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In isolation, yes. It is better for the locals to get clothes for free than for local resources (whether capital or labour) to be expended to produce them locally.

But having a strong textile manufacturing industry promotes the development of other adjacent industries (e.g. dyes, chemicals) that would not be able to stand on their own initially, and can output products that are useful to more than just textile manufacturing. It easier to develop a new industry if the country already has other industries that can support its growth.

In a sense, it is like a tax on clothes, paid by the consumers, funding textile-adjacent industries, but directed by private actors rather than the government. If it pays off, other things become cheaper and potentially offset the increased cost of clothes.



The government can raise taxes from Al the people who aren't wasting money on shoes to pay for all that extra industry that they want to subsidize.

In no way is being poorer the solution to not being able to afford things.


Poor countries are generally bad at collecting taxes,[1] and what little is collected is at risk of being pocketed by officials due to higher levels of corruption.[2] Subsidies may also fall afoul of WTO obligations.[3] Besides, Western countries also have anti-dumping regulations that are in practice used to shield domestic industries being damaged by cheaper imports.[4]

1. https://www.brookings.edu/blog/future-development/2015/04/30...

2. https://bigthink.com/technology-innovation/are-poorer-countr...

3. https://www.trade.gov/trade-guide-wto-subsidies

4. https://www.semanticscholar.org/paper/Ten-Years-of-Anti-dump...




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