The developmental state paradigm and the industrial policy “return”

Abstract

This paper analyses the so-called “return” of developmental policies. We argue thatthis is a result of, at least, three major forces: (i) the emergence of new economic powers,particularly China; (ii) the global financial crisis; and (iii) the lack of credibility of neoliberalpolicies. We use the “Developmental State” framework, contrasting this tradition with theorthodox literature.