How Did the Search for Urban Political Support in the Wake

question 40

Essay

How did the search for urban political support in the wake of the failure of export oriented agriculture during the inter war period lead to budget crises under ISI development policies?

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Definitions:

Net Capital Outflow

Net capital outflow is the difference between the domestic country's purchases of foreign assets and foreign purchases of the domestic country's assets over a period of time.

Domestic Investment

The capital allocation by firms and individuals within their own country to create more goods, services, or assets.

Equilibrium Real Interest Rate

The interest rate at which the demand for funds equals the supply of funds in the real economy, adjusted for inflation.

Loanable Funds

Loanable funds denote the money available for borrowing in the financial markets, influenced by savings and demand for loans.