Chance Quote by Ha-Joon Chang
“It takes time and experience to absorb new technologies, so technologically backward producers need a period of protection from international competition during this period of learning. Such protection is costly, because the country is giving up the chance to import better and cheaper products. However, it is a price that has to be paid if it wants to develop advanced industries.”
About This Quote
Source Book: Economics of Development, Ha‑Joon Chang, 2002
Developing nations need temporary protection for new industries, though it costs them cheaper imports.
In simple terms: Protection helps new industries grow despite higher costs.
Key Takeaway
Balance protection with long‑term competitiveness.
Themes
economics
development
policy
trade
industry
Mood
critical
strategic
Type
analytical
policy‑oriented
When to use this quote
- government policy
- industrial strategy
- foreign investment
- market entry
Key Concepts
comparative advantage
infant industry argument
trade barriers
Questions to Reflect On
- What duration is optimal for protection?
- How to transition to open markets?
A Different Perspective
Protection can create dependency and inefficiency.
![“Joseph Schumpeter emphasized that all analysis in economics is preceded by a pre-analytical cognitive act, called vision, in which the analyst ‘visualise[s] a distinct set of coherent phenomena as a worth-while object of [his] analytic efforts’. He pointed out that ‘this vision is ideological…” quote by Ha-Joon Chang](https://sms4smile.com/quotes/img-quotes/828/ha-joon-chang-3497_dreams_joseph-schumpeter-emphasized-that-all-an_438236.jpg)
