In that year, the united states government enacted the african growth and opportunities act agoa, which allowed african countries to export textile and garments duty free and without import quota. An industrial policy ip or industrial strategy of a country is its official strategic effort to encourage the development and growth of all or part of the economy, often focused on all or part of the manufacturing sector. Land availability of land is a primary requisite for sustainable industrial development. Industrial policy is a document that sets the tone in implementing, promoting the regulatory roles of the government. Policy laid stress that foreign capital can play important role in industrial development.
It signified the involvement of the indian government in the development of the industrial sector. To take the % contribution of manufacturing to gdp up to 25% from the current. In their view it was the change away from indias traditional industrial policy in 1991 towards liberalisation, deregulation, and market. The standard rationale for industrial policy is technological externalities, either static or dynamic in the form.
The industrial development policy 201520 aims to promote manufacturing, enhance inclusivity, foster innovation and create employment opportunities across sectors. Varied from several days to several months duty station. Fostering innovation policies for industrial development. Contemporary debates about industrial policy as a development tool focus on how best to overcome these market failures and other difficulties. In the absence of policy certainty, fragmentation in government, wilful noncompliance and corruption in private and publicsector institutions all these and more inevitably lead to suboptimal outcomes. The role of industrial policy as a development tool. The role of industrial policy as illustrated in international best practice is to foster growth, value addition and dynamic expansion into new areas of comparative advantage 3 where market failures would otherwise prevent or slow development. Based on the views of the leading industrial policy scholars, this section explains what constitutes an industrial policy, what policy instruments it uses, and how it can be implemented. As a key pillar of its industrial growth strategy, the goup will focus on the following economic infrastructures 3. This working document notes that, while industry has already made considerable efforts in the environmental field, achievement of sustainable industrial development will require further substantial. The global financial crisis has led to a reassessment of the role of the state visavis the private sector in promoting growth and development. The industrial policy of japan was a complicated system devised by the japanese government after world war ii and especially in the 1950s and 1960s. We redefine industrial policy for industrialised countries as a strategy to promote highroad competitiveness, understood as the ability of an.
Pdf on jan 1, 2007, matleena kniivila and others published industrial development and economic growth. Pdf indias industrial policy and performance since. Industrial policy is back on the agenda and the consensus is that it must be different this time from the past. The history of economic development of advanced countries shows that there is a close relation between the level of industrial development and the level of national and per capita income. Despite all this, recent economic thinking on policy reforms pays scant attention to structural transformation and industrial development. I am certain that the industrial development policy 201520 would act as a strong foundation for the development of the state, and make it a leading destination for both domestic and global investment. Japanese industrial policy the postwar record and the case of. Implications for poverty reduction and income inequality find, read and cite all the. Further policy changes have occurred since the year 2000 that have had significant implications for industrial development and trade in kenya. Ajayi department of geography, university of ibadan, nigeria abstract perhaps one major problem facing nigeria today that has received little or no attention remains her low industrial base. The goal was to promote industrial development by cooperating closely with private firms. The incentives in the industrial policy are in the form of power subsidies, interest subsidies, stamp duty exemption, electricity duty exemption and subsidy on state gst paid. Tanzanias industrial sector has evolved through various stages since independence in 1961, from nascent and undiversified to stateled import substitution industrialization, and subsequently to deindustrialization under structural adjustment programmes and policy reforms.
In india, the gini coefficient of household consumption expenditure fell in the 1950s as a result of. The latter, particularly if implemented widely across nations, is the most direct pathway to sustainable industrial development. Development bank of southern africa, industrial development corporation, airports company south africa acsa, eskom, provincial departments of economic development and idz operators coega, east london and richards bay for all their invaluable contributions to this policy document. Indian industrial policy in the period 1950 to 1980, as embodied in its fiveyear plans, has long been the subject of intense criticism from the powerful neoliberal critics of the countrys development. Government of andhra pradesh goap lays utmost emphasis on sustainable industrial development anchored by capacity building at the grassroots level.
On 30 april 1956, the government revised its first industrial policy i. However, the role of industrial policy has long been the subject of extensive debates. Many concessions were offered to make use of foreign capital. Prepared under undp harvard policy dialogue papers. Industrial development in tanzania oxford scholarship. Vietnams industrial policy designing policies for sustainable development. A number of countries in the developing world and particularly africa have shown a renewed interest and started to reintroduce. The new industrial policy focuses on creating a conducive ecosystem which. The achievement of sustainable industrial development is the main objective of an integration strategy in the domain of industrial policy. Contours of a new industrial policy 07 section 02 key targets of the industrial policy the. Industrial development policy 2015 2020 5 the state intends to be the most preferred destination for investors by providing favorable business climate, excellent infrastructure, good law and order and peaceful industrial relations. Industrial policy experiences of todays rich countries after world war ii 60 4.
This study showed that the liberalisation policy has significant impact on industrial development during initial stage but after 200708, the impact of the. Series on vietnams wto accession and international competitiveness research policy dialogue paper number 1. In short, it is a proclamation of objectives to be achieved in. Investment promotion the current focus of industrial agencies and policies is primarily to attract new investment into their industrial zones. To a certain extent, emerging market hosts can carry out.
It was an effort to expand the industrialization and uplift the economy to its deserved heights. Industrial development and economic growth 299 tion in overall poverty in the 19812001 period. Additionally, the fragmentation between the federation and the provinces and interprovincial con. Industrial policy can be defined as a statement stating the role of government in industrial development, the position of public and private sectors in industrialization of the country, the comparative role of large and small industries. Pdf ethiopian industrial development strategic plan.
Industrial policy experiences of todays more advanced developing countries 67 4. Smart industrial policy must contribute to sustainable development. Public units can be a good source of revenue if efficiently managed. For instance, the share of industrial sector to national income was 26%. The current development agenda, however, has brought industrial development back to be one of the policy priorities. Japanese industrial policy the postwar record and the case.
Unido is mandated, amongst a variety of other functions, to provide strategic policy advice aimed at accelerating industrial development and competitiveness of developing countries. Policy laid emphasis on the proper management of public units. Transformative industrial policy african countries are. We redefine industrial policy for industrialised countries as a strategy to promote highroad competitiveness, understood as. The government takes measures aimed at improving the competitiveness and capabilities of domestic firms and promoting structural transformation. Chapter 3 theoretical perspectives on industrial policy. Sidp sustainable industrial development policy sme small and mediumsized enterprise sti science, technology and innovation tccia tanzania chamber of commerce, industry and agriculture tdv tanzania development vision tecat technology capability accumulation and transfer. The industrial development policy is a product of wide and thoroughly extensive consultations with the.
The industries development and regulation act was passed in 1951 to implement the industrial policy resolution, 1948. Government with a view to make andhra pradesh a progressive and highly industrialized state, hereby introduce the industrial development policy 20152020. The government takes measures aimed at improving the competitiveness and capabilities of. Summary of indias industrial policy economics discussion. The objective of industrial policy was to shift resources to specific industries in order to gain international competitive advantage for japan. We believe that both of these positions are wrong, and that the most appropriate policy with respect to industrial policy today is somewhere between these two polar opposites. Industrial policy and late industrialisation in ethiopia. Industrial policy is back on the development agenda. An introduction2 more than fifteen years into a period of sustained and rapid economic growth, ethiopia has continued to attract international attention for its achievements and for pursuing a homegrown development strategy, with an active industrial policy at its center.
An industrial policy of a country, sometimes denoted ip, sometimes industrial strategy, is its official strategic effort to encourage the development and growth of all or part of the economy, often focused on all or part of the manufacturing sector. The overriding policy challenge for the eu is to promote the positive impacts of industrial development while limiting or eliminating its negative impacts throughout the world. Third, for every such example there are others where industrial policy has been a failure and may even have impeded development though the counterfactual is complicated. Industrial policy experiences of todays rich countries at the earlier stages of their economic development 62 4. The timing of its publication, not long after the launch of the medium term plan mtp last year, marks a significant milestone in zimbabwes economic growth and revival path. Ethiopian industrial development strategic plan 202025 fdre ministry of industry. Industrial development helps in the rapid growth of national and per capita income. Industrial development policy as a guide to promote the countrys industrial development that will help maintain sustainable and inclusive high economic growth through economic diversification, strengthening competitiveness and promoting productivity. Homebased, andor at unido headquarters andor in the field around the world organizational context. Smart industrial policy has to lead to sustainable development. Industrial policies should provide appropriate measures to address these drawbacks and prevent informality from becoming a vicious circle of low productivity, slow growth and social exclusion.
Japans industrial policies are largely, though not solely, responsible forits eco nomic recovery from world war ii and its increasing preeminence in hightechnology industries. Second, there certainly are examples where industrial policy has played this role. This paper identifies the ingredients for what it calls lighthanded industrial policy to address these obstacles. The development and application of environmentfriendly technology, products and services, and management systems have the potential to achieve both environmental.
486 965 610 256 1223 116 349 932 1451 1563 984 3 291 1066 1057 757 469 1176 169 410 598 737 1389 99 1360 1191 807 1013 557 1229 1317 1165