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industrial clusters

What Industrial Policy?

Keijiro Otsuka's picture

Recently, economists began proposing the strategy for industrial development in low-income countries.  But there are few explicit recommendations as to what role governments should play in fostering industrialization.  Related question is whether we can draw useful lessons from successful experience of industrial development in East Asia for other regions, such as sub-Saharan Africa (SSA).

The paper entitled “A Cluster-Based Industrial Development Policy for Low-Income Countries” (Policy Research Working Paper 5703) proposes an industrial policy consisting of four pillars of recommendations based on roughly 20 case studies of industrial clusters in Asia and sub-Saharan Africa.