ISI works by having the state lead economic development through nationalization, subsidization of vital industries (agriculture, power generation, etc.), increased taxation, and highly protectionist trade policies.
ISI beroperasi dengan membiarkan negara memimpin pembangunan ekonomi lewat nasionalisasi, subsidisasi industri penting (termasuk pertanian, pembangkit listrik, dan lain-lain), kenaikan pajak, dan kebijakan perdagangan yang sangat proteksionis.