Reindustrialization in the sustainable development convention

Abstract

This article assumes the importance of the manufacturing industry to long-term growth and examines Brazil’s deindustrialization process since its economic opening. The manufacturing sector’s recovery is analyzed in light of the proposal to reindustrialize the economy in the ongoing global climate emergency. In line with the new-developmentalist literature, reindustrialization implies widening policy space to recover public and private investment in productive assets, providing financial conditions compatible with long-term returns. It assumes an active role in state intervention. In this sense, the New Brazilian Industry industrial policy should anchor long-term expectations to enhance productive investment committed to the green transition. This approach positions industrial policy as the anchor to build a sustainable development convention.