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The infant industry argument is one of the most contentious debates in free trade. Developing nations feel pressure from bodies such as the International Monetary Fund (IMF) to abolish infant industry protections. The argument is that exposure to greater competition will strengthen those industries more quickly. The results, however, do not bear out this theory. The United States and Great Britain became industrial powers in part because of protectionist trade policies. Economic development is a process that takes several decades. It can take a generation or more for investments in infrastructure and education to pay dividends, as exemplified in the Japanese and South Korean experiences. Liberal trade reforms were implemented more thoroughly in Latin America and sub-Saharan Africa than in nations such as India and China. Before trade liberalization reduced protectionism in Latin America, economic growth in the region was at 3.1% per year; after it was 0.5% per year. Africas living standards have fallen since trade liberalization was implemented (Chang, 2007)

Income Distribution

The protectionist arguments stem from this apparent paradox of free trade. The liberalization of trade produces more winners and more losers, according to most models (Suranovic, 2007). It is increasingly viewed that the winners are

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