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Industrialization’s Second Golden Age

WASHINGTON, DC – “The golden age of finance,” the economist Barry Eichengreen has said, “has now ended.” If that is true – and let us hope that it is – what follows will most likely be a new golden age of industrialization.

Historically, except for a few oil-exporting economies, no country has ever become rich without industrializing. Thus, all eyes nowadays should be on our economies’ real sectors. Confronted by the global financial crisis that looms over Europe, political leaders around the world are waking up to a stark new reality: unless the developed countries stop relying excessively on financial deal-making and start to rebuild from the ground up, they will lose their current standard of living.