The Oxford Handbook of Industrial Policy

Description

Industrial policy has long been regarded as a strategy to encourage sector-, industry-, or economy-wide development by the state. It has been central to competitiveness, catching up, and structural change in both advanced and developing countries. It has also been one of the most contested perspectives, reflecting ideologically inflected debates and shifts in prevailing ideas. There has lately been a renewed interest in industrial policy in academic circles and international policy dialogues, prompted by the weak outcomes of policies pursued by many developing countries under the direction of the Washington Consensus (and its descendants), the slow economic recovery of many advanced economies after the 2008 global financial crisis, and mounting anxieties about the national consequences of globalization. The Oxford Handbook of Industrial Policy presents a comprehensive review of and a novel approach to the conceptual and theoretical foundations of industrial policy. The Handbook also presents analytical perspectives on how industrial policy connects to broader issues of development strategy, macro-economic policies, infrastructure development, human capital, and political economy. By combining historical and theoretical perspectives, and integrating conceptual issues with empirical evidence drawn from advanced, emerging, and developing countries, The Handbook offers valuable lessons and policy insights to policymakers, practitioners and researchers on developing productive transformation, technological capabilities, and international competitiveness. It addresses pressing issues including climate change, the gendered dimensions of industrial policy, global governance, and technical change. Written by leading international thinkers on the subject, the volume pulls together different perspectives and schools of thought from neo-classical to structuralist development economists to discuss and highlight the adaptation of industrial policy in an ever-changing socio-economic and political landscape. Cover The Oxford Handbook of Industrial Policy Copyright Acknowledgements Contents List of Figures List of Tables List of Contributors Part I: Introduction Chapter 1: Intoruction to Industrial Policy and Development 1.1 An Overview of Industrial Policy and Development 1.1.1 History and Debate in Industrial Policy 1.1.2 Evolving Challenges to Industrial Policy 1.1.3 The Shifting Terrain of Industrial Policy 1.1.4 Political Economy and Industrial Policy 1.1.5 The Cabinet of Policy Errors 1.2. Aims and Approaches of the Handbook 1.2.1 Aims and Approaches 1.2.2 Process 1.3 Organization and Structure 1.3.1 Part I: Introduction 1.3.2 Part II: Theoretical Perspectives 1.3.3 Part III: Context and Connections 1.3.4 Part IV: Experiences in Advanced Economies 1.3.5 Part V: Experiences in Emerging and Developing Countries References Chapter 2: The Theory and Practice of Industrial Policy 2.1 Introudction to the Theory and Practice of Industrial Policy 2.2 Theoretical Perspectives of Industrial Policy 2.2.1 The Concept of Industrial Policy 2.2.2 Structural Transformation and Industrial Policy 2.2.2.1 Perspectives on Structural Transformation 2.2.2.2 Manufacturing as an Engine of Growth and Structural Change 2.2.2.2.1 Linkages and Complementarities 2.2.2.3 The Strategic Role of Exports 2.2.2.4 Structural Transformation and its Implications for Industrial Policy 2.2.3 The Infant Industry Theory 2.3 Evolving Thinking on Industrial Policy: Technological Learning and Catch-up 2.3.1 Technical Change and Economic Development 2.3.2 Theoretical Underpinning of Catch-up and Late Development 2.3.3 Technological Learning and Industrial Policy 2.3.3.1 Technological Learning 2.3.3.2 Innovation Systems and Infrastructure 2.3.3.3 Implications for Technological Learning and Industrial Policy 2.4 The State and the Politics of Industrial Policy 2.4.1 The Dynamics of the State‒Market Mechanism 2.4.2 Politics and Political Economy 2.4.3 Disciplining the Private Sector and Reciprocity 2.4.4 Conflict and Political Stability 2.4.5 Myths Surrounding Industrial Policy 2.5 The Practice of Industrial Polciy: Dynamics, Adaptability, and Principles 2.5.1 Linkage Dynamics and Interdependence 2.5.2 Industrial Ecosystem and Cluster Dynamics 2.5.3 Tensions in Industrial Policy 2.5.3.1 Strategic Compatibility and Coherence 2.5.3.2 Synergy and Connections to Other Policies 2.5.3.3 Competitiveness and Discipline 2.5.4 Summary 2.6. Concluding Remarks: Observations and Emerging Issues 2.6.1 The Middle-income Trap 2.6.2 Changing Patterns of Global Production and World Economy 2.6.3 Accelerated Technological Advancement 2.6.4 Sustainability and Green Industrial Policy Acknowledgements References Part II: Theoretical Perspectives Chapter 3: Industrial Policy, Macroeconomics, and Structural Change 3.1. Introduction 3.2 Growth Patterns 3.3 The Dynamics of Production Structures 3.3.1 Innovations 3.3.2 Complementarities 3.3.3 The Interplay of Innovations and Complementarities 3.3.4 The Links between Productivity and Growth 3.4 Commodity Dependence 3.5 Macroeconomics, Finance, and Structural Change 3.6 Policy Implications Acknowledgements References Chapter 4: Industrial Policies, Patterns of Learning, and Development: An Evolutionary Perspective 4.1. Introduction 4.2 The Fundamental Properties of Technology 4.2.1 Technological Paradigms and Trajectories 4.2.2 Paradigms, Routines, Organizations 4.3 Technological Dominance, Micro-Heterogeneity, and Non-substitution 4.4 Some General Interpretative Implications 4.5 Structural Changes as a Fundamental Feature of Catching up 4.5.1 The Evolution of Technological Capabilitiesa nd Production Specializations 4.6 The Crucial Role of Industrial Polices 4.6.1 Emulation and, sometimes, Leapfrogging as a General Principle Inspiring Policies 4.6.2 The Complementarity between Technological Learning and the Development of Production Capacity 4.6.3 The Necessity of Nurturing Infant Industries 4.6.4 Industrial Policies in a Sino-centric World: Some Conclusions 4.7 Appendix: Shift-and-Share Decompoistion Methodology Acknowledgements References Chapter 5: Neoclassical Economic Perspectives on Industrial Policy 5.1 Introduction 5.2 Theory of Domestic Distortions and the Policy Hierarchy 5.3 Structural Adjustment Era 5.4 Revival of Interest in Neoclassical Industrial Policy after 2000 5.5 New Structural Economics 5.6 Doomed to Choose: How to Implement Selectivity 5.7 Efficiency Indicators 5.8 Product Space 5.9 Dothese Calculations have any Role? 5.10 Conclusions References Chapter 6: Enterprises and Industrial Policy: Firm-based Perspectives 6.1 Introduction 6.2 Theory of the Firm and Enterprises in Industrial Development 6.2.1 Resource-based Theory of the Firm 6.3 Marret Power, Competition, and Enterprise Strategies 6.3.1 Competition and Productivity 6.3.2 Economic Power of Companies 6.3.3 Economic Power, Rents, and Political Settlement 6.4 Dimensions of the Internationalization of Production 6.5 Digitalization of Production, Enterprises, and Industrial Policy 6.5.1 Digitalization of Production 6.5.2 Digital Platforms 6.5.3 Industrial Policy Implications 6.6. Conclusion References Chapter 7: Radical Perspectives on Industrial Policy 7.1. Introduction 7.2 Radical Approaches to the Role of Manufacturing and Industrialization 7.2.1 Kaldorian and Structuralist Approaches: Manufacturing as a Special Engine of Growth 7.2.2 A Marxist Approach to Manufacturing and Industrialization 7.3 Marxism and Industrial Policy: Beyond Sectors and Developmen 7.3.1 Value, Exploitation, and Power in Capitalism 7.3.2 Industrial Policy: The Analytic and the Prescriptive 7.3.3 Climate Change: The Potential and Necessity of Radical Industrial Policy Today 7.4 Experiences of 'Radical' Industrial Policies 7.4.1 Statist Models of Industrialization 7.4.2 Labour-centred Industrial Development: Worker Co-operatives 7.4.3 Models of Industrial Policy with Participatory Planning 7.5 Conclusion References Part III: Context and Connections Chapter 8: Global Value Chains and Regionally Coordinated Industrial Policy: The Case of ASEAN 8.1 Regional Economic Integration, The Core of ASEAN Industrial Policy 8.2 The Deepening of GVC Integraion: ASEAN, by Numbers 8.3. The Evolution of ASEAN Industrial Policy: From Import-substitution Industrialization to Export-oriented Industrialization to The Deepening of GVC Integraion 8.4 A Closer Look at ASEAN Industrial Policy in the Era of GVCs 8.4.1 Reshaping ASEAN Industrial Policy in the Era of GVCs: Towards a more Inclusive Participation 8.4.2 ASEAN Industrial Policy in GVCs: Success or Failure? 8.5 ASEAN's Regional Policy Coordination: The Case of the Auto Industry in Indonesia and Thailand 8.5.1 The GVC in the Automotive Industry 8.5.2 A Path to Development and Industrial Upgrading 8.5.3 ASEAN’s Regional Policy Coordination in the Automotive Industry 8.6 The Future Milestones in ASEAN Industrial Policy References Chapter 9: Managing Trade through Productive Integration: Industrial Policy in an Interdependent World 9.1 Introduction 9.2 The Multifaceted Connections Between Trade Integration and Development 9.2.1 Gains from Trade? 9.2.2 Trade Composition, Structural Transformation, and Diversification 9.3 Productive Integration: The Emergence of Global Value Chains 9.3.1 Mapping GVCs 9.3.2 Assessing the Impact of GVCs 9.4 Managing Integration, Facing the Policy Challenges Ahead 9.4.1 Active versus Passive Policies 9.4.2 Upgrading and Sophistication 9.4.3 Regional Value Chains 9.5. Conclusion References Chapter 10: Greening Industrial Policy 10.1 Why Green Industrial Polciy? 10.2 General Features of the Greening of Industrial Policy 10.2.1 Energy 10.2.2 Materials/Resources 10.2.3 Finance 10.3 Effective Industrial Policy/Green Growth Initiatives in India and China 10.3.1 Green Industrial Policy in India and its Impact on Trade 10.3.2 Green Industrial Policy in China and its Impact on Trade 10.4 Opportunities for Late Latecomers to Apply Green Industrial Policies to Drive Development 10.5 Why Would any Country Wish to Continue with Fossil-Fuelled D evelopment? 10.6 Greening as Enhancing Energy and Resource Security: Working with the Differential Principle 10.7 Concluding Comments References Chapter 11: Globalization Narratives and Industrial Policy 11.1 The Approach Adopted in this Chapter 11.2 Theoretical Persectives 11.3 Hyper-Globalization and De-Globalization 11.4 Narratives in Action I: Globalization Indices 11. 5 Narratives in Action II: Three Storylines 11.5.1 Globalization as Inexorable yet Malleable 11.5.2 Regionalization as a Process that can Refract Global Neo-liberalism 11.5.3 Digital Industrialization: Distant Promise or Catalyst of Inequality? 11.6 Next Steps 11.7 Leveraging Storylines as Policy Space Acknowledgements References Chapter 12: Grand Challenges, Industrial Policy, and Public Value 12.1 Introduction 12.2 From Marret Failure to Marret Shaping 12.3 Learning from History:The Evolution of Mission-oriented Policies 12.4 Instrumentalizing Missions as Industrial Policy 12.5 R: Routes and Directionality—A Mission-oriented Approach 12.6 O: Organizational Capabilities in the Public Sector 12.7 A: Assessment and Evaluation 12.8 R: Risks and Rewards 12.9 Conclusion Acknowledgements References Chapter 13: The Political Economy of Development Banking 13.1 Introduction 13.2 The Economic Rationale for Development Banking 13.3 Lessons from Effective Development Banks 13.4 Diversification of Development Financing Matters for Industrial Policy 13.5 Case Study: The Political Economy of Development Banking in Brazil 13.5.1 The Positive Side of Development Banking in Brazil 13.5.2 The Limitations of BNDES and the Importance of Broad Political Economy Factors 13.5.3 Policy Debates: Assessing the Role and Effectiveness of BNDES in Brazil 13.5.4 The Politics of Development Banking in Brazil 13.6 General Policy Considerations References Chapter 14: Technical Change, the Shifting ‘Terrain of the Industrial’, and Digital Industrial Policy 14.1 Introduction 14.2 Technical Change and the Concepts of Sector: 'The What', 'The How', and 'The Where' 14.3 'Shifting Terrains': Technical Change and Digitalization within Industrial Ecosystems 14.4 Industrial Policy: Challenges and Opportunities in the New Digital Terrain 14.4.1 Technology Absorption, Deployment, and Technical Change: 'Capability Threshold' 14.4.2 Production System: Retrofitting and Integration 14.4.3 Infrastructure: Basic and Digital 14.4.4 Technology Diffusion: 4IR Islands and the Digital Capability Gap 14.4.5 Technology Access and Affordability: Endogenous Asymmetries 14.5 Conclusions Acknowledgements References Chapter 15: An Industrial Policy Framework to Advance a Global Green New Deal 15.1 Introduction 15.2 What is Clean Energy? 15.2.1 Natural Gas 15.2.2 Nuclear Energy 15.2.3 Geoengineering 15.2.4 Energy Efficiency and Clean Renewable Energy 15.2.5 Energy Efficiency 15.2.6 Estimating Costs of Efficiency Gains 15.2.7 Rebound Effects 15.2.8 Renewable Energy 15.2.9 Costs of Expanding Renewable Capacity 15.3 Economic Growth and Emissions Reductions 15.3.1 Global Model Framework and Calculations 15.4 Industrial and Financial Policies 15.4.1 Industrial Policies 15.4.2 Providing Cheap and Accessible Financing 15.4.3 Sources of Aggregate Funding 15.4.4 Channelling Financial Resources into Specific Investment Projects 15.5. Domestic Resource Capacities for Clean Energy Investiments 15.5.1 Fossil Fuel Consumption and Imports/Exports 15.6 Conclusion 17.7 Appendix References Chapter 16: Industrial Policy and Gender Inclusivity 16.1 Introduction 16.2 The Impact of Industrial Policy and Structural Change on Gender Equality 16.2.1 Gender, Employment, and Industrialization 16.3 Gender Equality Feedback Loops: Impact on Success of Industrial Policies 16.3.1 Gender and Labour Productivity Growth 16.3.2 Gender and Knowledge Production 16.3.3 Gender, Diversity, and Technical Design 16.4 Conclusion Acknowledgements References Chapter 17: Macro-Policy, Labour Markets, and Industrial Policy 17.1. Introduction 17.2 Setting the Stage: An Export-led Model of Economic Growth 172.1 Enter the Balance-of-Payments Constraint 17.3 'Big Push' Industrialization 17.3.1 The ‘Wage-Goods Inflation’ Barrier: A Ricardian–Kaleckian Mechanism 17.3.2 A Drop in Domestic Expenditure Growth: A Robinsonian Mechanism 17.3.3 Forced Savings, Restrictive Monetary Policy, and Destabilizing Austerity: Three Keynesian Mechanisms 17.4 Vicissitudes in the Life of Export-led Industrialization Strategies 17.4.1 The ‘Dutch Disease’ 17.4.2 Escaping the Primary-Commodity Specialization Trap 17.5 Labour Laws as Instruments of Industrial Policy 17.5.1 Wages and Demand 17.5.2 ‘Technology-forcing’ Labour-Market Regulation 17.5.3 The Wage and the Profit Rate 17.6 Macro-Policy Lessons for Late I ndustrialization References Chapter 18: Technological Disruptions, GVCs, and Industrial Policy 18. 1 Introduction 18.2 Technological Change and the Fourth Industrial Revolution 18.3 GVCs and Manufacturing Hollowing Out 18.4 Signs of De - globalization 18.5 Industrial Policy and Beyond 18.6 Transformative Industrial Policy 18.7 Conclusions Acknowledgements References Part IV: Experiences in Advanced Economies Chapter 19: Industrial Policy: A Long-term Perspective and Overview of Theoretical Arguments 19.1 New Perspectives on Cold War Economic Theory: Adam Smith, David Ricardo, and Paul Samuelson Revisited 19.2 The Historical Roots of Industrial Policy Theory 19. 3 The Key to Wealth as Urban Synergies Created by Adding Value to Raw Materials under a Large Division of Labour: Giovanni Botero (1589) 19.4 Increasing Returns: From Antonio Serra (1613) to Alfred Marshall (1890) and Paul Krugman (19181) 19.5 How Economic Activities Differ, Learning Curves, and the Sequencing of Technological Change 19.6 On the 'Quality' of Economic Activities: Barriers to Entry, Hierarchies of Skills, and Dynamic Imperfect Competition 19.7 Colonialism and Industrial Policy 19.8 The Marshall Plan and the Need to Rediscover the Economics of Industry, Trade, and Population Density 19.9 'Institutions': A Failed Attempt to Reverse the Arrows of Causality of Economic Development 19.10 When Industrial Policy Intuition Clashes With Ricardian Trade Theory 19.11 Nichification:An 'Industrial' Policy Strategy for Agriculture 19.12 What's New in the Present Industrial Policy Game? 19.13 Conclusion: Unrealistic Utopias that Boomerang as the Curse of Europe and the West References Chapter 20: Post-war American Industrial Policy: Market Myths and Production Realities 20.1 I Introduction To The Economics Of Production And Strategic Policy Frameworks 20.2 The US Second World War Production-informed Policy Framework 20.3 Post-War Policymaking Legacy 20.4 The Japanese Economic Miracle: Rival Technology Management Paradigms 20.5 Production System Legacies: The North versus the South 20.5.1 The Manufacturing Belt 20.5.2 The Sun Belt 20.5.3 The Gun Belt 20.5.4 The Rust Belt 20.6 Neo-Liberalism And Dismantling The 'American System' 20.7 The Capability Triad As Policy Framework 20.8 Appendix: Major Contributors To The Capability And Innovation Perspective Acknowledgements References Chapter 21: European Industrial Policy: A Comparative Perspective 21.1 Introduction 21.2 Industrial Policy: Definition and Taxonomy 21.3 Industrialization and Industrial Policy 21.3.1 The United Kingdom 21.3.2 Germany 21.3.3 France 21.3.4 Italy 21.4 Industrial Policy from 1945 to the Twenty-first Century 21.4.1 Italy 21.4.2 France 21.4.3 The United Kingdom 21.4.4 Germany 21.4.5 Finland 21.4.6 Ireland 21.5 New Industrial Policy at the Turn of the Century 21.5.1 Germany 21.5.2 The United Kingdom 21.5.3 Italy 21.5.4 France 21.6 Conclusions References Chapter 22: The European Union’s Industrial Policy 22.1 Introduction 22.2 The Evolution of EU Industrial Policy in a Nutshell 22.2.1 The Interventionist Phase (1950-80) 22.2.2 The Liberal Phase (1980-2005) 22.2.3 The Pragmatic Phase (Since 2005) 22.3 EU Industrial Policy Priorities: The Numbers 22.3.1 The Level Dimension: Industrial Policy Spending at EU and Member-state Levels 22.3.2 The Thematic Dimension: Priorities in Industrial Policy 22.3.3 The Country Dimension: Substantial Differences in Industrial Policy Expenditure 22.4 EU Industrial Policy Efforts in Light of the Major Challenges Ahead 22.4.1 The Technological/Innovation Challenge 22.4.2 The Emerging Markets Challenge 22.4.3 The Cohesion Challenge 22.4.4 The Environmental Challenge 22.5 Conclusions 22.6 Appendix 22.6.1 Member States and Country Groupings 22.6.2 Selection of EU Budget Items and Assignment to Industrial Policy Themes 22.6.2.1 Mapping of budget items in the MFF 2014-20 to the industrial policy themes 22.6.2.2 Mapping of thematic objectives in the ESIF to the industrial policy themes 22.6.2.3 Assumption made for the co-financing by member states of ESIF projects References Chapter 23: Diverse Tools of Industrial Policy in Korea: A Schumpeterian and Capability-based View 23.1 Introduction 23.2 Technology Licensing for Absorptive Capacity 23.3 Infant Industry Protection by Tariffs and Entry Control 23.4 Public-Private Joint R&D 23.5 Concluding Remarks Acknowledgements References Part V: Experiences in Emerging and Deveoping Countries Chapter 24: Industrial Policy and Industrialization in South East Asia 24.1 Introduction 24.2 Theoretical Considerations 24.3 Import-substitution Policies 24.3.1 Indonesia 24.3.2 Malaysia 24.3.3 The Philippines 24.3.4 Thailand 24.3.5 Summary 24.4 Export-oriented Policies 24.4.1 Indonesia 24.4.2 Malaysia 24.4.3 The Philippines 24.4.4 Singapore 24.4.5 Thailand 24.4.6 Summary 24. 5 Industrialization And De -Industrialization 24.5.1 Indonesia 24.5.2 Malaysia 24.5.3 The Philippines 24.5.4 Singapore 24.5.5 Thailand 24.5.6 Summary 24.6 Technological Upgrading Initiatives 24.6.1 Indonesia 24.6.2 Malaysia 24.6.3 The Philippines 24.6.4 Singapore 24.6.5 Thailand 24.6.6 Summary 24.7 Cconclusions References Chapter 25: National Champions, Reforms, and Industrial Policy in China 25.1 Introduction 25.2 Industrial Policy, Big Business, and China's Economic Reforms 25.2.1 The Mainstream Transition Economics View 25.2.2 The State Capitalism View 25.2.3 The Late Industrialization and Developmental State View 25.3 Industrial Policy and the Rise of China's National Champions 25.3.1 The Rise of China's National Champions in Industrial Sectors 25.3.2 The Rise of China's National Champions in Finance 25.4 State-Business Relations And The Governance Of China'S National Champions 25.4.1 Government Capability and Learning 25.4.2 Enterprise Capability and Learning 25.4.3 Networked Hierarchy, Institutional Bridging, and Reciprocal Control 25. 5 International Competitiveness of China's National Champions 25.6 Concluding Remarks References Chapter 26: Industrial Policies in the Brics 26.1 Introduction 26.2 The Tradition of Industrial Policy in the Brics 26.3 To Brics or not to Brics 26.3.1 From Bric to Brics 26.3.2 Brics to Build an Economic Block? 26.3.3 Industrial Policy Coordination 26.4 The Challenge of Heterogeneous Industrial Performances 26.4.1 Contribution to Global Economic Activity 26.4.2 Structural Change and Capability Accumulation 26.4.2.1 Productive Capabilities 26.4.2.2 Innovation Capabilities 26.4.3 Integration through Trade and Investment 26.5 Brics and the 4IR 26.5.1 Collective Responses 26.5.1.1 Building Basic Framework Conditions 26.5.1.2 Fostering Demand and Adoption of 4IR Technologies 26.5.1.3 Strengthening Skills and Research Capabilities 26.6 The International Dimension 26.6.1 Africa in Focus 26.7 Conclusions Acknowledgements References Chapter 27: Successes and Failures of Industrial Policy in Transition Economies of Europe and Asia 27.1 Introduction: Industrial Policy and Economic Diversification 27.2 Overview of Changes in the Structure of Economies in Post-Communist Countries 27.3 Structural Economic Transformation and Industrial Policy 27.4 Industrial Policy: Which Industries to Support? 27.5 Industrial Policy: What Tools to Use? 27.6 Industrial Policy in Resource-rich Countries 27.7 Innovation, Research, and Development 27.8 State versus Private Sector, Government, Private, and Foreign Investment 27.9 International Trade and Trade Policy 27.9.1 Trade Liberalization 27.9.2 Import Substitution versus Export Orientation 27.10 Conclusion References Chapter 28: Latin American Industrial Policies: A Comparative Perspective 28.1 Introduction 28.2 Tacitness, Localized Technical Change, and Structural Inertia 28.2.1 The Dynamics of Learning and Industrial Policy 28.2.2 The Links between Macroeconomic and Industrial Policies 28.3 Policies in a Comparative Perspective: Industrial Policy in the Different Phases of Latin American Development 28.3.1 Industrial Policy: From State-led Industrialization to the Washington Consensus 28.3.2 From State-led Industrialization to the Debt Crisis 28.3.3 The Washington Consensus Years 28.3.4 The Timid Return of Industrial Policy in the 2000s 28.4 Korea as a Benchmark 28.5 Stylized Facts: A Comparative View on Productivity and Specialization in Latin America 28.5.1 Phases of Convergence and Divergence 28.5.2 Structural Change and Convergence 28.6 Concluding Remarks Acknowledgements References Chapter 29: Phases and Uneven Experiences in African Industrial Policy 29.1 Introduction 29.2 Limited Progress with Structural Transformation in Sub-Saharan Africa 29.3 Theoretical Perspective: Using Industrial Policy to Escape the Learning Trap 29.4 Import-substitution Industrial Policy: The Cement Sector in Nigeria and Ethiopia 29.5 Industrial Policy in Labour-intensive Export Manufactures: Apparel Exports in Ethiopia 29.6 Leapfrogging Manufacturing? Knowledge-based Services in Kenya and Rwanda 29.7 Combining Export-oriented and Import-replacement Policies: Automobiles and Apparel in South Africa 29.8 Conclusion References Chapter 30: The Political Economy of Industrialization and Industrial Policy in Africa, 1960‒2018 30.1 Introduction 30.2 Colonial Industrial Policy: The Birth of Import-substitution Industrialization 30.3 Import-substitution Industrialization in Africa: The Early Post-colonial Experience 30.4 The Political and Economic Objectives of Import-substitution Industrialization in Africa 30.5 Industrial Policies for Import-substitution Industrialization 30.6 Industrial Performance Under Import-substitution Industrialization 30.7 Resources- and Needs-based Basic Industry Policy: An Alternative Strategy? 30.8 Liberalization and Industrial Policy 30.9 Renewed Potential for Second- and Third-Stage Import-substitution Industrialization? 30.10 Towards an African Developmental State and Effective Industrial Policy? 30.11 Conclusion References Index of Names General Index