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I would argue that they only liberalized international trade and investment after they attained success, i.e. their local industries became mature enough to com
by car_analogy 4y ago
I would argue that they only liberalized international trade and investment after they attained success, i.e. their local industries became mature enough to compete internationally.
But I suspect we agree - different trade policies are needed for different stages of development. Fledgling industries need protection, while mature industries want to expand into foreign markets.
Where conflict arises is when mature industries want to expand into developing markets, crushing any local competition. Sometimes this is mutually beneficial (not every country can have leading edge semiconductor fabs), other times it is not (nobody needs McDonald's to feed their country), but those industries will still lobby for trade deals for market access, and use neoliberal trade theory to justify it as mutually beneficial.
- Ekaros 4y agoI'm not sure McDonald's is worst possible option. As long as it is allowed to operate with local franchises and production. Maybe some part of supply chain can be imported, but mostly it should be locally produced. Thus allow some rent seeking, but also build up local economy.
- simonh 4y agoI don't think that's true, because industrialising takes capital, a lot of it. If all these countries tried developing using indigenous rural sources of capital it would take generations. But foreigners aren't going to invest capital if they don't get rights and guarantees, and that means at least some level of liberalisation.