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Industrial Planning in a Human Development Framework - Experiences in Asia

Indian Journal of Industrial Relations

Volume 54 Issue 1

Published: 2018
Author(s) Name: Sarthi Acharya and Santosh Mehrotra | Author(s) Affiliation: Visiting Professor at Institute of Human Development, Delhi.
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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.

Keywords: N.A.

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