The American government has been both miracle worker and villain in thedeveloping world. From the end of World War II until the 1980s poor countries, including many in Africa and the Middle East, enjoyed a modicum of economic growth.New industries mushroomed and skilled jobs multiplied, thanks in part to flexibleAmerican policies that showed an awareness of the diversity of Third World countriesand an appreciation for their long-standing knowledge about how their own economiesworked. Then during the Reagan era, American policy changed. The definition oflaissez-faire shifted from "Do it your way," to an imperial "Do it our way." Growthin the developing world slowed, income inequalities skyrocketed, and financialcrises raged. Only East Asian economies resisted the strict prescriptions ofWashington and continued to boom. Why? In Escape from Empire, Alice Amsden arguesprovocatively that the more freedom a developing country has to determine its ownpolicies, the faster its economy will grow. America's recent inflexibility--as ithas single-mindedly imposed the same rules, laws, and institutions on all developingeconomies under its influence--has been the backdrop to the rise of two new giants, China and India, who have built economic power in their own way.Amsden describes thetwo eras in America's relationship with the developing world as "Heaven" and"Hell"--a beneficent and politically savvy empire followed by a dictatorial, ideology-driven one. What will the next American empire learn from the failure ofthe last? Amsden argues convincingly that the world--and the United States--will beinfinitely better off if new centers of power are met with sensible policies ratherthan hard-knuckled ideologies. But, she asks, can it be done?