To catch up with the developed countries, developing countries need to use common sense, not neoliberal recipes

Indonesia is trying to give a push to industrialisation by banning exports and requiring domestic processing of certain raw materials, starting with nickel. France, Germany, Italy, Canada, Japan, the United Kingdom, and the US complained to the World Trade Organisation, WTO, which ruled against Indonesia, but it has appealed the decision to the WTO Appellate Body. This body is presently non-functional as the election of judges has been blocked by the US (first Trump, then Biden). Indonesia now plans to ban exports of other raw materials such as tin, bauxite, and copper. https://thediplomat.com/2023/05/how-indonesias-president-joko-widodo-rejuvenated-dependency-theory/ Photo is of the Grasberg Copper and Gold mine in Indonesia.

When developing countries try to catch up with the developed countries, there are many challenges. Will they be allowed to protect the new industries, they are trying to set up? Can they get funding for the huge investments needed? Can they get their economic policy right? It is not easy, but history tells us that it is not impossible.

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To catch up with the developed countries, developing countries need to use common sense, not neoliberal recipes