n African Journal of Science, Technology, Innovation and Development - Industrial Policy and Development. The Political Economy of Capabilities Accumulation, Mario Cimoli, Giovanni Dosi, and Joseph E. Stiglitz (Eds.) : book review

Abstract

Is it realistic to erase the words 'industrial policies' from our dictionaries, as economists following the (neo-) liberal tradition argue? Has 'globalization' brought about convergence of income growth and technological capabilities of countries? What are the commonalities in the processes of accumulation of technological capabilities and the transformation of organization of production? Should developing countries still nurture infant industries and if so, what models are applicable? These are some of the provocative questions addressed in this massive book. The authors' approach marks a major shift from the dominant market-centred view which regards industrial policies "bad words" not to be spoken by "respectable people", and argues persuasively for a more pragmatic recognition that successful industrializing countries have, in various ways and to differing degrees, all intervened into industry and market. The acknowledgment of the failure of the Washington Consensus and a growing understanding of the role accumulation of economically applicable knowledge and technological capabilities play in the processes of economic development provide the tenets for a fresh look on a rather old debate.