How did import substitution policies affect the economics of Brazil and Argentina?

Many major South American countries—including Argentina, Brazil, and Chile—adopted these well-intended but ultimately destructive import substitution policies. In the late 1980s, however, the countries began to reverse their policies. They lowered tariff barriers, sought free-trade agreements with

their neighbors, privatized their industries, and positioned their economics to compete internationally.

For example. Is now one of the most free-market-oriented economies in the world. These policy shifted are expanding South America’s role in world trade, attracting foreign capital to the continent, and increasing productivity and per capital income.