Diamond Model versus WTO
Luis Garcia-Calderon, MemberLiberalization of barriers to trade
is part of the Washington consensus for emerging countries. It has not worked. Not even powerful nations like the U.S. apply liberalization of barriers to trade totally. Just take a look to the agricultural industry, it is highly protected by the U.S. Federal government.
The diamond does work for emerging countries or developed countries. The government role to facilitate and foster the development of the four factors is crucial in many regions and industries, even limiting open barriers to trade to fully develop regional industries. Look at China.