ABSTRACT
Although the end of the Second World War marked a watershed in the evolution of world industry, many of the basic forces that would later alter the institutional and policy environment had already emerged earlier in the century. This chapter sketches the international policy framework that emerged after this period, and examines how this framework has adjusted to changes in the world industrial map. In the years immediately following the Second World War, priorities in the advanced countries focused on the reconstruction of Europe rather than the development of Africa, Asia and Latin America. Policies to foster economic interdependence changed over time but, in general, most were designed to facilitate foreign investment, the transfer of technology, and an international division of labour favouring the growth of productivity. Political considerations continued to influence economic policy in later years. Despite its relatively modest contribution to growth, the development of industry was instrumental in redefining the self-interest of many LDCs.
