chapter  27
26 Pages

RAW MATERIALS IN THE HISTORY OF ECONOMIC POLICY

Or why List (the protectionist) and Cobden (the free trader) both agreed on free trade
WithERIK S. REINERT

The debate around the Corn Laws calls the attention to one important stylized fact in the history of economic policy: All presently industrialized countries have, in the early stages of industrialization-from fifteenth-century England to twentieth-century Japan and Korea-been through a period where economic policy was heavily discriminatory against raw material production, and/or heavily favouring manufacturing. The particular mix of anti-raw materialism and pro-manufacturing policies varied, depending on the special circumstances of each nation.