I've seen this gif a lot showing that global inequality is falling. But no one seems to notice or mention that the main driver - emerging Chinese middle class - happens in the most protectionist country. https://ourworldindata.org/global-economic-inequality …pic.twitter.com/bEfsPUCT8D
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Had the west been more protectionist, it's possible that this would not have happened to the extent that it did. Wouldn't you say that a middle class was created in India without protectionism and by avoiding it's bad infrastructure? I'm thinking about the one created by BPO.
I think the key reason that I did not mention which is important regarding the formation of a new middle class, is labor price differential. Containers and sea shipping does not compensate for all the other advantages of making in China.
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What I'm trying to say is that if you have those positive characteristics (good infr., demographic dividend, sensible policy, smart people), relative to a developed country, plus a cost differential, you can probably create a middle class without protectionism.
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Afaik protectionism was only relevant in the development of certain industries in China, i.e. high technology. A middle class would've been created on the back of apparel, shoes, injection molding, electronics assembly alone.
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