What are the most important things for African governments to do to create a good environment for industrialization? Monga notes that the eruption of new clusters in the most unlikely places in countries like China does not just occur randomly as suggested by some devotees of cluster analysis but is the result of strong and deliberate government action. Its chapters move from the broadly theoretical to the case-study specific, reflecting the organization of the meeting, which was divided into six sessions: 1 Conceptual Issues and Principles of Industrial Policy; 2 Special Issues for Developing Countries; 3 Instruments of Industrial Policy; 4 Regional Case Studies of Successful and Unsuccessful Industrial Policies; 5 Country Case Studies of Successful and Unsuccessful Industrial Policies; and 6 Industrial Policy Redux. Prior to joining the World Bank, he was Department Head and Manager in the Banque Nationale de Paris group. He was selected as the president of the Chinese Economists Society from 2005 to 2006. It has enormous natural resources, with a host of minerals and swathes of rich agricultural land. Graciela Moguillansky is an economist from the Universidad de Chile. Introduction: The Rejuvenation of Industrial Policy Joseph E.
Comparative Advantage: The Silver Bullet of Industrial Policy; Justin Yifu Lin and Celestin Monga 2. This paper contributes to the debate and tries to sort out the conditions under which industrial policy — and more broadly, government interventions in the economy — are likely to fail or succeed. But critics of the industrial policies implemented in many of the countries argued that they had introduced profound distortions: limited public resources were used to pursue unsustainable import-substitution policies. Stiglitz, encompasses the Pretoria roundtable. Moreover, the nature of repeated transactions in a narrowly defined region creates pressures for entrepreneurs to restrain opportunistic behavior, making it easier for small business to thrive in an environment with imperfect external institutions. Ariel Fiszbein is Chief Economist for the Human Development Network at the World Bank. Winning the Jackpot: Jobs Dividends in a Multi-polar World; Celestin Monga 3.
He is also co-editor of the Interest Bearing Notes, a bi-monthly newsletter reporting on financial and private sector research. It was hoped that these state-owned firms would be profitable; would reinvest their proceeds — thus closing the resource gap that separated developed from developing countries; and would also narrow the technological gap with advanced economies. In 2008, she was honored as a Young Global Leader by the World Economic Forum. In recent years, however, there has been a renaissance of industrial policy in the region. Bankruptcy laws that put derivatives first in line in the 6 The Industrial Policy Revolution I event of bankruptcy effectively give preference to the financial sector.
It is smart industrial policy. Competition Policy, Industrial Policy and Corporate onduct; Simon Roberts 4. Notes on the Contributors xxi Célestin Monga is Senior Advisor at the World Bank where he has previously held various positions, including as Lead Economist in Europe and Central Asia, and Manager of the Policy Review team in the Development Economics vice presidency. It's easy to get started - we will give you example code. In fact, the production of knowledge is often a joint product with the production of goods, which means that the production of goods themselves will not in general be intertemporally efficient. The Chaebol and Industrial Policy in Korea; Wonhyuk Lim 22.
And how do they maintain dynamic competitiveness? However serious flaws in the design and execution of the industrial policy led to failure in caching up with advanced countries. Professor Stiglitz is also an honorary professor at Tsinghua University School of Public Policy and Management. From Flying Geese to Leading Dragons: New Opportunities and Strategies for Structural Transformation in Developing Countries; Justin Yifu Lin 2. Does Financial Market Liberalization Promote Financial Development? Yet the reality is that while Africa has many of the inputs and markets that would support the rise of a large manufacturing sector, the continent has a small industrial footprint and arguably saw a degree of deindustrialization in the commodity boom of the mid-2000s — a continuation of deindustrialization trends that have been in places since the structural adjustment programs. It often takes a major, disastrous historical event for even the most self-evident ideas to gain wide recognition.
Trade Facilitation and African Industrialization: An Agenda for the Textile and Apparel Industry; Dominique Njinkeu, Julie Lohi and Calvin Z. Schiff Professor of Investment Banking at Harvard Business School, with a joint appointment in the Entrepreneurial Management and Finance Areas. Fairly or unfairly, some leaders have been hailed as national heroes while others have been thrown out of power or even punished more harshly depending on the level of collective happiness or anger. By paying careful attention to learning spillovers and the extent to which productivity is affected by production that is, the extent to which there is learning-by-doing , Greenwald and Stiglitz are able to derive precise prescriptions for the design of industrial policies. Comments on 'What's New in the New Industrial Policy in Latin America? Stiglitz eds , Good Growth and Governance for Africa: Rethinking Development Strategies New York: Oxford University Press , pp. The controversies stem partly from the fuzziness of its definition, scope, and instruments, which often differ from a country to another depending on levels of development. He is the winner of the 2003 Gunnar Myrdal Prize and the 2005 Wassily Leontief Prize.
His most recent book is Breeding Latin American Tigers: Operational Principles for Rehabilitating Industrial Policies coauthored with Graciela Moguillansky and published by World Bank Publishers in 2011. He has authored xx Notes on the Contributors and edited several books, and written about 80 articles in international journals. Yet these countries often find it difficult to absorb even relatively simple technologies even when they have the resources to buy the relevant machines and have workers with the appropriate levels of formal education who are willing to work for relatively low wages. Within any country, there is enormous scope for productivity improvement simply by closing the gap between best practices and average practices. Participants noted the long-standing challenge of the resource curse — that the very abundance of natural resources may inhibit the development of competitive downstream industries because entrepreneurs and governments can survive off the extraction of natural resources. Moreover, as we noted earlier, most increases in per capita income arise from advances in technology — about 70 percent of growth comes from sources other than factor accumulation. At the same time, in some developed countries, like the United States, there was growing recognition of the role that industrial policies — especially in the form of the promotion of new technologies — had played in their success.
Most recently he co-authored Conditional Cash Transfers: Reducing Present and Future Poverty. In contrast, for the rest of the world in 2010, raw materials made up just 27 percent of exports and manufacturing some 67 percent. Robert Cull is a lead economist in the Finance and Private Sector Development Team of the Development Research Group of the World Bank. Industrial policy took a backseat to Washington Consensus policies. The competitive position of every American firm is affected by government policy. His research interests are in the areas of institutional economics, industrial policy, governance and political economy. He has published widely in top economics journals, such as the Journal of Political Economy, the Journal of Development Economics, the Journal of International Economics, and the Journal of Public Economics.
Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. Comments on 'Capability Failure and Industrial Policy to Move beyond the Middle-Income Trap: From Trade-based to Technology-based Specialized; Ariel Fiszbein 17. During his 35 year tenure at the World Bank, Dr. The record of the early industrial policies is mixed. Sectors in which learning research is important are typically characterized by a wide variety of market failures. True, inventors can try to limit these problems by requiring potential buyers to sign confidentiality agreements.