Do you think the terms of the trade debate — free trade vs. protectionism — accurately portray the debate?
I agree with the spirit behind that question. In the present atmosphere, once you say anything positive about protectionism, people dismiss you as a supporter of North Korea or Cuba. The reality is that few countries practice pure free trade or pure protectionism. Most countries practice free trade in some areas and protectionism in others, with varying mixes across countries. This is basically because policy-makers instinctively understand that different sectors have different needs — sectors that are just emerging or in decline need more protection and subsidies in the same way that children and the elderly need more support than able-bodied adults do. If no one listens to the lessons of your book and the industrialized countries continue to push their current trade policies, what will be the results? The result will be the persistence of slow growth and income inequality in developing countries. We have seen this in the last 25 years of free-trade orthodoxy. Don’t forget that the de
