ABSTRACT
This chapter identifies the key features of new developmentalism including industrial policy. It reviews the post-developmentalist case for industry as the key driver of catch-up growth. The legitimate neoliberal concern is that putting protection in place immediately creates vested interests. Competition policy was not as is conventionally understood i.e. putting effective anti-trust institutions and organizations into place. The financial system was tightly controlled and subordinated to the needs of industrial capital and extensive use was made of directed credit. Physical infrastructure was not much different either as measured by the population intensity of variables like telephones or railroads. Development pessimists argue that there has been an asymmetrical closure of policy space which has blocked prospects for catch-up growth. Structural adjustment policies include enforced trade, investment and capital market liberalizations in the context of financialization. The rise in commodity prices is another market channel through which premature deindustrialization could have been mediated.
