Download The Practice of Industrial Policy by John Page, Finn Tarp (eds) PDF

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By John Page, Finn Tarp (eds)

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Actions were agreed and followed up, often on the spot. 2 Right Hand–Left Hand Effective coordination with the private sector and implementation of the public actions derived from the state–business dialogue require effective coordination within government. This is a critical manifestation of the state capacity flagged by Gisselquist in Chapter 5 (this volume). In the African case studies it often appears that the right hand of government is not aware of what the left hand is doing. Bhorat, Cassim, and Hirsch point out in Chapter 11 (this volume) that while industrial policy was on the agenda of the African National Congress both before and during the transition to democracy, several factors undermined its effectiveness, including poor coordination within government.

The Netherlands: North Holland. , and D. Rodrik (2003). ‘Economic Development as Self-Discovery’. Journal of Development Economics, 72: 603–33. , and D. Rodrik (2006). ‘Doomed to Choose: Industrial Policy as Predicament’. Paper prepared for the first Blue Sky seminar organized by the Center for 19 Overview and Insights International Development, John F. Kennedy School of Government, Harvard University, Cambridge, MA. , D. Rodrik, and C. F. Sabel (2007). Reconfiguring Industrial Policy: A Framework with an Application to South Africa.

The development of institutions like financial institutions and an education system that facilitate the functioning of the industrial sector have important spillovers for the rest of the economy. Whenever there are spillovers, private returns differ from social returns. These spillovers manifest themselves in multiple ways in the development process.

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