Industrial policy

The Economist’s upcoming debate between Dani Rodrik (Rafiq Hariri Professor of International Political Economy, JFK School of Government, Harvard), and Josh Lerner (Jacob H. Schiff Professor of Investment Banking, Harvard Business School) …  this debate will happen online, and starts on July 12th 2010. – Published on The Economist, July 11, 2010.

Governments around the world are desperate to jump-start economic growth. Having bailed out banks and carmakers, some want to go further and direct public money to other sectors and firms. In June, copying recent efforts from America, Britain, China, France and Korea to boost manufacturing, Japan launched a drive to channel funds to five sectors including cultural industries and infrastructure. Is this a doomed-to-fail resurgence of central planning? Are states ever able to predict the industries of the future? Is it always a mistake for governments to pick winners, or is it, as some people argue, naive to think that industries flourish without state aid in some more or less obvious form? … (full text).

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