Paradigms of development: A Rejoinder

The comments by Tsai illustrate some important points in the industrial policy debate, though they also reflect a misconception of the purposes of my paper. My rejoinder describes briefly the 'revisionist' case, noting that it provides grounds for careful government policies to overcome market failures and not for wholesale, inefficient intervention. It discusses why Tsai's critique of my interpretation of the Asian Tigers is misplaced, and goes on to argue that the 'revisionist' case does not underestimate the costs of government failure. It does, however, hold that selective interventions are feasible in certain circumstances, and that other developing country governments can leant from the East Asian experience.