Kicking Away the Ladder

"Which historical experience is most relevant for developing countries in Asia, Latin America, and Africa today -- the perceived failure of state-led development and import substitution in those countries in recent decades, or the experience of Britain and the United States in the nineteenth century? Certainly China and India have answered by saying that their past policies of inward-looking socialism have failed them. Both countries have done better over the past decade or two by shedding heavy-handed government involvement in regulating the economy and allowing a greater role for market forces, even though they have not embraced every aspect of the 'Washington Consensus.' In particular, China and India have decided to become much more open to world trade and investment and have reaped benefits by exposing long protected 'infant industries' to global competition."

Kicking Away the Ladder: Development Strategy in Historical Perspective | Economic History Services