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171-407: Import substitution industrialization ( ISI ) is a trade and economic policy that advocates replacing foreign imports with domestic production. It is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products. The term primarily refers to 20th-century development economics policies, but it has been advocated since

342-399: A Scotsman who was the fourth son of Alexander Hamilton, the laird of Grange, Ayrshire . Rachel Lavien was married on Saint Croix . In 1750, Lavien left her husband and first son before travelling to Saint Kitts , where she met James Hamilton. Hamilton and Lavien moved together to Nevis, her birthplace, where she had inherited a seaside lot in town from her father. While their mother

513-544: A gift economy before the innovation of modern-day currency. Peter Watson dates the history of long-distance commerce to c.  150,000 years ago. In the Mediterranean region, the earliest contact between cultures involved members of the species Homo sapiens , principally using the Danube river, at a time beginning 35,000–30,000 BP . There is evidence of the exchange of obsidian and flint during

684-403: A homosocial or even homosexual relationship. Biographer Gregory D. Massey amongst others, by contrast, dismisses all such speculation as unsubstantiated, describing their friendship as purely platonic camaraderie instead and placing their correspondence in the context of the flowery diction of the time. While on Washington's staff, Hamilton long sought command and a return to active combat. As

855-591: A neo-classical counter-revolution in Africa through Structural Adjustment Programmes (SAPs) from 1981. The new economic consensus blamed the low growth rates on excessive protectionism in the industrial sector, the neglect of exports, and the low agricultural productivity. For the IMF and the World Bank , the solution to the failure of import substitution was a restructuring of the economy towards strict adherence to

1026-424: A neoliberal model of development throughout the 1980s and the 1990s. In 2014, customs duties were applied on imported products in the food sector. Russia has considerably reduced its food imports, and domestic production has increased considerably. The cost of food imports dropped from $ 60 billion in 2014 to $ 20 billion in 2017, and the country enjoys record cereal production. Russia has strengthened its position on

1197-428: A chronic shortage of skills which pervades not only the small manufacturing sector but the entire economy and the over-loaded government machine." Tanzania, for example, had only two engineers at the beginning of the import-substitution period. The skills shortage was exacerbated by the technological deficiencies facing African states throughout industrialisation. Learning and adopting the technological resources and skills

1368-637: A claim for damages done to a brewery by the Englishmen who held it during the military occupation of New York. He pleaded for the mayor's court to interpret state law consistent with the 1783 Treaty of Paris, which had ended the Revolutionary War. In 1784, Hamilton founded the Bank of New York . Long dissatisfied with the Articles of Confederation as too weak to be effective, Hamilton played

1539-591: A coherent economic model aligned with their political interests. The culmination of the political and economic issues necessitated the adoption of ISI, as it rejected the colonial neo-mercantilist policies that they believed had led to underdevelopment. For leaders of post-colonial African nations, it was imperative for their economic policies to represent an ideological break with the imperialist models of development. To achieve that, some newly independent states pursued African socialism to build indigenous growth and break free from capitalist development patterns. Through

1710-479: A country's economy by the local production of industrialized products by national or foreign investment for domestic or foreign consumption. Import substitution does not mean eliminating imports. Indeed, as a country industrializes, it naturally imports new materials that its industries need, often including petroleum, chemicals, and raw materials. In 2006, Michael Shuman proposed local ownership import substituting (LOIS), as an alternative to neoliberalism . It rejects

1881-474: A development path, multinational corporations occupied a dominant role in the economy, primarily in the manufacturing sectors. Economic historians such as Ralph Austen argue that the openness to western enterprise and technical expertise led to a higher GNP in Kenya than comparative socialist countries such as Ghana and Tanzania. However, the 1972 World Bank ILO report on Kenya claimed that direct state intervention

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2052-416: A different group of disgruntled soldiers from Lancaster, Pennsylvania , sent Congress a petition demanding their back pay. When they began to march toward Philadelphia , Congress charged Hamilton and two others with intercepting the mob. Hamilton requested militia from Pennsylvania's Supreme Executive Council, but was turned down. Hamilton instructed Assistant Secretary of War William Jackson to intercept

2223-482: A domestic impetus for ISI. Marxist historians such as Walter Rodney contend that the gross underdevelopment in social services were a direct result of colonial economic strategy, which had to be abandoned to generate sustainable development . Rene Dumont supported that observation and argued that African states were administratively overburdened as a result of colonialism. The initial, unchanged conditions created discontent in states such as Ghana and Tanzania during

2394-433: A few circumstances tariffs might be beneficial to the host country; but never for the world at large. The Great Depression was a major economic recession that ran from 1929 to the late 1930s. During this period, there was a great drop in trade and other economic indicators. The lack of free trade was considered by many as a principal cause of the depression causing stagnation and inflation. Only during World War II did

2565-404: A field command. Washington continued to demur, citing the need to appoint men of higher rank. This continued until early July 1781, when Hamilton submitted a letter to Washington with his commission enclosed, "thus tacitly threatening to resign if he didn't get his desired command." On July 31, Washington relented and assigned Hamilton as commander of a battalion of light infantry companies of

2736-503: A form of developmental theory that advocated increased productivity and economic gains within a country. It was an inward-looking economic theory practiced by developing nations after World War II . Many economists then considered the ISI approach as a remedy to mass poverty by bringing a developing country to a developed status through national industrialization. Mass poverty is defined as "the dominance of agricultural and mineral activities – in

2907-580: A lump-sum payment if Congress were unable to afford the half-salary pensions for life. Congress rejected the proposal. Several congressmen, including Hamilton, Robert Morris , and Gouverneur Morris , attempted to use the so-called Newburgh Conspiracy as leverage to secure support from the states and in Congress for funding of the national government. They encouraged MacDougall to continue his aggressive approach, implying unknown consequences if their demands were not met, and defeated proposals designed to end

3078-408: A major leadership role at the 1786 Annapolis Convention . He drafted its resolution for a constitutional convention, and in doing so brought one step closer to reality his longtime desire to have a more effectual, more financially self-sufficient federal government. As a member of the legislature of New York, Hamilton argued forcefully and at length in favor of a bill to recognize the sovereignty of

3249-636: A near-collapse of the trade network in the western world. Trade, however, continued to flourish among the kingdoms of Africa, the Middle East, India, China, and Southeast Asia. Some trade did occur in the west. For instance, Radhanites were a medieval guild or group (the precise meaning of the word is lost to history) of Jewish merchants who traded between the Christians in Europe and the Muslims of

3420-463: A positive relationship between how well-connected a coastal location was and the local prevalence of archaeological sites from the Iron Age. This suggests that a location's trade potential was an important determinant of human settlements. The complaint tablet to Ea-nāṣir , dated 1750 BCE, documents the tribulations of a copper merchant at the time. From the beginning of Greek civilization until

3591-515: A priority. ISI gained a theoretical foundation only in the 1950s, when the Argentine economist and UNECLAC leader Raúl Prebisch was a visible proponent of the idea, as well as the Brazilian economist Celso Furtado . Prebisch had experience running his country's central bank and started to question the model of export-led growth. Prebisch came to the conclusion that the participants in

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3762-791: A small store in Christiansted . Lavien contracted yellow fever and died on February 19, 1768, leaving Hamilton orphaned. Lavien's death may have had a severe emotional impact on Hamilton. In probate court , Lavien's "first husband seized her estate" and obtained the few valuables that she had owned, including some household silver. Many items were auctioned off, but a friend purchased the family's books and returned them to Hamilton. The brothers were briefly taken in by their cousin Peter Lytton. However, Lytton took his own life in July 1769, leaving his property to his mistress and their son, and

3933-480: A stimulant to the economy. Hamilton divided the debt into national and state, and further divided the national debt into foreign and domestic debt. While there was agreement on how to handle the foreign debt, especially with France, there was not with regards to the national debt held by domestic creditors. During the Revolutionary War, affluent citizens had invested in bonds, and war veterans had been paid with promissory notes and IOUs that plummeted in price during

4104-627: A strong national defense, and an industrial economy. He successfully argued that the implied powers of the Constitution provided the legal authority to fund the national debt , assume the states' debts, and create the First Bank of the United States , which was funded by a tariff on imports and a whiskey tax . He opposed American entanglement with the succession of unstable French Revolutionary governments and advocated in support of

4275-534: Is a want of power in Congress ... the confederation itself is defective and requires to be altered; it is neither fit for war, nor peace." While on Washington's staff, Hamilton had become frustrated with the decentralized nature of the wartime Continental Congress, particularly its dependence upon the states for voluntary financial support that was not often forthcoming. Under the Articles of Confederation , Congress had no power to collect taxes or to demand money from

4446-437: Is also known as laissez-faire policy. This kind of policy does not necessarily imply because a country will then abandon all control and taxation of imports and exports. Free trade advanced further in the late 20th century and early 2000s: Alexander Hamilton Alexander Hamilton (January 11, 1755 or 1757  – July 12, 1804) was an American military officer, statesman, and Founding Father who served as

4617-594: Is believed that ISI will allow that. In many cases, however, the assertions did not apply. On several occasions, the Brazilian ISI process, which occurred from 1930 to the late 1980s, involved currency devaluations to boost exports and discouraging imports, thus promoting the consumption of locally manufactured products, as well as the adoption of different exchange rates for importing capital goods and for importing consumer goods. Moreover, government policies toward investment were not always opposed to foreign capital:

4788-412: Is called multilateral trade . In one modern view, trade exists due to specialization and the division of labor , a predominant form of economic activity in which individuals and groups concentrate on a small aspect of production, but use their output in trade for other products and needs. Trade exists between regions because different regions may have a comparative advantage (perceived or real) in

4959-575: Is deeply bound up in trade, as a system of clay tokens used for accounting – found in Upper Euphrates valley in Syria dated to the 10th millennium BCE – is one of the earliest versions of writing. Ebla was a prominent trading center during the third millennia BCE, with a network reaching into Anatolia and north Mesopotamia. Materials used for creating jewelry were traded with Egypt since 3000 BCE. Long-range trade routes first appeared in

5130-597: The Report on Manufactures , advocated for the U.S. to become self-sufficient in manufactured goods. That formed the basis of the American School in economics , which was an influential force in the country during its 19th-century industrialization. Werner Baer contends that all countries that have industrialized after the United Kingdom have gone through a stage of ISI in which much investment in industry

5301-797: The American Revolutionary War , where he saw military action against the British in the New York and New Jersey campaign , served for years as an aide to General George Washington , and helped secure American victory at the climactic Siege of Yorktown . After the Revolutionary War, Hamilton served as a delegate from New York to the Congress of the Confederation in Philadelphia . He resigned to practice law and founded

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5472-633: The Bank of New York . In 1786, Hamilton led the Annapolis Convention to replace the Articles of Confederation with the Constitution of the United States , which he helped ratify by writing 51 of the 85 installments of The Federalist Papers . As a trusted member of President Washington's first cabinet , Hamilton served as the first U.S. Secretary of the Treasury . He envisioned a central government led by an energetic president,

5643-525: The Battle of Harlem Heights shortly after, and at the Battle of White Plains a month later. At the Battle of Trenton , the company was stationed at the high point of Trenton at the intersection of present-day Warren and Broad streets to keep the Hessians pinned in their Trenton barracks. Hamilton participated in the Battle of Princeton on January 3, 1777. After an initial setback, Washington rallied

5814-744: The Bengal Sultanate was a major trading nation in the world and often referred to by Europeans as the wealthiest country with which to trade. In the 16th and 17th centuries, the Portuguese gained an economic advantage in the Kingdom of Kongo due to different philosophies of trade. Whereas Portuguese traders concentrated on the accumulation of capital, in Kongo spiritual meaning was attached to many objects of trade. According to economic historian Toby Green , in Kongo "giving more than receiving

5985-690: The Dominican Republic , could implement ISI only to a limited extent. Peru implemented ISI in 1961, and the policy lasted until the end of the decade in some form. To overcome the difficulties of implementing ISI in small-scale economies, proponents of the economic policy, some within UNECLAC , suggested two alternatives to enlarge consumer markets: income redistribution within each country by agrarian reform and other initiatives aimed at bringing Latin America's enormous marginalized population into

6156-815: The Jay Treaty under which the U.S. resumed friendly trade relations with the British Empire . He also persuaded Congress to establish the Revenue Cutter Service . Hamilton's views became the basis for the Federalist Party , which was opposed by the Democratic-Republican Party led by Thomas Jefferson . Hamilton and other Federalists supported the Haitian Revolution , and Hamilton helped draft

6327-464: The Revolutionary cause before the war began, although he did not approve of mob reprisals against Loyalists . On May 10, 1775, Hamilton won credit for saving his college's president, Loyalist Myles Cooper , from an angry mob by speaking to the crowd long enough to allow Cooper to escape. Hamilton was forced to discontinue his studies before graduating when the college closed its doors during

6498-739: The Stone Age . Trade in obsidian is believed to have taken place in New Guinea from 17,000 BCE. The earliest use of obsidian in the Near East dates to the Lower and Middle paleolithic. Robert Carr Bosanquet investigated trade in the Stone Age by excavations in 1901. The first clear archaeological evidence of trade in manufactured goods is found in south west Asia. Archaeological evidence of obsidian use provides data on how this material

6669-646: The Venetian Republic and the Republic of Genoa were major trade centers. They dominated trade in the Mediterranean and the Black Sea, having the monopoly between Europe and the Near East for centuries. From the 8th to the 11th century, the Vikings and Varangians traded as they sailed from and to Scandinavia. Vikings sailed to Western Europe, while Varangians to Kyivan Rus' . The Hanseatic League

6840-519: The infant industry argument, and on Keynesian economics. The associated practices are commonly: By placing high tariffs on imports and other protectionist, inward-looking trade policies, the citizens of any given country by using a simple supply-and-demand rationale substitute the less expensive good for a more expensive one. The primary industry of importance would gather its resources, such as labor from other industries in this situation. The industrial sector would use resources, capital, and labor from

7011-490: The market (which consists both of individuals and other companies) at the lowest production cost . A system of international trade has helped to develop the world economy but, in combination with bilateral or multilateral agreements to lower tariffs or to achieve free trade , has sometimes harmed third-world markets for local products. Free trade is a policy by which a government does not discriminate against imports or exports by applying tariffs or subsidies. This policy

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7182-461: The nationalization of industry to create jobs and to produce a domestic market for goods while it maintained an adherence to African socialist principles exemplified through the ujamaa program of villagization. The unaffordability of industrial products and increased tensions between managers and settlers of the villages contributed to a "colossal failure" of ISI in Tanzania, leading it to abandon

7353-405: The terms of trade through maintaining tariffs , and that the response to this might be reciprocity in trade policy. Ricardo and others had suggested this earlier. This was taken as evidence against the universal doctrine of free trade, as it was believed that more of the economic surplus of trade would accrue to a country following reciprocal , rather than completely free, trade policies. This

7524-496: The 18th century by economists such as Friedrich List and Alexander Hamilton . ISI policies have been enacted by developing countries with the intention of producing development and self-sufficiency by the creation of an internal market. The state leads economic development by nationalization, subsidization of manufacturing, increased taxation, and highly protectionist trade policies. In the context of Latin American development,

7695-559: The 1940s. That economic model rendered the postcolonial states vulnerable to unstable export prices and failed to promote the diversification of the economy. Postcolonial governments were also sceptical of the reliance on multinational corporations for economic development, as they were less likely to pay taxes and exported capital abroad. Thus, ISI policies were adopted to redirect African economies towards indigenous growth and industrialisation . The underdeveloped political and economic structures inherited across post-colonial Africa created

7866-569: The 1st and 2nd New York Regiments and two provisional companies from Connecticut. In the planning for the assault on Yorktown , Hamilton was given command of three battalions , which were to fight in conjunction with the allied French troops in taking Redoubts No. 9 and No. 10 of the British fortifications at Yorktown. Hamilton and his battalions took Redoubt No. 10 with bayonets in a nighttime action, as planned. The French also suffered heavy casualties and took Redoubt No. 9. These actions forced

8037-715: The 3rd millennium BCE, when Sumerians in Mesopotamia traded with the Harappan civilization of the Indus Valley . The Phoenicians were noted sea traders, traveling across the Mediterranean Sea , and as far north as Britain for sources of tin to manufacture bronze . For this purpose they established trade colonies the Greeks called emporia . Along the coast of the Mediterranean, researchers have found

8208-560: The Articles had been proposed by Thomas Burke , in February 1781, to give Congress the power to collect a five percent impost, or duty on all imports, but this required ratification by all states; securing its passage as law proved impossible after it was rejected by Rhode Island in November 1782. James Madison joined Hamilton in influencing Congress to send a delegation to persuade Rhode Island to change its mind. Their report recommending

8379-811: The Atlantic and the Pacific Oceans. In 1776, Adam Smith published the paper An Inquiry into the Nature and Causes of the Wealth of Nations . It criticized Mercantilism , and argued that economic specialization could benefit nations just as much as firms. Since the division of labour was restricted by the size of the market, he said that countries having access to larger markets would be able to divide labour more efficiently and thereby become more productive . Smith said that he considered all rationalizations of import and export controls "dupery", which hurt

8550-624: The Brazilian industrialization process was based on a tripod that involved governmental, private, and foreign capital, the first being directed to infrastructure and heavy industry, the second to manufacturing consumer goods, and the third to the production of durable goods such as automobiles. Volkswagen, Ford, GM, and Mercedes all established production facilities in Brazil in the 1950s and the 1960s. The principal concept underlying ISI can thus be described as an attempt to reduce foreign dependency of

8721-564: The British occupation of New York City. In 1775, after the first engagement of American patriot troops with the British at Lexington and Concord , Hamilton and other King's College students joined a New York volunteer militia company called the Corsicans , whose name reflected the Corsican Republic that was suppressed six years earlier and young American patriots regarded as a model to be emulated. Hamilton drilled with

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8892-576: The British surrender of an entire army at Yorktown, marking the de facto end of the war, although small battles continued for two more years until the signing of the Treaty of Paris and the departure of the last British troops. After Yorktown, Hamilton returned to New York City and resigned his commission in March 1782. He passed the bar in July after six months of self-directed education and, in October,

9063-479: The Caribbean ( UNECLAC or CEPAL ). They were influenced by a wide range of Keynesian , communitarian , and socialist economic thought, as well as dependency theory . By the mid-1960s, many of the economists who had previously advocated for ISI in developing countries grew disenchanted with the policy and its outcomes. Many of the countries that adopted ISI policies in the post-WWII years had abandoned ISI by

9234-503: The Caribbean. During the Middle Ages , commerce developed in Europe by trading luxury goods at trade fairs. Wealth became converted into movable wealth or capital . Banking systems developed where money on account was transferred across national boundaries. Hand to hand markets became a feature of town life and were regulated by town authorities. Western Europe established a complex and expansive trade network with cargo ships being

9405-405: The Confederation. In response, the war veterans sold the securities to speculators for as little as fifteen to twenty cents on the dollar. Hamilton felt the money from the bonds should not go to the soldiers who had shown little faith in the country's future, but the speculators that had bought the bonds from the soldiers. The process of attempting to track down the original bondholders along with

9576-532: The Continental Army troops and led them in a successful charge against the British forces. After making a brief stand, the British fell back, some leaving Princeton , and others taking up refuge in Nassau Hall . Hamilton transported three cannons to the hall, and had them fire upon the building as others rushed the front door and broke it down. The British subsequently put a white flag outside one of

9747-522: The Hamilton brothers were subsequently separated. James Jr. apprenticed with a local carpenter, while Alexander was given a home by Thomas Stevens, a merchant from Nevis. Hamilton became a clerk at Beekman and Cruger, a local import-export firm that traded with the Province of New York and New England . Despite being only a teenager, Hamilton proved capable enough as a trader to be left in charge of

9918-614: The Irish-born Hercules Mulligan , brother of a trader known to Hamilton's benefactors, who assisted Hamilton in selling cargo that was used to pay for his education and support. Later that year, in preparation for college, Hamilton began to fill gaps in his education at the Elizabethtown Academy , a preparatory school run by Francis Barber in Elizabeth, New Jersey . While there, he came under

10089-514: The Measures of Congress and The Farmer Refuted . Seabury essentially tried to provoke fear in the colonies with an objective of preventing the colonies from uniting against the British. Hamilton published two additional pieces attacking the Quebec Act , and may have also authored the 15 anonymous installments of "The Monitor" for Holt's New York Journal . Hamilton was a supporter of

10260-546: The Mediterranean region. Trade in the Mediterranean during the Neolithic of Europe was greatest in this material. Networks were in existence at around 12,000 BCE Anatolia was the source primarily for trade with the Levant, Iran and Egypt according to Zarins study of 1990. Melos and Lipari sources produced among the most widespread trading in the Mediterranean region as known to archaeology. The Sari-i-Sang mine in

10431-436: The Near East. The first true maritime trade network in the Indian Ocean was by the Austronesian peoples of Island Southeast Asia . Initiated by the indigenous peoples of Taiwan and the Philippines , the Maritime Jade Road was an extensive trading network connecting multiple areas in Southeast and East Asia. Its primary products were made of jade mined from Taiwan by Taiwanese indigenous peoples and processed mostly in

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10602-411: The New York delegation, Lansing and Yates, had already withdrawn, Hamilton was the only New York signer to the United States Constitution. He then took a highly active part in the successful campaign for the document's ratification in New York in 1788, which was a crucial step in its national ratification. He first used the popularity of the Constitution by the masses to compel George Clinton to sign, but

10773-407: The Philippines by indigenous Filipinos, especially in Batanes , Luzon , and Palawan . Some were also processed in Vietnam , while the peoples of Malaysia , Brunei , Singapore , Thailand , Indonesia , and Cambodia also participated in the massive trading network. The maritime road is one of the most extensive sea-based trade networks of a single geological material in the prehistoric world. It

10944-449: The Rhode Island negotiations. While Hamilton was in Congress, discontented soldiers began to pose a danger to the young United States. Most of the army was then posted at Newburgh, New York . Those in the army were funding much of their own supplies, and they had not been paid in eight months. Furthermore, after Valley Forge , the Continental officers had been promised in May 1778 a pension of half their pay when they were discharged. By

11115-459: The Senate, as well as covering military matters and taxation. The papers first appeared in The Independent Journal on October 27, 1787. Hamilton wrote the first paper signed as Publius , and all of the subsequent papers were signed under the name. Jay wrote the next four papers to elaborate on the confederation's weakness and the need for unity against foreign aggression and against splitting into rival confederacies, and, except for No. 64 ,

11286-436: The State of Vermont , against numerous objections to its constitutionality and policy. Consideration of the bill was deferred to a later date. From 1787 to 1789, Hamilton exchanged letters with Nathaniel Chipman , a lawyer representing Vermont. After the Constitution of the United States went into effect, Hamilton said, "One of the first subjects of deliberation with the new Congress will be the independence of Kentucky, for which

11457-456: The adjournment of the House in September 1789, they requested Hamilton to make a report on suggestions to improve the public credit by January 1790. Hamilton had written to Morris as early as 1781, that fixing the public credit will win their objective of independence. The sources that Hamilton used ranged from Frenchmen such as Jacques Necker and Montesquieu to British writers such as Hume , Hobbes , and Malachy Postlethwayt . While writing

11628-492: The adoption of African socialism, leaders such as Kwame Nkrumah , Julius Nyerere , and Leopold Senghor hoped to establish a model of development based around consciencism , an intellectual and cultural revolution; and, most importantly, a big push in industrialization towards rapid development for the continent. One of the main aspects of the big push towards development was the growth of parastatals from 1960 to 1980. The state-owned trading corporations were given control over

11799-412: The agreement. In 1947, 23 countries agreed to the General Agreement on Tariffs and Trade to promote free trade. The European Union became the world's largest exporter of manufactured goods and services, the biggest export market for around 80 countries. Today, trade is merely a subset within a complex system of companies which try to maximize their profits by offering products and services to

11970-485: The agricultural sector. In time, a developing country would look and behave similar to a developed country, and with a new accumulation of capital and an increase of total factor productivity , the nation's industry would in principle be capable of trading internationally and of competing in the world market. Bishwanath Goldar, in his paper Import Substitution, Industrial Concentration and Productivity Growth in Indian Manufacturing , wrote: "Earlier studies on productivity for

12141-409: The army were not satisfied. Hamilton wrote Washington to suggest that Hamilton covertly "take direction" of the officers' efforts to secure redress, to secure continental funding but keep the army within the limits of moderation. Washington wrote Hamilton back, declining to introduce the army. After the crisis had ended, Washington warned of the dangers of using the army as leverage to gain support for

12312-629: The college and placing it on firm financial footing. In 1787, Hamilton served as assemblyman from New York County in the New York State Legislature and was chosen as a delegate at the Constitutional Convention in Philadelphia by his father-in-law Philip Schuyler . Even though Hamilton had been a leader in calling for a new Constitutional Convention, his direct influence at the Convention itself

12483-492: The colonial economic system. The metropolitan governments aimed to offset colonial expenditures and attain primary commercial products from Africa at a significantly reduced rate. That was successful for British commercial interests in Ghana and Nigeria , which increased 20 times the value of foreign trade between 1897 and 1960 because of the promotion of export crops such as cocoa and palm oil . Such economic growth occurred at

12654-516: The company before classes in the graveyard of nearby St. Paul's Chapel . He studied military history and tactics on his own and was soon recommended for promotion. Under fire from HMS Asia , and with support from Hercules Mulligan and the Sons of Liberty , he led his newly renamed unit the "Hearts of Oak" on a successful raid for British cannons in the Battery . The seizure of the cannons resulted in

12825-464: The constitution (No. 23–36), and discussed the Senate and executive and judicial branches (No. 65–85). Hamilton and Madison worked to describe the anarchic state of the confederation (No. 15–22), and the two have been described as not being significantly different in thought during this time period—in contrast to their stark opposition later in life. Subtle differences appeared with the two when discussing

12996-544: The constitution of Haiti . After resigning as Secretary of the Treasury, Hamilton resumed his legal and business activities. He was a leader in the abolition of the international slave trade . In the Quasi-War , Hamilton called for mobilization against France , and President John Adams appointed him major general. The army , however, did not see combat. Outraged by Adams' response to the crisis, Hamilton opposed his reelection campaign . Jefferson and Aaron Burr tied for

13167-751: The consumer market and regional integration by initiatives such as the Latin American Free Trade Association (ALALC), which would allow for the products of one country to be sold in another. In Latin American countries in which ISI was most successful, it was accompanied by structural changes to the government. Old neocolonial governments were replaced by more-or-less democratic governments . Banks, utilities, and certain other foreign-owned companies were nationalized or had their ownership transferred to locals. Many economists contend that ISI failed in Latin America and

13338-472: The convention, Hamilton made a speech proposing a president-for-life; it had no effect upon the deliberations of the convention. He proposed to have an elected president and elected senators who would serve for life, contingent upon "good behavior" and subject to removal for corruption or abuse; this idea contributed later to the hostile view of Hamilton as a monarchist sympathizer, held by James Madison. According to Madison's notes, Hamilton said in regards to

13509-485: The crisis without establishing general taxation: that the states assume the debt to the army, or that an impost be established dedicated to the sole purpose of paying that debt. Hamilton suggested using the Army's claims to prevail upon the states for the proposed national funding system. The Morrises and Hamilton contacted General Henry Knox to suggest he and the officers defy civil authority, at least by not disbanding if

13680-403: The delegation argued the national government needed not just some level of financial autonomy, but also the ability to make laws that superseded those of the individual states. Hamilton transmitted a letter arguing that Congress already had the power to tax, since it had the power to fix the sums due from the several states; but Virginia's rescission of its own ratification of this amendment ended

13851-623: The development of a global, international economy. Retail trade consists of the sale of goods or merchandise from a very fixed location (such as a department store , boutique , or kiosk ), online or by mail , in small or individual lots for direct consumption or use by the purchaser. Wholesale trade is the traffic in goods that are sold as merchandise to retailers , industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services. Historically, openness to free trade substantially increased in some areas from 1815 until

14022-410: The doctrine still considered the most counterintuitive in economics : The ascendancy of free trade was primarily based on national advantage in the mid 19th century. That is, the calculation made was whether it was in any particular country's self-interest to open its borders to imports. John Stuart Mill proved that a country with monopoly pricing power on the international market could manipulate

14193-488: The early 1780s, due to the structure of the government under the Articles of Confederation, it had no power to tax to either raise revenue or pay its soldiers. In 1782, after several months without pay, a group of officers organized to send a delegation to lobby Congress, led by Captain Alexander McDougall. The officers had three demands: the army's pay, their own pensions, and commutation of those pensions into

14364-413: The early 1960s over the fall in wages and employment opportunities. The unrest culminated in a series of mass strikes and tensions between governments and trade unions. Dissatisfaction with the poor economic progress upon decolonisation made it clear to African leaders that they could no longer rely on rhetoric and tradition to maintain power and could retain the support of their political base only through

14535-533: The east–west trade route known as the Silk Road after the 4th century CE up to the 8th century CE, with Suyab and Talas ranking among their main centers in the north. They were the main caravan merchants of Central Asia. From the Middle Ages, the maritime republics , in particular Venice , Pisa and Genoa , played a key role in trade along the Mediterranean. From the 11th to the late 15th centuries,

14706-409: The executive, "The English model was the only good one on this subject. The hereditary interest of the king was so interwoven with that of the nation, and his personal emoluments so great, that he was placed above the danger of being corrupted from abroad... Let one executive be appointed for life who dares execute his powers." Hamilton argued, "And let me observe that an executive is less dangerous to

14877-412: The expense of indigenous communities, which had no say over the crops that were produced and retained marginal profits from their agricultural output. That model also expanded monocultures , whose economies were centered on a single crop or natural resource for exports. Monoculturing was prevalent in countries such as Senegal and Gambia , where groundnuts accounted for 85% to 90% of earnings throughout

15048-455: The expense of the agricultural sector, which accounted for 70% of the region's workforce throughout the 1970s. The neglect was detrimental to producers as well as the urban population, as agricultural output could not meet the increasing demands for foodstuffs and raw materials in the growing urban areas. ISI efforts also suffered from a comparative disadvantage in skilled labor for industrial growth. A 1982 World Bank report stated, "There exists

15219-608: The fall of the Roman Empire in the 5th century, a financially lucrative trade brought valuable spice to Europe from the far east, including India and China. Roman commerce allowed its empire to flourish and endure. The latter Roman Republic and the Pax Romana of the Roman empire produced a stable and secure transportation network that enabled the shipment of trade goods without fear of significant piracy , as Rome had become

15390-484: The financial and political means to unify the state apparatus behind an industrialization process. Sub-Saharan Africa's experiment with ISI created largely pessimistic results across the continent by the early 1980s. Manufacturing, which formed the core of the big push towards industrialisation, accounted for only 7% of GDP across the continent by 1983. The failures of the model stemmed from various external and domestic factors. Internally, efforts to industrialise came at

15561-406: The financial risk of buying government bonds that most experts thought would never be redeemed. He argued that liberty and property security were inseparable, and that the government should honor the contracts, as they formed the basis of public and private morality. To Hamilton, the proper handling of the government debt would also allow America to borrow at affordable interest rates and would also be

15732-540: The firm for five months in 1771 while the owner was at sea. He remained an avid reader, and later developed an interest in writing and a life outside Saint Croix. He wrote a detailed letter to his father regarding a hurricane that devastated Christiansted on August 30, 1772. The Presbyterian Reverend Hugh Knox, a tutor and mentor to Hamilton, submitted the letter for publication in the Royal Danish-American Gazette. Biographer Ron Chernow found

15903-638: The first U.S. secretary of the treasury from 1789 to 1795 during George Washington's presidency . Born out of wedlock in Charlestown, Nevis , Hamilton was orphaned as a child and taken in by a prosperous merchant. He pursued his education in New York City where, despite his young age, he was a prolific and widely read pamphleteer advocating for the American revolutionary cause , though an anonymous one. He then served as an artillery officer in

16074-550: The first millennium AD. It continued up to historic times, later becoming the Maritime Silk Road. The emergence of exchange networks in the Pre-Columbian societies of and near to Mexico are known to have occurred within recent years before and after 1500 BCE. Trade networks reached north to Oasisamerica . There is evidence of established maritime trade with the cultures of northwestern South America and

16245-407: The first time in almost 100 years. Import substitution policies might create jobs in the short run, but as domestic producers replace foreign producers, both output and growth are lower than would otherwise have been in the long run. Import substitution denies the country the benefits to be gained from specialisation and foreign imports. The theory of comparative advantage shows how countries within

16416-515: The free-trade regime had unequal power and that the central economies (particularly, Britain and the United States) that manufactured industrial goods could control the price of their exports. The unequal powers were taking the wealth from developing countries, leaving them with no way to prosper. He believed that developing countries needed to create local vertical linkages and that they could not succeed except by creating industries that used

16587-553: The future Constitution of the United States, including a strong federal government with the ability to collect taxes and raise an army. It also included the separation of powers into the legislative , executive , and judicial branches. Hamilton resigned from Congress in 1783. When the British left New York in 1783 , he practiced there in partnership with Richard Harison . He specialized in defending Tories and British subjects, as in Rutgers v. Waddington , in which he defeated

16758-460: The global market. Those countries adopted free market discourses directed at other countries to obtain two objectives: to open their markets to local products and to prevent them from adopting the same development strategies that had led to the industrialization of the developed countries. As a set of development policies, ISI policies are theoretically grounded on the Prebisch–Singer thesis , on

16929-647: The highest they have ever been. Trade is from Middle English trade ("path, course of conduct"), introduced into English by Hanseatic merchants, from Middle Low German trade ("track, course"), from Old Saxon trada ("spoor, track"), from Proto-Germanic *tradō ("track, way"), and cognate with Old English tredan ("to tread"). Commerce is derived from the Latin commercium , from cum "together" and merx , "merchandise." Trade originated from human communication in prehistoric times. Prehistoric peoples exchanged goods and services with each other in

17100-688: The ideas of revolution and liberty. During the convention, Hamilton constructed a draft for the Constitution based on the convention debates, but he never presented it. This draft had most of the features of the actual Constitution. In this draft, the Senate was to be elected in proportion to the population, being two-fifths the size of the House, and the president and senators were to be elected through complex multistage elections, in which chosen electors would elect smaller bodies of electors; they would hold office for life, but were removable for misconduct. The president would have an absolute veto. The Supreme Court

17271-467: The import-export business as well as the retail-wholesale distribution. That allowed post-colonial states to nationalise industries and retain the profits from their output, rather than allow capital flight to the west through multinational corporations. The growth of African socialism in the pursuit of ISI can be seen in the 1967 Arusha Declaration (Tanzania) in which Nyerere argued that "we cannot get enough money and borrow enough technicians to start all

17442-403: The importance of common trading tariffs in specific parts of the continent and aimed to protect domestic manufacturing from external competitors. Early attempts at ISI were stifled by colonial neomercantilist policies of the 1940s and the 1950s that aimed to generate growth by exporting primary products to the detriment of imports. The promotion of exports to metropoles was the primary goal of

17613-506: The impression that New York would not be accepted into the Union. During the state convention, New Hampshire and Virginia becoming the ninth and tenth states to ratify the Constitution, respectively, had ensured any adjournment would not happen and a compromise would have to be reached. Hamilton's arguments used for the ratifications were largely iterations of work from The Federalist Papers , and Smith eventually went for ratification, though it

17784-432: The incomes of import-competing sectors (such as manufacturing) increased. Governments that adopted ISI policies ran persistent budget deficits as state-owned enterprises never became profitable. They also ran current accounts deficits , as the manufactured goods produced by ISI countries were not competitive in international markets, and as the agricultural sector (the sector which was competitive in international markets)

17955-463: The industrial sector of developing countries have indicated that increases in total factor productivity, (TFP) are an important source of industrial growth". He continued that "a higher growth rate in output, other things remaining the same, would enable the industry to attain a higher rate of technological progress (since more investment would be made) and create a situation in which the constituent firms could take greater advantage of scale economies." It

18126-510: The industrialized goods that they consumed, were prevented from importing because of a sharp decline in their foreign sales, which served as an incentive for the domestic production of the goods that they needed. The first steps in import substitution were less theoretical and more pragmatic choices on how to face the limitations imposed by recession even though the governments in Argentina ( Juan Domingo Perón ) and Brazil ( Getúlio Vargas ) had

18297-489: The industries we need and even if we could get the necessary assistance, dependence on it would interfere with our policy on socialism." The need for indigenous development formed the core of the African socialist vision whereby the state would manage a planned economy to prevent it from being controlled by the free market, which was regarded as a form of neo-imperialism . In line with that economic vision, Tanzania engaged in

18468-579: The influence of William Livingston , a local leading intellectual and revolutionary with whom he lived for a time. Hamilton entered Mulligan's alma mater King's College , now Columbia University , in New York City, in the autumn of 1773 as a private student, while again boarding with Mulligan until officially matriculating in May 1774. His college roommate and lifelong friend Robert Troup spoke glowingly of Hamilton's clarity in concisely explaining

18639-414: The interests of political elites may be self-serving, rather than for the good of the nation. That correlates with the theory of neo-patrimonialism , which claims that post-colonial elites used the coercive powers of the state to maintain their political positions and to increase their personal wealth. Ola Olson opposes that view by arguing that in a developing economy, the government is the only actor with

18810-617: The late 1980s, reducing government intervention in the economy and becoming active participants in the World Trade Organization. In contrast to ISI policies, the Four Asian Tigers (Hong Kong, Singapore, South Korea and Taiwan) have been characterized as government intervention to facilitate " export-oriented industrialization ". ISI policies generally had distributional consequences , as the incomes of export-oriented sectors (such as agriculture) declined while

18981-673: The letter astounding because "for all its bombastic excesses, it does seem wondrous [that a] self-educated clerk could write with such verve and gusto" and that a teenage boy produced an apocalyptic "fire-and-brimstone sermon" viewing the hurricane as a "divine rebuke to human vanity and pomposity." The essay impressed community leaders, who collected a fund to send Hamilton to the North American colonies for his education. In October 1772, Hamilton arrived by ship in Boston and proceeded from there to New York City, where he took lodgings with

19152-462: The liberties of the people when in office during life than for seven years. It may be said this constitutes as an elective monarchy ... But by making the executive subject to impeachment, the term 'monarchy' cannot apply ..." In his notes of the convention, Madison interpreted Hamilton's proposal as claiming power for the "rich and well born". Madison's perspective all but isolated Hamilton from his fellow delegates and others who felt they did not reflect

19323-482: The low-income countries, and in their inability, because of their structure, to profit from international trade." Mercantilist economic theory and practices of the 16th, 17th, and 18th centuries frequently advocated building up domestic manufacturing and import substitution. In the early United States , the Hamiltonian economic program , specifically the third report and the magnum opus of Alexander Hamilton ,

19494-406: The main carrier of goods; Cogs and Hulks are two examples of such cargo ships. Many ports would develop their own extensive trade networks. The English port city of Bristol traded with peoples from what is modern day Iceland, all along the western coast of France, and down to what is now Spain. During the Middle Ages, Central Asia was the economic center of the world. The Sogdians dominated

19665-662: The material cultures of India and China. Indonesians , in particular were trading in spices (mainly cinnamon and cassia ) with East Africa using catamaran and outrigger boats and sailing with the help of the Westerlies in the Indian Ocean. This trade network expanded to reach as far as Africa and the Arabian Peninsula , resulting in the Austronesian colonization of Madagascar by the first half of

19836-546: The men. Jackson was unsuccessful. The mob arrived in Philadelphia, and the soldiers proceeded to harangue Congress for their pay. Hamilton argued that Congress ought to adjourn to Princeton, New Jersey . Congress agreed, and relocated there. Frustrated with the weakness of the central government, Hamilton while in Princeton, drafted a call to revise the Articles of Confederation. This resolution contained many features of

20007-506: The mid-1950s, Latin America's economies were growing faster than those of the industrialized West." ISI policies were implemented in various forms across Africa from the early 1960s to the mid-1970s to promote indigenous economic growth within newly independent states. The national impetus for ISI can be seen from 1927, with the creation of the East African and Central African common markets in British and French colonies that recognized

20178-486: The model gain from trade, however, this concept has received criticism for its misguided underlying assumptions and inapplicability to modern production. Moreover, protectionism leads to dynamic inefficiency, as domestic producers have no incentive from foreign competitors to reduce costs or improve products. Import substitution can impede growth through poor allocation of resources, and its effect on exchange rates harms exports. Despite some apparent gains, import substitution

20349-403: The model of development. Tom Mboya , the first minister for economic development and planning, aimed to create a growth-oriented path of industrialization, even at the expense of traditional socialist morals. Kenya's Sessional Paper No. 10 of 1965 reinforced the view by claiming, "If Africanization is undertaken at the expense of growth, our reward will be a falling standard of living." Under such

20520-656: The mountains of Afghanistan was the largest source for trade of lapis lazuli . The material was most largely traded during the Kassite period of Babylonia beginning 1595 BCE. Adam Smith traces the origins of commerce to the very start of transactions in prehistoric times. Apart from traditional self-sufficiency , trading became a principal faculty for prehistoric people, who bartered what they had for goods and services from each other. Anthropologists have found no evidence of barter systems that did not exist alongside systems of credit. The earliest evidence of writing in

20691-463: The movement of gold and other resources sent out by Muslim traders on the Trans-Saharan trading network. Beginning in the 16th century, European merchants would purchase gold, spices, cloth, timber and slaves from West African states as part of the triangular trade . This was often in exchange for cloth , iron , or cowrie shells which were used locally as currency. Founded in 1352,

20862-707: The national funding plan. On March 15, Washington defused the Newburgh situation by addressing the officers personally. Congress ordered the Army officially disbanded in April 1783. In the same month, Congress passed a new measure for a 25-year impost—which Hamilton voted against —that again required the consent of all the states; it also approved a commutation of the officers' pensions to five years of full pay. Rhode Island again opposed these provisions, and Hamilton's robust assertions of national prerogatives in his previous letter were widely held to be excessive. In June 1783,

21033-408: The necessity of standing armies. In 1789, Washington—who had become the first president of the United States —appointed Hamilton to be his cabinet's Secretary of the Treasury on the advice of Robert Morris , Washington's initial pick. On September 11, 1789, Hamilton was nominated and confirmed in the Senate and sworn in the same day as the first United States Secretary of the Treasury . Before

21204-469: The outbreak of World War I in 1914. Trade openness increased again during the 1920s but collapsed (in particular in Europe and North America) during the Great Depression of the 1930s. Trade openness increased substantially again from the 1950s onward (albeit with a slowdown during the oil crisis of the 1970s ). Economists and economic historians contend that current levels of trade openness are

21375-420: The participants, wrote the majority of the essays, and oversaw the publication. During the project, each person was responsible for their areas of expertise. Jay covered foreign relations. Madison covered the history of republics and confederacies, along with the anatomy of the new government. Hamilton covered the branches of government most pertinent to him: the executive and judicial branches, with some aspects of

21546-647: The patriots' case against the British in what is credited as Hamilton's first public appearance on July 6, 1773. As King's College students, Hamilton, Troup, and four other undergraduates formed an unnamed literary society that is regarded as a precursor of the Philolexian Society . In 1774, Church of England clergyman Samuel Seabury published a series of pamphlets promoting the Loyalist cause and Hamilton responded anonymously to it, with his first published political writings, A Full Vindication of

21717-528: The precedent of Fascist Italy (and, to some extent, the Soviet Union ) as inspirations of state-induced industrialization. Positivist thinking, which sought a strong government to modernize society, played a major influence on Latin American military thinking in the 20th century. The officials, many of whom rose to power, like Perón and Vargas, considered industrialization (especially steel production) to be synonymous with "progress" and naturally placed as

21888-476: The presidency in the electoral college and, despite philosophical differences, Hamilton endorsed Jefferson over Burr, whom he found unprincipled. When Burr ran for governor of New York in 1804 , Hamilton again campaigned against him, arguing that he was unworthy. Taking offense, Burr challenged Hamilton to a duel . In the July 11, 1804, duel in Weehawken, New Jersey , Burr shot Hamilton in the stomach. Hamilton

22059-406: The primary products already being produced domestically. Tariffs were designed to allow domestic infant industries to prosper. In doing so, Prebisch predicted many benefits: dependence on imports would lower, and the country would not be forced to sell agricultural goods for low prices to pay for industrial goods, the income rate would go up, and the country itself would have a strong growth. ISI

22230-466: The production of some trade-able goods – including the production of scarce or limited natural resources elsewhere. For example, different regions' sizes may encourage mass production . In such circumstances, trading at market price between locations can benefit both locations. Different types of traders may specialize in trading different kinds of goods; for example, the spice trade and grain trade have both historically been important in

22401-708: The rank of lieutenant colonel . Washington believed that "Aides de camp are persons in whom entire confidence must be placed and it requires men of abilities to execute the duties with propriety and dispatch." Hamilton served four years as Washington's chief staff aide. He handled letters to the Continental Congress , state governors, and the most powerful generals of the Continental Army . He drafted many of Washington's orders and letters under Washington's direction, and he eventually issued orders on Washington's behalf over his own signature. Hamilton

22572-803: The recession end in the United States. Also during the war, in 1944, 44 countries signed the Bretton Woods Agreement , intended to prevent national trade barriers, to avoid depressions. It set up rules and institutions to regulate the international political economy : the International Monetary Fund and the International Bank for Reconstruction and Development (later divided into the World Bank $ Bank for International Settlements). These organizations became operational in 1946 after enough countries ratified

22743-437: The report he also sought out suggestions from contemporaries such as John Witherspoon and Madison. Although they agreed on additional taxes such as distilleries and duties on imported liquors and land taxes, Madison feared that the securities from the government debt would fall into foreign hands. In the report, Hamilton felt that the securities should be paid at full value to their legitimate owners, including those who took

22914-468: The sole effective sea power in the Mediterranean with the conquest of Egypt and the near east. In ancient Greece Hermes was the god of trade (commerce) and weights and measures. In ancient Rome, Mercurius was the god of merchants, whose festival was celebrated by traders on the 25th day of the fifth month. The concept of free trade was an antithesis to the will and economic direction of

23085-469: The southern states will be anxious. The northern will be glad to send a counterpoise in Vermont." Vermont was admitted to the Union in 1791. In 1788, he was awarded a Master of Arts degree from his alma mater , the former King's College, now reconstituted as Columbia College. It was during this post-war period that Hamilton served on the college's board of trustees , playing a part in the reopening of

23256-428: The sovereigns of the ancient Greek states. Free trade between states was stifled by the need for strict internal controls (via taxation) to maintain security within the treasury of the sovereign, which nevertheless enabled the maintenance of a modicum of civility within the structures of functional community life. The fall of the Roman empire and the succeeding Dark Ages brought instability to Western Europe and

23427-465: The states. This lack of a stable source of funding had made it difficult for the Continental Army both to obtain its necessary provisions and to pay its soldiers. During the war, and for some time after, Congress obtained what funds it could from subsidies from the King of France, European loans, and aid requested from the several states, which were often unable or unwilling to contribute. An amendment to

23598-515: The term "Latin American structuralism" refers to the era of import substitution industrialization in many Latin American countries from the 1950s to the 1980s. The theories behind Latin American structuralism and ISI were organized in the works of economists such as Raúl Prebisch , Hans Singer , and Celso Furtado , and gained prominence with the creation of the United Nations Economic Commission for Latin America and

23769-555: The trading nation as a whole for the benefit of specific industries. In 1799, the Dutch East India Company , formerly the world's largest company, became bankrupt , partly due to the rise of competitive free trade. In 1817, David Ricardo , James Mill and Robert Torrens showed that free trade would benefit the industrially weak as well as the strong, in the famous theory of comparative advantage . In Principles of Political Economy and Taxation Ricardo advanced

23940-505: The unit being re-designated an artillery company. Through his connections with influential New York patriots, including Alexander McDougall and John Jay , Hamilton raised the New York Provincial Company of Artillery of 60 men in 1776, and was elected captain . The company took part in the campaign of 1776 in and around New York City; as rearguard of the Continental Army's retreat up Manhattan, serving at

24111-464: The use of money ) as an early form of trade, money was invented before written history began. Consequently, any story of how money first developed is mostly based on conjecture and logical inference. Letters of credit , paper money , and non-physical money have greatly simplified and promoted trade as buying can be separated from selling , or earning . Trade between two traders is called bilateral trade , while trade involving more than two traders

24282-549: The view that there is no alternative . Shuman claims that LOIS businesses are long-term wealth generators, are less likely to exit destructively, and have higher economic multipliers . Import substitution policies were adopted by most nations in Latin America from the 1930s to the late 1980s. The initial date is largely attributed to the impact of the Great Depression of the 1930s, when Latin American countries, which exported primary products and imported almost all of

24453-461: The villagization project and to focus on agricultural development. While ISI under African socialism was purported to be an anti-Western development model, scholars such as Anthony Smith argued that its ideological roots came from Rostow's modernization theory , which maintains that commitment to economic growth and free-market capitalism is the most efficient means of state development. Kenya 's implementation of ISI under state capitalism exemplifies

24624-461: The war drew nearer to an end, he knew that opportunities for military glory were diminishing. On February 15, 1781, Hamilton was reprimanded by Washington after a minor misunderstanding. Although Washington quickly tried to mend their relationship, Hamilton insisted on leaving his staff. He officially left in March, and settled with his new wife Elizabeth Schuyler close to Washington's headquarters. He continued to repeatedly ask Washington and others for

24795-718: The windows; 194 British soldiers walked out of the building and laid down their arms, ending the battle in an American victory. While being stationed in Morristown, New Jersey , from December 1779 to March 1780, Hamilton met Elizabeth Schuyler , a daughter of General Philip Schuyler and Catherine Van Rensselaer . They married on December 14, 1780, at the Schuyler Mansion in Albany, New York . They had eight children, Philip , Angelica , Alexander , James , John , William , Eliza , and another Philip . Hamilton

24966-409: The world food market and has become food self-sufficient. In the fisheries, fruit, and vegetables sectors, domestic production has increased sharply, imports have declined significantly, and the trade balance (the difference between exports and imports) has improved. In the second quarter of 2017, agricultural exports were expected to exceed imports, which would make Russia a net agricultural exporter for

25137-490: Was "both unsustainable over time and produced high economic and social costs". Given import substitution's dependence upon its developed and isolated markets within Latin America, it relied upon the growth of a market that was limited in size. In most cases, the lack of experience in manufacturing and the lack of competition reduced innovation and efficiency, which restrained the quality of Latin American produced goods, and protectionist policies kept prices high. In addition, power

25308-685: Was a "genius—the only one of the Founding Fathers fully entitled to that accolade—and he had the elusive, indefinable characteristics of genius." Hamilton was born and spent the early part of his childhood in Charlestown, the capital of Nevis in the British Leeward Islands . Hamilton and his older brother, James Jr., were born out of wedlock to Rachel Lavien ( née Faucette), a married woman of half-British and half- French Huguenot descent, and James A. Hamilton,

25479-463: Was a protracted and costly process, something that African states were unable to capitalise on because of the lack of domestic savings and poor literacy rates across the continent. The failure of ISI to generate sufficient growth in industrialisation and overall development led to its abandonment by the early 1980s. In response to the underdeveloped economies in the region, the IMF and the World Bank imposed

25650-628: Was a symbol of spiritual and political power and privilege." In the 16th century, the Seventeen Provinces were the center of free trade, imposing no exchange controls , and advocating the free movement of goods. Trade in the East Indies was dominated by Portugal in the 16th century, the Dutch Republic in the 17th century, and the British in the 18th century. The Spanish Empire developed regular trade links across both

25821-568: Was an alliance of trading cities that maintained a trade monopoly over most of Northern Europe and the Baltic , between the 13th and 17th centuries. Portuguese explorer Vasco da Gama pioneered the European spice trade in 1498 when he reached Calicut after sailing around the Cape of Good Hope at the southern tip of the African continent. Prior to this, the flow of spice into Europe from India

25992-487: Was concentrated in the hands of a few, which decreased the incentive for entrepreneurial development. Lastly, the large deficits and debts resulting from import substitution policies are largely credited for the Latin American crisis of the 1980s. Trade Traders generally negotiate through a medium of credit or exchange, such as money. Though some economists characterize barter (i.e. trading things without

26163-570: Was controlled by Islamic powers, especially Egypt. The spice trade was of major economic importance and helped spur the Age of Discovery in Europe. Spices brought to Europe from the Eastern world were some of the most valuable commodities for their weight, sometimes rivaling gold . From 1070 onward, kingdoms in West Africa became significant members of global trade . This came initially through

26334-597: Was directed to replace imports. Going further, in his book Kicking Away the Ladder , the South Korean economist Ha-Joon Chang also argues based on economic history that all major developed countries, including the United Kingdom, used interventionist economic policies to promote industrialization and protected national companies until they had reached a level of development in which they were able to compete in

26505-416: Was followed within a few years by the infant industry scenario developed by Mill promoting the theory that the government had the duty to protect young industries, although only for a time necessary for them to develop full capacity. This became the policy in many countries attempting to industrialize and out-compete English exporters. Milton Friedman later continued this vein of thought, showing that in

26676-515: Was immediately transported to the home of William Bayard Jr. in Greenwich Village for medical attention, but succumbed to his wounds the following day. Scholars generally regard Hamilton as an astute and intellectually brilliant administrator, politician, and financier who was sometimes impetuous. His ideas are credited with laying the foundation for American government and finance. British historian Paul Johnson stated that Hamilton

26847-692: Was in existence for at least 3,000 years, where its peak production was from 2000 BCE to 500 CE, older than the Silk Road in mainland Eurasia and the later Maritime Silk Road . The Maritime Jade Road began to wane during its final centuries from 500 CE until 1000 CE. The entire period of the network was a golden age for the diverse societies of the region. Sea-faring Southeast Asians also established trade routes with Southern India and Sri Lanka as early as 1500 BC, ushering an exchange of material culture (like catamarans , outrigger boats , sewn-plank boats, and paan) and cultigens (like coconuts , sandalwood , bananas , and sugarcane ); as well as connecting

27018-518: Was increasingly the preferred choice rather than chert from the late Mesolithic to Neolithic, requiring exchange as deposits of obsidian are rare in the Mediterranean region. Obsidian provided the material to make cutting utensils or tools, although since other more easily obtainable materials were available, use was exclusive to the higher status of the tribe using "the rich man's flint". Obsidian has held its value relative to flint. Early traders traded Obsidian at distances of 900 kilometres within

27189-488: Was invited to become an aide to Continental Army general William Alexander, Lord Stirling , and another general, perhaps Nathanael Greene or Alexander McDougall . He declined these invitations, believing his best chance for improving his station in life was glory on the Revolutionary War 's battlefields. Hamilton eventually received an invitation he felt he could not refuse: to serve as Washington's aide with

27360-549: Was involved in a wide variety of high-level duties, including intelligence , diplomacy , and negotiation with senior army officers as Washington's emissary. During the Revolutionary War, Hamilton became the close friend of several fellow officers. His letters to the Marquis de Lafayette and to John Laurens , employing the sentimental literary conventions of the late 18th century and alluding to Greek history and mythology, have been read by Jonathan Ned Katz as revelatory of

27531-599: Was licensed to argue cases before the Supreme Court of New York . He also accepted an offer from Robert Morris to become receiver of continental taxes for the New York state . Hamilton was appointed in July 1782 to the Congress of the Confederation as a New York representative for the term beginning in November 1782. Before his appointment to Congress in 1782, Hamilton was already sharing his criticisms of Congress. He expressed these criticisms in his letter to James Duane dated September 3, 1780: "The fundamental defect

27702-536: Was living, Alexander and James Jr. received individual tutoring and classes in a private school led by a Jewish headmistress. Alexander supplemented his education with a family library of 34 books. James Hamilton later abandoned Rachel Lavien and their two sons, allegedly to "spar[e] [her] a charge of bigamy ...after finding out that her first husband intend[ed] to divorce her under Danish law on grounds of adultery and desertion." Lavien then moved with her two children to Saint Croix, where she supported them by managing

27873-403: Was more out of necessity than Hamilton's rhetoric. The vote in the state convention was ratified 30 to 27, on July 26, 1788. Hamilton recruited John Jay and James Madison to write The Federalist Papers , a series of essays, to defend the proposed Constitution. He made the largest contribution to that effort, writing 51 of the 85 essays published. Hamilton supervised the entire project, enlisted

28044-602: Was most successful in countries with large populations and income levels, which allowed for the consumption of locally produced products. Latin American countries such as Argentina, Brazil, and Mexico (and to a lesser extent Chile , Uruguay and Venezuela ) had the most success with ISI. While the investment to produce cheap consumer products may be profitable in small markets, the same cannot be said for capital-intensive industries, such as automobiles and heavy machinery, which depend on larger markets to survive. Thus, smaller and poorer countries, such as Ecuador , Honduras , and

28215-610: Was necessary to reduce the growing economic inequalities that had occurred as a result of state capitalism. In all of the countries that adopted ISI, the state oversaw and managed its implementation, designing economic policies that directed development towards the indigenous population, with the aim of creating an industrialised economy. The 1972 Nigerian Enterprises Promotion Decree exemplified such control, as it required foreign companies to offer at least 40% of their equity shares to local people. A state-controlled economy has been criticized by scholars such as Douglas North who claim that

28386-450: Was not further involved. Hamilton's highlights included discussion that although republics have been culpable for disorders in the past, advances in the "science of politics" had fostered principles that ensured that those abuses could be prevented, such as the division of powers, legislative checks and balances, an independent judiciary, and legislators that were represented by electors (No. 7–9). Hamilton also wrote an extensive defense of

28557-659: Was one of many factors leading to the so-called lost decade of Latin American economics . Against most opinions, one historian argued that ISI was successful in fostering a great deal of social and economic development in Latin America: "By the early 1960s, domestic industry supplied 95% of Mexico's and 98% of Brazil's consumer goods. Between 1950 and 1980, Latin America's industrial output went up six times, keeping well ahead of population growth. Infant mortality fell from 107 per 1,000 live births in 1960 to 69 per 1,000 in 1980, [and] life expectancy rose from 52 to 64 years. In

28728-498: Was quite limited. Governor George Clinton 's faction in the New York legislature had chosen New York's other two delegates, John Lansing Jr. and Robert Yates , and both of them opposed Hamilton's goal of a strong national government. Thus, whenever the other two members of the New York delegation were present, they decided New York's vote, to ensure that there were no major alterations to the Articles of Confederation. Early in

28899-401: Was to have immediate jurisdiction over all lawsuits involving the United States, and state governors were to be appointed by the federal government. At the end of the convention, Hamilton was still not content with the final Constitution, but signed it anyway as a vast improvement over the Articles of Confederation, and urged his fellow delegates to do so also. Since the other two members of

29070-624: Was unsuccessful. The state convention in Poughkeepsie in June 1788 pitted Hamilton, Jay, James Duane , Robert Livingston , and Richard Morris against the Clintonian faction led by Melancton Smith , Lansing, Yates, and Gilbert Livingston . Clinton's faction wanted to amend the Constitution, while maintaining the state's right to secede if their attempts failed, and members of Hamilton's faction were against any conditional ratification, under

29241-405: Was weakened; as a result, ISI countries ended up importing more. ISI policies were also plagued by rent-seeking . ISI is a development theory, but its political implementation and theoretical rationale are rooted in trade theory . It has been argued that all or virtually all nations that have industrialized have followed ISI. Import substitution was heavily practiced during the mid-20th century as

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