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About: Economy of South America     Goto   Sponge   NotDistinct   Permalink

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The economy of South America comprises approximately 430 million people living in twelve nations and three territories. It encompasses 6 percent of the world's population. From the 1930s to 1980s, countries of South America used Import Substitution, an economic policy that replaces foreign businesses as well as imports with domestic production. This was a policy made to increase domestic manufacturing. Furthermore, national spending on arms soared during periods of military rule. Increasingly South American countries began to borrow from foreign private banks and international lending institutions, such as the World Bank and the Inter-American Development Bank, to fund existing programs while also trying to expand their economic productivity through investments. However, this policy create