Premium Essay

Industrial Policy for the Twenty-First Century

In: Business and Management

Submitted By Raucer
Words 18461
Pages 74
Faculty Research Working Papers Series

Industrial Policy for the Twenty-First Century Dani Rodrik November 2004 RWP04-047

The views expressed in the KSG Faculty Research Working Paper Series are those of the author(s) and do not necessarily reflect those of the John F. Kennedy School of Government or Harvard University. Copyright belongs to the author(s). Papers may be downloaded for personal use only.


Dani Rodrik Harvard University John F. Kennedy School of Government 79 Kennedy Street Cambridge, MA 02138 (617) 495-9454 Fax: (617) 496-5747 E-mail: This version September 2004

* This paper has been prepared for UNIDO. I am grateful to Francisco Sercovich for his guidance. I am also grateful to Robert Lawrence, Lant Pritchett, Andres Rodriguez-Clare, Andres Velasco, and especially Ricardo Hausmann and Roberto Unger for conversations over the last few years that led to the development of these ideas. None of these individuals should be held responsible for the views expressed here. I also thank Magali Junowicz for expert research assistance.

I. Introduction Once upon a time, economists believed the developing world was full of market failures, and the only way in which poor countries could escape from their poverty traps was through forceful government interventions. Then there came a time when economists started to believe government failure was by far the bigger evil, and that the best thing that government could do was to give up any pretense of steering the economy. Reality has not been kind to either set of expectations. Import substitution, planning, and state ownership did produce some successes, but where they got entrenched and ossified over time, they led to colossal failures and crises. Economic liberalization and opening up benefited...

Similar Documents

Premium Essay

Are Idea’s Such as Mutualism and Industrial Democracy of Relevance to the 21st Century Business Management? Barak Remalli DATE \@ "d MMMM y" 9 April 2015 “Are idea’s such as mutualism and industrial democracy of relevance to the 21st Century business management?” The world as we know it today is in constant advancement of technology and knowledge. In result, economists have developed a myriad of theories that have shaped and changed the way we manage people, time and resources. Organisation theorists such Russell Ackoff, Warren Bennis & Chris Argyris have been advocating the need for a more ‘free-form, humanistic, and democratic organisation’ (Nodoushani & Nodoushani para. 23), whereas theorists with the names of Henry Ford and Frederick W. Taylor oppose such notions. Some theories stand true and thrive in today’s economy, while others have faded as time has progressed. However, are ideas such as mutualism and industrial democracy of relevance to the twenty first Century business management? Is there still social and economic inequality? Or do citizens have natural rights to liberty, justice and property? Perhaps these ideas may have been diminished with time? This paper argues that the business management has had a major shift in its structure due to the concepts and influences of mutualism and industrial democracy. Although these ideas may not be prevalent in its purest form, there have been major refinements in the structuring of management in twenty first century, including the focus on de-layering and a more co-operative environment. Not all......

Words: 1788 - Pages: 8

Premium Essay


...profitable ways. An institution that encourages free entrepreneurship becomes the ultimate determinants of economic growth of a nation. Economic development involves a sustained and concerted action by the community and policy makers to promote the standards of living and economic health of a nation. Some of the actions undertaken involve the development of critical infrastructure, environmental sustainability, social inclusion, and even regional competitiveness to achieve the economic development. Literature review of entrepreneurship and economic development: The industrial economy in the post-world war two periods led to competition among geographical areas to provide tax to attract industrial companies. In the 1990s, the old managerial and industrial economy was replaced by the knowledge and entrepreneurial economy. The rise of companies such as apple, Microsoft and Google exemplified entrepreneurial creation of wealth at the end of twentieth century(Phillips, 2011).The second decade of twenty first century begins virtually with all countries in the world implementing actively the promotion of economic development at state region, regional and national level. What made economic development to be on the focus in the past two decades of twenty first century is globalization and the rise of economic knowledge (Phillips, 2011). Economic development involves the improvement in quantitative economic measures such as employment, income, and...

Words: 2957 - Pages: 12

Premium Essay

Lucky Corporation V Badluck

...Demographic changes are being monitored on traditional and on the existing outbound markets respectively, since these are two markets having various influence factors on the individual exogenous changes which influence development of international tourism. Recent developments in Tourism on the 21st Century Introduction             Tourism is a significant economic factor of nations worldwide. Not only does this help contribute to overall economic gain, but this also enable countries to share their natural resources, gain international recognition and attract prospects for further business transactions. Despite the rise of previous tourism obstacles such as epidemic and terrorism attacks, countries from all over the world attempt to revive their tourism industry through extensive marketing and development. Indeed, the start of the 21st century witnessed various growing tourism trends that other nations followed and applied. Among these are the developments observed in global tourism’s latest visitor attractions. Thus, in this brief essay, the different tourism trends worldwide will be described. How these trends had affected the latest visitor attractions will also be discussed.  Latest Trends Sports Tourism Sports in general have been an important aspect of global culture; it is in the conduction of sports where language and cultural barriers are replaced by the universal eagerness for such activities. Recently, several sports activities are being held in different......

Words: 7427 - Pages: 30

Premium Essay

Academic Standards Sc

...South Carolina Social Studies Academic Standards Mick Zais, Ph.D. State Superintendent of Education South Carolina Department of Education Columbia, South Carolina State Board Approved Document – August 18, 2011 Contents Acknowledgments.......................................................................................................................... iii Introduction .....................................................................................................................................1 Social Studies Standards Page Format .............................................................................................5 Grade-Level Standards for Social Studies Grades K–3 Kindergarten. Foundations of Social Studies: Children as Citizens ...............................................7 Grade 1. Foundations of Social Studies: Families........................................................................12 Grade 2. Foundations of Social Studies: Communities ................................................................17 Grade 3. South Carolina Studies ..................................................................................................22 Grades 4–5 Grade 4. United States Studies to 1865 ........................................................................................29 Grade 5. United States Studies: 1865 to the Present ....................................................................36 Grades 6–8 Grade 6. Early Cultures to......

Words: 38033 - Pages: 153

Premium Essay


...The Trend of Global Capitalism Qiudong Wang All sovereign societies on earth can be put roughly into two categories: developed and under-developed countries. The developed countries, including the United States, Canada, most of west Europe countries, Japan and Australia, are all free capitalist society with a well functioned democratic government and a free market economic system. The under-developed countries, including Russia and east Europe countries, India, China, Mexico, South America and Africa, are relative poor, where capitalism has not yet developed into a healthy form. In Middle East, Israel belongs to welldeveloped camp but the rest goes to under-developed category. In this essay I will discuss the history, the present and the future trend of politic and economic relationship between developed and under-developed countries. My purpose is to develop an intellectual framework, through which one could acquire a comprehensive understanding on basic characteristics of various human societies and their interaction in today’s world: where they were from; where they are now; and where they are likely heading to in future. I will illustrate that there are three different systems in under developed world: the under-developed capitalism, the totalitarian capitalism and the military imperialism of developed countries in Middle East. Developed countries, in dealing with under developed world, are in a very much favored position. They are with full strategic initiatives in the......

Words: 5315 - Pages: 22

Free Essay


...Veblen's subject of examination, the newly emergent middle class arising at the turn of the twentieth century, comes to full fruition by the end of the twentieth century through the process of globalization. In this sense, consumerism is usually considered a part of media culture. Consumerism is also used to refer to the consumerists movement, consumer protection or consumer activism, which seeks to protect and inform consumers by requiring such practices as honest packaging and advertising, product guarantees, and improved safety standards. In this sense it is a movement or a set of policies aimed at regulating the products, services, methods, and standards of manufacturers, sellers, and advertisers in the interests of the buyer. In economics, consumerism refers to economic policies placing emphasis on consumption. In an abstract sense, it is the belief that the free choice of consumers should dictate the economic structure of a society. It was first used in 1915 to refer to advocacy of the rights and interests of consumers but in this article the term consumerism refers to the sense first used in 1960, emphasis on or preoccupation with the acquisition of consumer goods (Oxford English Dictionary). DEVELOPMENT OF CONSUMERISM The development of consumerism represents one of the great changes in the human experience, literally around the world, over the past two or three centuries. The emergence of new types of marketing and advertising is important in itself, as part of......

Words: 1866 - Pages: 8

Free Essay

Boards Rights – Bionic Is Entitled to Appoint One Member to the Board and to Appoint an Observer to Receive All Information Provided to the Board and to Be Present at Meetings of the Board.

...subsequently laid the foundation for the growth of the economy. The geographical location of the region gives an additional advantage because it has ports and navigable estuaries which facilitate trade, plus it is on the trade route between Spain and northern Europe. Because this development was one of the most important of the time in Spain, the Basques developed laws , and began to establish schools for research and development that attracted many European scientists. During the Industrial Revolution, large investments in transportation, communications and schools were made. Entrepreneurs began to modernize traditional industries and new industries such as paper, textile and food and drink were created. The development of the Bessemer process for making steel increased the demand for iron, causing many foreign investors to associate with locals to develop iron ore mines in the Basque Region. The iron and steel industries grew large scale due to the development of the steam engine and the ship industry. The industrial activity grew...

Words: 1573 - Pages: 7

Premium Essay

The Price of Social Responsibility

...The cost of sustainability: the price of social responsibility Gregory A Totty - ORG530 –Business Ethics and Sustainability Colorado State University- Global University Dr. Robert Vega February 24, 2013 Abstract The purpose of the following research is to demonstrate the complex dynamics of costing systems as organizations try to predict those unseen costs that factor so heavily in the success and profitability of a business. The various costing systems are defined with a special emphasis on their ability to accurately predict those costs that are not of the normal operation and production of the company. Recent events in human society have drawn attention to issues that our predecessors could have only dreamed about and would have quickly dismissed. These costing systems are explored as to relevance and the variables are assessed with respect to their impact on the organization as well as the entire industry. Conclusions are made as to the effectiveness of each system with a final argument for relative purpose and application. Finally, qualitative studies reveal new concerns of an unexpected nature that impact the organizations with an infusion from popular social networks that had previously not been considered. The cost of sustainability: the price of social responsibility At the conclusion of the age of manufacturing, citizens of America began to concern themselves with not only the quality of American......

Words: 1423 - Pages: 6

Premium Essay

Industrial Relation as a Field of Study

...INTRODUCTION The term "Industrial Relations" has developed both a broad and a narrow meaning. Originally, industrial relations was broadly defined to include the totality of relationships and interactions between employers and employees. From this perspective, industrial relations covers all aspects of the employment relationship, including human resource (or personnel) management, employee relations, and union-management (or labor) relations. Since the mid-twentieth century, however, the term has increasingly taken on a narrower, more restricted interpretation that largely equates it with unionized employment relationships. In this view, industrial relations pertains to the study and practice of collective bargaining, trade unionism, and labor-management relations, while human resource management is a separate, largely distinct field that deals with nonunion employment relationships and the personnel practices and policies of employers. Both meanings of the term coexist in the twenty-first century, although the latter is the more common. ORIGINS The term "industrial relations" came into common usage in the 1910s, particularly in 1912 upon the appointment by President William Taft of an investigative committee titled the Commission on Industrial Relations. The commission's charge was to investigate the causes of widespread, often violent labor conflict and make recommendations regarding methods to promote greater cooperation and harmony among employers and employees.......

Words: 3064 - Pages: 13

Premium Essay

Pgdm Mba Material Case Study- Cola Wars Continue Coke and Pepsi in the Twenty-First Century

...PGDM/MBA Material: Case Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First Century Home Human Resource Marketing Information system management Images You are visitor # Case Study- Cola Wars Continue: Coke and Pepsi in the Twenty-First Century 110,588 Search This Blog Translate Select Language  ▼ Category Assignment Business Communication Business Environment Business Law Case Study Compensation MAnagement E- Business Summary: "Cola Wars Continue: Coke and Pepsi in the 21st Century” explains the economics of the soft drink industry and  its  relation  with  profits,  taking  into  account  all  stages  of  the  value  chain  of  the  soft  drink  industry.  By focusing on the war between Coca‐Cola and PepsiCo as market leaders in this industry – with a 90% market share  in  carbonated  beverages  –  the  study  analyses  the  different  stages  of  the  value  chain  (concentrate producers,  bottlers,  retail  channels,  suppliers)  and  the  impact  of  the  modern  times  and  globalization  on competition and interaction in the industry. Analysis: It is quite clear that there was a “war" between Coca‐Cola and PepsiCo: not only have they been rivals for entrepreneurship For your Information Formates Human Resource Management Human Resource Mangement Human resource Planning Indian Labour Law Industrial Relation Information system Management International......

Words: 1069 - Pages: 5

Premium Essay

Marijuana Paper

...Marijuana: also known as Mary Jane, reefer, pot, weed, and myriad ever-changing names. Whatever the term, the name is on everyone’s lips as the last five years saw scattered medicinal marijuana clinics located primarily in liberal states gave way to a wildfire movement of decriminalizing marijuana state-by-state. As of this writing, twenty-four states and the District of Columbia have instituted forms of marijuana legalization: twenty allow patients with certain incurable or degenerative and painful conditions to access marijuana for medical purposes, while Washington, Oregon, Colorado, Alaska, and DC have decriminalized marijuana for both medical and recreational purposes (State Marijuana Laws Map, 2016), with possibly as many as fourteen with potential legalization measures on the ballots this November (Rough, 2016). With public opinion shifting so quickly and marijuana becoming increasingly commonplace in American culture (pop and otherwise), it’s hard to imagine that this drug has been largely illegal and controlled in the United States for a century. Proponents of marijuana legalization argue that the initial criminalization of the plant has its roots in racism and capitalism, and that marijuana became the political sacrifice to the looming economic giant that was timber production in the early 1900s in the face of cheaper and more sustainable hemp competition. Criminalization of marijuana simultaneously created another reason to demonize people of color, especially......

Words: 1469 - Pages: 6

Premium Essay

Marijuana Legalization of South America. If marijuana was legal it would give our government more time to look at more important issues, instead of preventing the use and selling of cannabis. Our government could focus more on the War on Terror and prevent harsher drugs from entering the U.S. such as heroin, meth, and cocaine. Our society would completely change; marijuana would be off the streets and would be treated probably. You would see a decrease in marijuana use at a younger age because it would be more accepted in our society. Marijuana can and should be legal because it is taking one step in the right direction for our country. Marijuana’s history shows that it can be used to help people therefore it should be legal. It was used in the early centuries. Marijuana is a green, brown, or grey mixture and is made up of dried leaves and stems. Marijuana’s technical term is Cannabis, but this...

Words: 3834 - Pages: 16

Premium Essay

Olympics Dbq Analysis

...given have shown. The olympics were also used to help countries display their power, feminism, and to create peace among each country. All of these elements that were listed provide to the fierce nature of the olympics. Having documents that display what a majority of the country’s citizens help visual the majority of the world’s view on the games and if they are beneficial. First the olympics helped countries create peace among each other. Wars between the nineteenth and twentieth centuries have divided the world, for instance the cold war, WWI, and WWII. The reason the Olympics helped countries create peace is through the friendly athletic competitions that forced countries to unite together. Furthermore, Pierre de coubertin the founder of the modern Olympics view was to unite and revive the olympics, another view he had is to “reduce the chances of war”( Document 1) and to create ally’s through the olympics. According to...

Words: 878 - Pages: 4

Premium Essay

Karl Marx

...communist principles. Karl Marx’s portrait would hang in every classroom above the old blackboard and his theories were studied and celebrated in every history book, literature book, economics, or any book for that matter. Sociology and Psychology were considered pseudo-sciences under the communist reign and therefore forbidden in schools. As Romanian history books were altered from the truth, describing only his greatest achievements and never the flaws, for the purpose of this project I was rather intrigued to research Karl Marx – I hated him for so many years - and take a really close look at who he actually was, and how he impacted the study of Sociology. I knew that he established the basis of communist ideology, and I have lived for twenty years through the atrocities committed by his followers, but I never really had the interest ( until now) to understand what influenced and drove him into envisioning and writing his proposals for change. Karl Marx was born in 1818 in the German Rhineland (Prussia). He was a philosopher, journalist and economist and even though he produced little that earned him money or recognition during his lifetime, he was obsessed with his work and eventually he was able to accomplish what he always wanted to do: change the world. A very smart child, he studied law in Bonn and Berlin and wrote his PhD thesis in Philosophy. Upon the completion of his doctorate in 1841, Marx hoped for an academic job but because he was already known as a too......

Words: 1176 - Pages: 5

Free Essay


...CHAPTER 1 Italy in the early nineteenth century INTRODUCTION In September 1870, the troops of King Victor Emmanuel II of Italy entered Rome. Italian unification, the bringing together different states of the Italian peninsula under one government, was complete. The Risorgimento, the reawakening of Italy, had reached its climax. However, the creation of the new Italian state was neither inevitable nor had it been planned. Although Italian unification had taken place, there was little enthusiasm for the new state among the Italian people. In 1861, an Italian politician named Massimo d’Azeglio remarked to Victor Emmanuel: ‘Sir, we have made Italy. Now we must make Italians.’ The story of what follows is of how Italy was made, but it is also a story of division and the failure to ‘make Italians’. THE STATES OF THE PENINSULA Towards the end of the eighteenth century the peninsula of Italy was home to a number of states. The Kingdom of Sardinia (Piedmont) From its capital city of Turin, the House of Savoy ruled this relatively poor part of Italy. Despite its poverty, successive rulers built up a strong army and governed with an effective civil service. The island of Sardinia was particularly backward and was sparsely populated. Until 1815, the important port of Genoa was part of the Republic of Genoa. It was politically separate from the Kingdom of Sardinia. Lombardy and Venetia In the 1790s, Lombardy was part of the Austrian Empire. Its capital, Milan, was the second largest city of......

Words: 5605 - Pages: 23