The obligations undertaken by the developing countries as part of the Uruguay Round significantly reduced the policy space for developing countries. It made, for instance, the imposition of infant industry/economy protection more difficult, even though many developed countries had used such instruments in earlier stages of their own development, and even though advances in economic theory had shown the desirability of such policies, e.g. in the context of ‘learning by doing’ (see, for instance, Greenwald and Stiglitz 2006 and Stiglitz forthcoming). Development, it was increasingly recognised, required a transformation of the economy (see, e.g. Stiglitz 1998), a structural transformation that market forces were unlikely to accomplish on their own, and which could be facilitated by well-designed trade interventions.