unskilled labor affixed to agriculture in LDCs, the high increase in productivity means the country would be able to export primary goods and in turn gain access to foreign exchange* i.e hard currency. We will discuss the use of foreign exchange at a later stage in the essay. INDUSTRIAL POLICIES A late developing state broadly needs two steps to become a successful sustainable industrial growing economy. The first step would be bringing Industry up to par with global competitors, and the second would be introducing competition as a mechanism to increase discovery. The former obviously needs to precede the latter for effective and sustained growth. In the interest to achieve the goal of brining domestic industries up to par, the state would need to bring about successful ‘Import substitution’, which can be done through levying two major policies –Tariff Protection and Subsidies. Tariff protection is fiscally most feasible way to promote the sunrise industry in the country. High import tax on automobiles in Japan after World War II is an example of how a state policy can nozzle the imports into the country. This effort was made to give a boost to Import Substitution. Japan’s automobiles may be a popular case of high import tariffs, but long before that, Britain in the 14th century, had aggressively shielded it’s infant industry in the same method, and levied high tariffs on manufacturing products even as late as the 1820s (Chang, H.J., 2010).