Philippine industrial policy? Why not?

Abstract

Recent changes in trade policies in developed countries are sparking new interest in industrial policy programs. Among developing countries, failures against expected outcomes of structural adjustment programs in Latin America and Africa versus the perceived development successes of East Asia generate lessons about how different configurations of industrial policy can be more effective. This overview paper presents a definition of industrial policy and surveys the arguments for and against industrial policy. In the Philippine context, the consideration of industrial policy is a contravention of the state project since the 1980s to rely on an open trade regime as a key pillar of a development strategy. In the last decade, however, numerous legislative initiatives have sprung up to support industrial policy interventions. The papers in this volume represent updated thinking about industrial policy challenges and opportunities as they apply to the Philippine situation.

JEL classification: O25, O24, P11