[(The Industrial Policy Revolution II: Africa in the by Joseph E. Stiglitz, Justin Lin Yifu, Ebrahim Patel (eds.)

By Joseph E. Stiglitz, Justin Lin Yifu, Ebrahim Patel (eds.)

This quantity is the results of the 2012 foreign fiscal Association's sequence of roundtables at the topic of commercial coverage. the 1st, 'New considering on commercial Policy,' was once hosted by way of the area financial institution in Washington, D.C, and the second one, 'New considering on business coverage: Implications for Africa,' used to be held in Pretoria, South Africa.

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Additional resources for [(The Industrial Policy Revolution II: Africa in the Twenty-First Century )] [Author: Joseph E. Stiglitz] [Dec-2013]

Example text

First, all countries at low-income level tend to lack high bureaucratic capacity by definition. But market failures also tend to be more pervasive, and there is often a shortage of private sector entrepreneurship. Hence, in many cases, state-led development (often employing marked mechanisms) has been shown to be the most effective development strategy. The point, as we have previously noted, is that these concerns should affect the form of industrial policy, not whether the government should undertake industrial policy.

This has led to a marked shift in the policy debate, to what are the circumstances under which industrial policies will work, and what forms of industrial policy are appropriate for countries in different stages of development and with different political and economic institutions. For instance, some have made a distinction between economy-wide (“horizontal”) policies, defined as consisting of general business environment policies that have only an indirect impact on any given sector or industry, and sector- or industry-specific types of industrial policy (often labeled as “vertical”).

They discuss the role that industrial policies play in reducing the technology gap and transforming the production structure within a developing context, giving special attention to the case of external shocks that affect the consolidation of technological capabilities. ,” challenges the persistent skepticism about the applicability of industrial policy to Africa. He assesses the thesis that conditions in the region are so special that the continent can never use industrial policy productively.

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