E15 Second Expert Group Meeting
Reinvigorating Manufacturing: New Industrial Policy and the Trade System
Isabelle Ramdoo
Deputy Head of Programme
Trade and Economic Transformation
Geneva, 4-5 December 2014
Introduction
The industrial policy means the procedures, principles, policies rules and regulations which control the industrial undertaking of the country and pattern of industrialization. It explains the approach of Government in context to the development of industrial sector. In India the key objective of the economic policy is to achieve self-reliance in all sectors of the economy and to develop socialistic pattern of society. The industrial policy in the pre-reform period i.e. before1991 put greater emphasis on the state intervention in the field of industrial development. These policies no doubt have resulted into the creation of diversified industrial structure but caused a number of inefficiencies, distortions and rigidities in the system. Thus during late 70’s and 80’s, Government initiated liberalization measures in the industrial policy framework. The drastic liberalization measures were however, carried out in 1991.
Industrial Policies Prior to 1991
Industrial Policy Resolution, 1948
The first important industrial policy statement was made in the Industrial policy Resolution (IPR), 1948. The main thrust of IPR, 1948 was to lay down the foundation of mixed economy whereby the private and public sector was accepted as important components in the development of industrial economy of India. The policy divided the industries into four broad categories:
(i) Industries with Exclusive State Monopoly: It included industries engaged in the activity of atomic energy, railways and arms and ammunition.
(ii) Industries with Government Control: It included the industries of national importance and so needs to be registered. 18 such industries were put under this category eg. fertilizers, heavy chemical, heavy machinery etc.
(iii) Industries in the Mixed Sector: It included the industries where private and public sector were allowed to operate. Government was allowed to review the situation to acquire any existing private undertaking.
(iv)Industries under Private Sector: Industries not covered by above categories fell in this category.
IPR, 1948 gave public sector vast area to operate. Government took the role of catalytic agent of industrial development. The resolution assigned complementary role to small-scale and cottage industries. The foreign capital which was seen with suspect in the pre-independent era was recognized as an important tool to speedup up industrial development
Introduction
The industrial policy means the procedures, principles, policies rules and regulations which control the industrial undertaking of the country and pattern of industrialization. It explains the approach of Government in context to the development of industrial sector. In India the key objective of the economic policy is to achieve self-reliance in all sectors of the economy and to develop socialistic pattern of society. The industrial policy in the pre-reform period i.e. before1991 put greater emphasis on the state intervention in the field of industrial development. These policies no doubt have resulted into the creation of diversified industrial structure but caused a number of inefficiencies, distortions and rigidities in the system. Thus during late 70’s and 80’s, Government initiated liberalization measures in the industrial policy framework. The drastic liberalization measures were however, carried out in 1991.
Industrial Policies Prior to 1991
Industrial Policy Resolution, 1948
The first important industrial policy statement was made in the Industrial policy Resolution (IPR), 1948. The main thrust of IPR, 1948 was to lay down the foundation of mixed economy whereby the private and public sector was accepted as important components in the development of industrial economy of India. The policy divided the industries into four broad categories:
(i) Industries with Exclusive State Monopoly: It included industries engaged in the activity of atomic energy, railways and arms and ammunition.
(ii) Industries with Government Control: It included the industries of national importance and so needs to be registered. 18 such industries were put under this category eg. fertilizers, heavy chemical, heavy machinery etc.
(iii) Industries in the Mixed Sector: It included the industries where private and public sector were allowed to operate. Government was allowed to review the situation to acquire any existing private undertaking.
(iv)Industries under Private Sector: Industries not covered by above categories fell in this category.
IPR, 1948 gave public sector vast area to operate. Government took the role of catalytic agent of industrial development. The resolution assigned complementary role to small-scale and cottage industries. The foreign capital which was seen with suspect in the pre-independent era was recognized as an important tool to speedup up industrial development
Industrial Policy Resolution of 1948
Industrial Policy Resolution of 1956
Industrial Policy Resolution of 1973
Industrial Policy Resolution of 1977
Industrial Policy Resolution of 1980
The New Industrial Policy of 1991
1991 Policy is the most important catalyst acted in changing the face of the Indian Economic Sector. Hope this PPT can add value to the student fraternity in gaining the important information on New Industrial Policy.
Industrial Policy, 2049 was formulated with the objective of promoting industrial sector.
Long-term Goal of the policy
Silent Features
Major Problems and Challenges
Industrial Policy Resolution of 1948
Industrial Policy Resolution of 1956
Industrial Policy Resolution of 1973
Industrial Policy Resolution of 1977
Industrial Policy Resolution of 1980
The New Industrial Policy of 1991
1991 Policy is the most important catalyst acted in changing the face of the Indian Economic Sector. Hope this PPT can add value to the student fraternity in gaining the important information on New Industrial Policy.
Industrial Policy, 2049 was formulated with the objective of promoting industrial sector.
Long-term Goal of the policy
Silent Features
Major Problems and Challenges
What prospects, instruments and challenges for African economies?
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Deputy Head of Programme, Economic Transformation and Trade, ECDPM
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This presentation illustrates the"development dimensions" of the CARIFORUM-EC Economic Partnership Agreement (EPA), which was concluded on December 16, 2007, and signed in October 15, 2008.
Liberalization is a very broad term that usually refers to fewer government regulations and restrictions in the economy.
Privatization means transfer of ownership and/or management of an enterprise from the public sector to the private sector .It also means the withdrawal of the state from an industry or sector partially or fully.
Globalization implies integration of the economy of the country with the rest of the world economy and opening up of the economy for foreign direct investment by liberalizing the rules and regulations and by creating favorable socio-economic and political climate for global business.
Unpacking local content requirements in the extractive sectorIsabelle Ramdoo
The E15 Initiative Expert Group on Trade and Investment in the Extractive Sector commissioned a paper on local content requirements. This presentation outlines the key elements of the Paper and unpacks the key characteristics of local content requirements.
These highlights from the OECD Investment Policy Review of Myanmar were presented at launch events in Myanmar on 1 and 4 March 2014. Myanmar's Union Minister of National Planning and Economic Development, Dr. Kan Zaw, praised the comprehensive nature of the report and said that it would help to guide the government in solidifying investment climate reforms and in promoting more and better investment.
Find out more at http://www.oecd.org/daf/inv/investment-policy/investment-policy-reform-in-myanmar.htm
LPG stands for Liberalization, Privatization, and Globalization. India under its New Economic Policy approached International Banks for the development of the country. These agencies asked the Indian Government to open its restrictions on trade done by the private sector and between India and other countries.
The ppts contain topics related to Introduction of Global Strategic Management. It also includes multiple choice questions related to global strategic management
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AU Permanent Mission in Brussels
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28 September 2016, Pre-conference workshop at the Annual German Agricultural Economics Conference (GEWISOLA) 2016.
This presentation by Morris Kleiner (University of Minnesota), was made during the discussion “Competition and Regulation in Professions and Occupations” held at the Working Party No. 2 on Competition and Regulation on 10 June 2024. More papers and presentations on the topic can be found out at oe.cd/crps.
This presentation was uploaded with the author’s consent.
This presentation, created by Syed Faiz ul Hassan, explores the profound influence of media on public perception and behavior. It delves into the evolution of media from oral traditions to modern digital and social media platforms. Key topics include the role of media in information propagation, socialization, crisis awareness, globalization, and education. The presentation also examines media influence through agenda setting, propaganda, and manipulative techniques used by advertisers and marketers. Furthermore, it highlights the impact of surveillance enabled by media technologies on personal behavior and preferences. Through this comprehensive overview, the presentation aims to shed light on how media shapes collective consciousness and public opinion.
Have you ever wondered how search works while visiting an e-commerce site, internal website, or searching through other types of online resources? Look no further than this informative session on the ways that taxonomies help end-users navigate the internet! Hear from taxonomists and other information professionals who have first-hand experience creating and working with taxonomies that aid in navigation, search, and discovery across a range of disciplines.
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f you offer a service on the web, odds are that someone will abuse it. Be it an API, a SaaS, a PaaS, or even a static website, someone somewhere will try to figure out a way to use it to their own needs. In this talk we'll compare measures that are effective against static attackers and how to battle a dynamic attacker who adapts to your counter-measures.
About the Speaker
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Industrial Policies in a Changing World: What Prospects for Low-Income Countries?
1. What Prospects for Low-Income
Countries?
E15 Second Expert Group Meeting
Reinvigorating Manufacturing: New Industrial Policy and the Trade System
Isabelle Ramdoo
Deputy Head of Programme
Trade and Economic Transformation
Geneva, 4-5 December 2014.
Industrial Policies in a
Changing World
2. 1. Background
2. Industrial policies in LICs
• What distinguishes LICs from other developing countries?
• What has worked? Why and under what conditions?
3. Industrial and trade dynamics: What is changing?
4. What then for LICs?
Structure of Presentation
Page 2ECDPM
3. The Paper focuses on the specific case of low-income countries,
zooming on some specific cases where targeted industrial policies
have been used to promote specific economic sectors.
In particular, the Paper looks at particular policies taken to address:
Market failures (pharmaceuticals in Bangladesh);
Economic diversification and productivity gaps notably through
industrial upgrading (Ethiopia and cut flowers and RMG in
Bangladesh) and;
Economic diversification (Mozal in Mozambique)
1. Background
ECDPM Page 3
4. 1. Domestic policy challenges: experience of industrial
policy has generally been uneven and inconclusive due to:
Systemic factors: Cost of addressing market failure higher and
ability of public sector to address these is more limited;
Institutional/ governance weaknesses; poor private-public
coordination;
Structural factors: Low-income, under-diversified, under-
industrialized; significant productivity gaps; weak private sector;
Significant weaknesses in hard and soft infrastructure and
business/ investment climate; competitiveness is a major challenge
although low labour cost is an advantage; access to finance
2. Industrial policies in LICs:
a. Key features to bear in mind
ECDPM Page 4
5. 2. “Policy space paradox” :
• In the multilateral trading system, Policy space is NOT an issue:
LICs have a lot of flexibility to undertake policy measures. Problem
is how best to use such policy space;
• But most often domestic policies are influenced by external
pressures (eg conditional loans at IMF, WB; donor driven agenda
etc)
• LICs have rarely used up all available space to conduct industrial
policies; Those who have, have never been challenged under the
DS at WTO;
• With increasing bilateral FTAs, they are themselves now
constraining their policy space
ECDPM Page 5
6. • In the specific case of LICs, the policy paradigm is still driven by
the need to develop economic activities around labour/ resource
intensive activities with the view of broadening the economic
structure (incl for local consumption) and improving the
competitiveness of exports. Why? Because industrial deficit large!
• As such: objectives and focus of industrial policies and the need
to overcome certain gaps/ constraints are somewhat guided that
that logic of “take off” and “catching up”.
• Policies guided by (i) need to acquire industrial capabilities; (ii) move
up the value chain; (iii) promote and develop new industries
• Most popular policies remain (new forms of) ISI, EOI and RBI types
of policies, although new global challenges imperatives certainly call
for more innovation and technological-based policies
b. What has worked? Why and under what
conditions?
ECDPM Page 6
7. 1. Bangladesh: Pharmaceutical sector (generic drugs)
• Primary objective (1982): Public health to address market failure
preventing provision of affordable medicines for the poor;
• Host of measures to encourage local production and restrict imports
of certain drugs by MNEs; Price regulations; Transfer of know-how
and skills from foreign to local firms; Training of local cadres;
• Successful: covers 97% domestic demand & exports to 85 countries
• Overtime: some restrictive market conditions relaxed
Key factors of success:
• Policies framed in a way to limit rent capture (price caps & market
control)
• technological learning, transfer of know how and skills upgrading
• TRIPS waiver for LDCs conferred production advantages
Potential challenges:
• Protection is not time bound; Expiry of TRIPS waiver in 2016
Examples of ISI-types of policies
ECDPM Page 7
8. 1. Cut flower in Ethiopia
• Incentives under export promotion strategy in four areas:
• Land acquisition: Govt-owned land leased at cheap rates;
• Low-interest rate long-term credit
• Subsidized key logistics (namely cargo space if using national
carrier and post-harvest cold chains)
• Upgrading capabilities, through strategic partnership with Dutch
government
Key factors of success:
• Targeted support through some sort of cluster approach (close to
airport)
• Government acted as a facilitator by removing key barriers
• Subsidies contributed to cost advantage compared to regional rivals
• Market access to EU DFQF due to EBA
• Technological capabilities and partnership were key to attract and
retain investment
EOI-type of policies
ECDPM Page 8
9. 1. Aluminum smelting in Mozambique
• RBI is quite specific: favourable resource endowment does not
translate automatically into competitive advantage in RBI
• Mozambique developed aluminum smelting without producing a
single tonne of Bauxite (imported mainly from Australia). Objective
economic diversification from agriculture
• Yet, largest FDI in history of independent Mozambique
Factors of success:
• Political will!
• Cheap inputs – essentially electricity and provision of logistical
infrastructure (railways and port)
• Fiscal and financial incentives
• Strategic Joint venture combined with market factors (initially
secured market for aluminum in Japan thanks to JV with Mitsubishi
• Is it really a success??? Quite an enclave sector, little linkages
created, limited employment
RBI type of policies
ECDPM Page 9
10. • Changing nature of industries (increasingly driven by global buyers
and suppliers) and trade frameworks (proliferation of FTAs, in partic
among big economies) pose additional challenges to LICs;
Fragmentation of production structures led to (i) global dispersion
of activities and (ii) shift of invt focus from country to value chain
• Few are well integrated in GVCs; Those who are, are trapped at the
lower-rung of the value ladder;
• GVCs: Linking to GVCs require a different logic. Moving from
industrial policies from the prism of government’s responsibility to
diversify to one that focuses on firms and how to accompany them
to remain competitive, upgrade and evolve?
• Trade dynamics – has been discussed thoroughly but mega
regionals will change the rules of the game and have significant
impact on LICs
3. Industrial and trade dynamics: What’s changing?
ECDPM Page 10
11. • How are LICs prepared to adopt this paradigm shift in the way they
put forward industrial policies? Advantage of LICs : late comers
(potential to leapfrog); disadvantage of LICs: late comers (getting
more complicated)
• Important to match policies against performance: some forms of
support need to be time bound with clear sunset clause for
ineffective ones
• Not a question of policy space
• Rather a question of:
1. policy scope: using existing policy breadth and depth in an
effective and creative manner to broaden support and which are
adapted to the new global challenges;
2. Policy mix: “hard” vs “soft”; “vertical” vs “horizontal”
3. Policy shift: trade policy is now dictating industrial policy, no
longer the other way round. But in a smart way
4. What then for LICs?
ECDPM Page 11
12. • The question of inclusiveness is important – if industrial
development is driven by firms, then policies need to be guided by
firms. Addressing coordination problems with private sector is key
• LICs are not expected to be LICs forever:
Needs an adaptive strategy: how can policy evolve to move
away from LICs ‘logic’ i.e from border restrictions to policies to
build markets and capabilities
Needs different sets of logic that guide objectives and focus of
industrial policies (eg. Policy space start to become real issues;
less flexibility etc);
ECDPM Page 12