ABSTRACT
This chapter examines the design and execution of industrial policy in those less favored countries (LFCs) that participate in regional macroeconomic coordination and free trade associations. Concerns regarding the industrialization of less favored regions that belong to the European Union have motivated interest in industrial policy in LFCs. But the subject has wider importance, since LFCs around the world participate in an increasingly liberal international economic order where free trade, liberalized financial markets, and capital movements impose severe constraints on domestic policies.
