Producers in developing countries entering new industries need a period of (partial) insulation from international competition (through protection, subsidies and other measures) before they can build up their capabilities to compete with superior foreign producers. Of course, when the infant producers 'grow up' and are able to compete with the more advanced producers, the insulation should go. But this has to be done gradually. If they are exposed to too much international competition too soon, they are bound to disappear.


Ch. 3, Poor theory, poor results, p. 73 - Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (2008)


Producers in developing countries entering new industries need a period of (partial) insulation from international competition (through protection,...

Producers in developing countries entering new industries need a period of (partial) insulation from international competition (through protection,...

Producers in developing countries entering new industries need a period of (partial) insulation from international competition (through protection,...

Producers in developing countries entering new industries need a period of (partial) insulation from international competition (through protection,...