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Tristan Reed argues that industrial policy can successfully target key sectors for growth, despite the debate on governments’ ability to “pick winners.” His essay highlights that governments can identify tradable sectors where public investment drives economic growth, focusing on those that are either highly productive or aligned with existing technologies and offer expanding markets. For developing countries, this strategy is particularly valuable. Export promotion agencies play a key role in coordinating efforts, offering a cost-effective and trade-compliant alternative to protectionism. Many nations have adopted this approach in their development strategies.
Image courtesy of interviewee. October 14, 2024
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