Introduction
The fundamental belief in the need for economic growth, in addition to traditional liberalistic values, is a certainty that free trade will lead to global opulence. Free trade refers to international trade devoid of government interference. Proponents of the globalization process believe that economic theory has undeniably demonstrated the dominance of free trade. Some models have established that free trade may not be the best course for global prosperity. The independence of free trade from political abuse and interference makes it the best option. Proponents of free trade believe that history best speaks for them as most of the world’s developed countries applied the same theory for economic development. A close review of the development of capitalism indicates that developed countries never practiced free trade in their formative years. Instead, they championed for their national corporations through tariffs, subsidies, and other international trade regulatory measures and legal provisions.
Main Body
Britain was one of the leading proponents of free trade and commanded significant influence on the course of operation. Efforts to liberate trade started with talks about general agreement on trade and tariffs. These efforts failed with the rise of political orientation that emphasized economic growth and international openness. In the late years of the nineteenth century, an epigrammatic period of liberal trade regimes dominated most of the world economy. Intervention efforts by various states during the First World War failed due to factors such as limited funds. Many countries lacked financial policies for effective tax collection as a source of money. Britain is the only country that can assert to having tried free trade at some stage in the economic development process thus developed without state intervention. Nearly all developed countries relied on trade interventions and industrial policies to promote and support young industries. Britain’s government policies had for a long time focused on trade development and revenue generation. However, a policy reform introduced by the first British prime minister changed the focus of their policies to promoting manufacturing industries. The industrial fortification was a contentious policy issue since the advent of colonization.
Britain pioneered the application of strategies designed to promote young industries for maximum economic gain and development. At the onset, the United States lacked a federal tariff system, but the acquisition of power to tax by congress engineered the liberal tariff act. Issues related to tariffs dominated the American civil war that led to differences between the north and south. France started its long journey to industrial development when the Second World War ended. The process involved the selection of individuals with intellectual superiority to help in organizing state resources necessary for development. Sweden’s economic prospects improved remarkably after the introduction of strategies protecting young businesses from interference and political abuse. The problem of unequal treaties ended in 1911. The Japanese government responded to this development by introducing numerous tariff reforms. The reforms aimed at providing protection to young industries, reducing the cost of importing raw materials, and regulating the import of luxury consumption goods. Interventionist trade and industrial policies were applied when developing economies tried to match the prospects of developed economies. The policies controlled the transfer of technology to potential competitors by opening up markets in developing countries.
Conclusion
Britain pioneered the system of fixed levy on profits whose principal goal was to increase funds available to the government. Other countries like Belgium, Sweden, the United States, and Portugal followed suit. Portugal abolished its income tax six years after its introduction. Bank of England was the first central bank.