The author raises the question, and provides solutions, for how less industrialized countries, with only modest manufacturing experience, are to continue to move into mid-technology industries if the WTO forbids infant industry protection and subsidization. She argues that the major lesson learned from successful industrializers after World War II is that whatever the instrument of promotion, to be successful it must be tied to a monitorable performance standard. In addition, it must operate within a reciprocal control mechanism that disciplines all parties involved in industrial expansion.
