New economic globalization, new industrial policy and late development in the 21st century: A critical analytical review

Abstract

After having been put aside for three decades, industrial policy has reappeared in the research and policy debate on economic development in the Global South. However, it has also been argued that fragmented and decentralized value chains have foreclosed the traditional role of industrial policy. The article reviews three strands of thinking, exploring to what extent and how one can align the call for new industrial policy with the expansion of global value chains? It shows how the research agenda can be moved forward by realigning contributions from global value chain scholarship with researchers who take their point of departure concerning new industrial policy in structural transformation, technological capability and innovation system thinking.

Global value chains and policy practice: The making of linkages in the Ivorian cashew industry

“…A controversial debate has emerged on the implications of this ‘value chain turn’ in industrial policy. In particular, critics argue that incorporating foreign lead firms into national policy agendas has effectively foreclosed efforts to address wider structural and macroeconomic constraints faced by suppliers in downstream markets (Lauridsen, 2017). Reflecting highly optimistic expectations for the impact of market participation on economic development, GVC interventions arguably neglect political-economic factors that account for global economic disparities (Dalle et al., 2013).…”

“…On the other hand, scholars have argued that the value chain terminology itself simply serves as a label to advance the neoliberal agenda (Fernández, 2014). In particular, scholars have criticized GVC interventions for their preoccupation with inter-firm relations, claiming they fail to address the wider structural and macroeconomic constraints faced by suppliers in upstream markets (Cramer, 1999, Lauridsen, 2017).…”

Effects of technological changes and trade liberalisation on industrial development in the Western Balkan Countries

“…The last several decades have in fact been marked by de-industrialisation processes. For Lauridsen (2018), it afflicts those forward, post-industrial economies. Industrialisation and income ratio is inversely proportional, whereby industrialisation is measured by employment or production rate.…”

Untitled

“…Balkytė and Tvaronavičienė (2010) suggest classifying the existing studies on competitiveness into six categories: Competitiveness of companies, sectors competitiveness, regional competitiveness, national competitiveness, bloc competitiveness, and international competitiveness. According to the World Economic Forum's widely cited definition (The Global Competitiveness Report 2017-2018, 2017, competitiveness is "the set of institutions, policies, and factors that determine the level of productivity of an economy, which in turn sets the level of prosperity that the economy can achieve." Garelli (2006, p. 21) applies a more expansive definition since the theory of competitiveness "endeavours to go beyond the analysis of productivity, the accumulation of physical assets, the amassing of wealth, and the increase of power."…”