preview

Economic Policies During The World War II

Decent Essays
Following World War II, economic policies were marked by two major trends. On one hand, industrialized economies gradually removed trade barriers. These policies were based on the idea that free trade is not only a factor for economic prosperity of nations, but also for the promotion of peace. On the other hand, economic policies of many developing countries with the exception of few countries in Southeast Asia have been conditioned by the belief that the key to development rests in the establishment of a powerful manufacturing sector, and that the best way to create such an area was to protect local industries from international competition through substitution imports policies.
Meanwhile Asian countries including Japan, Hong Kong,
…show more content…
Many indicators serve to measure the degree of trade openness. The first is designed to assess directly the level of economy openness to foreign trade. The degree of openness measures the level of the external constraint and it is obtained by the ratio of the value of foreign trade on the GDP. The second indicator (distortion) aims to measure the impacts of protectionist policies of a country.
 Economic growth
Economic growth is a common term used by economists to describe in increase in production in the long run. According to Robinson (1972) economic growth is defined as increases in aggregate product, either total or per capita, without reference to changes in the structure of the economy or in the social and cultural value systems. The basic tool of measuring the economic growth includes the real GDP. It provides some quantitative measures in terms of the production volume.
Steps of Trade Openness
Facing a serious financial crisis in the late 1980s, Burkina Faso implemented the SAP set by the Bretton Woods institutions. It also accentuated the implementation of policies set by ECOWAS such as the common external tariff in 1997 and a common custom code in 2001. Burkina Faso further joined the GATT/WTO in 1995 to in order to reaffirm its engagement in favor of greater trade openness. This trend of openness was followed by the signing of many bilateral and multilateral economic and commercial agreements. Beyond this fact, openness is perceived as
Get Access