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This paper aims to analyse the feasibility of the return of industrial policies to foster development as a post-neoliberal alternative in the era of globalisation. With Partido dos Trabalhadores government, Brazil was considered one of the main countries in the Pink Tide. The government plan promised to foster industry modernisation and reduce poverty by bringing the state back into the picture to coordinate a project between public institutions, private sector and civil society in order to improve the country’s position in the global economy. This paper thus analyses PT industrial policies to investigate the characteristics of a post-neoliberal development model in Latin America as an alternative to neoliberalism.
Article (digital)
Global production and trade is significantly organised by Transnational Companies (TNC). In this article, I will argue that even if one considers industrial development as a proxy for development or leading to development in a broad sense, the prospects for ‘progress’ in contemporary capitalism are very limited. I will revisit theory, method, and proxies for ‘development’ and ‘industrial development’, as used by Arrighi and Drangel (1986) and Arrighi et al. (2003). I will adapt their approach for a core-periphery typology in the EU, and use it in order to estimate industrial convergence compared with convergence in ‘development’ (in EU language: convergence and cohesion). Furthermore, I will suggest additional proxies to estimate (spatial) politico-economic power in the hierarchy of TNC capitalism. I will close with concluding remarks on policies, from a dependency perspective.
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EU, core-periphery, uneven development, commodity chains, manufacturing
Since the global economic and financial crisis, industrial policy has enjoyed a stunning revival. In the face of the structural imbalances in the European Union, different sides have proposed industrial policy as a way to overcome the crisis and to reduce unequal development. Left forces elaborated concepts of ‘progressive’ industrial policy, mainly with a post-Keynesian orientation. However, does this orientation make industrial policy genuinely progressive? After introducing the key rationales and proposals, this paper makes three specific contributions to the lively current debate on progressive industrial policy: (1) adding the dimension of politics, power relations and hegemony to the discussion of progressive industrial policy; (2) starting the process of substantiating buzzwords of the current debate, such as ecological sustainability, labour and democratic participation, and gender-sensitivity and (3) taking into account the question of core-periphery relations within the EU and what can be learned from debates on the Global South. We conclude that progressive industrial policy may constitute a remedy for Europe, but that the development of a genuinely progressive industrial policy on a regional scale faces multiple difficulties. In many respects, the national and sub-regional level still seems to leave more room for manoeuvre than on the EU level.
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progressive industrial policy, Euro crisis, uneven European development, social-ecological transformation
Regarding the issue of industrial policy in the 21st century, we are facing fundamental changes, including the servitisation of industry, the potential in upskilling and upgrading, the process of digital transformation, and the evolution of value webs and complex business ecosystems. In industry within the EU, we can identify internal differences: in principle, the EU is divided into a core and a periphery or, possibly, several peripheries.
How will EU member states cope with these challenges? How is the EU-level industrial policy strategy likely to affect member states’ (relative) positions? Is there policy-level differentiation? If so, how does it work; if not, what are the implications?
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industrial policy, European Union, servitisation of industry, Industry 4.0, manufacturing
Review-Essay:
Stephan Bierling: Nelson Mandela: Rebell, Häftling, Präsident. München: C.H. Beck, 2018.