Japan and Korea use or have used many industrial policies, and ...

[Jkov05]

Japan and Korea use or have used many industrial policies, and they are both considered to be countries that have developed successfully. Does that mean that the industrial policies caused their successful development?
 
  What will be an ideal response?

Question 2

In the high-growth Asian economies, inflation is kept under control and budget deficits and foreign debt levels are kept within the ability of the governments and the economies to handle them, which is quite different from the past experience of the Latin American region.
 
  Indicate whether the statement is true or false

[Cnarkel]

Answer to Question 1

Opponents of industrial policies continue to argue that sound macroeconomic policies, high rates of saving and investment, and high levels of schooling were the keys to success in those two countries, and that industrial policies were a distraction at best. It is difficult to determine cause and effect in economic development.

Answer to Question 2

TRUE