Answer the question - Assignment Example

However, this is a partial fact. Developed countries like UK and USA did not rely heavily on these economic policies and institutions when they were in their developing phase. And they have changed history, re-wrote it according to their own wishes so that they can misguide the developing world and keep putting obstacles in their way to development. Great Britain and USA are the two strongest economies of the world today. They developed their economies by following aggressive protection policies and not by following a free market and liberal approach.

In the past, Great Britain has relied on heavy activist policies that were all aimed at promoting its industries. Later Korea and Japan followed the same strategy to develop their industries. But Great Britain, who was at that time, a promoter of free trade policies to less developed countries of that time like Germany and USA was actually using the ‘kicking the ladder’ approach to reach to the top. The protectionist policies used by Great Britain were criticized by the French economists.

American economists gave birth to the concept of infant industry. And during the time period spanning the civil war and the second world war, America was the most protected economy of all times. It is also believed that the reason behind the American civil war was actually tariffs rather than slavery. America actually went against the theories and advises proposed by great economists like Adam Smith and Jean Baptiste who laid great emphasis on agriculture. However Americans were smarter. They knew that Britain had achieved a high economic standard by using protectionist policies and if America had to prosper, it had to follow the same procedure that Britain used.

The US President Ulysses then stated that after 200 years when USA will start entering into free trade and its products would be made available to the whole world. The examples of