In the wake of the global financial crisis, there is a new impetus for industrial policy. In Europe and the United States, where the crisis emphasized that markets are by themselves imperfect, industrial policy has re-entered the dialogue about restoring growth. And in emerging economies especially, policymakers have taken a keen interest in the various ways smart industrial policy can help sustain growth and open up new possibilities for employment creation. In this volume, world-renowned economists and policymakers write about industrial policy's rejuvenation, particularly in a development context. Through discussions of theory and case studies, the volume provides the broad context for its companion, New Thinking on Industrial Policy: Implications for Africa.
PART I: CONCEPTUAL ISSUES AND PRINCIPLES OF INDUSTRIAL POLICY 1. Comparative Advantage: The Silver Bullet of Industrial Policy; Justin Yifu Lin and Celestin Monga 2. Comments on 'Comparative Advantage: The Silver Bullet of Industrial Policy; Ha-Joon Chang 3. Industrial Policies, the Creation of a Learning Society, and Economic Development; Bruce Greenwald and Joseph Stiglitz 4. Discussion of 'Industrial Policies, the Creation of a Learning Society, and Economic Development; Josh Lerner PART II: SPECIAL ISSUES FOR DEVELOPING COUNTRIES 5. Technology Policies and Learning with Imperfect Governance; Mushtaq H. Khan 6. Comments on 'Technology Policies and Learning with Imperfect Governance'; Pranab Bardham 7. The Boulevard of Broken Dreams: Industrial Policy and Entrepreneurship; Josh Lerner 8. Comments on 'The Boulevard of Broken Dreams: Industrial Policy and Entrepreneurship'; Indermit Gill PART III: INSTRUMENTS OF INDUSTRIAL POLICY 9. Financing Development: The Case of BNDES; Joao Carlos Ferraz, Claudio Figueiredo Coelho Leal, Felipe Silveira Marques and Marcelo Trindade Miterhof 10. Comments on 'Financing Development: The Case of BNDES'; Robert Cull 11. Growth and the Quality of Foreign Direct Investment; Laura Alfaro and Andrew Charlton 12. Comments on 'Growth and the Quality of Foreign Direct Investment; Ann Harrison 13. Clusters as an Instrument for Industrial Policy: The Case of China; Xiaobo Zhang 14. Theories of Agglomeration: Critical Analysis from a Policy Perspective; Celestin Monga PART IV: REGIONAL CASE STUDIES OF SUCCESSFUL AND UNSUCCESSFUL INDUSTRIAL POLICIES 15. Capability Failure and Industrial Policy to Move beyond the Middle-Income Trap: From Trade-based to Technology-based Specialized; Keun Lee 16. Comments on 'Capability Failure and Industrial Policy to Move beyond the Middle-Income Trap: From Trade-based to Technology-based Specialized; Ariel Fiszbein 17. What's New in the New Industrial Policy in Latin America? Robert Devlin and Graciela Moguillansky 18. Comments on 'What's New in the New Industrial Policy in Latin America?'; Carlos Alvarez V. PART V: COUNTRY CASE STUDIES OF SUCCESSFUL AND UNSUCCESSFUL INDUSTRIAL POLICIES 19. New Thinking on Industrial Policy Country Case Studies of Successful and Unsuccessful Industrial Policies: The Return of Industrial Policy in Brazil David Kupfer, Joao Carlos Ferraz and Felipe Silveira Marques 20. Industrial Policy and Development: Lessons from Brazil. Comments on the Paper by David Kupfer, Joao Carlos Ferraz and Felipe Silveira Marques; Volcker Treichel 21. The Chaebol and Industrial Policy in Korea; Wonhyuk Lim 22. Comments on 'The Chaebol and Industrial Policy in Korea'; Shahid Yusuf
