Australian manufacturing industry is generally considered to be uncompetitive because of its years of protection from imports. On the other hand, protectionist strategies in Japan, South Korea and Taiwan appear to have yielded much more successful results. The paper investigates the nature of these strategies, distinguishing between their purpose, in terms of the assurance afforded investment, and their economic effect. It is argued that the Asian countries successfully nurtured infant industries, in contrast to Australia, by means of their emphasis on selectivity, industry structure and direction-setting.