19FEB: The Strategy of Economic Development Albert O. Hirschman

a summary and an example from experience on:
The Strategy of Economic Development
Albert O. Hirschman
1958

Chapter 6: Interdependence and Industrialization 

The chapter explains forces that drive, allow and create new industries. The author explains that 
developing country often find themselves in a position of an enclave. Either an export one, where a natural resource is being extracted from the country and exported without leaving much capital behind. For example cotton is collected and exported as a raw material, rather than employing local population and turning cotton into clothes and exporting that. These are called forward linkages. The author shows that the less developed country the more primary sources are being exported. On the other hand an import enclave is also typical for developing countries. In this instance ‘near final’product are imported into a country, where local population adds final touches to the product. These instances have proven to have better effect on the host country as there are cases where the import has been over time substituted with local resources. These are called backward linkages. The author argues that the more linkages within a country the better and to that it is possible to calculate approximately the ‘value’ of linkages and the correct sequence of starting development in underdeveloped country by introducing new industry. 
I would like to hope that the project for Las Lomas Colonia, which identified a demand in housing and local material resources, has a potential to start such industry. In the case local soil caliche can be used for manufacturing of unfired blocks, which can be used for building of homes. The technology needed is a hydraulic press, which can be ‘imported’ from another region. The block making is a backward linkage to the building industry. The raw material is present and so is the greatly unemployed labor resource. What is missing!?