ABSTRACT
Interpreting select political economy of development literature on governance understood as industrial policy, state-business institutions, and power politics, the chapter suggests that business-challenging and business-supporting states with public–private institutional capacity and vulnerable ruling elites enabled “catching up” during the Cold War (1948–1991). What it takes domestically to upgrade industrially in the Global South in the post–Cold War environment of global value chains and network governance is less clear. The launch of China’s ‘Made in China 2025’ industrial plan has taken the state-market debate to a new level where trade wars are escalating, risking a new Cold War between the United States and China.
