Industrial policy has been much maligned as 'interventionism' even as most countries have such a policy (even if its not called that & is more implied that explicit);
so Jostein Hauge is right to tease out five explicit reasons countries might develop & maintain an industrial policy:
Infant industry promotion;
response to market failure(s);
by passing coordination failures;
developing long-term strategic shifts;
national security & industrial autonomy.
#economics
theglobalcurrents.com/p/why-do…
Why do countries need industrial policy?
The case for looking beyond market failuresJostein Hauge (Global Currents)
GeofCox
in reply to Emeritus Prof. Christopher May • • •The 'response to market failure(s)' category is pretty broad, since ALL private investment markets are relatively short-term.
There is no market mechanism that can deal with disasters decades, or centuries in the making, like climate-ecological breakdown; there is no investment market that will direct funds to making the world better decades in the future rather than into relatively quick returns - or to returns that are tiny, but accrue indefinitely to everyone, such as retro-fitting home insulation.
Capitalism IS market failure.
Emeritus Prof. Christopher May
in reply to GeofCox • • •GeofCox
in reply to Emeritus Prof. Christopher May • • •I think you have to take the insight that 'markets do not equal capitalism' a step further. The incentives built into capitalism are anti-market: they incentivise monopoly, elimination of market competition - including stripping potential workers of any means of making a living other than wage-labour - irresponsible exploitation of externalities, regulatory capture, and unlimited private capital accumulation.
Does Google (for example) behave as if it wants a market - or as if wants a monopoly ?