Cheap labour helps to make its exports competitive.
By keeping the exchange rate low, China keeps its exports competitive.
Like other Asian economies, South Korea has suppressed its currency to keep exports competitive while keeping markets open to foreign investment.
To encourage economic growth and keep exports competitive, the Bank of Israel reduced its benchmark interest rate twice in May, to 1.25 percent.
Mr Bhalla, who thinks the Reserve Bank has almost complete command of the rupee's rate, reckons that it has fallen enough to keep Indian exports competitive.
That helps make China's exports competitive overseas and preserves jobs in China, while contributing to unemployment in countries producing rival goods.
Making exports competitive with those of other nations carries a price, however, and Ozal has been much more prepared than most Third World leaders to pay it.
They went through their own painful reforms, getting wage costs under control and making their own high-quality exports competitive through hard work.
This has helped to keep exports competitive, but in some industries it has been used as a means of obtaining a low-wage workforce on short-term contracts.A new law seeks to prevent the misuse of sub-contracting.
But a general assumption that countries with high inflation need a lower exchange rate to keep their exports competitive is not well supported by the evidence indeed the reverse appears to be the case.
