the industrial development that was behind high tariff protection and other government support also led to substantial average welfare increases in latin america during the s and s followed however by relative stagnation starting in the s and s yet the many instances of failure to create industries in developing countries that could survive on their own after decades of state support to effectively overcome foreignexchange constraints to generate sufficient employment and to reduce poverty and inequality led to reassessments of development policies and cooperation the basic needs approach to development for instance suggested reorienting government intervention towards more direct support for employment generation and securing access for all to social services ilo similar approaches emphasized interventions on behalf of the poor to reduce income inequality and increase gains from aggregate economic growth chenery and others