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In the aftermath of WWII, many developing countries have opted for policies aimed at promoting new infant industries or at protecting local traditional activities from competition by products from more advanced countries. Thus several Latin American countries advocated import substitution policies whereby local industries would more fully benefit from domestic demand. East Asian countries like Korea or Japan, rather than advocate import substitution policies, would favor export promotion, which in turn would be achieved partly through tariffs and non tariff barriers and partly through maintaining undervalued exchange rates. For at least two or three decades after WWII, these policies which belong to what is commonly referred to as "Industrial policy", remained fairly non-controversial as both groups of countries were growing at fast rates.
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