tag:blogger.com,1999:blog-5882645467378797266.post2019567006624924499..comments2023-07-17T11:55:51.363+02:00Comments on ObservingGreece: Import-substituting industrialization - Prof. Paul Krugmankleinguthttp://www.blogger.com/profile/12491174042954678023noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5882645467378797266.post-69617611398974824512013-02-27T11:10:31.217+01:002013-02-27T11:10:31.217+01:00The immediate killer-argument to my proposal is: t...The immediate killer-argument to my proposal is: that's against EU laws! (free movement of goods and capital). Yes, it is. But there are ways to structure it so that it is just within the letter of the law (albeit not in the spirit). Austria has an 'environmental tax' on all cars. About 20%. Pains were taken to explain that this had nothing to do with import taxes. But when all your cars are imported, what else is it?<br /><br />And, as a last resort: no laws are carved in stone. One can approve temporary exceptions if there is a will and if the exceptions carry a benefit for all involved. The better an economy that can be developed in Greece, the less transfers foreigners will have to make to Greece. That is mathematics and not economics. <br /><br />Again, the one big problem with 'infant industry protection' is that it is misused for the wrong purposes. Personally, I think that this could be managed and controlled. At the same time, Greeks do seem to have an unbelievable talent to convert what is meant to be a benefit for all into one's own benefit.kleinguthttps://www.blogger.com/profile/12491174042954678023noreply@blogger.comtag:blogger.com,1999:blog-5882645467378797266.post-30097207539654019132013-02-27T10:21:03.152+01:002013-02-27T10:21:03.152+01:00I agree with you.
Certainly Korea and Malaysia be...I agree with you.<br /><br />Certainly Korea and Malaysia benefitted from protecting their industries while they grew them. I find this a good example for your argument.<br /><br />Pre-Papandreaou and pre-EU, Greece also had tariffs and protections. The economy didn't boom, but our industries did well and provided a great deal of skilled employment which evaporated inside the EU. Our textiles could not compete with Asian prices (though better quality) for example. The resulting wind-down of industry led a lot of families to seek employment for at least one of its members in the new employment sector: the government!<br /><br />The economist Doxiadis (Alexios I believe) wrote a very good analysis 3?4? years ago of the post-industry, Papandreaou economic & employment situation in Greece, available through the DRASI website. Tsiganteshttps://www.blogger.com/profile/15707960864376693533noreply@blogger.com