Indian Journal of Industrial Relations: Economics & Social Dev.

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Industrial Planning in a Human Development Framework–Experiences in Asia


Affiliations
1 Institute of Human Development, Delhi, India
2 Nehru University, New Delhi, India
     

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A pro-active industrial policy in contrast to a purely market-led approach is central to achieving success in industrialization, economic growth and poverty reduction. Experiences of mainly China, South Korea, Malaysia, and to some extent, Taiwan suggest that governments played a central role in directing investments, promoting/protecting national industries and fostering R&D before they became mature economies. Evidences from Thailand and Vietnam supplement the point. South Asian countries having weak and uncertain industrial policies have not made any significant headway. Industrial policy alone is not sufficient for an industrial transformation. A sound educational and skill development policy to create human capital is equally important for success. The paper explains why most South Asian and Latin American and sub- Saharan African economies have experienced lesser success compared to East Asian economies.
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  • Industrial Planning in a Human Development Framework–Experiences in Asia

Abstract Views: 310  |  PDF Views: 1

Authors

Sarthi Acharya
Institute of Human Development, Delhi, India
Santosh Mehrotra
Nehru University, New Delhi, India

Abstract


A pro-active industrial policy in contrast to a purely market-led approach is central to achieving success in industrialization, economic growth and poverty reduction. Experiences of mainly China, South Korea, Malaysia, and to some extent, Taiwan suggest that governments played a central role in directing investments, promoting/protecting national industries and fostering R&D before they became mature economies. Evidences from Thailand and Vietnam supplement the point. South Asian countries having weak and uncertain industrial policies have not made any significant headway. Industrial policy alone is not sufficient for an industrial transformation. A sound educational and skill development policy to create human capital is equally important for success. The paper explains why most South Asian and Latin American and sub- Saharan African economies have experienced lesser success compared to East Asian economies.

References