The Toolbox of Economic Emulation and Development

    1)    Observation of wealth synergies clustered around increasing returns' activities and continuous mechanization in general. 

            Recognition that "We are in the wrong business". 

            Conscious targeting, support and protection of these increasing returns' activities.

    2)    Temporary monopolies/patents/protection given to targeted activities in certain geographical area.

    3)    Recognition of development as a synergic phenomenon, and consequently the need for a diversified manufacturing sector ('maximizing the division of labour', Serra, 1613).

    4)    A manufacturing sector addresses three policy problems endemic to the Third World simultaneously: (i) increasing national value added (GDP); (ii) increasing employment; and (iii) improving balance of payments.

    5)    Attracting foreigners to work in targeted activities.

           (Historically, religious persecutions have contributed to this in am important way).

    6)    Relative suppression of landed nobility and other groups with vested interests based in the production of raw materials (from Henry VII in the 1480s to Korea in the 1960s). 

            Physiocracy, the originator of today's neo-classical economics, represented the rebellion of the landowning class against the policies on this list in pre-Revolutionary France. 

            The American Civil War is a prototype conflict between free traders & raw materials exporters (the Confederate South) on the one hand and the industrializing class (the Union North) on the other. 

    7)    Tax breaks for targeted activities.

    8)    Cheap credit for targeted activities.

    9)    Export bounties for targeted activities.

    10)    Strong support for the agricultural sector, in spite of this sector being clearly seen as incapable of independently bringing the nation out of poverty.

    11)    Emphasis on learning/education

             Examples:

                UK apprentice system under Elizabeth I

                Francis Bacon's New Atlantis

                Scientific academies, both in England and on the Continent.

    12)    Patent protection for valuable knowledge

             Venice from 1490s.

    13)    Frequent export tax/export ban on raw materials in order to make raw materials more expensive to competing nations. 

              Started with Henry VII in the late 1400s, whose policy was very efficient in severely damaging the wool industry in Medici Florence.