marketing body with ‘sector experts’ who can determine and regulate the financing. The appointment of the experts, of course depends on the sectors the country is channeling it’s capital into.

Excess power in the hands of State, raises the concern of Authoritarianism. Which means, the suppression of labor rights as well as human rights. In my view, the scale always lies between human rights and human needs. In late developing countries, the scale tips towards human needs, more than human rights. After all, what point does the right to vote serve, if one cannot eat three square meals in a day? Government power that is kept under check in developing countries can bring industrial prosperity, yet it should definitely not be at the expense of human rights, but should be able to provide basic human needs. That is the first step of development.

Having established that State Owned Enterprises are the best way for late developing countries to kick start their industrial development. One cannot argue that after a certain amount of growth, the industrial growth will come to a standstill. At this point, the country must open its arms to ‘limited’ liberalization and globalization. Getting Foreign Direct Investments, creating Special Economic Zones as the Chinese government did, and joining hands for ‘co-financing’ would keep the graph of industrial growth stable.

Alliance between the State and the free market, once the domestic industries are up to par, would introduce competition amongst manufacturers. Competition, is the best road to discovery, and also to the production of good quality goods- which can be used to for domestic consumption as well as ‘export’. Building up export means building a good GDP for the country. And one may argue that GDP is not the best measure of the welfare of humanity, yet one cannot disagree from the fact that unless the country has a good GDP i.e. finances at it’s disposal, they cannot make any investment in the country for human welfare. A high GDP would mean the State could invest in social overhead capital i.e. Education, Hospitals, Infrastructure (roads, railways, telecommunication)- which irrefutably amounts to human welfare (Pritchett et al, 1996)

CONCLUSION