, K. (2015b). “Reflections on Chinese Political Economy”, Turkish Economic Review 2(2): 49-87.
Siddiqui, K. (2012a). “Malaysia’s Socio-Economic Transformation in Historical Perspective” International Journal of Business and General Management 1(2):1-50.
Siddiqui, K. (2012b). “Developing Countries’ Experience with Neoliberalism and Globalisation”, Research in Applied Economics 4(4): 12-37, December.
Siddiqui, K. (2010). “The Political Economy of Development in Singapore”, Research in Applied Economics 2(2):1-31.
Siddiqui, K. (2009). “The Political Economy of Growth in China and India”, Journal of Asian Public Policy 1(2): 17-35.
Siddiqui, K. (1995). “Role of the State in South-East Asia”, The Nation, May 27.
World Bank (1993). The East Asian Miracle, Washington DC: The World Bank.
Are you ready to embark on a transformative journey towards everlasting marital bliss? If you’ve been searching for a loving partner, your dreams of finding the perfect life companion could soon become a reality when you meet Ukrainian women. Ukraine, with its captivating beauty, rich culture, and warm-hearted women, offers a unique opportunity for individuals seeking love and companionship.
Exploring the Charm of Ukrainian Women
Ukraine, often referred to as the “Land of Love,” is renowned for housing some of the most genuine and kind-hearted women in the world. Here, you can find your ideal partner who will not only fill your life with happiness and love but also introduce you to a world of cultural richness that’s unparalleled.
Why Choose Ukrainian Women for Marriage:
Cultural Richness: Ukrainian women are celebrated for their deep-rooted cultural values and traditions. When you marry a Ukrainian woman, you’re not just gaining a life partner but also immersing yourself in a beautiful cultural experience. Ukraine’s rich history and traditions date back centuries, and your journey with a Ukrainian partner will be a fascinating exploration of this heritage. From the colorful folk festivals to the traditional cuisine, every aspect of Ukraine’s culture is a treasure waiting to be discovered.
Beauty Beyond Compare: Ukrainian women are renowned worldwide for their breathtaking beauty. With their fair skin, expressive eyes, and captivating smiles, they are the epitome of grace and charm. The beauty of Ukrainian women is often compared to that of fairytale princesses, making your everyday life feel like a storybook romance. Whether you’re strolling through the historical streets of Lviv or admiring the scenic beauty of the Carpathian Mountains, you’ll be captivated by the stunning landscapes and the natural beauty of the people.
Family-Oriented: Family is at the heart of Ukrainian culture. Women in Ukraine prioritize their families above all else. When you marry a Ukrainian woman, you’re gaining a partner who will cherish your family just as much. The commitment to family is deeply ingrained in their values, ensuring a strong and harmonious family life. From celebrating traditional holidays together to building lasting memories with your children, you’ll experience the true meaning of a loving and devoted family.
In the realm of Ukraine women for marriage, you’ll discover a unique blend of cultural richness, unmatched beauty, and unwavering family values. This presents an exceptional opportunity for a harmonious and fulfilling partnership that transcends borders and cultures.
Meeting Your Ideal Ukrainian Partner
Meeting a Ukrainian partner is a significant step towards a lifelong journey filled with love, laughter, and cherished memories. With a strong commitment to marriage and a warm heart, your Ukrainian partner will be your greatest supporter and companion. There are several avenues to explore when it comes to meeting Ukraine women:
Online Dating: Explore reputable online dating platforms to connect with Ukrainian women. Be sure to choose a trustworthy website like UADreams for a safe and successful experience. Online dating provides a convenient and accessible way to start your search for the perfect Ukrainian partner. You can take your time to get to know each other and establish a deep connection before meeting in person.
Social Events: Another way to meet potential partners is by attending local Ukrainian cultural events, gatherings, and festivals. Engaging in their culture is a fantastic way to connect and understand the depth of their traditions and values. Whether it’s participating in traditional dance festivals or savoring delicious Ukrainian dishes at a local gathering, you’ll find plenty of opportunities to bond with potential partners.
Dating Agencies: For a more personalized and guided approach, utilize the services of dating agencies that specialize in international matchmaking. Their expertise can make the process smoother and more enjoyable, ensuring that you find a compatible partner who shares your values and interests. These agencies often offer additional services such as translation, travel assistance, and cultural guidance, making your journey to love even more seamless.
Finding your ideal Ukrainian partner may very well be the key to unlocking a lifetime of happiness and fulfillment. Ukraine offers not only enchanting landscapes but also the opportunity to meet someone who will make your life complete. Don’t wait any longer; start your journey towards marriage bliss by meeting Ukraine women today.
Remember, happiness knows no boundaries, and Ukraine is a land of love waiting to be explored. Make the first step towards a beautiful future with your ideal Ukrainian partner. Your love story begins here, and the possibilities are endless. Embrace this exciting journey towards a lifetime of love and companionship with a Ukrainian partner by your side. Your path to marital bliss is illuminated by the rich tapestry of Ukrainian culture and the boundless beauty of its people, ensuring a love story that will be written in the stars.
Within the intricate realm of military law, legal matters often diverge significantly from civilian counterparts. Whether you’re an active-duty service member or a veteran, there may arise a need for the services of military lawyers, an expert in the intricacies of military law. These legal professionals handle a broad spectrum of issues, from court-martials to veterans’ benefits.
Choosing the right military lawyer is paramount to ensuring your rights and interests are safeguarded effectively.
Pinpoint Your Unique Legal Needs
Before commencing the quest for a military lawyer, it’s crucial to have a clear understanding of your particular legal needs. The domain of military law encompasses a wide array of issues, including administrative actions, military justice, discharge upgrades, veterans’ benefits and more. Defining your precise legal requirement will serve as a compass, enabling you to streamline your search for a lawyer with expertise.
Solicit Trustworthy Recommendations
One of the most reliable avenues to finding a suitable military lawyer is by seeking recommendations from credible sources. Initiate your quest by consulting fellow service members, veterans, or reputable military support organizations. They may possess firsthand experience or have access to individuals who have engaged the services of a military lawyer, offering invaluable insights and recommendations.
Explore Military Legal Assistance Offices
Numerous branches of the military house legal assistance offices that provide free legal advice and services to service members and their families. These offices can serve as an excellent starting point for legal matters that do not necessitate extensive representation. While they may not handle intricate cases, they can offer guidance and, if required, furnish referrals to qualified military lawyers.
Harness Online Directories
Several online directories and databases are dedicated to aiding individuals in their quest to locate lawyers with a specialization in military law. Notable websites such as the American Bar Association (ABA) and the National Institute of Military Justice (NIMJ) feature directories of military lawyers, facilitating a more streamlined search based on geographical location and specialization.
Scrutinize Qualifications and Credentials
Having identified potential military lawyers, the next imperative step is to validate their qualifications and credentials. Ensure that the lawyers are duly licensed to practice law in the relevant jurisdiction and are in good standing with the bar association. Additionally, consider their breadth of experience and specialization in military law, along with any pertinent certifications or affiliations with professional organizations.
Arrange Preliminary Consultations
Establish contact with the military lawyers on your shortlist and schedule initial consultations. Many lawyers offer complimentary or reasonably priced consultations to discuss your case and evaluate whether they are well-equipped to provide the representation you require. During these consultations, delve into their experience handling cases similar to yours, their approach to military legal matters and their fee structure.
Gauge Communication Skills
The efficacy of communication holds paramount importance in legal matters and your lawyer should possess the capacity to elucidate intricate legal concepts in an accessible manner. During the consultation, pay close attention to the lawyer’s proficiency in communication and their attentiveness to your concerns. A lawyer who can articulate clearly and empathetically is more likely to function as an effective advocate for your case.
Delve into Fee Structure and Costs
The pursuit of legal representation typically entails associated costs. Therefore, it is imperative to engage in a transparent dialogue regarding fees and costs with prospective military lawyers. Inquire about their fee framework, whether they bill on an hourly basis or offer fixed fees for specific services. Additionally, seek clarification on any supplementary costs, such as court fees or administrative expenses, that may be implicated in your case.
Examine Client Feedback and References
To gain further insight into a military lawyer’s standing and track record, request references from former clients or peruse online reviews and testimonials. The experiences of others who have collaborated with the lawyer can furnish valuable insights into their professionalism, effectiveness and client satisfaction.
Trust Your Instincts
Ultimately, the selection of the right military lawyer represents a significant decision and your instincts should be integral to this process. Place confidence in your intuition, gauging whether you feel at ease collaborating with the lawyer and whether you believe they are genuinely invested in safeguarding your best interests. The attorney-client relationship thrives on trust and mutual respect, making it an indispensable component of the selection process.
Conclusion
Embarking on the search for an appropriate military lawyer is a pivotal step in navigating the complexities of military law. Whether you confront a court-martial, seek veterans’ benefits, or contend with any other military-related legal issue, adhering to these steps will assist you in identifying and retaining a qualified lawyer who can offer the guidance and representation you require.
Keep in mind that the selection of the right military lawyer can exert a profound influence on the outcome of your case, ensuring the protection of your rights and interests.
Forex trading is a dynamic and potentially lucrative endeavor but often requires substantial capital and risk management skills. For those who are passionate about trading but lack the necessary funds, there are funding programs available that can provide a pathway into the world of Forex. These funding programs offer traders the opportunity to access capital to trade with, often in exchange for a share of the profits generated from their trades.
One of the key advantages of these funding programs is that they can level the playing field, allowing traders with talent and skill to access the financial resources they need to trade more prominent positions and earn more significant profits. This funding for forex traders typically comes with specific rules and requirements that traders must adhere to, such as achieving specific profit targets or following risk management guidelines. In essence, funding for Forex traders can be a stepping stone for aspiring traders to turn their passion into a full-time career, providing them with the capital they need to take their trading to the next level.
What Exactly is Forex Trading?
Forex trading, also known as foreign exchange trading, involves buying and selling currencies on the market. Traders aim to profit from fluctuations in currency values by speculating on whether a currency will strengthen or weaken against another. With a daily trading volume exceeding $6 trillion, Forex trading presents immense potential for traders and affiliate marketers.
So What Are These Forex Trading Affiliate Programs?
Forex trading affiliate programs entail partnerships between brokers and individuals who promote the services offered by these brokers. As an affiliate, your role revolves around driving traffic to the broker’s website and encouraging users to register and engage in Forex trading.
How Do These Affiliate Programs Operate?
Upon joining a Forex trading affiliate program, you will receive a referral link or banner to promote through channels such as your website, blog, social media accounts, or email marketing campaigns. You’ll receive a commission when someone clicks on your link and signs up with the broker.
Forex trading affiliate programs generally have two types of commission structures:
Cost Per Acquisition (CPA): In this model, you earn a fixed commission for each referred trader who meets criteria, such as making a deposit or completing several trades. The commission amount varies depending on the broker and the trading activity of the referred clients.
Revenue Sharing: This model allows you to earn a percentage of the revenue from traders you’ve referred. The commission percentage usually falls between 25% and 50%, depending on both the broker and the trading activity of your referred clients.
Benefits of Participating in Trading Affiliate Programs
Unlocking the potential for passive income and financial rewards, participating in Forex trading affiliate programs offers several advantages:
Passive income: You can generate income by joining a Forex trading affiliate program. Once you’ve established your channels—like websites or social media accounts—you can continue earning commissions without engaging in Forex trading.
No financial risk: Unlike trading, where there is always a risk of losing money, affiliate marketing provides an opportunity to earn income without any financial risks. You don’t need to invest money or engage in Forex trades yourself.
Your earnings depend entirely on the trading activity of the clients you refer.
A wide range of materials is available for Forex brokers to provide their affiliates. These materials, such as banners, widgets, landing pages, and educational content, are designed to engage your audience and increase conversions.
The potential for earnings exists in trading affiliate programs due to the vast size of the market and the possibility of significant trading volumes. The more active traders you refer, the higher your commissions can be.
Tips for Succeeding in Trading Affiliate Marketing
To thrive in the realm of trading affiliate marketing, consider these strategic tips for success:
Choose brokers: Promoting brokers with excellent reputations and proper regulation is crucial. This helps establish trust with your audience and improves your chances of attracting and retaining traders.
Target the audience: To maximize conversions, it’s vital to understand your target audience and customize your marketing efforts accordingly. Consider location, trading experience, and financial goals when creating marketing campaigns.
Offer content: One effective way to attract potential traders is by providing valuable content that educates and informs them. By sharing your knowledge and insights about Forex trading, you can position yourself as a trusted expert in the industry and cultivate a following.
Use marketing channels: To reach an audience, leverage multiple marketing channels such as your website, blog, social media profiles, and email marketing campaigns. Each channel serves a purpose and possesses its unique strengths.
Conclusion
Participating in a Forex trading affiliate program can provide a means of generating income. By endorsing brokers and attracting active traders, you can enjoy a consistent stream of commissions without actively engaging in trading activities yourself. However, like any endeavor to achieve success, affiliate marketing necessitates commitment, work, and a strategic approach.
As the embers of technological evolution continue to ignite innovations across industries, a distinctive amalgamation has unfolded, intertwining the realms of cryptocurrency and iGaming. The global iGaming industry, characterized by its adoption of avant-garde technologies, has warmly embraced the myriad potentials offered by cryptocurrencies, birthing a synergy that transcends borders and traditional financial ecosystems. We have seen the emergency and incredible growth of crypto casinos and casino options like Limitless casino offering the option to bet using crypto. Something that is only set to continue and grow in the near future.
Seamless and Inclusive Financial Transactions
Cryptocurrencies, led by the ubiquitous Bitcoin, have offered a semblance of financial inclusivity and seamless transactional experiences to iGaming patrons on sports and casinos. As decentralized digital currencies obviate the need for traditional banking intermediaries, players across geographies find themselves welcomed into the iGaming universe, unhindered by regional banking constraints or cumbersome transaction processes. The ethos of cryptocurrency dovetails with the borderless nature of the digital world, thereby fostering a more inclusive and accessible iGaming ecosystem.
Ushering a Paradigm of Anonymity and Privacy
Privacy and security of financial transactions have perennially been pivotal concerns for online gamers. Cryptocurrency, with its inherent characteristics of anonymity and cryptographic security, beckons a paradigm where users can engage in iGaming activities with an enhanced layer of privacy. The decentralized ledger (blockchain) technology not only secures transactions but also shields users’ identities, thereby bolstering the confidentiality and security of the online gaming experience.
Decentralization and Regulatory Frameworks
While cryptocurrency nudges the iGaming universe towards a decentralized financial framework, it also navigates through a complex matrix of regulatory landscapes. The autonomy from traditional financial institutions facilitates smoother transactions but also engenders challenges related to compliance with varied global regulatory norms. For the iGaming industry, this presents an intricate dance – ensuring that the decentralized ethos of cryptocurrency is upheld while also adhering to legal and ethical mandates across jurisdictions.
Provably Fair Gaming
Blockchain, the bedrock of cryptocurrency, introduces the concept of “Provably Fair Gaming” into the iGaming arena. The technology enables the verification of each transaction, bet, and outcome to ensure it has not been manipulated. This transparency and verifiability instill a greater sense of fairness and trust among players, enhancing the credibility and ethical stature of iGaming platforms.
Tokenization and In-Game Assets
Cryptocurrency introduces a dynamic layer to in-game assets and player rewards through tokenization. Players can earn tokens or crypto assets that have tangible value within and potentially beyond the gaming platform. This could not only revolutionize in-game economies but also foster a new dimension of player engagement and reward systems, where virtual earnings permeate into real-world value.
Challenges and the Road Ahead
Despite its multifaceted potentials, the integration of cryptocurrency into iGaming is not devoid of challenges. Price volatilities of cryptocurrencies, security concerns, and the evolving regulatory frameworks pose pertinent hurdles that need to be astutely navigated. Moreover, fostering a robust understanding of cryptocurrency among players, ensuring responsible gaming, and developing mechanisms to mitigate the risks of gambling addictions in a more anonymous space are critical areas that warrant meticulous attention.
In Conclusion
The confluence of cryptocurrency and iGaming symbolizes a progressive stride towards a future where technology amplifies accessibility, privacy, and trust in the digital entertainment domain. The impacts of this synergy are manifold, echoing through the facets of transactional ease, inclusivity, security, and innovative player engagement models.
As the iGaming industry continues to burgeon, its amalgamation with cryptocurrency will undoubtedly sculpt new paradigms, introducing novel experiences, opportunities, and challenges into the dynamic world of online gaming. The voyage ahead promises exhilaration, innovation, and a continual evolution towards a more secure, inclusive, and ethically robust digital gaming universe.
Are you looking to increase your Instagram followers and boost your online presence? If so, it’s about time you discover where to buy active Instagram followers that are real and genuine.
The truth is, when it comes to buying Instagram followers, there are many options and solutions to choose from. The important thing is to go with one that is trusted and can help enhance your visibility and social proof, but it’s important to choose reputable websites that provide high-quality followers. Real user discussions, likethis reddit thread, can also help you compare providers before making a decision.
All of that and more will be highlighted in the article content below.
Key Takeaways
Buying active Instagram followers from reputable websites can help boost your online presence.
Twicsy, Buzzoid, Rushmax, and TokMatik are some of the top websites to buy Instagram followers.
Twicsy offers high-quality followers from your target audience.
Buzzoid provides organic followers and excellent customer support.
Rushmax offers high-quality followers at fair prices.
TokMatik is known for its affordable rates.
Remember to focus on creating high-quality content and engaging with your audience organically alongside buying followers for sustainable growth.
Top Websites to Buy Active Instagram Followers
If you’re considering buying active Instagram followers, here are some of the top websites you can explore to purchase genuine followers and increase your follower count.
Twicsy: Twicsy is an excellent option if you want high-quality followers who come from your target audience. This website focuses on organic growth, ensuring that the followers you gain are real and engaged. With Twicsy, you can effectively boost your online presence and gain social proof. They offer various packages to suit different needs and budgets.
Famoid: Famoid is another reputable website known for its stellar customer support and commitment to delivering organic followers. They understand the importance of genuine engagement and provide followers who are interested in your content. Whether you’re an influencer, business owner, or content creator, Famoid offers packages that can help you increase your Instagram followers and reach a wider audience.
Rushmax: If you’re looking for high-quality followers at fair prices, Rushmax is a great option. They prioritize delivering real and engaged followers who can contribute to the growth of your Instagram account. Their packages are designed to provide a boost in visibility and social proof, ensuring that your account stands out from the crowd.
TokMatik: TokMatik is a website that offers affordable rates for purchasing Instagram followers. They provide a range of packages to suit different follower count goals, making it accessible for individuals and businesses alike. TokMatik’s followers are genuine and can help you quickly increase your Instagram followers. Their user-friendly platform makes the process simple and convenient.
The Importance of Buying Instagram Followers and Organic Growth
While buying Instagram followers can certainly boost your visibility and social proof, it’s essential to remember the role of organic growth. It’s crucial to focus on creating high-quality content and engaging with your audience genuinely. By combining purchased followers with organic growth strategies, you can ensure a well-rounded approach to growing your Instagram account.
Building an engaged community requires not only numbers but also authentic interactions. Buying followers can provide an initial boost, but it’s important to continue producing valuable content that resonates with your target audience. Engaging with your followers through comments, likes, and direct messages can help foster a strong connection and build brand loyalty.
In conclusion, when it comes to increasing your Instagram followers, these top websites provide reputable options for purchasing genuine followers. Remember to strike a balance between buying followers and fostering organic growth for long-term success. By combining both strategies, you can enhance your online presence, gain social proof, and build a thriving community of followers on Instagram.
The Role of Buying Instagram Followers and Organic Growth
While there are many ways to spend money and boost your Instagram followers can help boost your visibility and social proof, it’s crucial to focus on creating high-quality content and engaging with your audience organically. The key to a successful Instagram presence lies in striking a balance between purchased followers and genuine organic growth.
When you buy Instagram followers, you gain immediate visibility and increase the number of followers on your account. This can create a positive image for your brand, attract more users to follow you, and strengthen your social proof. However, it’s important to remember that having a large number of followers is just one aspect of a successful Instagram strategy.
Alongside buying followers, you should invest time and effort into producing compelling content that resonates with your target audience. Share visually stunning images, informative videos, and engaging captions that captivate your followers’ attention. By consistently producing high-quality content, you can establish a strong brand identity and foster a loyal community of followers.
Equally important is engaging with your audience organically. Respond to comments, ask questions, and show genuine interest in your followers’ feedback. This two-way interaction not only builds trust, but it also encourages greater engagement and promotes authentic growth.
Remember, the goal is not just to have a high follower count, but to cultivate an active and engaged community that genuinely connects with your brand.
Buying Instagram Followers Summary
With so many different ways to grow your following on social media, it’s always important to consider all options. This is especially true for businesses and brands that might not have the time to focus on organic growth methods and putting out new content on a daily basis.
This is why the concept of purchasing followers and using paid advertising is something that works for many individuals, brands and businesses of all sizes.
If this is a method you are considering, be sure to spend some time on each of the listed websites and services above. Each are unique in their own way and are continually listed amongst the most popular and trusted social media services online.
Bitcoin has had a remarkable turnover since its popularity in digital trading. Market capitalization-wise, Bitcoin is currently the most lucrative digital currency. Tremendous growth is associated with trading in Bitcoin across Blockchain, and mastering this can only lead to incredible profits.
Novin Academy is a leading online platform offering specialized courses to become a global cryptocurrency expert. They provide training through industry experts in crypto trading to facilitate microscanning in a digital sphere. Utilizing advanced algorithms like Fibonacci, they help individuals understand details like retracements, stop loss, etc.
They offer a Bitcoin trading course that concentrates on different techniques and in-depth strategies to run profit-generating Bitcoin trades online. We have created a comprehensive article below to gain further insight into what they offer.
In-Depth Crypto Currency Trading Course Through Novin Academy
It offers an introduction to Cryptocurrency course, which covers the following areas.
Bars with Support and Resistance Levels
Within this area, locating reasonable prices and timed transactions can be done through bars. Reversal Bar, Exhaustion Bar, Two-Bar Reversal, and many other patterns are covered in this section. The moving average (MA) of the price is also studied here.
By taking out a new value at regular intervals as a reference, this MA can be calculated for Bitcoin trading. The investors can choose their time limit from 20 minutes to 30 weeks. Day traders and long-term investors can learn from this technique and use it hassle-free.
Trading signals are also generated within this when the bitcoin prices rise over their MAs.
Stochastic Oscillator
This is an indicator of market movement that compares an asset’s current closing cost to its value over a period of time.
Mastering this and adjusting the period of an asset’s price evaluation can reduce the analyzer’s vulnerability to market fluctuations. It varies, and traders can learn how to regulate to minimize the risk of loss.
Divergence and Convergence Trends
Another aspect of Bitcoin trading included in this course is divergence and convergence, which are factors that function against one another. Investors can get in-depth knowledge about how these elaborate the linear connection between investment prices and trends in the cryptocurrency market.
When an asset’s indicator and price move in the opposite direction, it points towards divergence. In contrast, convergence represents both moving towards each other. Traders can gain an understanding that divergence is more appropriate, as it gives them an entry point into Bitcoin trading.
Geometric Fractal Indicator
Common price patterns are complex to understand if not indicated carefully. Identifying price turning moments can be predicted using this indicator. In bull and bear markets, regarding Bitcoin, these are effective tools.
In the bull market, the asset price rises as this market holds. The bear market may indicate that the asset price may drop. In this section, trader experts also assist investors in understanding when they can enter the market before an indicator forms.
Scalp Trading
Turning profit through Bitcoin resale is another technique Novin Academy’s Crypto Trading courses teach. This makes use of market price fluctuations. With minor profit, day traders can benefit from this approach.
Through live feed and direct access, traders can resale their Bitcoin assets when they observe the slightest change in the current values. This academy helps establish successful stock scalpers through this strategy.
Crypto Cycle
Cyclic patterns are also a part of this course, and they help individuals understand price variations that occur at regular intervals. This elaborates that the average cycle duration exceeds the seasonal average length.
With case studies regarding risk management, Fibonacci implementation, and Tech Analysis, Novin Academy works to generate market cryptocurrency experts.
Concluding Note
Cryptocurrency is the most prevalent form of digital trading asset. Bitcoin takes the front seat as the digital landscape’s leading trading currency. Novin Academy helps you learn all the minor and major details, along with tips and strategies to master crypto trading.
In the ever-evolving landscape of business, where competition is fierce and consumer choices are abundant, standing out has become more crucial than ever. One powerful way to make a lasting impression is through the art of personalization. When it comes to packaging and delivering your products, custom mailing bags can be the game-changer your business needs. Let’s delve into the why and how of incorporating personalized mailing bags into your brand strategy.
Why Personalization Matters in Business
Creating Memorable Experiences
In a world saturated with products and advertisements, creating a memorable experience for your customers is paramount. Personalization allows you to go beyond the transactional aspect of a purchase and forge a connection with your audience. Custom mailing bags with your brand’s unique touch can turn a simple delivery into an experience that resonates with your customers.
Building Brand Loyalty
Personalization plays a pivotal role in building brand loyalty. When customers feel that a brand understands and values them, they are more likely to become repeat buyers. Customized packaging, such as personalized mailing bags, adds a layer of exclusivity that fosters a sense of belonging among your customers. This emotional connection goes a long way in ensuring customer loyalty.
Differentiation in a Crowded Market
In a crowded market, differentiation is key. Custom mailing bags give you the opportunity to stand out from the competition. Your packaging becomes an extension of your brand identity, making it easier for customers to recognize and remember your products. This distinctiveness can be a deciding factor for consumers faced with a plethora of choices.
The Impact of Custom Mailing Bags
Brand Consistency
Custom mailing bags provide an excellent avenue to maintain brand consistency. From colours and logos to taglines, every element on the bag can be customized to align with your brand’s visual identity. Consistency across all touchpoints, including packaging, reinforces your brand image and makes it more memorable.
Tailored to Your Audience
Understanding your target audience is fundamental to effective marketing. Custom mailing bags allow you to tailor your packaging to resonate with the preferences and sensibilities of your specific demographic. Whether it’s a playful design for a younger audience or a more sophisticated look for a mature clientele, personalized bags enable you to speak directly to your customers.
Shareability and Social Media Impact
In the age of social media, every package delivered is an opportunity for free marketing. A unique and personalized mailing bag is likely to find its way onto your customers’ social media feeds, creating organic, user-generated content. This not only extends the reach of your brand but also acts as a form of endorsement from satisfied customers.
How to Implement Custom Mailing Bags in Your Business
Designing a Distinctive Look
Collaborate with a graphic designer to create a visually appealing design that encapsulates your brand ethos. Incorporate your logo, brand colours, and any other distinctive elements that represent your business.
Choosing Quality Materials
The tactile experience of opening a package matters. Opt for high-quality materials that not only protect your products but also enhance the overall unboxing experience. The feel and durability of your custom mailing bags can leave a lasting impression on your customers.
Sustainability and Eco-Friendly Options
Incorporate eco-friendly materials into your custom mailing bags to align with the growing consumer preference for sustainable practices. This not only demonstrates your commitment to the environment but also resonates with environmentally conscious consumers.
In the competitive landscape of modern business, personalization is the secret sauce that can elevate your brand above the rest. Custom mailing bags are not just packaging; they are a canvas for expressing your brand’s identity and values. By investing in the art of personalization, you’re not only delivering products but crafting experiences that linger in the minds and hearts of your customers. So, embark on the journey of personalization and watch your brand leave an indelible mark on the world.
Given the clear benefits of a diverse boardroom, forward-thinking companies must expand their gender equality commitments beyond hitting recruitment quotas and salary enhancements. By offering sustained career support, compensation transparency, and creative flexible working packages, business leaders can initiate effective and valuable strides towards an equal workplace.
In light of a recent study by Young Women’s Trust revealing that 31% of HR decision makers agree that it is harder for women to progress in their organisation than men, it is safe to say that the pursuit of gender equality in the workplace needs to remain an ongoing priority for businesses, one that extends far beyond their recruitment practices or pay.
The lack of progression available for female employees, highlighted by the Young Women’s Trust, is due to an ongoing intrinsic bias that begins from the outset of a woman’s career and persists throughout her professional journey. While re-structuring salaries and filling quotas at the hiring level may help to address the issue, commitments such as the sustained support of female employees throughout their careers; transparency and frank discussions regarding compensation; and dedication to flexible workplace packages, can create genuine change.
Despite The Equal Pay Act being introduced 53 years ago, PwC research recently revealed that 46% of businesses reported that their pay gaps remained unchanged or even grew in the last year.
With women far less likely to be promoted to the higher ranks, forward-thinking business leaders and HR teams need to consistently re-evaluate how they can bring more access and opportunities to their employees, from progression frameworks to ongoing diversity tracking. When companies perceive their diversity and inclusion (D&I) initiatives as having an endpoint, they overlook the abundant opportunities for innovation and fresh perspectives that arise from genuinely diverse and fairly supported teams.
So, what steps can companies take to improve access to senior roles?
Striving beyond quotas
While some companies rely on ‘‘tick boxes’’ to measure their commitment to change, believing that their hard work is over when a diversity quota is met, it’s important to recognise that recruitment is merely the beginning of the journey towards workplace equality.
While 38% of respondents in Major, Lindsey & Africa´s (MLA) recent ACC Law Department Management Benchmarking Report said there is a formal strategy in place at their companies to improve diversity, companies must avoid simply hiring or promoting women as part of a tokenistic diversity push. Such practices can harm efforts to improve workplace gender equality.
Instead of simply tracking diversity metrics, companies should promote comprehensive frameworks for career progressions, referrals, and high-position selections. This extends beyond the initial phases of recruitment and means offering fair treatment and support to women at every touchpoint throughout their careers, from hiring to high-level promotion.
Creating an environment where fairness and inclusivity are consistently upheld is essential in fostering a truly inclusive workplace, where every employee has equal opportunities to thrive and contribute to their organisation’s success.
Offering salary transparency
Much of the conversation around gender equality in the workplace has tended to focus on the thorny issue of pay. Pay transparency is not only viewed as a way to build trust with employees and boost company engagement, but it is also crucial for closing the gender pay gap and advancing equality. By having to release detailed information regarding their compensation structures, companies are far more likely to reevaluate their current salaries and compensate their employees fairly.
Despite The Equal Pay Act being introduced 53 years ago, PwC research recently revealed that 46% of businesses reported that their pay gaps remained unchanged or even grew in the last year. With The Council of the European Union recently approving a pay transparency directive, organisations must focus on adhering to these new regulations, or risk unveiling their shortcomings.
Not only does pay transparency increase company accountability, but it can also directly empower female employees. Frank discussions about compensation can help to both attract and retain female talent by increasing perceptions of trust, fairness, and job satisfaction. More directly, it can open new avenues for female employees to advocate for themselves when it comes to pay negotiations, lessening the likelihood of implicit bias.
However, while the introduction of greater transparency around pay is vital, companies need to consider far more than their payment structures when striving for gender equality.
Becoming more flexible with hybrid working
Flexible working has huge potential to level the playing field for women. After all, a significant factor contributing to the underrepresentation of women in senior positions is the prevailing notion that caregiving responsibilities, particularly for children, primarily fall on women. For as long as childcare is still perceived to be a woman’s role, their careers will be more impacted than men’s after becoming a parent.
In this sense, the emergence of hybrid working has somewhat worked in the favour of female employees by enabling companies to offer more flexible packages to both mothers and fathers and diversifying the recruitment talent pool.
Encouraging mothers to remain in the workplace is imperative if we are to see more roles at the top filled by women. For example, with the news that a number of companies are changing their tune on hybrid working and demanding employees to come back to the office, there needs to be an ongoing effort to retain senior women by staying committed to offering more flexible packages for parents. This will help to cut down the high number of women exiting professions after having a family.
Indeed, according to the International Workplace Group´s (IWG) Empowering Women in the Hybrid Workplace Report, 53% of female workers say hybrid work arrangements have empowered them to seek higher-level positions within their company, while 80% of them claim that the flexibility it offered allowed them to apply for such roles.
Although companies might be inclined to view their gender equality efforts as complete once they’ve hit hiring quotas and considered salary enhancements, it is imperative that we broaden the discussion beyond these areas to attain genuine equality in the workplace.
The notion of part-time work has also undergone a transformation. Previously, part-time contracts were primarily associated with limiting work hours to the traditional 9-5 schedule, five days a week. However, there is a growing recognition of the importance of accommodating flexible working arrangements for those who seek the option of hybrid work within part-time contracts. As it is more common for women to request part-time contracts, once again, such commitments could help companies diversify the talent pool and retain their current female workforce.
Extending the conversation on gender equality in the workplace
Although companies might be inclined to view their gender equality efforts as complete once they’ve hit hiring quotas and considered salary enhancements, it is imperative that we broaden the discussion beyond these areas to attain genuine equality in the workplace.
By becoming more creative with flexible working plans and implementing structures that support and empower women at every step of their careers, companies will be able to break through current barriers that limit opportunities for women in top positions. Compensation transparency, meanwhile, can lead to a cultural shift within a business by encouraging wider conversations around gender equality that will not only enhance a company’s reputation but will also help to attract top talent and increase fair pay.
Lisa Owens is a Managing Director in global legal search firm Major, Lindsey & Africa’s EMEA In-House Counsel Practice, based in London. She is a qualified lawyer with many years’ experience as a legal search consultant in London and Singapore. Lisa focuses on general counsel, chief compliance officer and other regional and senior counsel retained search projects, working with international corporates, investment funds and financial institutions in the UK and mainland Europe.
By Terence Tse
CFOs are evolving into AI-driven transformation orchestrators, balancing finance, technology, and strategy while upskilling teams, managing risks, and driving measurable business value.
A key insight from this year’s AI for CFOs event, organized...
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Dr. Gleb Tsipursky helps leaders use hybrid work to improve retention and productivity while cutting costs. He serves as the CEO of the boutique future-of-work consultancy Disaster Avoidance Experts. He is the best-selling author of 7 books, including the global best-sellers Never Go With Your Gut: How Pioneering Leaders Make the Best Decisions and Avoid Business Disasters and The Blindspots Between Us: How to Overcome Unconscious Cognitive Bias and Build Better Relationships. His newest book is Leading Hybrid and Remote Teams: A Manual on Benchmarking to Best Practices for Competitive Advantage. His cutting-edge thought leadership was featured in over 650 articles and 550 interviews in Harvard Business Review, Forbes, Inc. Magazine, USA Today, CBS News, Fox News, Time, Business Insider, Fortune, and elsewhere. His writing was translated into Chinese, Korean, German, Russian, Polish, Spanish, French, and other languages. His expertise comes from over 20 years of consulting, coaching, and speaking and training for Fortune 500 companies from Aflac to Xerox, and over 15 years in academia as a behavioural scientist at UNC-Chapel Hill and Ohio State. A proud Ukrainian American, Dr Gleb lives in Columbus, Ohio.
Developmental Challenges: Export vs Import-Substitution Industrialisation in Developing Countries
By Kalim Siddiqui
Does a developing economy get to choose between Export-led or Import-Substitution industrialisation or are there factors that make one more successful than the other? Can a nation switch between these two without any negative consequences? These and more are what this essay seeks to answer.
During the first half of the twentieth century, after the two world wars and the long Great Depression, the European powers were economically weakened and were unable to keep tight control over their colonies. There was also a rise of anti-colonial movements against European rule in the colonies. By the end of the war, European powers moved from being top creditors to heavily indebted countries, while the US emerged as the world’s largest economy. The US also came out in support of ending colonies so that US capital would have a greater opportunity to exploit markets and resources in the newly independent countries.
After independence in the 1950s and 1960s, most of the developing countries opted for the ‘‘Import-Substitution Industrialisation’’ (ISI) policy as they realised that during the colonial period, ‘‘free trade’’ ruined their economies. Therefore, to achieve economic prosperity and improve living conditions, active state intervention was considered very crucial, and the ‘‘market’’ and promoting ‘‘exports’’ alone cannot solve the problems of mass poverty and unemployment. Hence, it was thought that ‘‘domestic industrialisation’’ is the necessary condition to modernise their economies and remove backwardness (Siddiqui, 2021a; Amsden, 1989).
The idea of ‘‘Export-Oriented Industriali-sation’’ (EOI) growth had become discredited by the inter-war crisis of capitalism before it made a reappearance through neo-liberalism; with world capitalism confronting the crisis since the 1980s. In fact, the wisdom of pursuing a strategy of export-led growth has been discussed among mainstream economists for at least half a century, ever since the so-called East Asian “miracle” started being contrasted with the comparatively sluggish growth experience of countries like India and Brazil that were pursuing an “inward-looking” development strategy (World Bank, 1993). The EOI hypothesis postulates that export expansion is one of the main determinants of growth. It holds that the overall growth of countries can be generated not only by increasing the amounts of labour and capital within the economy but also by expanding exports.
The rise of East Asian economies, especially Korea, Taiwan, and Singapore is often seen as a development model for other developing countries. I will argue here that looking at such a model from a very narrow perspective as done by the mainstream economists and international financial agencies, is flawed. Their analysis does not consider the international factors and authoritarian role played by the state to discipline workers in keeping wages low and thus making it profitable for investors to invest. It has also wiped out the agricultural sector and undermined food security and rural ecology. The excessive reliance on exports also increased dependency on advanced countries. These countries initially had protected domestic markets, restrictive foreign investment codes and active state interventionist policy. The state directed the economy along with heavy doses of subsidies and deployed public funds to domestic firms that were struggling for shares in very competitive international financial markets (Siddiqui, 1995).
In Brazil and Mexico, ISI strategy in the 1950s was launched under the direction of Raul Prebisch, who argued in favour of ‘‘import-substitution industrialisation’’ and reliance on domestic markets. This strategy sought to broaden the range of local production to include capital goods, intermediate goods and consumer durables. Brazil’s strategy of industrialisation relied more on building capital-intensive industries than Mexico in the 1950s. However, in both countries, the choice of industrial strategy involved the establishment of state enterprises in the capital and intermediate goods sectors (Saad-Filho, 2010).
Indeed, India soon after independence adopted the ISI policy and the state undertook a leading role in investing in heavy industries, infrastructure, power, and irrigation. It was hoped that there would be positive effects on productivity growth created by the domestic capital goods sector. India aimed to create economic independence which required the building of its own large-scale capital goods sector. In 1950, the Planning Commission was set up with Prime Minister Nehru as its chairperson. The planning commission spells out how the resources of the nation should be used; these were called five-year plans. The goals of the five-year plans are growth, modernisation, self-reliance, and equity. The Second Five-Year Plan (1956-61) was launched under the leadership of P.C. Mahalanobis. It was accepted that large-scale comprehensive state planning rather than the ‘‘free market’’ would be the government policy in terms of directing appropriate investment towards key industries. (Siddiqui, 2021b; also, 2021c)
India’s ISI policy experience was not very different from other Latin American countries. The adoption of an ISI policy dates to the early 1950s. In the period prior to independence in 1947, India’s economy was characterised as feudal and semi-industrialised, dominated by British-owned industries. There was persistent mass poverty and illiteracy, and exports consisted of primary commodities. During the post-colonial period, an industrialisation strategy was adopted to develop local capabilities in basic and heavy industries such as power generation, steel, and machinery. The scope of ISI policy covered almost all large and key industries and this was backed by high import tariffs and quantitative restrictions. There is clear evidence that the IS policy helped the country build heavy industries including steel, electrical, machinery, tools and manufacturing goods. But later, in the 1980s, this strategy experienced a crisis and the balance of payment (BoP) crisis deepened. India had to approach the IMF in 1991 for a bailout and in return India accepted dismantling ISI policy and adopting a neoliberal, i.e., pro-market, policy also known as the ‘‘Structural Adjustment Programme’’.
Export-led VS import-Substitution Industrialisation
The annual high growth rates of 7-10% during 1960-1990 in Korea, Singapore, Taiwan, and Hong Kong were seen to vindicate the mainstream prescription of export-led growth and close integration with the world economy (Balassa, 1988). While on the other hand, India, Brazil, and Mexico are seen as failures of ISI policies. Such arguments ignore the different political domestic appliances in the two different regions. I find that state autonomy played an important role in the transformation of the economy in East Asia. The pursuit of policies such as land reform, keeping wages low, raising interest rates, subsidies and protection to firms engaging in exports was key to achieving higher growth. The East Asian experience suggests that policy reform may demand autonomy from dominant as well as subordinate social groups (Jones and Sakong, 1980).
The Korean War (1950-53) resulted in the death of more than three million people and afterwards, the country was divided into two – North and South Korea. War is the reflection of politics. Here I will focus on the economic policy of South Korea and hereafter I will call the country Korea. After the war, in the mid-1950s, Korea’s developmental strategy began through land reforms and land distribution. As a result, big landowners were eliminated. The Confucian philosophy produced a society where the state commanded the moral high ground and drew on the best talents. The Confucian belief that the state is a legitimate social institution seems to be an important factor in making state intervention a positive role in the country (Amsden, 1989).
Rapid socio-economic transformation took place under President Park Chung Hee who ruled Korea from 1961 to 1979, leading the country through a period of rapid economic development. His government introduced a series of economic reforms that eventually led to the swift expansion of manufacturing, now known as the East Asian miracle, giving the country one of the fastest-growing national economies during 1960-1980. Moreover, the Park regime’s nationalisation of all the banks in the country the harsh punishment against corruption, and the imprisonment of many prominent businessmen on the charge of accumulating illicit money from undeclared sources, helped in effecting this. Jones and Sakong (1980: 296) note that military coup in Korea rationalised economic policy independent of political elites: “Under Rhee [in the 1950s] Korea was the familiar “soft” LDC in which economic regulations were seldom enforced. Under Park, it became the prototype of the “hard” development model with the ability to impose obligations via compulsion and the ability to direct administrative discretion towards economically durable ends.”
However, given the small size of domestic markets, it was difficult for Hyundai to increase car production and achieve economies of scale, and hence exports became its major long-term objective to become a successful vehicle producer. In 1973, Hyundai severed relations with Ford and started to produce local cars— the Pony. In 1976, Hyundai produced 10,000 cars, which was 0.5% of what Ford produced that year. Then Korea was known to produce wigs, garments, and toys, low-value manufactured goods that require little capital and cheap labour. However, in 2010, Hyundai produced more cars than Ford did. There were several reasons behind this success including visionary entrepreneurs like Chung Ju-Yung, the founder of this business, and workers who worked for long hours. Most importantly, the government banned imports of all automobiles until 1998 to create space for Hyundai and other car producers to establish, and subsidised and prioritised credits to auto-producers.
In Korea, chaebol is a family-controlled handful of conglomerates that dominate the country’s economy. Among the largest chaebols are Samsung, LG, Hyundai, and SK Group. In 2020 the chaebols produced about two-thirds of Korea’s exports and attracted the greater part of the country’s foreign capital inflows. The relationship between the government and the chaebols is close cooperation. It helped the country achieve high growth and economic transformation from a primarily agrarian economy to industrial development within twenty-five years. However, this policy led to the development of monopolies and the concentration of capital in a few businesses (Amsden, 1989).
Taiwan was another successful example of economic transformation in the second half of the twentieth century. In the country, rapid growth was accompanied by the expansion of manufacturing in the late-1950s. Taiwan became known for its cheap manufactured exports produced by small enterprises bound together by flexible sub-contracting networks. The US was very keen to see the successful rapid economic growth in Taiwan due to the tension with China and its policy of containing communism. Taiwan has become an important US partner in trade and investment, education, health, semiconductor and other critical supply chains, investment screening, science and technology, education, and advancing democratic values (Siddiqui, 2016).
And in the 1980s Taiwan moved to capital-intensive and knowledge-based industries. A high rate of savings, rising labour productivity, privatisation, astute government planning, considerable foreign investment, and trade all propelled Taiwan’s rapid economic expansion. At present, Taiwan has a dynamic and export-oriented economy that ranks among the largest in Asia. Taiwan is also known for its high-tech industry, particularly in the fields of semiconductors, electronics, and information technology. Taiwan’s main exports consist of electronics, basic metals and metal products, machinery, chemicals, plastics, and rubber.
Brazil’s success is largely due to states’ active role in influencing and directing industrial, financial, trade policies and state provisions of finance and infrastructure including investments in power generation, roads, health, and education, and law enforcement, along with tight labour control, keeping lower wages for higher profits. As Saad-Filho (2010: 8) notes: “Economic intervention was legitimised by a nationalist ideology, according to which the ‘‘nation as a whole’’ would progress only through industrialisation. In this developmental discourse, insufficient industrialisation was associated with backwardness and the political and economic power of the traditional landed elites, which should be overcome through state action that fosters economic progress. The relationship between nationalism, statism, and developmentalism tended to become especially pronounced when private capital lacked the capacity or interest to invest in strategic areas such as oil, steel, electricity generation, or transport links. In these cases, a provision often depended on extensive state intervention, either through nationalisation of the industry or through the provision of subsidies for private capital.”
Industries grew rapidly in the 1960s-1970s in Brazil but began to face a crisis by the early 1980s due to a rise in external debts and inflation. Its manufacturing is still not fully developed and is ‘‘immature’’ in Kaldorian terms i.e., where a large supply of labour remains in low-productive sectors. Countries can only attain the “maturity phase” when productivity levels become aligned between all sectors of the economy. Brazilian firms have not been able to compete in international markets. They have not yet completed the industrialisation process, in the meantime, they adopted neoliberal policy, which has exposed them to external competition without internal defence mechanisms by following the economic opening according to recommendations of the Washington Consensus and as a result, its economy is deprived of defence mechanisms (such as tariff barriers, subsidies for exporting manufactured goods, capital controls, among others) (Siddiqui, 2015).
Brazil is one of the most unequal societies in the world in terms of access to wealth, and income. The ISI policy reinforced these inequalities because, despite the rise of manufacturing, it failed to create enough jobs, and unemployment remained high which resulted in compressing wages low due to abundant labour supply and the absence of land reforms and land ceiling, rural inequality continued unabated. Brazil’s state and bureaucrats were unable to coordinate industrial policy, essential for the success of the ISI model. Despite the success in a few crucial industries such as auto, steel, aircraft, and defence, it was less successful in other key industries such as textiles, processed food, beverages and so on. Thus, despite the initial success of the ISI model in Brazil’s state intervention policy, the institution was not ready to meet the challenges. With the structural constraints and adverse external shocks in the late 1970s and early 1980s, Brazil witnessed increasing fiscal deficits, oil shocks, and an external debt crisis worsening the balance of payment situation. The government decided in 1989 to accept the IMF’s loan in return for neoliberal economic reforms. The neoliberal reforms strategy included trade, financial and capital account liberalisation (Siddiqui, 2012b), which was justified to achieve efficiency and bring down inflation. And the public industries were privatised, and companies were persuaded to form alliances with foreign companies. The long-term goals of self-sufficiency were shunted to short-term goals of quick returns and integration with the global economy.
The successful examples in East Asian countries show how governments established close cooperation with producers and with the economically vulnerable sections of rural society to manage crop distribution. The strategy proved to be feasible and ensured the transition from poor economies in the 1950s to middle-income status economies in the 1980s, for example, in Korea and Taiwan. In the East Asian economies, the government intervened because the Cold War created more favourable external linkages as they were seen to be more crucial allies. The Cold War offered these countries better access to Western markets and technologies than those available to any other developing country. Such experiences tell us that the right kind of government intervention could be crucial to foster industrialisation in developing countries (Siddiqui, 2021d; also, 2018a).
There were several benefits to adopting ISI as a developmental strategy for developing nations in their quest to industrialise. ISI policy aims to shield domestic industries from external competition to provide a nurturing environment for their growth and development. The primary objective of ISI, economic self-sufficiency, is of foremost importance in promoting economic stability and security. By reducing dependence on foreign goods, ISI policy reduces vulnerability to external economic shocks such as fluctuations in global prices and changes in trade restrictions. Additionally, other benefits included improving the balance of payments, enhancing economic resilience, and reducing the current account deficit. The resulting stability and security can stimulate investment, encourage economic growth, and benefit the wider society.
In India, the ISI strategy was launched soon after India gained independence. During the pre-independence, India relied on exporting primary commodities, and well-established industries such as textiles were dismantled and operated only to benefit British misrule. Through the ISI programme, the government aimed to industrialise and achieve self-sufficiency. To achieve self-sufficiency, the government invested heavily in infrastructure development such as power generation, irrigation, and industrial expansion while imposing high tariffs and quotas on foreign goods to encourage domestic production capacity. The adoption of modern technology and machinery through ISI facilitated an increase in productivity while enhancing Indian goods’ competitiveness (Siddiqui, 2018b).
Moreover, by the mid-1980s, macroeconomic balances were threatened as public-sector deficits widened leading up to a balance-of-payments crisis in 1991 and foreign debt increased from US$ 20 billion in 1981 to US$ 82 billion in 1991 when the deficit reached 8.3 percent of GDP. Despite these challenges, the pro-business policies of the 1980s laid the groundwork for India’s economic growth. India fell to two drawbacks namely bureaucratic paralysis and capitalist rent-seeking. The Indian capitalist class did not support the idea of a ‘‘developmental state’’. Also, the capitalist class did not support disciplinary planning. The capitalist class reluctantly supported ISI as they had little capital to invest in various crucial areas. The Industrial Bill of 1949 allowed the state to regulate the flow of private investment in exchange for the protection of domestic industries and high returns. The Indian capitalist opposed the Bill, which was soon replaced by the industry’s self-regulation.
The mainstream economists criticised ISI for the following reasons: it prevents comparative advantage and specialisation, and this leads to rent-seeking and misallocation of resources, creates inefficient industries, and undermines economies of scale. Over-expansion of public sector employment raises fiscal deficits and public spending, increases dependency on government funds and support, and transfers resources from agriculture to the industrial sector. Other critiques came from dependency theorists, who criticised ISI that it increases rather than decreases the degree of economic dependence because of greater financial, technological and market reliance on foreign companies. And it creates new patterns of inequality by promoting further concentration of incomes into skilled workers and bureaucrats.
Moreover, with the collapse of the Soviet Union in 1990 and the rise of a unipolar world led by the US, most countries joined globalisation and adopted trade liberalisation as recommended by the US and international financial institutions. As a result, global trade and service increased sharply as indicated in Figure 1 and Figure 2. In 2021, the global trade value of goods exported throughout the world amounted to approximately 22.3 trillion US dollars at current prices. This figure stood at around 6.45 trillion US dollars in 2000. The rise in the value of goods exported around the world reflects developments in international trade, globalisation, and advances in technology.
Conclusion
We must distinguish between two cases among countries such as China, Korea and Taiwan pursuing an EOI strategy, where it has earned large current account surpluses and thereby built up their foreign exchange reserves. Others, like India, Brazil, and Mexico, had run current account deficits to address their balance of payments crisis through private financial inflows, and even when they built up foreign exchange reserves these were financed through borrowings, including from private financiers. In such cases if there was a widening of the current account deficit because of some exogenous reason, whether a pandemic-induced reduction in tourist earnings (as in the case of Sri Lanka), a Ukraine War-induced increase in import prices, or a world recession-induced fall in export earnings, its impact on the economy could expand because of the behaviour of private capital and banks. With the widening of the current account, the deficit needs more private financial inflow, but the widening could cause a huge financial outflow.
The ISI and EOI generate distinct capital accumulation strategies. Under the ISI model, the capitalists were under little competitive pressure to modernise and technologically upgrade their operations. While with the EOI policy, the firms must consistently adapt to vigorous competition. Korea made a successful transition from ISI to EOI because the unique international environment i.e., Cold War and global tension in the Korean peninsula favoured Korea and the country assumed the role of a front-line nation in the Cold War. Japanese firms also supported industries in Korea to access US markets. Japanese trading companies provided their marketing and sales contacts to promote Korean goods in the US markets (Siddiqui, 2009; Johnson, 1982). However, in return for US markets under US pressures Korean government allowed imports of agricultural commodities from the US as a condition for keeping US markets open for Korean manufactured goods.
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The contrast between Korea’s success and India’s failure was striking. Both countries used the protection of domestic manufacturing, yet the orientation of India’s policies was inward-looking and anti-competitive, while that of Korea initially followed ISI policy, but local competition and government pressure to perform were much more visible, while in India, the government protected local car producer, Tata, but no pressure was put to them regarding their performance and innovation. Domestic market competition was encouraged in the Indian auto sector until 1991, therefore, rather than competition, monopoly emerged.
The study finds that successful industrialisation requires bureaucratic commitment and coordination, which involves building deep ties with the industrial sector. Mainstream economists and international financial institutions are mostly concerned with competition, efficiency, and free trade. However, they disregard other factors such as the international environment, institutions, history, culture, and the role of the state. The success in East Asian countries proves that these factors appear to have played a crucial role in the economic transition.
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