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A Blended Approach

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In practice, most countries blend state and market approaches to tailor them toward the political and economic priorities for a given country (or at least for those who hold much of the power). Friedrich List, a German political and economic theorist who began his career in 1817, posited (in contrast to those who push always for freer and more open trade) that in relatively underdeveloped economies, nascent industries may need state protection from foreign competitors in order to allow them to grow to the point where the country could truly exploit its competitive advantage in a given economic endeavor.44 Some have even credited Friedrich List with first proposing the concept now known as “human capital,”45 a concept often used by those who argue that states with less developed economies need to invest in their citizens, to ensure a healthy and educated workforce that can participate meaningfully in the economy.

Global Issues

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