Industrial policy is back. The Covid-19 Pandemic and the global economic crisis it caused increase the pressure on policy makers to actively engage in industrial policy-making: Subsidising or even rescuing companies, buying shares, offering state guarantees, introducing national controls of production of, or trade with, critical health products, etc. Also, with regard to post-Covid recovery schemes, specific investments are advocated for, e.g. in green technologies and digital capabilities.
This raises concerns among those who prefer as little policy interference as possible in the allocative efficiency of markets. Hence the old core question of industrial policy about specific (“vertical”) vs. generic ( “horizontal”) public support is coming back big. To what extent are specific investments needed to shape structural changes in desirable ways (#buildback-better)? Would those open a pandora’s box of lobbyism and favouritism?
In this online event, we will start from the conceptual debate about „picking winners“ to then discuss appropriate industrial policies to #buildbackbetter
When?: Monday, September 14, 2020 2:00 pm
Where?: Online via Cisco Webex, Register
Source: Deutsches Institut für Entwicklungspolitik (DIE), 19 August 2020