Shudder: The challenges to 'industrial policies' in the early 21st century in low- and middle-income economies [chapter]

Raphael Kaplinsky
2014 Progress in International Business Research  
After some years in which industrial policy was frowned upon, it is now widely considered to be a legitimate arena for policy formulation. The danger is that policymakers will seek to return to previously implemented policies. However many elements of this historic policy agenda is not replicable because of changes in global governance regulations. But changing framing conditions in the global economy also mean that the historic agenda is no longer optimal. This Chapter discusses four
more » ... sses four disruptive structural changes which affect the industrial policy agendathe changing manufactures-commodities terms of trade, the centrality of global value chains in world industrial production, the growth of environmental externalities which affect growth and development, and the need to develop more inclusive patterns of growth. The key findings are that there is scope for industrial policies to successfully confront these challenges, but that this will be contextual and may require a mix of policies designed to meet multiple objectives. Significantly, industrial policy should be seen as a process aligning the operations of key stakeholders and subject to change as conditions alter, rather than as a an Industrial Policy Roadmap of the sort which frequently characterised policy in the past.
doi:10.1108/s1745-8862(2013)0000008019 fatcat:hcon3jg6mjbdplrnk54lzdvbx4