ABSTRACT
Promoting industries and creating jobs, if successful, would boost economic development and thereby support state building. While politicians and bureaucrats are aware of how important industrial development is, they are unaware of how to facilitate it. In the international development cooperation community in developed countries and international organizations, the commonly accepted view until recently was that industrial policy would not work because market failures prevent industrial development from occurring and, hence, it would be too difficult for developing countries, especially current low-income countries, to address the failures without causing serious government failures. Thus, policymakers in developing countries could not receive encouragement or useful suggestions for industrial development from this community.
