Jeffrey D. Sachs and Andrew Warner discuss the process of economic reform and global integration. In the 1970s, the world economy was divided into three systems: capitalist, socialist, and developing. However, since the collapse of communism in 1989, the world has seen significant economic integration, with the emergence of a single global economic system. The World Trade Organization (WTO) and the International Monetary Fund (IMF) have played key roles in this integration. Economic reforms in developing and post-communist countries aim to integrate their economies with the global economy. Integration involves increased trade and financial flows, as well as institutional harmonization. International norms play a significant role in defining reform policies. The paper examines the effects of trade liberalization on economic growth and the timing of trade liberalization. It also discusses the impact of postwar trade liberalization on economic performance in developing countries. The paper shows that open economies tend to converge, while closed economies do not. The analysis helps to answer debates about cross-country growth patterns. The paper also discusses the history of global capitalism, the impact of trade liberalization on economic performance, and the success of trade liberalization programs after 1980. The paper concludes that trade liberalization has been successful in many developing countries, but some countries have faced setbacks due to financial market liberalization and exchange rate mismanagement. The paper also discusses the economic policies of postwar countries and the factors that influenced their trade policies. The paper highlights the role of international economic forces, macroeconomic policies, intellectual beliefs, state building, and political economy in shaping trade policies. The paper concludes that trade liberalization has been a key factor in economic growth and convergence.Jeffrey D. Sachs and Andrew Warner discuss the process of economic reform and global integration. In the 1970s, the world economy was divided into three systems: capitalist, socialist, and developing. However, since the collapse of communism in 1989, the world has seen significant economic integration, with the emergence of a single global economic system. The World Trade Organization (WTO) and the International Monetary Fund (IMF) have played key roles in this integration. Economic reforms in developing and post-communist countries aim to integrate their economies with the global economy. Integration involves increased trade and financial flows, as well as institutional harmonization. International norms play a significant role in defining reform policies. The paper examines the effects of trade liberalization on economic growth and the timing of trade liberalization. It also discusses the impact of postwar trade liberalization on economic performance in developing countries. The paper shows that open economies tend to converge, while closed economies do not. The analysis helps to answer debates about cross-country growth patterns. The paper also discusses the history of global capitalism, the impact of trade liberalization on economic performance, and the success of trade liberalization programs after 1980. The paper concludes that trade liberalization has been successful in many developing countries, but some countries have faced setbacks due to financial market liberalization and exchange rate mismanagement. The paper also discusses the economic policies of postwar countries and the factors that influenced their trade policies. The paper highlights the role of international economic forces, macroeconomic policies, intellectual beliefs, state building, and political economy in shaping trade policies. The paper concludes that trade liberalization has been a key factor in economic growth and convergence.