The fixed cake fallacy: Why I was wrong to believe that rich countries are rich because poor countries are poor
At the global level, we believed in the “dependency theory,” which assumes that rich countries acquired their wealth through “exploitation” of poor countries.... So how did countries like South Korea, Chile, and India overcome the dependency they were said to be in? Instead of pursuing protectionist trade and economic policies as suggested by dependency theorists, these economies opened themselves up to foreign trade and supported export-oriented production. Other countries, especially in sub-Saharan Africa, are still trying to catch-up. But they are left behind because of too little—not too much—trade.Mais
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