The view that economic development must take place via import substitution, and the pessimism about economic development that spread as import-substituting industrialization seemed to fail, have been confounded by the rapid economic growth of a number of Asian economies. These Asian economies have grown not via import substitution but via exports. They are characterized both by very high ratios of trade to national income and by extremely high growth rates. The reasons for the success of these economies are highly disputed, with much controversy over the role played by trade liberalization. LO.1