Industrial Policy and Learning

Abstract

This chapter contributes to the understanding of how nations learn by looking at Latin America. It focuses on the experiences of some of the most advanced countries in the region, notably Brazil, Colombia, Chile, Mexico, and Uruguay. Industrial policies have been no strangers in these countries, however, diversifying the economy and catching up are still pending challenges. The analysis of the evolution of policies for industrialization and technological development from the 1950s onward clarifies why, in most cases, they had limited impact on domestic learning and catching-up dynamics. The review of some recent successful cases (from Chile, Uruguay, and Mexico) sheds light on which specific institutional and political economy dynamics enabled the activation of learning and change in the economy. The achievements and the persistent shortcomings of the region contribute to identifying lessons for growth and development whose relevance goes beyond Latin America and contributes to the overall global debate on how countries can achieve prosperity.

An integrated East Africa: a resilience perspective (In English)

“…Policies for industrial development is primarily the concern of national governments in the member countries, with policy focus being placed on increasing the competitiveness of industries in the respective national economies. In this competitiveness approach, the cluster methodology is utilised where governments support clusters (especially of small and medium enterprises) to ensure agglomeration of industrial activities (Peres & Primi, 2009;34). In this approach, national agencies support, or "catalyse", the development of regional value chains.…”