Defensive Industrialization

Definition

Defensive industrialization is a strategy used by countries to develop their own industries as a means of reducing dependence on foreign goods and protecting their economies.

Analogy

Think of defensive industrialization like building your own vegetable garden because you don't want to rely on the grocery store for fresh produce. It's about self-sufficiency and protection from external factors.

Related terms

Protectionism: This is an economic policy that restricts imports from other countries through methods such as tariffs, in order to protect domestic industries.

Import Substitution Industrialization (ISI): This is an economic policy which advocates replacing foreign imports with domestic production.

Economic Nationalism: A set of policies that emphasize domestic control of the economy, labor, and capital formation, even if this requires the imposition of tariffs and other restrictions on the movement of labor, goods and capital.