Pakistan, debt-servicing problems in the Philippines and the emergence of new competitors as well as further protective measures against manufactured exports in the case of the leading exporting countries. As a result, many countries have felt the need to introduce ad-hoe modificat1.'ons to trade 1· 11 · po 1.cy measures as we as new instruments in response to their foreign exchange bottlenecks, despite the fact that long-term development programmes would require stability of the relevant parameters and policies. Among these balance-of-payments related policy responses have been the increasing reliance on countertrade practices (most pronounced in the case of Indonesia's counter-purchase regulations), the introduction of local content rules as well as setbacks in efforts aimed at the liberalization of foreign trade or the re-introduction of import restrictions already previously abolished. The increasing subordination of industrial policy measures to balance-of-payments considerations will be among the major issues of concern at the national and regional level. 31. As far as the industrially more advanced Asian countries are concerned, it is noteworthy that the current need for structural changes has emerged essentially as a consequence of the very success these countries have experienced in the past. Industrial restructuring in these countries has become imperative not primarily in order to achieve a basic level of efficiency in production but in order to respond to developments such as rising labour costs (as a consequence of productivity increases) and increasing protection in export markets as well as growing competition from labour-abundant developing countries in the same region. Consequently, the system of investment incentives in some countries has recently shifted from the previous emphasis on export promotion as such to focusing on the internal generation and external attraction of particularly skill-intensive and technology-intensive industries. This has also involved modification in certain 
**Analysis**
The text appears to focus on the challenges and responses of various countries, particularly in Asia, to balance-of-payments issues, trade policies, and industrial restructuring. It highlights the need for countries to adapt to changing circumstances, such as rising labor costs and increasing protection in export markets, and discusses the modifications made to trade policies and investment incentives.

**Category**
International trade, Industry