The Industrial Policy and Economic Planning: The Case Of Development-Based Public Procurement and National Champions In Supporting Local Manufacturing Base?

Abstract

Economic planning is still conducted in many countries de jure in some and de facto in others. On the other hand, industrial policy is coming back to stage globally in both developed (e.g. USA, Germany and the UK) and developing countries (e.g. China and Turkey). Both economic planning and industrial policy have different disguises in different countries, but it can be said that the two are in a process of convergence as developing countries intensify their catch-up efforts.  One of the differences among country practices of industrial policy is the policy tools. In this paper we look at various country cases to distinguish new trends in economic planning and industrial policy. In particular, we review the employment of development-based public policies and national champions-based policies.