JAGDISH BHAGWATI is Arthur Lehman Professor of Economics and Professor of Political Science at Columbia University. This is an abbreviated version of the paper presented to a World Bank Conference on April 2 & 3, 1992 in Washington DC. It reflects the author's personal views and bears no relationship to his position as Economic Policy Adviser to the Director-General, GATT. Thanks are due to Robert Baldwin, James Benedict, Richard Blackhurst, Christopher Bliss, Don Davis, Sunil Gulati, Douglas Irwin, John McMillan, Arvind Panagariya, T. N. Srinivasan and John Whalley for helpful conversations and suggestions. The full version will be published in a volume to be edited by James de Melo and Arvind Panagariya and published by Cambridge University Press in 1993.