What Kind of Economic Policy Do We Need (On the Book by E. Reinert How Rich Countries Got Rich... and Why Poor Countries Stay Poor)

Abstract

This is the review of the acclaimed monograph by the famous Norwegian economist Erik Reinert. It is shown that interest in the book is caused by a vivid opposition to the traditional approach of the classical economic theory of lessons of the real history of economic policy. These lessons show that rich countries have become rich due to a combination of targeted state policy, protectionism and strategic investment, rather than free trade, as the "classic" teaches. It was such a policy that guaranteed successful economic development of countries, beginning with the Renaissance and ending with the modern "tigers" of Southeast Asia.