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In the first half of the 20th century, the leaders of the major Latin American countries realized that they were facing declining terms of trade with their commodity exports and felt they needed to become independent of imports of high-value goods and produce their own by closing their economies. Rosenberg argues that the strategy produced initial success and growth, but ultimately failed because of inefficiencies, uncompetitiveness, heavy borrowing, and high deficits. The situation contrasted with the path of the East Asian "tiger" economies which generally demanded technology transfer, a local production content of imports into their countries, and generally a greater voice in any investment...
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