Industry policy in East Asia

Abstract

This commentary examines the future of industry policy in those countries of East Asia where it has a track record of apparent success. Particular attention is given to the attitudes of the policy-making elite in the aftermath of the Asian Crisis. The author judges that the priority given by regional governments to industrial development and their confidence in state-assisted industrialization is undiminished. At the same time, there is broad recognition of the need to take the WTO and greater global business integration fully into account. The consequence is likely to be changes in the mechanisms of industry policy, but not to the important place given to industry policy in ‘developmental’ states.