Developmentalism or structuralism 2 resurfaced in the 1980s and 1990s to challenge the neo-liberal interpretation of why countries like Japan, South Korea and Taiwan, China developed when they did and proffered industrial policy as an alternative policy agenda to structural adjustment. Industry is viewed by developmentalists as special (see Chapter 2) because unlike other sectors it is subject to increasing returns, technological learning, and skill acquisition that result in productivity increase and higher wages. Industrial policy is defined as an attempt by the state to strategically influence targeted industries. 3 The essence of successful policy is not “picking winners,” but creating winners based on the track record of developed countries. 4 Effective industrial policy thus became a core element of developmentalism, just as structural adjustment was, and arguably still is, the core element of neo-liberalism. 5 Just as structural adjustment is a broad program industrial policy entails the implementation of supportive policies addressing trade, technology, employment, finance, infrastructure, competition, and institutions.