The The Role of Industrial Policy in the BRIC Economies: A Case Study of India, Brazil and China

Abstract

After the very heated debate on industrial policy from the late 1970’s to the mid-1980’s prompted by the success of the East Asian industrial policy practices, the debate collapsed into three decades of neglect. Unexpectedly, however, industrial policy is back on the economic policy agenda and starting to be conceived through a systematic approach that extends beyond market failures. This article contributes to the discussion as it attempts to navigate through the industrial policy debate whilst acknowledging its contribution to the development of emerging market economies, more specifically, India, China and Brazil of the BRIC. All of the BRIC economies, at some stage of their industrialisation have engaged with inward looking policies, more specifically, import substitution policies. This paper, whilst following a critical review format, studies these cases and seeks to identify the implications that the debate, modified in the light of its recent comeback, could have on them.