But it also has an indirect effect: higher unemployment puts downward pressure on wages. Many countries that had, according to the neoliberal prescription, done the ‘right things’ (that is, not only had liberalised, but followed other policy dictates of the Washington-based international institutions) subsequently stagnated. And many countries that had not followed the Washington consensus had achieved considerable success. Rodrik (2001) argued that the three primary models of successful development in the twentieth century all relied on managed trade regimes: import substitution, as practised by a number of countries in the 1960s, outward-orientated industrialisation, as practised in East Asia in the 1980s, and the state-directed capitalism of China in the 1990s.