You do the cheap manufacturing to get from low-income to medium-income. Once at that level you need skilled workers to get to high-income. If you don't have the

You do the cheap manufacturing to get from low-income to medium-income. Once at that level you need skilled workers to get to high-income. If you don't have these, low-cost jobs will move to other countries affected you are trapped. Germany already had a highly educated workforce and is high-income. No need to go back to square one. Source: Invisible China by Scott Rozelle which does a great job explaining economic development and comparing different countries.