Late Developers: How Followers Caught Up

Why did countries that industrialized later often do so differently and faster? In 1962 economic historian Alexander Gerschenkron argued that 'backward' countries could skip stages by borrowing advanced technology, but needed stronger institutions to gather capital. Where Britain's early factories were small and privately funded, Germany relied on large investment banks, and Russia relied heavily on the state.

Late developers also tended to build big plants in heavy industry and to use tariffs to protect new industries. Comparing Belgium, France, Germany, the United States, Russia and Japan shows a range of paths shaped by resources, governments and timing. Critics of Gerschenkron note that the model fits some countries better than others and can understate local conditions and choices. Still, the comparison helps explain why there is no single blueprint for industrialization.