Bauer argued industrialization did not require government intervention or raw materials

Evidence

Bauer also suggested that agriculture had remained important in many cases, as it had in the United States, Canada, and New Zealand, and that the amount of industry a country needed was specific to each individual case. He held the absence of government intervention rather than the type of economic activity to be important. Despite the lack of raw materials and a small domestic market, Bauer stated, Hong Kong rapidly industrialized through “private initiative and enterprise.” “Unfortunately, it is just these forces that advocates of the new orthodoxy seem to distrust” (Bauer 1958a, 194). — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1318

Categorization

• DEFINE: Identifies what Bauer means by the ‘new orthodoxy’ — the planning and industrialization consensus he opposed.
• CANDY: Hong Kong industrializing without raw materials or a big domestic market is a compact rebuttal to industrialization orthodoxy.
• XREF: connects to: Bauer denied the slave trade caused African underdevelopment by citing preexisting endemic slavery — Jessica Whyte, The Morals of the Market: Human Rights…, 401; Bauer claimed Western contact, not aid, drove Third World material progress — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 1770; Colonial economics assumed colonies should export raw materials, not industrialize — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin: The Making…, 1343 (+2 more)

Broader Connections

• Bauer championed private foreign investment and bourgeois virtues against development orthodoxy #expands (0.85) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1321
• Colonial economics assumed colonies should export raw materials, not industrialize #contradicts (0.80) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1343
• Bauer rejected the developed-underdeveloped dichotomy and vicious-cycle-of-poverty analysis as fallacious #expands (0.80) — Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, 1314