DCED Industrial Policy synthesis note
Click here for a summary of current key issues and debates in Industrial Policy (2017). Key takeaways:
- Some argue that Industrial Policy is the only one to deliver real growth; others that it has almost never worked. Sometimes, the same evidence is cited in support of both arguments.
- There is an ongoing debate over which, if any, sectors Industrial Policy should target. Not all industries are equally useful for development, some can be good for mass employment, but allow little technological learning.
- Industrial Policy is a relatively demanding approach. To be effective, its design and implementation needs to take into account both a government’s capabilities and political will.
Background documents: structural transformation
‘Big picture’ documents on development pathways
- Industrial Competitiveness and Jobs An Evaluation of World Bank Group Industry-Specific Support to Promote Industrial Competitiveness and Its Implications for Jobs, IEG, 2016.
- Premature Deindustrialization, Dani Rodrik, 2015. (Article abstract and blog post)
- Least Developed Country Report 2014 – Growth with Structural Transformation, UNCTAD, 2014.
- Firm capabilities and economic growth, IGC Evidence Paper, 2014.
- The past, present and future of economic growth, Dani Rodrik, 2013.
- Structural Change, Fundamentals, and Growth: An overview, Dani Rodrik, 2013.
Research on growth and structural transformation in Asia
- Biting the bullet: China sets its sights on dominating sunrise industries, The Economist, 2017.
- Structural transformation in Nepal. A diagnostic study submitted to DFID Nepal, ODI, 2014.
- Agriculture and structural transformation in Asia. Review and Outlook. Asian Development Bank, 2013.
Research on growth and structural transformation in Africa
- The Changing Structure of Africa’s Economies, World Bank, January 2017.
- Public and Private Sector Collaboration for Economic Transformation, ODI, May 2016.
- Supporting the preparation of Tanzania’s second Fiver Year Development Plan, ODI, May 2016.
- Unreliable Logistics Services, Productivity and Trade Patterns in Sub-Saharan Africa, Centre for Economic Policy Research, May 2016.
- Economic Report on Africa 2016, UNECA, March 2016.
- Transformative Industrial Policy for Africa, UNECA, April 2016.
- Scoping paper of industry in Senegal, UNU-WIDER Working Paper, 2014.
- Can services be a growth escalator in low-income countries? World Bank Policy Research Working Paper, 2014.
- The performance of Tanzania’s manufacturing sector, UNU-WIDER Working Paper, 2014.
For and against Industrial Policy in developing countries
- The Entrepreneurial State: Debunking Public vs. Private Sector Myths, Mariana Mazzucato, 2013. (buy online or preview on google books)
- Perspectives on Global Development 2013: Industrial Policies in a Changing World, OECD, 2013.
- Strategic industrial policy and business environment reform: are they compatible?, DCED Working Paper, 2013.
- Beyond Industrial Policy: Emerging Issues and New Trends, OECD, 2013.
“How to” of Industrial Policy
- Directing structural change: from tools to policy, German Development Institute, 2016.
- Global experiences with Special Economic Zones: Focus on China and Africa. World Bank Policy Research Working Paper, 2015.
- The practice of industrial policy: Lessons for Africa. Coordination through an Asian Lens, UNU-WIDER Working Paper, 2014.
- The Industrial Policy Governance Challenge, Presentation bu Mushtaq Khan, 2014.
- Making Innovation Policy Work. Learning from experimentation, OECD, 2014.
- Transforming Economies: Making industrial policies work for growth, jobs and development, UNCTAD and ILO, 2014.
Industrial Policy experience from various countries
- Bangladesh: Enhancing productivity in Bangladesh’s garment sector. Current policy and research debates, DFID, 2014. [with examples from Pakistan and Mauritius].
- Chile and Ethiopia: Experimentation and Co-ordination as Industrial Policy: Examples from Ethiopia and Chile, UNU-WIDER Working Paper, 2010.
- A natural experiment in industrial policy. Floriculture and the metal and engineering industries in Ethiopia. UNU-WIDER working paper, 2014.
- The Economic Implications of a Comprehensive Approach to Learning on Industrialisation (Policy and Managerial Capability Learning): The Case of Ethiopia, Go Shimada, 2013.
- Structural transformation in Ethiopia: Evidence from cereal markets. IFPRI and EDRI, 2012.
- Industrial Policy in Ethiopia. Discussion Paper, DIE, 2010.
- India: The Implementation of Industrial Parks: Some lessons learnt in India, World Bank Policy Research Working Paper, 2014.
- Kenya: Scoping paper on Kenyan manufacturing,WIDER Working Paper, 2014.
- Korea: Korea’s export-oriented industrialisation. Trade and Industrial Policy, KDI School of Public Policy and Management, 2015.
- Mongolia: Strategic Directions in Industrial Policy in Mongolia, UNIDO, 2011.
- Mozambique: Learning by exporting – The case of Mozambican manufacturing, UNU-WIDER working paper. 2014.
- Myanmar: Foreign Direct Investment and Economic Transformation in Myanmar, DFID/ ODI, 2017.
- Namibia: Industrial Policy in Namibia, DIE, 2010.
- Nigeria: Industrial Development and Growth in Nigeria. Lessons and Challenges, UNU-WIDER Working Paper, 2014.
- South Korea: Lessons for South Asia from the Industrial Cluster Development Experience in South Korea, ADB, 2015.
- Tanzania: The performance of the manufacturing sector in Tanzania. Challenges and the way forward, UNU-WIDER Working Paper, 2014.
- Tunisia: The perils of industrial policy. Evidence from Tunisia, Bob Rijkers et al., 2014.
- Uganda: How should Uganda grow? ESID Working Paper, 2014.