Economic Development and the Role of Industrial Policy

  • Economic Development and the Role of Industrial Policy

    In short, this phenomenon is the result of two misunderstandings: the first concerns the design of our industrial policy. Countries that have succeeded (South Korea is perhaps the most paradigmatic example in this regard) have built industrial policies that have protected the industry in its initial period. Yet that, gradually, was exposing the industrial companies to the international competition. Unlike them, we opted for a semi-autarchic industrial policy, which isolated much of the industrial sector from competition from other countries.

    In addition, it was important to build an ecosystem conducive to industrial development. Successful countries have created appropriate business environments, maintained their macroeconomics, invested in infrastructure, qualified their workforce, and other actions.

    Brazil, however, has advanced very little on these fronts.

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  • Maurício Canêdo Pinheiro

    PhD in Economics from FGV's EPGE Brazilian School of Economics and Finance (EPGE). He was General Coordinator of Public Services and Infrastructure at the Secretariat of Economic Monitoring for the Brazilian Ministry of Finance between 2001 and 2002. He was a researcher at FGV's Brazilian Institute of Economics (IBRE) for 12 years. He is currently professor for FGV EPGE's complementary framework and Adjunct Professor at FCE/UERJ. Several of his articles have been published on subjects related to industrial organization, regulation, economic development and industrial policy.