Rebuilding the Ladder? Contemporary Contests Over Industrial Policy

100%

Global Policy

SPECIAL ISSUE The New Washington Consensus and the Changing Landscape of International Economic Law and Policy

Rebuilding the Ladder? Contemporary Contests Over Industrial Policy

ABSTRACT

Does the greater embrace of industrial policy globally signal the emergence of a New Washington Consensus? We show that the multiplication of industrial policies, while consequential, signals neither normalisation nor consensus. Rather, industrial policy is increasingly the object of contestation over norms and practices of state interventionism. To substantiate our argument, we first analyse two competing attempts to articulate hegemonic visions of industrial policy, development, and world order: a 'conservative' vision formulated by the WTO, OECD, World Bank, IMF, and a 'transformative' project led by Southern powers through the G20. We then investigate whether developing countries possess greater industrial policy space. While some ideational and legal constraints have been loosened, a state's capacity to autonomously design and implement industrial policy remains shaped by its relative position within global financial and monetary hierarchies, its insertion into global supply chains, and its strategic positioning vis-à-vis emerging geopolitical competition. Rates of policy adoption and policy tools are, therefore, diverging. Advanced economies extensively deploy industrial policy with relative ease, geostrategically important emerging economies enjoy selective flexibility to pursue industrial policy, yet low-income countries are at risk of further marginalisation. This 'three-tiered' hierarchy is both a reflection and an outcome of contestation over industrial policy.

One | Towards a New Global Consensus on Industrial Policy?

Policy Implications

Two | Political Struggles Over the Global Governance of Industrial Policy

Two point one | WTO

Two point two | OECD

Two point three | IMF and World Bank

Two point four. G twenty

Three point one. Industrial Policy Space, Constrained No Longer?

Three point two. Financial and Monetary Constraints on Industrial Policy

Three point three. Combined Industrial Policy in an Age of Turbulent Geopolitics

Four | Rebuilding the Ladder? Industrial Policy in a Contested Global Order

Conflicts of Interest

Data Availability Statement

Overview

The paper investigates the rise of industrial policy worldwide and its implications for international economic norms. It argues against the normalization of industrial policy, emphasizing ongoing contestation over state interventionism among key global actors.

Key Points

1The resurgence of industrial policy highlights divisions between advanced and developing economies
2Different global governance institutions advocate varying visions of industrial policy
3Developing countries face challenges in implementing industrial policies due to global hierarchies
4A contested landscape shapes the effectiveness and acceptance of state-led industrial strategies
5Emerging economies may gain policy space, but low-income countries risk further marginalization.

Details

Authors: Ilias Alami, Jack Taggart, Tom Chodor
Category: Government and Policy

PDF
Guidelines for the Motu Proprio Review of Mergers and Acquisitions in Digital Markets
This document provides guidelines issued by the Philippine Competition Commission for the review of mergers and acquisitions in digital markets, aimed at ensuring competition and preventing anti-competitive practices.
PDF
PHILIPPINE COMPETITION COMMISSION
This document outlines the guidelines for the motu proprio review of mergers and acquisitions in digital markets by the Philippine Competition Commission, detailing legal justifications, indicators for potential competition issues, and examples of transactions that may require review.
PDF
Unclear by Design: Strategic Ambiguity in Ireland's Military Neutrality Policy
This paper analyzes Ireland's military neutrality policy, highlighting how strategic ambiguity in its articulation allows for flexibility and aligns with varying domestic and international expectations while avoiding the costs of explicit commitments.
PDF
Finance Minister Nicola Willis warned New Zealand not to exp
Finance Minister Nicola Willis warned New Zealand not to expect a lolly scramble in Budget 2026, and anyone holding out hope for an election-year surprise may come away disappointed. The Government’s Budget,
PDF
Tax Declaration of Real Property
This document serves as the tax declaration for a real property in the Philippines, detailing ownership, assessed value, and tax payment status. It includes relevant information about property classification and past ownership.