"Those countries can employ free-market capitalism because they have the basis to do so. After a while you can't have a hands-on-approach to the economy."
Let's not delve into the history of Western Europe and the USA because you won't like what you will find. Colonialism is not capitalism and imposing tarriffs on your colonies is not free trade. Germany of the Bismarck and the Kaiser was a socialist country with the Kaiser even going to war in order to wipe out the socialists. Hitler started the dismantling of Prussia because it was VERY left-leaning. What about France and its proto-communist tendencies or Stambolov and his protectionism?
Thatcherism/Reaganism is popular in only two countries - the UK and the USA. All other countries have rejected it because it leads to recessions. The USA in particular has a dumb fascination with libertarianism, culminating in the repeal of the Glass-Steagall act. Naturally, the UK followed suit and both of those countries plunged the world in a recession. Hurray!