133
Lee 1978, p. 467; Engerman 2001.
134
Hadenius et al. 1996, p. 250; Montgomery 1939, pp. 225-6.
135
M0rch 1982, pp. 364-7.
136
Nerb0fvik 1986, p. 210; Engerman 2001, appendix 1.
137
Soto 1989, pp. 702-4 (for Spain); Engerman 2001, table l(for Holland and Switzerland) .
138
Dechesne 1932, pp. 494-5; Blanpain 1996, pp. 180-2 (for Belgium); Clark 1996, p. 137 (for Italy); Serrao 1979, p. 413 (for Portugal) .
139
Engerman 2001, table 5.
140
Garraty and Carnes 2000, pp. 607, 764. I thank Stanley Engerman for bringing the 1919 legislation attempt to my attention in a personal correspondence.
141
Cochran and Miller 1942, p. 245.
142
Lee 1978, pp. 483-4 (Germany); Pryser 1985, pp. 194-5 (Norway); Hadenius et al. 1996, p. 250 (Sweden); M0rch 1982 (Denmark).
143
Marx 1976, p. 394.
144
Marx 1976, pp. 395, 398-9; Hobsbawm 1999, p. 102.
145
Garraty and Carnes 2000, p. 607; all the information in the rest of the paragraph comes from ibid., pp. 607-8.
146
Garraty and Carnes 2000, p. 607.
147
Kuisel 1981, p. 4 (France); Engerman 2001, appendix 1 (Scandinavian countries); Clark 1996, p. 137 (Italy); Soto 1989, p. 591 (Spain); Dechesne 1932, p. 496 (Belgium).
148
Soto 1989, pp. 585-6 (Spain); Norborg 1982, p. 61 (Sweden); M0rch 1982, pp. 17-18 (Denmark); Blanpain 1996, pp. 180-2 (Belgium); Garraty and Carnes 2000, p. 764 (USA).
Chapter 4. Lessons for the Present
1
Of course, what these higher-value-added activities are will depend on the country and the period concerned. So, to take an extreme example, the manufacturing of wool cloth, which was the high-value-added activity of fourteenth and fifteenth-century Europe, is now one of the low-value-added activities. Moreover, high- value-added activities need not even be ‘(manufacturing) industries’ in the conventional sense, as is implied by the term ‘infant industry promotion’. Depending on where technological advances are happening, the high-value-added activities could be some of those that are officially classified as ‘services’.
2
See Chang 1994, chapter 3; Stiglitz 1996; Lall 1998, for reasons why there may be such discrepancies. Very often, the problem is that the private sector entrepreneurs, whose cost-benefit profiles the state should be trying to influence, are missing altogether. This is, for example, the reason that Frederick the Great had to use (successfully) a small number of bureaucrat-entrepreneurs to develop his industries in Silesia or that many developing countries have had to use (in many cases unsuccessfully) public enterprises following their independence after the Second World War.
3
Shafaeddin points out that List also regarded tariffs and subsidies as only two of many policies for industrial development (2000, pp. 9-10).
