World Bank Adopts Industrial Policy After Decades of Opposition
The World Bank has officially reversed its stance on industrial policy, acknowledging a significant error in judgment that persisted for over thirty years. Historically, the institution disparaged government interventions such as tariffs and subsidies, advocating instead for unregulated market operations following a pivotal 1993 report on East Asian growth. However, facing a global resurgence in state-led economic strategies aimed at fostering growth, the bank now embraces these policies. This shift marks a major departure from the neoliberal consensus that dominated international development advice since the early 1990s. The change reflects a pragmatic response to the increasing popularity of industrial policy among governments worldwide seeking to stimulate their economies through targeted support rather than pure free-market mechanisms.
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World Bank Adopts Industrial Policy After Decades of Opposition
The World Bank has officially reversed its stance on industrial policy, acknowledging a significant error in judgment that persisted for over thirty years. Historically, the institution disparaged government interventions such as tariffs and subsidies, advocating instead for unregulated market operations following a pivotal 1993 report on East Asian growth. However, facing a global resurgence in state-led economic strategies aimed at fostering growth, the bank now embraces these policies. This shift marks a major departure from the neoliberal consensus that dominated international development advice since the early 1990s. The change reflects a pragmatic response to the increasing popularity of industrial policy among governments worldwide seeking to stimulate their economies through targeted support rather than pure free-market mechanisms.
WSJ.com: Economy