Abstract: Industrial policies have played an important role in successful development. Through these policies, governments intervene in the market’s sectoral allocation of resources and choice of technologies. Earlier industrial policies had a narrow remit and made use of a limited number of instruments. This paper argues that they should pursue Read more…
The Center for a New Economy (CNE) unveiled today in San Juan a joint report prepared with the Initiative for Policy Dialogue (IPD) at Columbia University in New York which analyzes key components for a new Industrial Policy for Puerto Rico. Among the key processes are: correct coordination and market Read more…
In the 1990s, development policy advocated by international financial institutions was influenced by Washington Consensus thinking. This strategy, based largely on liberalization, privatization, and price-stability, down-played, if not disregarded, the role of government in economic planning. With the exception of the Far East, many developing countries adopted the view that industrial policy resulted in inefficiency and poor economic growth pervaded. Despite this negative perception, this prescription has been successfully employed in what are now some of the most vibrant emerging markets. This Task Force explores what industrial policies have been successful and the risks and trade-offs associated with these microeconomic approaches to growth and development.