This book is motivated by the emerging rehabilitation of industrial
policies as a tool for supporting economic transformation and high
rates of growth in developing countries. It argues that
underperforming disciples of the Washington Consensus 'market
fundamentalism' should learn and practice the art of systemic
industrial policies, which requires a medium-long term strategic
perspective and intelligent proactive state interventions in
markets. However, it also stresses that rehabilitation requires
that industrial policies be developed and implemented in a context
of home- grown public-private alliances that avoid state 'capture'
by special interests. It first examines the 'how' of industrial
policy in the public sectors of ten non-Latin American countries in
Asia, Europe, and Oceania that have been successful in promoting
economic catch-up with rich countries, or have performed better
than Latin American countries with similar resource endowments. The
book defines '10+1' generic First Principles for the use, design,
and execution of modern industrial policies, and then examines the
experiences of nine Latin American and Caribbean governments
against these First Principles. The authors identify large gaps in
the organizational and operational effectiveness of their public
sectors, and suggest ways to close these gaps."
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