Industrial Policy in Developing Countries
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Industrial Policy in Developing Countries

Failing Markets, Weak States

Tilman Altenburg and Wilfried Lütkenhorst

Against the backdrop of persistently high levels of poverty and inequality, critical environmental boundaries and increasing global economic interdependence, this book addresses the role and impact of industrial policies in developing countries. Accepting the reality of both market failure and policy failure, it identifies the conditions under which industrial policy can deliver socially desirable results. General conclusions on the political economy of development are complemented by country case studies covering Ethiopia, Mozambique, Namibia, Tunisia and Vietnam.
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Chapter 7: Selected developing country case studies

Tilman Altenburg and Wilfried Lütkenhorst

Extract

So far, we have reviewed the general evolution of the debate around industrial policy and its more specific contextualisation under the conditions typically prevailing in most developing countries. We now turn to a select number of country cases and focus on how the concrete manifestation of industrial policy measures has shaped their development trajectories and contributed to their economic and social performance. The countries under consideration are predominantly located in Africa – from Tunisia in Northern Africa to Ethiopia, Mozambique and Namibia in sub-Saharan Africa. In addition, Vietnam, as a fast growing Southeast Asian country, is included in the sample. In terms of their level of economic development, and in accordance with the World Bank income-based typology, we cover: • two low-income countries (Ethiopia and Mozambique); • one lower-middle-income country (Vietnam); and • two upper-middle-income countries (Namibia and Tunisia) At the beginning of each country section, we present an aggregated, standardised table with basic data. These are drawn from international sources so as to ensure comparability. National providers, such as Statistical Offices, may in some cases have more recent data available, which are not included in our standardised tables. However, the sections themselves reflect more recent developments, are tailored to the characteristic features of each individual case and develop a specific country narrative. Comparative insights and conclusions on success and failure of the chosen development paths and policies will be put forward in Chapter 8.

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