Blunt as this instrument was—in the sense that some recipients of the incentive probably
were already profitable without it, others were in the business only to get the incentive, and
still others easily found ways to corrupt the system—it did compensate the initial
entrepreneurs (at the time, mostly local) who entered export businesses in new lines for
the first time. Entry was risky and involved a lot of previously unmeasured costs (figuring
out the true nature of the international market, organizing international logistics,
assuming new risks, etc.) that were not present when producing for the domestic market.