Why The Global South Needs An Industrial Policy
For forty years, the countries of the Global South were told that economic planning was an error. The state was to retreat, tariffs were to fall, public firms were to be privatised, and investment was to be entrusted to those who move money across borders at the speed of a keystroke. Development would arrive through comparative advantage: each country should sell what it already had and buy what others had learned to make. The result is visible from Harare to Jakarta. Countries rich in minerals, fertile land, and young workers remain trapped at the least rewarding end of global value chains, exporting raw materials while importing the higher-value goods made from them.