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

By John Page, Finn Tarp (eds)

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Meetings with investors in these subsectors were frequent and attended by high government officials, including, many times, the prime minister. 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).

Sabel (2007). Reconfiguring Industrial Policy: A Framework with an Application to South Africa. Cambridge, MA: Harvard Kennedy School. , C. Newman, and F. Tarp (2016). ‘Measuring Industry Coagglomeration and Identifying the Driving Forces’. Journal of Economic Geography, 15(6): 1055–78. Johnson, C. (1982). MITI and the Japanese Miracle. Stanford, CA: Stanford University Press. , and S. Blankenburg (2009). ‘The Political Economy of Industrial Policy in Asia and Latin America’. In M. Cimoli, G. Dosi, and J.

This is largely because, as Aryeetey and Owoo point out in Chapter 13 (this volume), the public actions which should form industrial policy have been developed in Washington, instead of being a result of locally driven coordination between government and business. Page contends that the policy agenda for the Investors’ Advisory Councils was often set by the World Bank with little or no meaningful consultation. Because the objectives were not owned by the participants, the coordination mechanisms degenerated into ‘chat shops’.

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